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HomeMy WebLinkAboutAgenda_GTEU_05.19.2022Notice of Meeting for the Georgetown Electric Utility B oard of the City of Georgetown May 19, 2022 at 4:00 P M at Hewlett Room at Georgetown P ublic L ibrary 402 W. 8th Street Georgetown, Texas 78626 T he C ity of G eorgetown is committed to compliance with the Americans with Disabilities Act (ADA). If you require as s is tance in partic ipating at a public meeting due to a disability, as defined under the ADA, reas onable as s is tance, adaptations , or ac commodations will be provided upon request. P leas e c ontact the C ity S ec retary's O ffic e, at leas t three (3) days prior to the sc heduled meeting date, at (512) 930-3652 or C ity Hall at 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626 for additional information; T T Y users route through R elay Texas at 711. The Geor getown E le ctr ic U tility A dvisory B oard is now me eting in per son. A quor um of the B oard will be in attendance at the H ewle tt R oom at Geor getown P ublic L ibr ary 402 W. 8th S tre et Geor getown, Te xas 78626. It is possible that one or mor e board me mber s may attend via video Confe re nc e using the Zoom clie nt. Regular Session (T his R egular S es s ion may, at any time, be rec es s ed to c onvene an Exec utive S es s ion for any purpose authorized by the O pen Meetings Act, Texas G overnment C ode 551.) A C all to O rder- R obert C as e; Board C harman B Introduc tion of Visitors - R obert C ase; Board C hairman C P ublic Wis hing to Address the Board- R ober C as e; Board C hairman D R eview and P os s ible R ec ommendation of Board P urpos e and Bylaws -R obert C as e; Board C hairman E R eview of C ity C ouncil's Boards and C ommis s ions Attendanc e P olic y-R obert C ase; Board C hairman F Disc ussion and P ossible R ecommendation of F uture Board Meeting Dates & Times- R obert C as e; Board C hairman G R eview and Approval of Minutes from 04/21/2022 Meeting- Kres s C arson; Board Liais on H G eneral Manager's Monthly R eport- Danny Mc R eynolds ; Electric Engineering Manager I C ons ideration and possible action to approve an amendment to an agreement with Wesc o Distribution Inc ., to increase the fourth renewal term amount to not exceed $420,000.00 -- Mike Westbrook, Elec tric O perations Manager J E xecutiv e Session In c omplianc e with the O pen Meetings Ac t, C hapter 551, G overnment C ode, Vernon's Texas C odes, Annotated, the items listed below will be dis cus s ed in c los ed session and are s ubjec t to action in the regular s es s ion. Page 1 of 50 K S ec . 551.086 C ompetitive Matters •P urchas ed P ower R eview S ec . 551.089 Deliberation R egarding S ec urity Devic es or S ecurity Audits C yber S ec urity Update Ce rtificate of Posting I, R obyn Densmore, C ity S ecretary for the C ity of G eorgetown, Texas, do hereby c ertify that this Notic e of Meeting was posted at C ity Hall, 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626, a plac e readily acc es s ible to the general public as required by law, on the _____ day of _________________, 2022, at __________, and remained s o posted for at leas t 72 c ontinuous hours prec eding the s cheduled time of said meeting. __________________________________ R obyn Dens more, C ity S ec retary Page 2 of 50 City of Georgetown, Texas Electric Utility Board May 19, 2022 S UB J E C T: R eview and P ossible R ecommendation of Board P urpose and Bylaws-R obert C ase; Board C hairman IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: R obert C as e- Board C hairman AT TAC H ME N T S: Description Type Bylaws Cover Memo Page 3 of 50 Georgetown Electric Utility Systems Advisory Board Bylaws Page 1 of 6 Revised February 2020 CITY OF GEORGETOWN ELECTRIC UTILITY SYSTEMS ADVISORY BOARD BYLAWS ARTICLE I. NAME AND PURPOSE Section 1.1. Name. Electric Utility Systems Advisory Board (“Board”). Section 1.2. Purpose. It is the purpose and intent of the City Council to create an advisory board empowered to have oversight, in cooperation with the City Council, of the City’s Electric matters and Energy Risk Management. The Board shall receive and evaluate monthly Risk Management updates from the Risk Oversight Committee and the Risk Management Committee, and the Board shall work in cooperation with the independent third party responsible for Risk Management Compliance Reporting. The Board shall also provide recommendations on an as needed basis regarding Electric Finance and Accounting. See Ordinance Chapter 2.117. ARTICLE II. MEMBERSHIP Section 2.1. Number of Members. The Board will be comprised of five (5) Members. Section 2.2. Eligibility. Each Member shall reside in the City of Georgetown corporate limits or extraterritorial jurisdiction and be a City of Georgetown Electric Utility Customer. At least one Member, but not more than two Members shall be members of the City Council. Whenever possible, Members shall have expertise in the areas of: 1. Marketing, Finance, Law, or Engineering; 2. Electric Power Distribution; 3. Electric Generation, Power Marketing, Power Trading, or Risk Management If no qualified individuals are available, appointments shall be made in accordance with the Code of Ordinances Chapter 2.36.030(G). All members shall execute a non-disclosure agreement prior to attending a meeting of the Board. Section 2.3. Appointment of Board Members. Members of the Board shall be appointed pursuant to and in accordance with the City Charter. Page 4 of 50 Georgetown Electric Utility Systems Advisory Board Bylaws Page 2 of 6 Revised February 2020 Section 2.4. Terms of Office. Generally, terms of office for each Member shall be two (2) years. Generally, a Member may serve two (2) consecutive terms. Refer to Ordinance Section 2.36.030A for additional provisions regarding terms of office. Section 