[F. PUB26-169 Consider recommending adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute a contract with Power Costs Inc., for the Energy Trading and Risk Management (ETRM) Software, a Software as a Service (SaaS), for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (RFP 9003 - awarded to Power Costs Inc., in the five (5) year not-to-exceed amount of $2,891,537.00).]

UNANIMOUSLY. NOW, WE WILL START WITH ITEM F. >> GOOD MORNING. PB CHRIS, THE ASSISTANT GENERAL MANAGER OF DME. AND I WILL ANSWER YOUR QUESTION. HOPEFULLY.

>> OH NO. >> OH. >> I PULLED THE WRONG ONE.

>> WELL, WE CAN TALK ABOUT IT ANYWAY. IT'S PRETTY EXCITING STUFF.

>> I DID. >> THE ENERGY TRADING RISK MANAGEMENT SOFTWARE.

>> YES SIR. >> I THINK SO, YEAH. >> MY APOLOGIES SIR. NO PROBLEM.

PICK THE WRONG NUMBER. NO PROBLEM. >> OKAY. THIS WILL ENTERTAIN A MOTION FOR APPROVAL OF ITEM F. DID YOU WANT TO PULL A DIFFERENT ITEM? WE COULD

PROBABLY CORRECT THAT RIGHT NOW. >> I HAD ITEM N OKAY. >> YEAH, BUT OKAY.

>> AND THAT WAS THE ONLY ONE THAT YOU WANTED. >> YES.

>> OKAY. >> SO I MOVE. >> APPROVAL OF F.

>> WE HAVE A MOTION A SECOND. ALL IN FAVOR, SAY AYE. AYE. MOTION CARRIES UNANIMOUSLY. AND

[N. PUB26-186 Consider recommending adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or their designee, to execute a solid waste disposal contract with Parker Waste Services, LLC providing for delivery of guaranteed tonnage to the landfill in exchange for a discount disposal fee; and providing an effective date.]

NOW TO ITEM N, AS IN NANCY. >> GOOD MORNING, BRENDA HANEY, SOLID WASTE DIRECTOR HERE. TO

ANSWER YOUR QUESTION. >> YES, MA'AM. I HAD PULLED THE ITEMS ON THIS VERY SUBJECT AT OUR LAST MEETING, WHICH WE DIDN'T HAVE BECAUSE WE LACKED QUORUM. DID HAVE A NICE DISCUSSION WITH YOUR ENGINEER WHO WAS HERE IN YOUR PLACE, BUT I NOTICED THAT THE. AMOUNT OF THIS PARTICULAR ITEM FOR PARKER WASTE SERVICES WAS THAT 60,000 TONS. DID I READ THAT CORRECTLY?

>> SIX. IT'S A MUCH SMALLER TONNAGE. YES, SIR. >> OKAY. WELL, BECAUSE IT EXCEEDED THE AMOUNT IN THE EMAIL RESPONSE YOU HAD FOR MY QUESTION LAST TIME. SO I MISREAD THAT. SO I GUESS I REALLY DON'T HAVE A QUESTION, BUT I WOULD LIKE YOU TO EXPLAIN FOR THE BENEFIT OF THE REST OF THE PUBLIC UTILITY BOARD MEMBERS, WHAT IT IS YOU DO WITH THESE CONTRACTS AND WHY YOU HAVE THEM EVERY YEAR. AND YOU KNOW HOW THAT ALL WORKS, BECAUSE ALTHOUGH I'VE PROBABLY APPROVED THESE ON A CONSENT AGENDA BEFORE, I DIDN'T REALLY UNDERSTAND EXACTLY WHAT IT WAS YOU GUYS WERE DOING OR WHY YOU WERE DOING IT. SO WHICH IS WHY

I ASKED THE QUESTION. >> SO THERE ARE A TOTAL OF SIX THIS YEAR THAT WE ARE ISSUING.

YOU'VE GOT FIVE OF THEM IN FRONT OF YOU. I THINK WITH THIS AGENDA, THESE ARE WHAT WE REFER TO AS PREPAY CONTRACTS. SO WE ESTABLISH ESSENTIALLY A FLOOR TIPPING FEE, WHICH IS BELOW OUR

[00:05:04]

ACTUAL GAIT RATE AND A SPECIFIED TONNAGE ANNUALLY THAT WE ARE COMFORTABLE AWARDING TO WASTE HAULERS. SO WE'RE GOING TO GET THE TONNAGE. WHAT THIS DOES IS GUARANTEE THEM AND LOCK THEM INTO A CONTRACTED PRICE. THEY PAY US FOR THAT TONNAGE AT THEIR GAIT RATE OR THE TIPPING FEE THAT THEY BID. AND, AND WE, THEY PAY US FOR THAT, WHETHER THEY BRING US THAT TONNAGE OR NOT. SO IF THEY BID 50,000 TONS AND BRING US 40,000 TONS, THEY'RE PAYING FOR THE 50,000 TONS. WE ARE GUARANTEED THAT REVENUE STREAM. IT DOES PROVIDE US AN ADDED BENEFIT OF ENSURING A BASE TONNAGE, WHICH ALLOWS US TO KIND OF PREPARE FOR WHAT WE ARE RECEIVING ANNUALLY. AS FAR AS A THROUGH THE GATE TONNAGE, SO THAT WE CAN MAKE SURE THAT WE'VE GOT RESOURCES FOR THAT.

