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 Okay. Good morning. It's 9 o'clock and we have a quorum, so we're called to order the

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 Monday, April 25th public utilities board meeting for the city of Denton. The first

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 item on the agenda is presentations from the public. Is anybody in the public wishing to

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 present first? No. Seeing none. And the second item is consent agenda. Does any board member

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 wish to pull any items from A through D? I have a question about item B. B? Okay. B

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 as in boy. B as in boy. Thank you, Kevin. Any others? Then do we have a motion to approve

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 item A, C, and D? So moved. Okay, Mr. Rebick moved. Do we have a second? Second. Oh, you're

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 in second. Thank you. All in favor say aye. Aye. Opposed? Oh, there's A, C. Yeah, there's...

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 Oh, really? Maybe that's why I couldn't find it. You're in March. Huh? That's your March

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 item. Okay, item B. Thank you, Madam Chair. Looking at this, it appears that this is for...

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 This contract is additional maintenance for the period. Was the maintenance not originally

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 purchased in the original five-year contract? I believe the original contract did not include

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 this part of the sustainment. Sorry about that. The sustainment services were not included

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 in the original part of the contract. At that time, we thought it was, but Louis later notified

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 by the vendor that it was not. Okay, so the original contract was a five-year contract

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 with two years of maintenance, and we've discovered that. It's still five years maintenance. And

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 now it's five years, right? From 2020 to 2025. Okay, thank you. All right. Oh, sure. Larry,

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 were you voting affirmative on... Yes. Okay, all right. Thank you. Okay, do we have a motion

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 to approve item B? So moved. Second. And Barbara seconded. All in favor, say aye. Aye. Carries.

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 Okay, items for individual consideration. The first item is the minutes. Do we have

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 any changes or corrections? All right. Do we have a motion to approve the minutes? So

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 moved. And a second. Mr. Beck seconds. All in favor, say aye. Aye. Okay, that carries.

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 Next item, consider recommending the adoption of an ordinance for Ganser Investments, LLC.

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 Good morning. Good morning. I'm Christine Taylor in the city manager's office. And today

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 we're going to talk to you all about a cost participation agreement that we have come

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 to with one of our private developers. So we're going to run through the background

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 on this project, the opportunities that we located, some highlights in the agreement,

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 estimated project costs, the benefits of the project, and then next steps. So about a year

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 ago, 4,000 Ganser Investments, which is a developer, began a feasibility discussions

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 with the city in early 2021 regarding a 155-acre multifamily project located on the north side

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 of town, which is within the city's ETJ-1. The initial feedback that the developer received

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 was that the city had not extended services to the north end of the system, which meant

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 for them that they would not be able to get their project within the next couple of years

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 until we had wastewater services out there. So in September 2021, the developer notified

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 the city manager's office that they were interested in entering into some type of cost participation

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 agreement towards the extension of the wastewater services to the area. Water utilities and

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 capital projects identified an opportunity to partner with the Texas Department of Transportation

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 on their utility relocation project along I-35, which would eliminate two of the city's

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 lift stations. The city's Milam Creek, Clear Creek Basin project, which would extend the

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 services was included in the city's CIP, but was in an out year and included a funding

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 gap. So with all this information, a cross-functional team was developed within the city to explore

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 the feasibility of cost participating in some type of agreement with the developer. So a

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 couple of the agreement highlights we want to show to you is the property is located

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 within the city's ETJ-1, which means all regulatory approvals for the development will be issued

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 in conformance with the city's Code of Ordinance and Development Code. So they'll go through

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 platting, they'll do their civil engineering plans, they'll replat if necessary based on

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 their CEPs, and then they're subject to all development and impact fees. So none of those

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 are being waived with this agreement. And in turn, the city is agreeing to permit the

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 developer to go out of sequence since CEPs cannot be completed until the city's project

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 is designed. A couple more agreements highlights of the agreement is the city will provide

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 the design documents to the developer for the purpose of them developing their civil

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 engineering plans. The cost participation of $8 million will provide partial funding

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 for the design and construction of the Milam and Clear Creek Basin project. The developer

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 in this agreement waives any claims against other developer contributions, dedications,

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 or any development proportionality study. And the developer will dedicate a 30-foot

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 water and wastewater easement by deed. The developer will pay the city $8 million upon

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 execution of the agreement, and we are projecting the project to be completed by the end of

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 calendar year 2023. So the estimated project cost is close to $20 million. We're estimating

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 a text-dot reimbursement of $7.6 million, along with the developer contribution brings

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 the city contribution down to $4.3 million. The benefits of us going forward with this

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 agreement is that we'll provide a regional sewer solution, removing the need for individual

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 wastewater systems for developments at the north end of the system. We will replace two

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 undersized and aged lift stations with gravity sewer, reducing the risk of overflows and

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 the cost of operating and maintenance. And we can complete this in conjunction with a

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 text-dot project, reducing duplication of work and future relocation of facilities.