2.5. Vacancies. Vacancies that occur during a term shall be filled as soon as reasonably possible and in the same manner as an appointment in accordance with the City Charter. If possible, the Member shall continue to serve until the vacancy is filled. An appointment to fill a vacated term is not included as a term for purposes of counting consecutive terms. Section 2.6. Compensation and Expenditure of Funds. Members serve without compensation. The Board and its Members have no authority to expend funds or to incur or make an obligation on behalf of the City unless authorized and approved by the City Council. Members may be reimbursed for expenses authorized and approved by the City Council and the Board. Section 2.7. Compliance with City Policy. Members will comply with City Ordinances, Rules and Policies applicable to the Board and the Members, including but not limited to Ethics Ordinance Chapter 2.20 and City Commissions, Committees and Boards Ordinance Chapter 2.36. Section 2.8. Removal. Any Member may be removed from their position on the Board for any reason, or for no reason, by a majority vote of the City Council. ARTICLE III. BOARD OFFICERS Section 3.1. Officers. The Board Officers are Chairman, Vice-Chairman and Secretary. The Chairman is recommended by the Mayor and the City Council shall approve the recommendation by a vote of the majority of the Council during the annual appointment process. Should the Mayor fail to recommend a Chairman for each board, committee, or commission, and/or the Council fails to approve any Chairman recommended by the Mayor, a majority of the Council plus one may approve appointment of a Chairman to serve as Chairman without a recommendation of the Mayor. The other Board Officers are elected by a majority vote of the Members at the first meeting after the annual appointment process. Section 3.2. Terms of Office for Board Officers. Board Officers serve for a term of one year. In the event of vacancy in the office of Chairman, the Vice-Chairman shall serve as Chairman until the City Council appoints a replacement Chairman. A vacancy in the other offices shall be elected by majority vote of the Members at the next Page 5 of 50 Georgetown Electric Utility Systems Advisory Board Bylaws Page 3 of 6 Revised February 2020 regularly scheduled meeting, or as soon as reasonably practical for the unexpired term. If possible, a Board Officer shall continue to serve until the vacancy is filled. Section 3.3. Duties. a. The Chairman presides at Board meetings. The Chairman shall generally manage the business of the Board. The Chairman shall perform the duties delegated to the Chairman by the Board. b. The Vice-Chairman shall perform the duties delegated to the Vice-Chairman by the Board. The Vice-Chairman presides at Board meetings in the Chairman’s absence. The Vice-Chairman shall perform the duties of the Chairman in the Chairman’s absence or disability. c. The Secretary shall perform the duties delegated to the Secretary by the Board. ARTICLE IV. MEETINGS Section 4.1. Time and Date of Regular Meeting. The Board shall meet once a month on the same week of the month, the same day of the week, at the same time, and at the same place. The regular date, time and place of the Board meeting will be decided by the Members at the first meeting of the Board after the annual appointment process. Section 4.2. Agenda. Items may be placed on the agenda by the Chairman, the City Manager or designee, or at the request of a Member. The party (or individual) requesting the agenda item will be responsible for preparing an agenda item cover sheet and for the initial presentation at the meeting. Items included on the agenda must be submitted to the Staff Liaison no later than one week before the Board meeting at which the agenda item will be considered. Agenda packets for regular meetings will be provided to the Members in advance of the scheduled Board meeting. Agenda packets will contain the posted agenda, agenda item cover sheets, and written minutes of the last meeting. Section 4.3. Special Meetings. Special meetings may be called by the Chairman or by three (3) Members. Section 4.4. Quorum. A quorum shall consist of a majority of the Members. A quorum is required for the Board to convene a meeting and to conduct business at a meeting. Page 6 of 50 Georgetown Electric Utility Systems Advisory Board Bylaws Page 4 of 6 Revised February 2020 Section 4.5. Call to Order. Board meetings will be called to order by the Chairman or, if absent, by the Vice-Chairman. In the absence of both the Chairman and Vice- Chairman, the meeting shall be called to order by the Secretary, and a temporary Chairman shall be elected to preside over the meeting. Section 4.6. Conduct of Meeting. Board meetings will be conducted in accordance with these Bylaws and City Council Meeting Rules and Procedures, as applicable to the Board. See Ordinance Chapter 2.24. Section 4.7. Voting. Each Member shall vote on all agenda items, except on matters involving a conflict of interest, substantial financial interest or substantial economic interest under state law, the City’s Ethics Ordinance, or other applicable Laws, Rules and Policies. In such instances the Member shall make the required disclosures and shall refrain from participating in both the discussion and vote on the matter. The Member may remain at the dais or leave the dais, at the Member’s option, while the matter is being considered and voted on by the other Board Members. Unless otherwise provided by law, if a quorum is present, an agenda item must be approved by a majority of the Board Members present at the meeting. Section 4.8. Minutes. A recording or written minutes shall be made of all open sessions of Board meetings. The Staff Liaison is the custodian of all Board records and documents. Section 4.9. Attendance. Members