IT ALSO DOES. AND I THINK YOU HAD A QUESTION AND SOME CONCERNS ABOUT COMPACTION RATE.

ANYTIME YOU CAN GET KIND OF A SPECIFIED TONNAGE AND WE CAN KIND OF CONTROL THAT VOLUME, THEN THAT ALLOWS US TO DRIVE THAT IN PLACE DENSITY UP ANNUALLY.

>> SO SO IF THESE SIX COMPANIES ORGANIZATIONS EXCEED THE TONNAGE UNDER THIS CONTRACT, DO

THEY GO BACK TO PAYING THE REGULAR RATE. >> THEY GO BACK TO PAYING THE

GATE RATE? THAT'S CORRECT. >> OKAY. SO DO WE KNOW WHAT OUR COMPACTION RATE IS?

>> IT WE. DO. AND IT VARIES. IT WILL VARY EVERY DAY. IT'LL VARY THROUGHOUT THE DAY. WE HAVE A TARGET OF ABOUT 1,400 POUNDS PER CUBIC YARD. IS THE GOAL THAT WE'RE TRYING TO ACHIEVE.

YOU ALL APPROVED A CONTRACT BACK WITH CARLSON WHICH IS AN ELECTRONIC MONITORING SYSTEM.

SO WE HAVE A SCREEN ON THE PIECES OF EQUIPMENT THAT ARE ON THE WORKING FACE EVERY DAY THAT SHOWS THEM WHEN THEY HAVE ACHIEVED THAT COMPACTION RATE, AND THEN THEY CAN MOVE ON TO ANOTHER PART OF THE WORKING FACE TO TRY TO DRIVE THAT COMPACTION UP. AND THAT NUMBER

IS GOING TO GO UP AND DOWN. THERE'S A NUMBER OF THINGS THAT. >> YOU'RE DOING THIS ON AN ANNUALIZED BASIS. DO YOU HAVE KIND OF AN ANNUALIZED NUMBER THAT YOU WOULD TYPICALLY EXPECT

VARIES. >> VERY DRY YEARS HURT US BECAUSE THE WASTE IS VERY DRY AND THEN WE DON'T GET THE BENEFIT OF THAT ADDED MOISTURE. I DON'T REMEMBER WHAT THE I DON'T RECALL OFF THE TOP OF MY HEAD WHAT IT WAS LAST YEAR, BUT WE ARE PRETTY CLOSE TO THAT

1,400 POUNDS PER CUBIC YARD. >> POUNDS PER CUBIC FOOT. SO HOW DOES THAT TRANSLATE TO TONS?

>> WELL, I MEAN, WE CAN DO THE CONVERSION BACK THE OTHER WAY. SO BUT WE LOOK AT THAT POUNDS PER CUBIC YARD, WE PUT APPROXIMATELY 400,000 TONS ANNUALLY IN THE LANDFILL, ROUGHLY. AND WE'RE USING A FEW HUNDRED CUBIC YARDS OF AIR SPACE. I HATE TO QUOTE AN EXACT

NUMBER BECAUSE I DON'T HAVE IT IN FRONT OF ME. >> WELL, THAT'S OKAY, I'M JUST LOOKING FOR KIND OF A GENERAL OVERVIEW, MORE OR LESS FOR THE REST OF THE MEMBERS OF THE BOARD WHO WEREN'T PRIVY TO MY CONVERSATION WITH YOUR ENGINEER ENGINEER. SO THE CITY OF DENTON PROVIDES, I PRESUME, THE BULK OF THE MATERIAL YOU RECEIVE AT THE LANDFILL.

>> WE ARE THE TONNAGE THAT WE HAUL WITH OUR TRUCKS IS ABOUT 150,000 TONS PER YEAR. THAT NUMBER IS STEADILY GROWING WITH THE INCREASE IN POPULATION AND BUSINESSES COMING IN. BUT THAT'S ABOUT WHAT WE DID. LAST YEAR WAS ABOUT 150,000 TONS, SO A LITTLE BIT LESS THAN WHAT

USED TO BE ABOUT HALF OF WHAT WE WERE DOING. >> OKAY, WELL, THAT'S ALL THE

QUESTIONS I HAD. >> THANK YOU. YOU'RE WELCOME. SO ARE THEY PAID MONTHLY? DO

THEY PAY US ANNUALLY? >> IT IS PAID MONTHLY. AND IT IS BASED ON THE TONNAGE THAT THEY'RE BRINGING US EVERY MONTH. AND THEN WE RECONCILE AT THE END OF THAT FISCAL YEAR. CLEAN

IT ALL UP. >> ANY FURTHER QUESTIONS? >> I WOULD LIKE TO MOVE THE

POINT. ALL RIGHT. THANK YOU. >> MOTION AND A SECOND. ALL IN FAVOR, SAY AYE. AYE. THE MOTION CARRIES UNANIMOUSLY. AND NOW WE WILL MOVE ON TO ITEMS FOR INDIVIDUAL CONSIDERATION. OUR

[A. PUB26-177 Consider approval of the September 28, 2026 minutes]

FIRST ITEM IS APPROVAL OF THE SEPTEMBER 28TH MINUTES. DO WE HAVE A MOTION?

