Public Utilities Board

City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Meeting Agenda Public Utilities Board Monday, October 14, 2024 9:00 AM Council Work Session Room REGISTRATION GUIDELINES FOR ADDRESSING THE PUBLIC UTILITIES BOARD Citizens will be able to participate in the following way: • eComment – The agenda was posted online at https://tx-denton.civicplus.com/242/ Public-Meetings-Agendas. Once the agenda is posted, a link to make virtual comments using the eComment module will be made available next to the meeting listing on the Upcoming Events Calendar. Using eComment, Individuals may indicate support or opposition and submit a brief comment about a specific agenda item. eComments may be submitted up until the start of the meeting at which time the ability to make an eComment will be closed. eComments will be sent directly to members of the Public Utilities Board immediately upon submission and recorded by the Secretary into the Minutes of the Meeting. After determining that a quorum is present, the Public Utilities Board of the City of Denton, Texas will convene in a Regular Meeting on Monday, October 14, at 9:00 a.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: REGULAR MEETING 1. PRESENTATIONS FROM MEMBERS OF THE PUBLIC This section of the agenda permits a person to make comments regarding public business on items as listed on the agenda. Each speaker will be allowed a maximum of four (4) minutes. Such person(s) shall have registered under the REGISTRATION GUIDELINES FOR ADDRESSING THE PUBLIC UTILITIES BOARD detailed at the beginning of this agenda. Registration is required prior to the time this agenda item is read into the record. 2. CONSENT AGENDA Each of the items on the Consent Agenda is recommended by the Staff and approval thereof will be strictly on the basis of the Staff recommendations. Approval of the Consent Agenda authorizes the City Manager or designee to implement each item in accordance with the Staff recommendations. The Public Utilities Board has received background information and has had an opportunity to raise questions regarding these items prior to consideration. Listed below are bids, purchase orders, contracts, and other items to be approved for payment or other action under the Consent Agenda (Agenda Items A – G). This listing is provided on the Consent Agenda to allow Public Utilities Board Members to discuss or withdraw an item prior to approval of the Consent Agenda. If no items are pulled, the Consent Agenda Items will be approved with one motion. If items are pulled for separate discussion, they may be considered as the first items following approval of the Consent Agenda. A. PUB24-210 Consider recommending adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the approval of Change Order No. 6 to the Design-Build Agreement between the City of Denton and Beta Engineering, City of Denton Page 1 Printed on 10/10/2024 Public Utilities Board Meeting Agenda October 14, 2024 LLC, for the design and construction of the Hickory Gas Insulated Substation for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (RFQ 7670 - Change Order No. 6, in the not-to-exceed amount of $750,934.78, for a total contract award aggregated to $42,302,076.26). Attachments: Exhibit 1 - Agenda Information Sheet Exhibit 2 - Original Ordinance, Contract, Ordinance and Change Orders 1-5 Exhibit 3 - Ordinance and Change Order 6 B. PUB24-211 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 Jagoe-Public Company, for the Morse Street Reconstruction and Improvements Project for the Capital Projects Department; providing for the expenditure of funds therefor; and providing an effective date (CSP 8611 - awarded to Jagoe-Public Company, in the not-to-exceed amount of $2,518,025.48). Attachments: Exhibit 1 - Agenda Information Sheet Exhibit 2 - Pricing Evaluation Exhibit 3 - Ordinance and Contract C. PUB24-212 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 Odessa Pumps and Equipment, Inc., through the Buy Board Cooperative Purchasing Network Contract # 672-22, for the purchase of new pumps, pump parts, repair and rebuild of pumps for the Water Production and Water Reclamation Departments; providing for the expenditure of funds therefor; and providing an effective date (File 8654 - awarded to Odessa Pumps and Equipment, Inc., 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 $1,500,000.00). Attachments: Exhibit 1 - Agenda Information Sheet Exhibit 2 - Cooperative Pricing Exhibit 3 - Ordinance D. PUB24-213 Consider recommending adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, ratifying