are required to attend Board meetings prepared to discuss the issues on the agenda. A Member shall notify the Chairman and the Staff Liaison if the Member is unable to attend a meeting. Excessive absenteeism will be subject to action under Council policy and may result in the Member being replaced on the Board. See Ordinance Section 2.36.010D. Excessive absenteeism means failure to attend at least 75% of regularly scheduled meetings, including Board meetings and Subcommittee meetings. If a Member is removed from the Board that position shall be considered vacant and a new Member shall be appointed to the Board in accordance with Section 2.5 above. Section 4.10. Public Participation. In accordance with City policy, the public is welcome and invited to attend Board meetings and to speak on any item on the agenda. A person wishing to address the Board must sign up to speak in accordance with the policy of the Council concerning participation and general public comment at public meetings. Sign-up sheets will be available and should be submitted to the Chairman prior to the start of the meeting. If any written materials are to be provided to the Board, a copy shall also be provided to the Staff Liaison for inclusion in the minutes of Page 7 of 50 Georgetown Electric Utility Systems Advisory Board Bylaws Page 5 of 6 Revised February 2020 the meeting. Speakers shall be allowed a maximum of three minutes to speak, but may take up to six minutes if another individual who signs up to speak yields the time to the speaker. If a person wishes to speak on an issue that is not posted on the agenda, they must file a written request with the Staff Liaison no later than one week before the scheduled meeting. The written request must state the specific topic to be addressed and include sufficient information to inform the Board and the public. A person who disrupts the meeting may be asked to leave and be removed. Section 4.11. Open Meetings. Public notice of Board meetings shall be provided in accordance with the provisions of the Texas Open Meetings Act. All Board meetings and deliberations shall be open to the public, except for properly noticed closed session matters, and shall be conducted in accordance with the provisions of the Texas Open Meetings Act. Section 4.12. Closed Sessions. The Board may conduct closed sessions as allowed by law, on properly noticed closed session matters, such as consultation with attorney on legal matters, deliberation regarding the value of real property, competitive utility matters, and economic development negotiations. A recording or certified agenda shall be made of all closed sessions of Board meetings. ARTICLE V. REPORTS TO CITY COUNCIL The Board shall meet with City Council, as requested, to determine how the Board may best serve and assist City Council. City Council shall hear reports from the Board at regularly scheduled Council meetings. ARTICLE VI. SUBCOMMITTEES Section 6.1. Formation. When deemed necessary by a majority of the Board, Subcommittees may be formed for specific projects related to Board matters. Subcommittees comprised of non-Members may only be formed with the prior consent and confirmation of the City Council. Section 6.2. Expenditure of Funds. No Subcommittee, or member of a Subcommittee, has the authority to expend funds or incur an obligation on behalf of the City or the Board. Subcommittee expenses may be reimbursed if authorized and approved by the Board or by City Council. Page 8 of 50 Georgetown Electric Utility Systems Advisory Board Bylaws Page 6 of 6 Revised February 2020 Section 6.3. Open Meetings. Subcommittee meetings and deliberations shall be open to the public, except for properly noticed closed session matters, and shall be conducted in accordance with the provisions of the Texas Open Meetings Act. ARTICLE VII. BYLAW AMENDMENTS These Bylaws may be amended by majority vote of the Board Members at any regular meeting of the Board. The Board’s proposed amendments to the Bylaws must be approved by City Council at the next Council meeting after the Board’s approval. Bylaw amendments are not effective until approved by City Council. Approved and adopted at a meeting of the City Council on the _____ day of ____________________, 2020. ATTEST: THE CITY OF GEORGETOWN _____ _____ City Secretary Mayor Approved and adopted at a meeting of the Board on the ______ day of _________________, 2020. ATTEST: BOARD _____ _____ Board Secretary Board Chairman Page 9 of 50 City of Georgetown, Texas Electric Utility Board May 19, 2022 S UB J E C T: R eview and Approval of Minutes from 04/21/2022 Meeting- Kress C ars on; Board Liaison IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Kres s C arson- Board Liaison AT TAC H ME N T S: Description Type 4/21 Minutes Cover Memo Page 10 of 50 Minutes of the Meeting for the Georgetown Electric Utility Board Thursday, April 21st at 4:00 PM at the Friends Room at Georgetown Public Library, 402 W. 8th St. Georgetown, TX 78626 Board Members Present: Robert Case - Chairman, Rick Woodruff- Vice-Chairman, Sam Jones- Secretary, Ben Butler, Mike Triggs, Ben Butler Board Members Absent: None Staff Present: Daniel Bethapudi, Daniel Potter, Daniel McReynolds, Mike Westbrook, Mark Palmer, Cindy Pospisil, Kress Carson, Jennifer Flor, Jose Torres, Richard Pajestka, Laurie Brewer, and David Morgan Public Attendees: None Regular Session (This Regular Session may, at any time, be recessed to convene an Executive Session for any purpose authorized by the Open Meetings Act, Texas Government Code 551.) A. Call to Order -- Robert Case, Board Chairman  Meeting called to order at 4:00 pm by Case. B. Roll Call of Board Members -- Robert Case, Board Chairman.  