>> HOLD ON. EXCUSE ME, I HAVE A QUESTION. DO WE HAVE MINUTES? >> I BELIEVE I BELIEVE IT ACTUALLY HAPPENED IN FRONT OF ME SOMEWHERE WHERE I PUT IT. IT BASICALLY SAYS WE DID NOT HAVE

A QUORUM. >> OKAY. I WAS JUST CURIOUS. THANK YOU. YEAH.

>> SO WE HAVE. >> A WISH TO DO THESE MINUTES. INDIVIDUAL.

>> YEAH. LET'S GO AHEAD AND DO IT SINCE I ALREADY CALLED IT INDIVIDUALLY. OKAY, OKAY. WE HAVE A MOTION AND A SECOND FOR APPROVAL OF THE SEPTEMBER 28TH MINUTES. ALL IN FAVOR, SAY AYE.

[B. PUB26-189 Consider approval of the August 24, 2026 minutes.]

ANY OPPOSED? MOTION CARRIES UNANIMOUSLY. THE NEXT ITEM IS APPROVAL OF THE AUGUST 24TH MINUTES. WE HAVE A MOTION AND A SECOND. ALL IN FAVOR, SAY AYE. AYE. AND THE MOTION CARRIES

[C. PUB26-171 Consider recommending adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute a contract with USIC Locating Services, LLC, for utility locating and marking of all existing and future installed utility lines for Denton Municipal Electric, Technology Services, Water, and Wastewater Departments; providing for the expenditure of funds therefor; and providing an effective date (RFP 9036 - awarded to USIC Locating Services, LLC, for one (1) year, with the option for four (4) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $10,526,000.00).]

UNANIMOUSLY. OUR NEXT ITEM FOR INDIVIDUAL CONSIDERATION IS ITEM C. CONSIDER RECOMMENDING ADOPTION OF AN ORDINANCE BETWEEN THE CITY OF DENTON AND U. SIC LOCATING SERVICES FOR

[00:10:05]

UTILITY LOCATING AND MARKING SERVICES. >> GOOD MORNING. PB CHRIS D M ASSISTANT GENERAL MANAGER WITH PROBABLY THE MOST EXCITING PRESENTATION YOU'RE GOING TO SEE THIS YEAR. SO WE'RE HERE TODAY TO TALK ABOUT UNDERGROUND UTILITY LINE LOCATES JUST SOME BACKGROUND. SO IN TEXAS CALLED TEXAS 811 IS THE TEXAS ONE CALL LAW. THAT'S IT'S A STATE LAW THAT MANDATES THAT ALL OWNERS OF UNDERGROUND UTILITIES, MARK, LOCATE THOSE UTILITIES AT THE REQUEST OF ANY EXCAVATOR. SO ANY TIME, EVEN IN YOUR BACKYARD, IT USED TO BE CALLED DIG TEST.

YOU WANT TO PUT A HOLE IN THE GROUND. THAT'S TEXAS 811 IS A SYSTEM SET UP TO HANDLE THOSE REQUESTS. IT APPLIES TO ALL EXCAVATION WORK, AS I SAID, AND APPLIES IN DENTON TO THE ELECTRIC WATER, WASTEWATER AND FIRE DEPARTMENTS. SO THIS IS GOING TO BE A CITYWIDE CONTRACT.

DME IS PROBABLY THE THE, THE BIGGEST UTILIZER OF THIS CONTRACT. SO I'M TAKING IT FORWARD. BUT I HAVE COLLEAGUES HERE FROM OTHER DEPARTMENTS. IF YOU HAVE ANY QUESTIONS. AND AGAIN, THE CITY IS IS ELECTING AT THIS TIME TO USE A CONTRACTED SERVICES TO MEET THE LEGAL OBLIGATIONS. SO JUST A COUPLE OF STATISTICS. IT'S FUNNY, YOU START WORKING ON A PRESENTATION AND THEN ALL THESE NEWS ARTICLES START POPPING UP ABOUT LINE LOCATE STRIKES.

THERE'S APPROXIMATELY 20 MILLION MILES OF UNDERGROUND INFRASTRUCTURE IN THE UNITED STATES, AND THESE UTILITIES ARE STRUCK ABOUT 700,000 TIMES A YEAR OR ABOUT EVERY 47 SECONDS.

SO CAUSING AN ESTIMATED DAMAGE OF ABOUT $83.2 BILLION PER YEAR. OOPS. GETTING AHEAD OF MYSELF.

SO THE WAY THE SYSTEM WORKS, AN EXCAVATOR ENTERS, GOES TO THE 811 SYSTEM ONLINE IS HOW IT'S DONE NOW, AND ENTERS A TICKET AND A CERT, AND GIVES YOU A CERTAIN AREA WHERE THEY WILL BE EXCAVATING. THE UTILITIES HAVE 48 HOURS TO ADDRESS THAT TICKET WE USE. WE CURRENTLY USE A USIC SO THEY ACTUALLY RECEIVE THAT TICKET FOR US. THEY GO WORK IT ON OUR BEHALF AND THEY MARK USING CITY PROVIDE MAPS. THEY MARK THE WATER, WASTEWATER, FIBER AND ELECTRIC INFRASTRUCTURE. IF THE CITY FACILITIES ARE PRESENT, THE CONTRACTOR PHYSICALLY LOCATES THOSE SO THAT IF YOU EVER SEEN AROUND YOUR YARD OR ANYWHERE. YES, SIR.