the expenditure of funds by the City Manager for cured in place pipe liner emergency rehabilitation for the Wastewater Collections Department through the Buy Board Cooperative Purchasing Network Contract # 731-24; and providing an effective date (File 8674 - awarded to Fuquay, Inc., in the not-to-exceed amount of $199,815.00). Attachments: Exhibit 1 - Agenda Information Sheet Exhibit 2 - Declaration of Emergency Exhibit 3 - Ordinance E. PUB24-214 Consider recommending adoption of an ordinance of the City of Denton, Texas establishing the schedule of rates for electric service; amending the Distributed Generation From Renewable Resources Rider and Renewable Cost Adjustment Schedules; providing for a repealer; providing for a severability clause; and providing for an effective date. City of Denton Page 2 Printed on 10/10/2024 Public Utilities Board Meeting Agenda October 14, 2024 Attachments: Exhibit 1 - Agenda Information Sheet Exhibit 2 - Rate Ordinance Redline Exhibit 3 - Ordinance F. PUB24-217 Consider recommending adoption of an ordinance of the City of Denton repealing ordinance No. 23-1691; approving the 2024 Denton Municipal Electric - Energy Risk Management Policy (the "2024 ERMP"); delegating authority as provided in the 2024 ERMP; authorizing and approving the subsequent execution of such other ancillary and related documents, including, without limitation, contracts, nominations, certificates, assignments, licenses, directions, instruments, confirmations, orders, and statements as are authorized by the 2024 ERMP, which are incident to or related thereto; confirming that the city of Denton, its mayor, its city council members, its city manager, its city attorney, and its city secretary are authorized to perform such acts and obligations as are reasonably required to consummate those future transactions which are provided for and authorized by the 2024 ERMP; finding that the purchase of electricity, natural gas, and related commodities and instruments are exempt from the requirements of competitive bidding; finding that the purchase of electric energy, natural gas, and related commodities and instruments made by the city under the terms of the 2024 ERMP are in the public welfare of the citizens and electric ratepayers of the city; authorizing the expenditure of funds therefor; and, providing an effective date. Attachments: Exhibit 1 - Agenda Information Sheet Exhibit 2 - Ordinance Exhibit 3 - 2024 Risk Policy CLEAN Exhibit 4 - 2024 Risk Policy REDLINE G. PUB24-219 Consider recommending adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute a Construction Manager at Risk contract with McCownGordon Construction LLC, for preconstruction services for the Renovation of the City of Denton Service Center for the Capital Projects Department; providing for the expenditure of funds therefore; and providing an effective date (RFP 8567 - awarded to McCownGordon Construction LLC, in the not-to-exceed amount of $40,000.00). Attachments: Exhibit 1 - Agenda Information Sheet Exhibit 2 - Pricing Evaluation Exhibit 3 - Ordinance and Contract 3. ITEMS FOR INDIVIDUAL CONSIDERATION A. PUB24-221 Consider approval of the September 23, 2024 minutes. Attachments: 9.23.2024 PUB Minutes B. PUB24-220 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 $9,437,871.69, and providing an effective date. City of Denton Page 3 Printed on 10/10/2024 Public Utilities Board Meeting Agenda October 14, 2024 Attachments: Exhibit 1 - Agenda Information Sheet Exhibit 2 - Ordinance Exhibit 3 - Presentation C. PUB24-170 Consider recommending adoption of an ordinance of the City of Denton to declare the intent to reimburse capital program expenditures of General Government ($165,176,270), the Solid Waste Utility ($11,125,711), the Water Utility ($58,897,004), the Wastewater Utility ($71,672,868), and the Electric Utility ($74,977,30) with Tax-Preferred Obligations (Certificates of Obligation and General Obligation Bonds) with an aggregate maximum principal amount not to exceed $381,849,583; and providing an effective date. Attachments: Exhibit 1 - Agenda Information Sheet Exhibit 2 - Ordinance Exhibit 3 - Presentation D. PUB24-193 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 HM & MF, Ltd., dba Muckleroy & Falls, for construction services of the Denton Solid Waste Fleet Shop project for the Capital Projects and Fleet Services Departments; providing for the expenditure of funds therefor; and providing an effective date (CSP 8570 - awarded to HM & MF, Ltd., dba Muckleroy & Falls, in the not-to-exceed amount of $9,557,446.50). Attachments: Exhibit 1 - Agenda Information Sheet Exhibit 2 - Pricing Evaluation Exhibit 3 - Presentation Exhibit 4 - Ordinance and Contract E. PUB24-215 Consider recommending adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute a Professional Services Agreement with Freese and Nichols, Inc., for regulatory permitting, process evaluation, and design services for the Ray Roberts Water Treatment Plant Expansion Project for the Water Utilities Department as set forth in the contract; providing for the expenditure of funds therefor; and providing an effective date (RFQ 7574-029 - Professional Services Agreement for regulatory permitting, process evaluation, and design services awarded to Freese and Nichols, Inc., in the not-to-exceed amount of $21,000,000.00). Attachments: Exhibit 1 - Agenda Information Sheet Exhibit 2 - Presentation Exhibit 3 - Ordinance and Contract F. PUB24-222 Management Reports 1. Enzyme Substrate Coliform Test Media 2. Purchase, Maintenance, and Repair Services of Heavy-duty Equipment 3. Future Agenda Items 4. New Business Action Items City of Denton Page 4 Printed on 10/10/2024 Public Utilities Board Meeting Agenda October 14, 2024 Attachments: 1. Enzyme Substrate Coliform Test Media 2. Purchase, Maint, Repair of Heavy-duty Equip 3. Future Agenda Items 4. New Business Action Items 4. CONCLUDING ITEMS A. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the Public Utilities Board or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. Following the completion of the Regular Meeting, the Public Utilities Board (PUB) will convene in a Closed Meeting to consider specific items when these items are listed below under the Closed Meeting section of this agenda. The Public Utilities Board (PUB) reserves the right to adjourn into a Closed Meeting on any item on its Open Meeting agenda consistent with Chapter 551 of the Texas Government Code, as amended, or as otherwise allowed by law. CLOSED MEETING A. PUB24-218 Deliberations Regarding Certain Public Power Utilities: Competitive Matters - Under Texas Government Code Section 551.086; Consultation with Attorneys - Under Texas Government Code Section 551.071. Receive information from staff regarding an update to the Denton Municipal Electric Energy Risk Management Policy that includes public power utility competitive data; discuss, deliberate, and provide direction to staff regarding same. Consultation with City’s attorney regarding legal issues associated with the above matter where a public discussion of these legal matters would conflict with the duty of the City’s attorneys to the City of Denton and the Denton City Council under Texas Disciplinary Rule of Professional Conduct of State Bar of Texas, or would jeopardize the City’s legal position in any administrative proceeding or potential litigation. Any final action, decision, or vote on a matter deliberated in a Closed Meeting will only be taken in an Open Meeting that is held in compliance with Texas Government Code, Chapter 551, except to the extent such final action, decision, or vote is taken in the Closed Meeting in accordance with the provisions of Section 551.086 of the Texas Government Code (The ‘Public Power Exception’). The Public Utilities Board reserves the right to adjourn into a Closed Meeting or Executive Session as authorized by Texas Government Code, Section 551.001, et seq. (The Texas Open Meetings Act) on any item on its Open Meeting agenda or to reconvene in a continuation of the Closed Meeting on the Closed Meeting items noted above, in accordance with the Texas Open Meetings Act, including, without limitation Section 551.071-551.086 of the Texas Open Meetings Act. City of Denton Page 5 Printed on 10/10/2024 Public Utilities Board Meeting Agenda October 14, 2024 CERTIFICATE I certify that the above notice of meeting was posted on the official website (https://tx-denton.civicplus.com/242/Public-Meetings-Agendas) and bulletin board at City Hall, 215 E. McKinney Street, Denton, Texas, on October 10, 2024, in advance of the 72-hour posting deadline, as applicable, and in accordance with Chapter 551 of the Texas Government Code. __________________________________________ OFFICE OF THE CITY SECRETARY NOTE: THE CITY OF DENTON'S DESIGNATED PUBLIC MEETING FACILITIES ARE ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE ACCOMMODATION, SUCH AS SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED, IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 940-349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-RELAY-TX SO THAT REASONABLE ACCOMMODATION CAN BE ARRANGED. City of Denton Page 6 Printed on 10/10/2024