All members present C. Introduction of Visitors -- Robert Case, Board Chairman D. Public Wishing to Address the Board  None present Legislative Session E. Review and Approval of Minutes- Kress Carson, Board Liaison  March 24th Meeting- Motion to approve by Jones; seconded by Woodruff Page 11 of 50  Minutes approved as read 5-0 Regular Session (cont.) F. General Managers Monthly Report- Daniel Bethapudi- General Manager of Electric Utility  Reorganization Overview- Daniel Bethapudi o Bethapudi overviews the organizational structure of the Electric Utility o Mark Palmer introduced as the Utility Operational Technology Manager  Customer Service and Billing- Leticia Zavala- Customer Care Director o 30,563 Available Services o 30,199 Electric customers/accounts o 30,003 Billed Electric Meters  Triggs asks why customers are labeled “unique” in the electric customer count.  Zavala answers that indicates one customer, as one customer may have multiple accounts and/or meters o Overall Residential March 2022 bills nearly identical compared to March 2021 o Average monthly and YTD electric bills for March 2022 compared to March 2022 are roughly the same. o Electric Revenue Breakdown and Receivables presented- roughly 38% of yearly budgeted amount collected; 44% billed o 93% of 1st Quarter billings (Oct, Nov, Dec) collected and 82% of 2nd Quarter (Jan, Feb, Mar) billings collected o $71,000 decreased total in Aged Receivables for March o Roughly $269,000 collected in outstanding bills since the collection agency commenced collections in May to collect the bad debt o Jones notes that he has noticed a lot of new construction in the area, particularly on the north side of I-35, if this is within the Georgetown service area.  Bethapudi confirms this is this case, and the Utility is expecting a large increase in industrial load from facilities such as CellLink and Amazon in the Titan Industrial Park area. The Utility is expecting a load increase from 25 to 40 MW. This is almost a 25% growth in the current peak demand. Residential growth is currently at 4-5% growth. o Case asks if there is a cost-of-service study scheduled to facilitate this growth.  Bethapudi confirms that one is currently ongoing o Woodruff asks how the data is captured from the advanced metering infrastructure.  Bethapudi answers that for electric uses, the meters use a point-to- Page 12 of 50 multi-point wireless communication platform  Electric Operations Report- Electric Operations Manager o Electric Reliability (SAIFI)- .436 (Good Metric) o Electric Outage Duration (CAIDI)-58.975 (Good Metric) o Training- 100% (Good metric) o Safety, 100% attendance o Service Order Completion, 100% o Preventative Maintenance, 99% o Corrective Maintenance, 100% o Top 5 Outages Report  No major outages; Largest outage occurred on 3/21 due to a pole in which it was the first pole outside a substation; thus meaning that the outage couldn’t be isolated and affected over 700 customers  Electric Employee Safety and Development Report- Danny Potter- Electric Safety and Employee Development Manager o 0 Safety incidents in March o 2 apprentice linemen completed the first ever NLC skills evaluation for Georgetown  Northwest Line College (NLC) is the newest proprietor of apprentice program for the Utility; is a nationally recognized and accredited school o 2 Journeymen completed the TEC Leadership Development Training o Rollout out of KPA software to track safety, employee development, and provide documentation concerning work  Phase 1 of implementation will involve a supervisor rollout of the program G. Task Order- Pole Attachment Administration Support and Analysis- Kress Carson; Electric Utility Analyst and Danny McReynolds; Electric Engineering Manager  Schneider Engineering currently provides services to the City in other services such DER inspections and administration within a Master Services Agreement  Due to the impending growth of fiber and the increase of pole attachment applications to the City, there is a need to outsource the engineering analysis required to provide this service, as well as the various administrative work that accompanies it.  Historically, the City has maintained a joint-use program in which pole attachment applications were fairly manageable. joint-use program in which pole attachment applications were fairly manageable. So far in FY 2022, the Utility has witnessed roughly 400 pole attachments in the year and expecting much more.  There are multiple Fiber-To-Home projects projected for construction within the year from Frontier, Grande/Astound, and Ubiquity/ Millennium Telecom.  Case asks for clarification that fiberoptic cable is product they are seeking to Page 13 of 50 install onto Georgetown facilities o Carson confirms that this is the case. Suddenlink, for example, will overlash their own facilities such as phone cable to provide fiber to other areas they already service.  Woodruff asks for clarification that this only applies to older parts of the City, whereas newer sections of the City has underground facilities. o Carson confirms that will be the case. The prospective entities will be providing their fiber underground, but this task order only relates to pole attachment work. The underground work goes to the right-of-way group in the City and is not managed by the Electric Utility.  Carson also notes that this will likely be accompanied by an updated pole attachment agreement in the near future  Motion to approve made by Woodruff; seconded by Jones; vote passes 5-0 H. Electric Warehouse Outsourcing - Mike Westbrook- Electric Operations Manager  Westbrook gives background on what led to the presentation of this item  In 2013, Georgetown entered into the LCRA Material Acquisition Program to purchase goods under LCRA contracts, and LCRA would enter into agreements with vendors in accordance with their policy, which was provided by Techline.  