>> SO YOU SAID THAT WE HAVE 48 HOURS TO MEET THAT REQUEST. >> YES, SIR.

>> DOES THAT MEAN IT NEEDS TO BE MARKED IN 48 HOURS? >> IT DOES. SO WHAT IF YOU THINK IF YOU'RE A CONTRACTOR, YOU HAVE TO GIVE US 48 HOURS BEFORE YOU CAN EXCAVATE. SO WE HAVE THAT 48 HOURS TO TO GET THAT DONE, THERE IS AN EMERGENCY CALL OUT THAT'S INSTANT TO 24 HOURS, WHICH WE PAY AN ADDITIONAL FEE FOR. SO THE CONTRACTOR CAN PAY, CAN

REQUEST THAT LOCATE AND AT THEIR COST. >> SO IS THERE A NORMAL TURNAROUND TIME THAT IS LESS THAN 48 HOURS OR GREATER THAN 48 HOURS?

>> NO, SIR. IT HAS TO BE DONE WITHIN 48 HOURS. >> HAS TO BE DONE. SO THE

CONTRACTOR HAS TO RECEIVE. >> THE TICKET. >> INFORMATION AND MARK IT.

WITHIN WITHIN 48 HOURS. YES, SIR. I'M ASSUMING THAT DOESN'T INCLUDE WEEKENDS.

>> THAT WOULD BE THE EMERGENCY CALL OUT. YEAH. OKAY. IT'S TYPICALLY 48 BUSINESS HOURS. SO

IF YOU DID IT ON A FRIDAY. >> TWO FULL DAYS. >> YES, SIR. YES SIR.

>> THAT'S CORRECT. SO HAVE WE HAD ANY ISSUES WITH MEETING THAT TWO DAY TURNAROUND?

>> NO SIR. GENERALLY WE DID NOT. >> IS THIS THE CONTRACTOR WE HAVE BEEN USING?

>> YES, SIR. YES, SIR. THEY'RE ONE OF THE LARGEST IN THE IN THE COUNTRY.

>> SEE THEIR TRUCKS MANY TIMES. >> YES SIR. YES SIR. THEY'RE NATIONWIDE. SO ACTUALLY WE PRETTY MUCH HAVE WITH OUR CONTRACT STAFF MEMBERS HERE EVERY DAY. EVERY DAY WORKING.

THANK YOU. YES, SIR. GOING WITH THE CONTRACTOR DOES HAVE SOME BENEFITS. IT PUTS SOME SOME CONTRACTORS TAKING THE RISK OF OF MIS MARKING THE UTILITY. SO IF A CON IF USIC OR ANY, ANY UNDERGROUND LOCATING COMPANY OR DME OR THE WATER DEPARTMENT. SO IF YOU MARK A LINE AND THEN THE CONTRACTOR HITS THAT LINE, THE CONTRACTOR IS RESPONSIBLE. IF YOU DO NOT MARK THE LINE AND THE CONTRACTOR HITS SOMETHING, THEN THEY'RE NOT RESPONSIBLE. SO AT THAT POINT, USIC IF THEY MISS MARKED IT OR THEY DID NOT LOCATE THAT, THEN THEY'RE RESPONSIBLE FOR THAT. SO THEN THEY WOULD REIMBURSE THE CITY FOR THE REPAIRS. AND AGAIN, THERE IS LOOK, THERE IS EMERGENCY CALL OUT AND SHOULD BE NOTED THAT THE CITY'S COST IS PER LOCATE. THERE'S NO GUARANTEED AMOUNT. SO EVERY MONTH WE GET AN INVOICE, ALL THE DEPARTMENTS GET AN INVOICE AND IT SHOWS HOW MANY LOCATES WERE DONE. AND THEN YOU PAY THEM PER PER LOCATE. SO WITH THAT WE'RE SEEKING YOUR RECOMMENDATION OF APPROVAL FOR A CONTRACT WITH USIC IT'S A FIVE YEAR CONTRACT IN THE AMOUNT NOT TO EXCEED $10,526,000. YES, IT'S A BIG

[00:15:05]

NUMBER. MR. RAINER. >> YES IT IS. WOULD YOU GO TO SLIDE THREE, PLEASE? YES, SIR.

SO HELP ME WITH THE DEFINITIONS. YES, SIR. THE CONTRACTOR IS WHO WE'RE TALKING ABOUT RIGHT NOW TO GIVE THEM $10 MILLION, CORRECT? CORRECT. I AM A I HAVE A PLUMBING BUSINESS IN DENTON.

YES, SIR. AND I GET A CALL WHICH IS GENERALLY AROUND 530 FOR SOME KIND OF WATER ISSUE.

WALK ME THROUGH. WHAT WOULD THAT PROCEDURE LOOK LIKE? >> THAT WOULD BE AN EMERGENCY LOCATE. SO WHOEVER'S GOING TO DO THE EXCAVATION, SO WOULD BE YOUR PLUMBING COMPANY WOULD GO TO THE 811 WEBSITE AND THEY WOULD LOG A TICKET SAYING, I'M GOING TO BE DOING EXCAVATION ACTIVITIES AT THIS ADDRESS OR IN THIS AREA. THAT 811 SYSTEM WOULD THEN GENERATE A TICKET TO IT'D BE CITY OF DENTON. SO IT KNOWS CITY OF DENTON UTILITIES, AND THAT WOULD BE SENT. WE WOULD WE COULD GET THAT TICKET, WHICH WE DO HAVE ACCESS TO IT, BUT ACTUALLY USIC RECEIVES THAT TICKET ON OUR BEHALF. THEY'RE LIKE, OH, IT'S AN EMERGENCY. WE NEED TO GET OUT THERE AS SOON AS WE CAN. AND THEN THEY DISPATCH THEIR EMPLOYEES OUT TO LOCATE THE ANY UTILITIES THAT ARE IN THAT AREA. SO THE PLUMBER, YOU'RE NOT SUPPOSED TO START DIGGING UNTIL THOSE LINES

ARE MARKED. THAT'S YOUR OBLIGATION. >> THAT'S MY QUESTION, SIR. IF NOTHING ELSE, I COULD TURN OFF THE WATER AT THE STREET METER. CORRECT. AND THEN WAIT FOR THE CAVALRY TO SHOW UP. YES, SIR. SO WHAT IS THE. AND I DIDN'T SEE THIS. AND FORGIVE ME, BUT WHAT WOULD BE THE COST FOR EACH CALL? OR IS IT OR IS IT IS THE AMOUNT. AND YOU MAY HAVE ALREADY SAID THIS, BUT IS THE AMOUNT A FIXED AMOUNT OR IS IT A, A AN AGGREGATE INCREASE

DEPENDING ON THE GRAVITY OF OF THE CONSTRUCTION. >> JUST TWO RATE STRUCTURES. SO AN EMERGENCY THAT MEANS LESS THAN GET THERE AS SOON AS YOU CAN SO THAT THAT COST IS MORE.

AND THE OTHER ONE IS A REGULAR LOCATE. THAT'S IT. SO YOU JUST PAY BY THE LOCATE THE NUMBER

THAT THEY DO ON THAT ON THAT PROPERTY. >> SINCE I'M GOING TO BE THE OWNER OF THE PROPERTY WAITING FOR THE PLUMBER. YES SIR. WHAT IS MY COST FOR THAT.

>> NOTHING. THE COST IS BORNE BY THE UTILITIES. >> SO THIS IS NOT BORNE BY THE

PLUMBER EITHER? >> NO. NO SIR. >> SO THIS IS.

>> RATEPAYER MONEY IS WHAT? WHAT YOU HAVE THERE? YES, SIR. IT'S A COST OF DOING BUSINESS.

>> AND THE CONTRACTOR WILL BE MARKING THE LINES. >> YES, OUR USI SEE MAYBE IF I

USE THE VENDOR USIC. >> JUST FOR THAT. YES SIR. AND THAT'S FOR WATER. ELECTRIC.

ANYTHING UNDERGROUND. >> ANYTHING UNDERGROUND. >> INCLUDING SEWER.

>> CORRECT. WATER. WASTEWATER. YES, SIR. PARDON ME. YES, SIR. >> I MAY HAVE ANOTHER ONE, BUT

I THINK I'M ALL RIGHT RIGHT NOW. THANK YOU. >> ANY OTHER QUESTIONS?

>> THEN? THE PRIVATE CITIZEN, ALL THEY HAVE TO DO IS CALL THEIR VENDOR WHOEVER. AND NOW

DO THEY DO? >> THE CITIZEN WOULD USE THE SAME. THEY WOULD GO TO 811. YOU COULD CALL 811 OR YOU CAN. THAT'S HOW IT USED TO BE DONE. OR YOU CAN LOG IN TO SAY, HEY, YOU WANT TO PUT IN AN IRRIGATION SYSTEM, YOUR OWN IRRIGATION SYSTEM IN YOUR BACKYARD. TECHNICALLY, YOU SHOULD GO TO 811 AND, AND FILE A TICKET FOR YOUR EXCAVATION ON

YOUR PROPERTY. >> IF I WISH TO BE THAT INDUSTRIOUS. YES. YES, SIR. BUT THEN IF I JUST CALL A VENDOR THE. SO YOU'RE GETTING THE WORD OUT TO ALL OF THESE PLUMBERS, EVERYBODY. SO THEY'LL. AND THEY PROBABLY ALREADY KNOW IT, BUT THEN THEY'LL KNOW WHEN THEY GET A CALL FROM ME, THEY'RE GOING TO GET A HOLD OF 811, GIVE THE ADDRESS AND GO FROM THERE.

>> CORRECT. AND BASICALLY 811 BECOMES THE DISPATCHER AT THAT POINT. SO THEY SEND THAT TICKET

OFF. YES, SIR. >> GREAT. THANK YOU. THANK YOU, MR. CHAIRMAN.

>> ANY FURTHER QUESTIONS? DO WE HAVE A MOTION? >> MOTION TO APPROVE.

>> WE HAVE A MOTION TO RECOMMEND APPROVAL. DO WE HAVE A SECOND? AND WE HAVE A SECOND.

ALL IN FAVOR, SAY AYE. ANY OPPOSED? THE MOTION CARRIES UNANIMOUSLY. OUR NEXT ITEM FOR

BUSINESS IS MANAGEMENT REPORTS. >> ADOPTION OF ORDINANCES. TWO MORE.