From 2017 through 2019, the Utility then identified and reduced material and cash inefficiencies by instilling in better material ordering and coordination practices and sell off or use excess inventory.  In 2020, to address challenges in timing of delivery of projects and payments to the vendor, as well as material picking inefficiencies, the City issued and RFP for a Just-In-Time Material contract. This was awarded to Techline.  This model helped with some of the issues but ultimately the partnership was not ideal to the City expectations.  In order to truly benefit from a JIT contract, as well as benefit from a true professionally managed warehouse, would be to allow for the best material to be sourced rather than simply the lowest cost, eliminate tie up cash in material inventory, reduce project lead times, and eliminate the overall risk of handling inventory. It was determined that outsourcing the current electric warehouse structure would be the best solution to solve these issues.  An RFP was issued for these services In August of 2021. There were four respondents, and based on proposals and presentations, Texas Electric Cooperatives (TEC) was selected as the preferred vendor of these services  TEC services features headquarters that reside in Georgetown, in which is a central distribution hub, and over 30 other locations in Texas with a dedicated fleet of trucks to move material 24/7.  In joining an alliance with TEC, Georgetown receives access to these services sch as $260 million in shared Electric Utility Distributors Association national inventory, $91 million in TEC inventory, data integration capabilities to reduce Page 14 of 50 administrative costs and improve accuracy associated with transactional processing, and improved technology to support project management and material flow  The alliance is expected to benefit Georgetown by enabling true cost savings through eliminating inventory carrying costs, reduce warehouse and material related costs, increase crew and contractor productivity, and increase material productivity through improved forecasting capability and order fill rates  TEC will ultimately provide all equipment and materials needed by City of Georgetown for electric construction and maintenance activities, including after hours.  They will purchase all of exiting inventory based on market prices.  They will be responsible for the staging, issuance, and material handling.  Additional services include repair and refurbishment of transformers and pole recycling program. meter services, tool services and repair, and dielectric testing.  The initial term of the agreement is five years, unless earlier terminated. Thereafter, it can be renewed for one additional term of three years for total of 8 potential contract years.  Pricing for each stock inventory product shall based on 19% margin in the sale price to the City of Georgetown based on TEC’s weighted average file cost at the time of sale.  Non-stock material will be based on a 12% margin. Non-stock substation and transmission inventory is based on a 10% margin. o Case asks if the City is comfortable with the margin costs.  Westbrook confirms o Case follows and asks if the margin include their administrative, overhead, and other personnel costs.  Westbrook confirms that all of those costs are embedded into that margin  Cost associated with lifecycle services, including repairs and refurbishment will be a direct cost to the City with no additional marginal costs from TEC.  The first phase of the next steps will begin by placing material orders for construction jobs and develop a list of tasks to accomplish such jobs. This will begin upon the effective date of the agreement.  The second phase will begin no later than 45 days after the effective date, in which the parties will finalize the inventory counts of current Georgetown inventory and TEC will complete the purchase of the inventory. Additionally, the City will terminate any existing material contracts where material has not been sourced yet.  Woodruff what the net financial impact of engaging in this contract will do to the City. o Bethapudi answers that it will a close to neutral financial impact. From a material point of view, comparisons indicate a 10-15% reduction on Page 15 of 50 many of the material prices from the old vendors to TEC. In comparing overhead of Georgetown activities versus TEC, TEC was much more competitive that the City. o Bethapudi adds that on a high level, costs of the outsource should be a wash, but the business benefits should benefit any cost variance that City may experience. Bethapudi also adds that outsourcing is ultimately much easier than to try to build the internal competencies within the City to effectively manage the electric inventory.  Butler asks if there are any downsides to engaging in this project? o Westbrook answers that the only downside or challenge to this is making the transition itself due to the moving parts of the projects and culture change.  Butler asks if there will be instances in which material on a project intended for Georgetown is provided to another customer of TEC based on need at their discretion. o Westbrook answers that under the alliance agreement, Georgetown jobs will be considered priority once a bill of material is issued. o Bethapudi adds that TEC has wholesale customers and alliance customers. Alliance customers receive the benefit of “first in the pecking order” than compared to other wholesale customers. In addition, the contract provides that in the instance TEC does not have necessary material for a project, but another vendor does- Georgetown is permitted to engage with that vendor to procure the necessary material. o Danny McReynolds adds that in what business the City has done with TEC, TEC has provided better lead times on material and has had better material availability when compared to other vendors. o Richard Pajestka provides an example of a large project in which the previous vendor had an extended lead time that would have kept the project from proceeding for multiple months whereas TEC was able to provide the product with a week. o Bethapudi adds that TEC will play an integral part of the project management workflow This will provide better project lead times, and more frequent and accurate pricing on jobs.  