>> OH, DID I MISS ONE. OH, I'M SORRY. I I'M SO SORRY I MISSED ITEM D AND E, SO LET'S GO TO

[D. PUB26-172 Consider recommending adoption of an ordinance of the City of Denton, Texas authorizing the expenditure of funds for the payment of wholesale transmission charges in the total amount of $9,804,564.14 and providing an effective date.]

ITEM D. CONSIDER RECOMMENDING ADOPTION OF AN ORDINANCE AUTHORIZING THE EXPENDITURE OF FUNDS FOR THE PAYMENT OF WHOLESALE TRANSMISSION CHARGES IN THE AMOUNT OF $9,804,564.14.

>> GOOD MORNING, CHAIR MEMBERS. TODAY I HAVE A PRETTY SHORT PRESENTATION AND A VERY EXCITING PRESENTATION AS WELL ON TRANSMISSION CHARGES FOR FISCAL YEAR 2627. SO OUR PRESENTATION TODAY IS TO AUTHORIZE THIS EXPENSE OF $9.8 MILLION. THAT COVERS OUR TRANSMISSION COSTS GREATER THAN $100,000 IN PAYMENTS. SO THE TABLE TO THE LEFT DOES SHOW ALL

[00:20:02]

OF THE PAYMENTS THAT STAFF IS ABLE TO AUTHORIZE, BECAUSE THAT PAYMENT IS LESS THAN 100,000.

THE TABLE TO THE RIGHT IS WHAT WOULD NEED TO BE AUTHORIZED TODAY, $9.8 MILLION. AGAIN, THESE ARE FOR TRANSMISSION CHARGES FOR FISCAL YEAR 2627. ANY QUESTIONS?

>> ANY QUESTIONS? >> COULD YOU GO BACK TO THE PREVIOUS SLIDE? THANK YOU. SO THE BULK OF THAT MONEY IS GOING TO ELECTRIC TRANSMISSION. TEXAS. IS THAT CORRECT.

>> OR COLORADO. COLORADO. >> THE HIGHEST PAYMENT IS LOWER COLORADO RIVER AUTHORITY FOR

3.8 MILLION. >> SO THOSE THOSE TWO PLUS AMERICAN ELECTRIC POWER CONSTITUTE THE BULK OF THE CHARGES. SO THEY ARE OUR LARGEST POWER PROVIDERS.

>> WELL, IN. >> THIS CASE, POWER TRANSMISSION PROVIDERS.

>> YEAH. WITH WITH PAYMENTS THESE ARE JUST THE NET PAYMENTS. SO THERE'S ALSO REVENUES COMING IN. SO THESE ARE ONLY THE THE COMPANIES THAT WE DO HAVE AN EXPENSE LARGER THAN 100,000.

>> THANK YOU. >> YES SIR. >> DO WE SEE ARE THERE

FLUCTUATIONS WITHIN THESE COSTS. >> OUR LOAD SHARE IS THE SAME. >> I'M JUST TALKING ABOUT THE MONETARY COSTS. HERE WE ARE. THEY SET AT THESE NUMBERS OR IS IT FLUCTUATING.

>> IT FLUCTUATES EVERY YEAR. >> GOOD. >> SO THESE ARE SET BY OUR

PORTION OF THE 4CP ALLOCATION IN ERCOT. IS THAT CORRECT. >> CORRECT. YES.

>> SO IS THIS BASED ON THE PRELIMINARY 4CP VALUES FROM THIS SUMMER.

>> IT IT IS. SO CURRENTLY THE PCT IS LOOKING AT CALCULATING THIS. OUR TRANSMISSION COST A LITTLE DIFFERENTLY IN THE COMING YEARS RATHER THAN HAVING A 4CP. SO THAT IS BETWEEN THE MONTHS OF JUNE THROUGH SEPTEMBER, SHIFTING TO A 12CP. SO A LOT OF THE LARGE LOAD STANDARDS THAT ARE BEING WRITTEN HAVE THAT WITHIN THE STANDARD. SO IT MAY CHANGE FOR

FOR THIS YEAR THOUGH, IT IS BASED ON OUR 4CP. >> AND THIS YEAR BEING THE SUMMER THAT JUST OCCURRED AND THE PAYMENTS THAT WILL BE MADE UNTIL OCTOBER OR SEPTEMBER OF NEXT YEAR. YES. AND ARE THOSE ARE THE 4CP LOAD ALLOCATIONS FINALIZED OR DO WE NEED.

>> TO HAVE. NOT NORMALLY, THEY ARE FINALIZED EARLIER IN SPRING SUMMER, BUT THEY HAVEN'T BEEN DUE TO A COMPANY AND STILL WORKING THROUGH THEIR PCT RULING. BUT IT DOES SEEM AS

THOUGH THIS MONTH IS WHEN THEY'LL BE FINALIZED OFFICIALLY. >> SO THERE'S A SMALL CHANCE

THERE'D BE MINOR ADJUSTMENTS IF IF THAT 4CP BALANCE. >> YEAH, YEAH. AND THERE ARE A LOT OF THE TIMES WHERE THERE ARE SOME CHANGES THROUGHOUT THE YEAR, IT IS VERY MINIMAL. IF IT ENDS UP BEING ANYTHING GREATER THAN 100,000, WE WOULD BRING THIS BACK FORWARD.

>> THANK YOU. YES, SIR. ANY OTHER QUESTIONS ON THE ITEM? I WILL MOVE APPROVAL GAVE A SECOND. OKAY. WE HAVE A SECOND. ALL IN FAVOR, SAY AYE. THE MOTION CARRIES UNANIMOUSLY. NOW

[E. PUB26-161 Consider recommending adoption of an ordinance of the City of Denton to declare the intent to reimburse capital program expenditures of General Government ($40,767,690), the Solid Waste Utility ($5,265,000), the Water Utility ($51,550,080), the Wastewater Utility ($49,524,482), and the Electric Utility ($59,490,000) with Tax-Preferred Obligations (Certificates of Obligation and General Obligation Bonds) with an aggregate maximum principal amount not to exceed $206,597,252; and providing an effective date.]

WE'LL MOVE ON TO ITEM E. CONSIDER RECOMMENDING ADOPTION OF AN ORDINANCE WITH THE CITY OF DENTON TO DECLARE THE INTENT TO REIMBURSE CAPITAL PROGRAM EXPENDITURES OF GENERAL GOVERNMENT OF $40,767,690. SOLID WASTE UTILITY TO $5,265,000. WATER UTILITY $51,555,080. WASTEWATER UTILITY 49,000 524,000 $49,524,482. AND ELECTRIC UTILITY $59,490,000 WITH TAX PREFERRED OBLIGATIONS, SO-CALLED CERTIFICATES OF OBLIGATION.

>> GOOD MORNING. RIGHT. I HATE TO FOLLOW UP ON WHAT WE'VE ALREADY HAD BEFORE US, BUT MINE IS BRIEF AS WELL. ONLY A COUPLE MORE SLIDES THAN THE OTHERS. BUT I'M RANDY KLINGEL, THE TREASURY MANAGER HERE BEFORE YOU TODAY FOR THE REIMBURSEMENT ORDINANCE, WHICH IS BASICALLY OUR KICK OFF FOR THE BOND SALE FOR THIS YEAR IS OUR FIRST STEP IN GETTING THESE CAPITAL PROJECTS ROLLING FOR THIS FISCAL YEAR. SO THE PURPOSE OF THE REIMBURSEMENT ORDINANCE IS A REQUIREMENT BY THE IRS. SO THE CITY CAN STATE PUBLICLY THAT WE ARE MAY REIMBURSE OURSELVES LATER WITH BOND PROCEEDS. WE CAN SPEND WHAT CASH WE HAVE NOW, BUT WE CAN REIMBURSE OURSELVES LATER ONCE THOSE BOND PROCEEDS COME IN. NORMALLY, WE LIKE TO DO THE BOND SALE PROGRAM IN THE SAME FISCAL YEAR, BUT WE DO HAVE 12 MONTHS FROM THE ADOPTION OF THE REIMBURSEMENT BY COUNCIL, WHICH WILL BE IN OCTOBER. AND OUR REIMBURSEMENT ORDINANCE IS ALLOWED BY OUR CITY'S DEBT POLICY. SO I HAVE IN SUMMARY BEFORE YOU TODAY, JUST SOLID

[00:25:02]

WASTE AND UTILITY SYSTEM, WHICH IS UNDER YOUR PURVIEW. THE ENTIRE ORDINANCE OBVIOUSLY COVERS SOME OTHER THINGS FOR COUNCIL THAT WILL BE ADDED NEXT WEEK. THE DETAILED PROJECT LIST IS IN EXHIBIT A OF THE ORDINANCE, AND THOSE ARE ALL PROJECTS YOU ALL SAW OVER THE SUMMER. I THINK THE LAST TIME WAS JULY, BUT COUNCIL APPROVED THOSE PROJECTS IN, I THINK SEPTEMBER 22ND MIGHT HAVE BEEN THAT EXACT DATE FOR THIS BUDGET YEAR. SO FOR SOLID WASTE, WE HAVE $5.2 MILLION WATER, 51.5 MILLION WASTEWATER AT 49.5 AND ELECTRIC AT 59.4, WITH A TOTAL FOR UTILITIES. FOR THIS SECTION ONLY, THE SOLID WASTE AND UTILITY SYSTEM, AT $165,829,562 PLUS YOU. SO OUR NEXT STEPS, WHICH I THINK I MISSED ONE OF THESE, IS NEXT WEEK, COUNCIL WILL SEE THIS REIMBURSEMENT ORDINANCE AFTER YOUR RECOMMENDATION, AND THEN NEXT YEAR IN APRIL, WE GO TO THE NEXT PROCESS, WHICH IS NOTICE OF INTENT OF OUR CEO'S. AND THEN WE MOVE TO MAY FOR THE BOND ORDINANCES, WHICH FINALIZE THE PARAMETERS, WHICH WE WILL GO FOR SALE. AND THEN IN JUNE, THE PROJECTED BOND DATE SALE. AND THEN WE EXPECT TO HAVE SOME

PROCEEDS FOR BOND SALE TOTALS IN END OF JULY. ANY QUESTIONS? >> ANY QUESTIONS?

>> I HAVE ONE. >> YES, SIR. >> IT SAYS THAT WE'RE NOT OBLIGATED TO. THERE WAS A LINE IN THERE ABOUT WE'RE NOT OBLIGATED TO ISSUE THE BONDS, JUST APPROVING THAT THEY CAN BE ISSUED. IS THERE ANY REASON ANY OF THEM WOULD NOT BE ISSUED? I MEAN, AREN'T THESE ALL FOR CAPITAL PROJECTS THAT ARE ALL PLANNED AND COMMITTED TO.