Jones asks how will TEC bill Georgetown in light of the current inflation rates? Are they billed on a first-in-first-out basis? o Bethapudi answers that TEC uses average market pricing. As those prices are regularly communicated to Georgetown, Georgetown will then reflect the material price changes into their cost estimations provided to the customer. The average price costing is provided in the agreement. o Westbrook adds that these adjustments will be provided to Georgetown on a weekly basis, as provided in the agreement.  Motion to approve by Butler, and seconded by Woodruff; vote passes 5-0 Page 16 of 50 Board moves into Executive Session at 5:16 PM Executive Session In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes, Annotated, the items listed below will be discussed in closed session and are subject to action in the regular session. I. Section 551.086: Competitive Matters  Purchased Power Update Board moves back into Regular Session at 5:35 PM. Adjournment MOTION by Woodruff, seconded by Butler to adjourn the Board Meeting APPROVED 5-0 Electric Board Meeting Adjourned at 5:35 PM. Page 17 of 50 City of Georgetown, Texas Electric Utility Board May 19, 2022 S UB J E C T: G eneral Manager's Monthly R eport- Danny Mc R eynolds; Elec tric Engineering Manager IT E M S UMMARY: Includes : C ustomer S ervice and Billing R eport- Letic ia Zavala- C us tomer S ervic e Direc tor Electric O perations R eport- Mike Wes tbrook- Elec tric O perations Manager Electric S afety and Employee Development R eport- Daniel P otter- Electric S afety and Employee Development Manager F inance R eport- Nathan P arras - As s is tant F inance Director F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Danny Mc R eynolds ; Electric Engineering Manager AT TAC H ME N T S: Description Type 05.19 Pres entation Pres entation Page 18 of 50 Georgetown Electric Utility Advisory Board 05/19/2022 Page 19 of 50 22 AGENDA I.Regular Session: (* -indicates legislative action) A.Call to Order B.Roll Call C.Introduction of Visitors D.Public Wishing to Address the Board E.Review of Board Purpose and Bylaws* F.Review of City Council’s Boards and Commissions Attendance Policy* G.Review of Future Board Meeting Dates and Times* H.Review and Approval of Minutes* I.General Manager’s Monthly Report i.Customer Service and Billing Report ii.Operations Report iii.Safety and Employee Development Report iv.Finance and Budgeting Report J.Wesco Contract Renewal* II.Executive Session: I.Purchased Power Update J.Cyber Security Update *-indicates legislative action Page 20 of 50 Customer Service and Billing – Electric Services Customer Service and Billing – Electric Services Review of Minutes 04/21/2022 Page 21 of 50 Customer Service and Billing – Electric Services Customer Service and Billing – Electric Services Review of Board Purpose and Bylaws Page 22 of 50 Customer Service and Billing – Electric Services Customer Service and Billing – Electric Services Review of Attendance Policy Page 23 of 50 66 •Sec. 2.36.010. -Duties of members. •D. Attendance by Members is integral to success of the commission, committee or board. It is Council policy to require a minimum of 75 percent attendance of each Member at each regularly scheduled meeting including subcommittee meetings. A Member shall be allowed two excused absences for the Member's personal medical care, required medical care of a Member's immediate family member (as defined by City Ordinance), or Member's military service that shall not count against the 75 percent attendance requirement. Written notice shall be sent to a Member and the Member's City Council representative when it appears the Member may violate the attendance policy by being absent from more than 25 percent of regularly scheduled meetings, including subcommittee meetings. Excessive absenteeism may result in the Member being replaced by the Council. If a Member is removed from a committee, commission or board, that position shall be considered vacant and a new Member shall be appointed to the Board in accordance with Section 2.36.040. Review of City Council's Boards and Commissions Attendance Policy Page 24 of 50 Customer Service and Billing – Electric Services Customer Service and Billing – Electric Services Review of Future Board Meeting Dates and Times Page 25 of 50 8 •Future Electric Board Meeting Dates are currently met on the 3rd Thursday of every month and are currently scheduled as followed: •06/16/2022 •07/21/2022 •08/18/2022 •09/15/2022 •10/20/2022 •11 /17/2022 •12/15/2022 •01/19/2023 •02/16/2023 •03/16/2023 •04/20/2023 Board Meeting Dates and Times Page 26 of 50 General Manager’s Monthly Report 05/19/2022 Page 27 of 50 Customer Service and Billing – Electric Services Customer Service and Billing – Electric Services Customer Service and Billing – Electric Services Leticia Zavala Customer Care Director Page 28 of 50 1111 •All Available Services* *Active & Inactive service delivery points Customer Statistics Available Electric Meters:Mar-2022 Apr-2022 Residential 27,284 27,411 General -Small 2,586 2,591 General -Large 346 348 Industrial 22 22 Industrial -Large 1 1 School Services 25 24 Municipal 254 254 Municipal -Pumping 45 45 Total Services Count 30,563 30,696 Available Security Lights Mar-2022 Apr-2022 Residential 94 95 Non-Residential 127 126 Municipal 4,203 4,203 Total Services Count 4,424 4,424 Net Metering REC Meters*543 545 *Main Meters Included in