>> YES. I THINK THE INTENT OF THAT IS AS WE GO THROUGH THE NOTICE OF INTENT AND ALL THE WAY TO THE BOND SALE, WE HAVE THE OPPORTUNITY TO REDUCE THIS AMOUNT. SO WE'RE LOOKING THROUGH ALL YEAR LONG AFTER THE BUDGET'S DONE AND WE SEE THE ACTUALS, ALL THE CAPITAL PROJECTS, TEAMS AND BUDGET WILL HAVE AN OPPORTUNITY TO LOOK AT THIS TOTAL PACKAGE AND SEE WHAT DO WE REALLY NEED BY THE TIME WE GET TO THE BOND SALE. SO WE DON'T HAVE TO ISSUE THIS.

>> WHOLE ALL THESE BONDS ARE NOT FOR PREVIOUSLY APPROVED CAPITAL PROJECTS.

>> YES THEY ARE. >> THEY ARE. >> OKAY. RIGHT? JUST HOW MUCH

DO WE NEED RIGHT NOW ONCE WE GET TO THE BOND? >> I'M SORRY, BASED ON ACTUAL PATH OF CONSTRUCTION, TIME FRAME AND ALL THAT. OKAY. YES, SIR. THANK YOU.

>> ANY FURTHER QUESTIONS? >> MOTION TO APPROVE. >> WE HAVE A MOTION TO RECOMMEND APPROVAL. WE HAVE A SECOND. ALL IN FAVOR, SAY AYE. ANY OPPOSED? THE MOTION CARRIES

[F. PUB26-179 Management Reports 1. Lake Lewisville Basin 4 Repair 2. Future Agenda Items 3. New Business Action Items]

UNANIMOUSLY. NOW WE WILL MOVE ON TO MANAGEMENT REPORTS. >> GOOD MORNING, CHAIR. MEMBERS OF THE BOARD, YOU HAVE IN YOUR PACKET THE MANAGEMENT FOR THE MANAGEMENT REPORT, THE MEMO ON THE LAKE LEWISVILLE BASIN FOR REPAIR. WE HAVE STAFF HERE TO ANSWER ANY QUESTIONS. IF YOU IF YOU HAVE ANY REGARDING THAT REPAIR FUTURE ITEMS ON THE 19TH. WE HAVE THE PB SCHEDULE COMING FORWARD FOR THE NEXT YEAR AND IN ADDITION WILL ALSO HAVE THE WATER AND WASTEWATER QUARTERLY REPORT ON THE 19TH. AND THEN IN ON DECEMBER 7TH, THERE'LL BE ANOTHER QUARTERLY REPORT FOR THE WATER AND WASTEWATER DEPARTMENT. AND THAT'S ALL I HAVE.

>> DO WE HAVE ANY QUESTIONS OR NEW BUSINESS? >> I'M CURIOUS. THIS IS A A

MAINTENANCE REPAIR PROBLEM. >> IT WAS ACTUALLY A FAILURE OF THE CENTER DRIVE. AND ONE OF

OUR SEDIMENTATION BASINS. >> AFTER GETTING IT FIXED, YOU'RE GOING TO IMPROVE YOUR

MAINTENANCE CONSIDERATIONS FOR THAT EQUIPMENT. IS THAT CORRECT? >> YEAH. I MEAN, WE FOLLOWED MANUFACTURERS RECOMMENDED PREVENTATIVE MAINTENANCE SCHEDULES. IT WAS JUST IT WAS AN UNFORESEEN FAILURE. BUT WE ARE GOING BACK THROUGH THE REMAINING SEVEN BASINS AND

CHECKING THE EQUIPMENT AS WELL. >> OKAY. THANK YOU. >> THANK YOU. YEAH.

>> DO YOU ALL HAVE A ROUGH ESTIMATE ON TIME OF COMPLETION? >> OH, THIS WAS DONE BACK IN,

WHAT WAS IT? AUGUST. >> OH GOOD JOB. >> YEAH, YEAH.

>> ALL RIGHT. WITH THAT WE WILL MOVE ON TO OUR CONCLUDING ITEMS AND ON TO WORK SESSION WHERE WE

[A. PUB26-183 Receive a report, hold a discussion, and give staff direction regarding Audit Project 025-Energy Portfolio Management: Transaction Administration and Renewable Energy Offset Goal Follow-Up Review.]

WILL RECEIVE A REPORT, HOLD A DISCUSSION AND GIVE STAFF DIRECTION REGARDING THE AUDIT

PROJECT. ENERGY NUMBER 25, ENERGY PORTFOLIO MANAGEMENT. >> HELLO MEMBERS OF THE PUB.

I'M MADISON WARSHAW, THE CITY AUDITOR. I DON'T KNOW, I MET SOME OF YOU BEFORE, BUT I DON'T I DON'T USUALLY SHOW UP TO THESE MEETINGS. SO HAPPY TO BE HERE TODAY. SORRY. I'M TRYING TO PULL UP MY PRESENTATION. HERE WE GO. ALL RIGHT. SO SINCE I'M NOT HERE ALL THE TIME, JUST AS A REMINDER AUDIT. OH, SORRY. OH, SORRY. AS A REMINDER, AUDIT FOLLOW UP REVIEWS ARE INTENDED

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