Counts above Page 29 of 50 1212 •Breakdown by Active Electric Customers (unique) : •Electric Billing Collection: •Advanced Metering Infrastructure (AMI): 99.7% –Usage data automatically transmitted to billing office •Automated Meter Reading (AMR): .3% –Usage data is collected via a drive by system •# of Customer Estimations: 100 •Account did not get a “good” READ; or •Account did not get “ANY” READ (work order put in for metering to investigate) Customer Statistics Mar-2022 Apr-2022 Residential 26,759 26,855 Builder 736 790 Commercial & Industrial 2,409 2,415 Municipal/Schools 295 295 Total Electric Customers:30,199 30,355 Page 30 of 50 1313 •Billed Meters/Services* *Meters billed during the month Customer Statistics Billed Electric Meters:Mar-2022 Apr-2022 Residential 27,010 27,028 General -Small 2,371 2,351 General -Large 337 338 Industrial 22 21 Industrial -Large 1 1 School Services 25 25 Municipal 196 181 Municipal -Pumping 41 41 Total Services Count 30,003 29,986 Billed Security Lights Mar-2022 Apr-2022 Residential 95 95 Non-Residential 126 126 Municipal 4,197 4,203 Total Services Count 4,418 4,424 Billed Net Meters*533 533 *Also included in above meter counts Page 31 of 50 1414 Customer Billing Statistics Average Monthly Electric Bill FY22 -Apr FY21 -Apr All Customers $185.33 $188.74 Average YTD Electric Bill FY2022 FY2021 All Customers $196.34 $205.12 Residential Customer -FY2022 FY2021 Cost per 1000 kWh $134.35 $134.35 (including PCA + Base) Average kWh 728 732 Electric Bill (based on Average kWh)$97.81 $98.34 Page 32 of 50 1515 Electric Revenue –FY 2022 Page 33 of 50 1616 Electric AR –Active & Inactive Accounts Electric AR –Combined Aging Breakdown Aged Receivables Report –thru 4/30/22 Electric Apr-22 Prior Month Variance 31 –60 Days $77,818.31 $69,699.81 $8,118.50 61 –90 Days $33,965.74 $28,548.13 $5,417.61 91 –120 Days $24,461.09 $35,110.13 ($10,649.04) 120 –365 Days $243,648.82 $251,700.41 ($8,051.59) > 365 Days $148,416.55 $135,292.91 $13,123.64 Total $528,310.51 $520,351.39 $7,959.12 Customer Count 2377 2250 127 Electric Apr-22 Prior Month Variance Active Accounts $84,138.27 $88,749.65 ($4,611.38) Inactive Accounts $444,172.24 $431,601.74 $12,570.50 Total $528,310.51 $520,351.39 $7,959.12 Page 34 of 50 1717 Collection Agency Review Month Accounts Assigned Assigned Amount Assign Average Bal Collected in Current Period Collected To Date Liquidity Apr-22 60 $20,660.85 $344.35 $380.61 $380.61 1.8% Mar-22 75 $25,424.37 $338.99 $1,525.99 $3,495.39 13.8% Feb-22 249 $96,830.86 $388.88 $1,990.27 $11,486.25 11.9% Jan-22 0 $0.00 $0.00 $0.00 $0.00 0.0% Dec-21 104 $95,028.38 $913.73 $0.00 $66,134.14 69.6% Nov-21 48 $16,358.98 $340.81 $252.28 $1,489.58 9.1% Oct-21 123 $39,594.42 $321.91 $0.00 $10,029.18 25.3% Sep-21 131 $44,705.08 $341.26 $1,009.96 $7,677.91 17.2% Aug-21 52 $19,337.56 $371.88 $0.00 $1,415.62 7.3% Jul-21 327 $165,161.34 $505.08 $95.06 $38,055.56 23.0% Jun-21 0 $0.00 $0.00 $0.00 $0.00 0.0% May-21 2467 $1,391,124.99 $563.89 $2,708.32 $136,695.98 9.8% 0 $0.00 $0.00 $0.00 $0.00 0.0% Total 3636 $1,914,226.83 $526.47 $7,962.49 $276,860.22 14.5% Page 35 of 50 Electric Operations Report Mike Westbrook Electric Operations Manager Page 36 of 50 19 Performance Metrics Mar-22 March.April Good Caution Alert Training 100%100%>90%90%-80%<80% Safety 100%100%>90%90%-80%<80% SO OTC 100%100%>90%90%-80%<80% PM WO OTC 99%99%>90%90%-80%<80% CM WO OTC 99%100%>90%90%-80%<80% Electric Reliability (SAIFI)0.436 0.417 <1 1-2 >2 Electric Outage Duration (CAIDI)58.975 65.457 <116 116-200 >200 Page 37 of 50 20 Top Five Outages & Events Date Start Time Duration (min) Customers Affected Customer Minutes Cause Area 4/6/2022 1:13pm 127 2 245 Burned up secondary cable feeding a pedestal East Georgetown 4/20/2022 12:28am 143 298 42,614 Pole fire Gabriel 4/25/2022 9:51am 85 4 340 Pole fire Rivery 4/27/2022 11:14am 54 1001 54,054 Tree in the primary Georgetown East 4/29/2022 8:21am 88 2 176 Failied Conection at theTransformer Gabriel Date Start of Event End of Event # of Outages Average Duration Cause Area N/A Page 38 of 50 Electric Safety and Training Report Danny Potter Electric Safety and Employee Development Manager Page 39 of 50 22 Electric Employee Safety and Employee Development Safety Meetings •Quarterly Safety Down Day •Monthly and Weekly Safety Incidents •Apprentice Lineman Suffers Spider bites to leg Employee Training and Development •Northwest Lineman Training College •2 Journeyman completed OSHA 30 Hour Safety Leadership training KPA Software Update Page 40 of 50 Finance and Budgeting Report Nathan Parras Assistant Finance Director Page 41 of 50 24 Bond Rating Update •Water and Electric Fund combined revenue bond rating •Standard and Poor’s affirmed the City’s A+ rating, and revised the outlook from negative to stable •Rating report highlights •the stability and growth of the water system •water treatment and supply planning •management’s response to mitigating risk environmental and market risk •our regional economy •our liquidity in both the water and electric funds •The overall state of the ERCOT market remains a negative factor in the rating •The S&P analyst noted that we are the first public power entity in Texas to have the negative outlook removed after Winter Storm Uri Page 42 of 50 25 Bond Sale Update •Unusually large revenue bond sale this year -total $232.6M –due to South Lake Water Treatment Plan ($195M) •Financial Advisor recommended a delegated negotiated sale in order to get the best interest rate •Not bring the City’s tax-supported debt and revenue bond debt to the market on the same day to flood the market •Work directly with one underwriter on any credit concerns post -Winter Storm Uri •Interest rate of 4.396%, a large increase compared to recent years •Bad news: Rising rate environment, high volume of bonds brought to market, inflation affecting value of long-term bonds, reduced number of firms available to buy the bonds due to Texas state legislation •Will be able to refinance in 2031; maybe sooner if a taxable status is advantageous •Good news: No creditworthiness concerns from the major buyers working with the syndicate Page 43 of 50 26 FY 2022 Budget Amendment •Vehicle fuel increase (citywide) due to inflation •Electric fund impact -$50K •Re-organization of Electric staff •9 title reclassifications -$23K impact for remainder of FY2022 •6 positions moving between cost centers –net $0 •Update Metering and Technology support organization and share costs •Increase capital budget for New Construction –cost of labor, cost of materials, volume of project •Increase bond proceed revenue $7.5M; increase developer contributions $9.5M •Increase CIP expense $7.5M Page 44 of 50 Legislative Action Items 05/19/2022 Page 45 of 50 28 Wesco Distribution Inc.-Meter Supply Agreement SUBJECT: Consideration and possible action to approve an amendment to an agreement with Wesco Distribution Inc., to increase the fourth renewal term amount to not exceed $420,000.00 --Mike Westbrook, Electric Operations Manager ITEM SUMMARY: October of 2022 the City of Georgetown renewed contract 17 -0074-GC for its fourth renewal.In that agreement we requested the Not-to-Exceed amount of only $100,000. In previous renewals we had an NTE of $420,000. This contract, originally engaged in 2017, is used to facilitate the purchase and supply of Honeywell electric meters, water modules, and related items for the City’s Advanced Metering Infrastructure (AMI) System FINANCIAL IMPACT: Funds are included in the FY2022 C.I.P. budget; NTE not to exceed $420,000 SUBMITTED BY: Mike Westbrook –Electric Operations Manager Page 46 of 50 Executive Session: In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes, Annotated, the item listed below will be discussed in closed session and is subject to action in the regular session. Sec. 551.086 Competitive Matters •Purchased Power Review Sec. 551.089 Deliberation Regarding Security Devices or Security Audits •Cyber Security Update Page 47 of 50 City of Georgetown, Texas Electric Utility Board May 19, 2022 S UB J E C T: C onsideration and pos s ible ac tion to approve an amendment to an agreement with Wes co Dis tribution Inc., to inc reas e the fourth renewal term amount to not exc eed $420,000.00 -- Mike Wes tbrook, Electric O perations Manager IT E M S UMMARY: O c tober of 2022 the C ity of G eorgetown renewed contrac t 17-0074-G C for its fourth renewal. In that agreement we requested the Not-to-Exc eed amount of only $100,000. In previous renewals we had an NT E of $420,000. T his c ontract, originally engaged in 2017, is us ed to fac ilitate the purc hase and s upply of Honeywell electric meters, water modules, and related items for the C ity’s Advanc ed Metering Infras tructure (AMI) S ys tem F IN AN C IAL IMPAC T: F unds are inc luded in the F Y2022 C .I.P. budget; NT E not to exceed $420,000 S UB MIT T E D B Y: Mike Wes tbrook- Elec tric O perations Manager AT TAC H ME N T S: Description Type Agreement Amendment Cover Memo Page 48 of 50 Amendment No. 1 to Renewal No. 4 of the Agreement between Wesco Distribution, Inc. and the City of Georgetown, Texas This First Amendment Agreement (“First Amendment”) is entered into by and between CITY OF GEORGETOWN, a Texas Home-Rule Municipal Corporation (the “City”), and WESCO DISTRIBUTION, INC. (“Contractor”), (collectively, the “Parties”). The Parties hereby agree as follows: WHEREAS, the Parties entered into the Contract Between the City of Georgetown and Wesco Distribution for Supply of Honeywell Electric Meters and for Water Modules and Related Items for City’s Advanced Metering Infrastructure System, Contract No. 17-0074-GC, on June 13, 2017, 2021 for Consulting Services (the “Original Agreement”); and WHEREAS, the Contractor is the sole source distributor of the Honeywell electric meters and related items for City’s Advanced Metering Infrastructure System; and WHEREAS, the Original Agreement provided for (4) four additional one- (1) year renewal terms; and WHEREAS, the Parties agreed to renew the Original Agreement for a first renewal term at $420,000.00 on June 12, 2018; for a second renewal term at $420,000.00 on November 26, 2019; for a third renewal term at $420,000.00 on October 13, 2020; and for a fourth renewal term at $100,000.00 on November 9, 2021 (“Fourth Renewal”); and WHEREAS, the Parties desire to increase the amount of goods purchased under the Fourth Renewal from ONE HUNDRED THOUSAND DOLLARS ($100,000.00) to FOUR HUNDRED TWENTY THOUSAND DOLLARS ($420,000.00); NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Parties agree as follows: 1. Section 4 of the Fourth Renewal shall be deleted in its entirety and replaced with the following provision: During the term of this Fourth Renewal, the City will pay the Contractor an amount not to exceed FOUR HUNDRED TWENTY THOUSAND DOLLARS ($420,000.00). 2. All other terms of the Fourth Renewal not inconsistent with this First Amendment shall apply. Except as expressly modified by this First Amendment, the Fourth Renewal remains unchanged and in full force and effect, subject to its terms. 3. This First Amendment to the Fourth Renewal is effective on the date executed by the City. Page 49 of 50 WESCO DISTRIBUTION, INC. CITY OF GEORGETOWN By: ______________________________ By: ______________________________ Printed Name: __Morgan Aikins_______ Printed Name: _____________________ Title: ___OSR______________________ Title: _____________________________ Date: _____4/18/2022________________ Date: _____________________________ ATTEST: __________________________________ Robyn Densmore, City Secretary APPROVED AS TO FORM: __________________________________ Skye Masson, City Attorney Page 50 of 50