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 And another huge benefit is it reduces that cost to the city down from $20 million to

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 the $4.3 million. Yes, sir. Yes, ma'am. Back to those projected costs. So could you give

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 us a little background on where those came from? Sure. The city came up with the estimated

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 project cost of what it would be to complete, to extend those services out north, along

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 with relocating the utilities that will be required for the text-dot expansion. And so

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 the estimated text-dot reimbursement is based off what we think will be reimbursed from

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 text-dot. No agreements have been completed yet, but that project is moving forward. And

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 the developer contribution, the amount that they wanted to bring forward to us was not

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 based on any study. They just had come to the city and said, "We have $8 million. Will

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 this close your funding gap to get that project moved up in your capital program?" So that's

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 just based on your negotiations with the developer? Correct. Thank you. Becky, did I answer that

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 right on text-dot? Okay. I didn't even look at Becky when she has all the answers. So

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 next steps, if you all are recommending this, we'll bring forward a design amendment for

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 the text-dot relocation. That design amendment is approximately $750,000, which was included

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 in those prior costs as well. The developer will remit payment to the city upon execution

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 of the agreement, and the construction package will go out for bid and subsequent approval.

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 You'll see all of those construction packages come forward. If we don't decide to move forward

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 this agreement, the city will move forward with just a text-dot portion only. No design

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 amendment will be required, and then wastewater services would not be extended to the north

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 end of the system for the next three to five years. Here's a couple pictures. Did you say

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 would not be extended? Correct. Could you go back to that slide? The slide said didn't

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 have the not in there. Yes, it's would not. Okay. Thank you. Would not be extended for

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 the next three to five years. Go ahead. This extension, is it going to just go to the point

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 where the developer can pick it up, or are we going to try and go to the other end of

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 their development and anticipate some future growth there? I'm going to let Stephen Gaye,

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 our water utility director, answer that question. I have this picture, but I'm not exactly sure

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 where it stops. Okay. And if we do or don't, how far, what's the difference between the

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 shortest point and the longest point? To answer your question, we're bringing the, if you

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 see that, those green lines right there on the map, that's where we're extending the

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 services to, and then the other developments coming into the area would be able to tie

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 onto the system. Now part of the newer development in the area will want them to run lines to

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 connect to the system there. Okay. Does that answer your question? I think so. Yes, sir.

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 Okay. Thank you. While you're up there, I have a few questions. I love this map. I was

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 trying to figure out where all this stuff was just by the presentation. Didn't include

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 this map. So the yellow is existing? No. So the yellow is going to be our gravity line

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 and no, that's the force main line. I'm sorry. So if I go back, let me go back one here.

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 So this is the existing configuration right now. So if we do the text dot relocation,

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 this is the work that we have to do. That yellow line is an existing four inch force

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 main. So with the redesign, what we're doing is we're putting gravity, that's what the

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 green lines are, those are the gravity feeds, into a lift station, which I don't think you

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 can see it. It's that red dot right over here. That red square represents a lift station

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 that will then now pump into that yellow line and use that yellow line as a force main,

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 but we're also increasing the capacity to support the future growth in that area.

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 And it says, I guess it's going to be a 12 inch force main and the gravity, do you know

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 the size of the gravity lines yet? I thought that was on the map. I'd have to get back

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 with you on that. That's okay, I was just curious. And then, and so that lift station

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 doesn't exist right now, but there's another, or two smaller lift stations? Yeah, if we

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 go back, you see these other lift stations, the blue dots there. Well, actually the red

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 dot is the border cowboy, that's a relocation. We'd have to relocate that lift station and

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 then the other blue dot or blue square lower is the TA lift station. And with this configuration,

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 we eliminate both of those lift stations from our service. Get it all the way over the hill

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 at the loop there? Yes, sir. And also, which isn't in the presentation, there's two private

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 lift stations that go away as well with this configuration. So we actually lose four lift

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 stations. And this will provide services to the entire checked area? Yes, sir. And will

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 it also allow services to the east or will that area be connected to a different future?

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 This map represents this actual improvement. There are some services down lower on the

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 east side that we'll be able to provide services for, if that's what you're asking. Okay, thank

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 you very much. Other questions? All right, thank you. That concludes, right? Yes. Yeah,

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 unless you have any other questions, and then this will go for council consideration the

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 first week of May. All right, do we have a motion to approve? I just want to say, it's

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 really great to see the city and developers working together, bringing really needed housing

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 and at the same time, improving our infrastructure for future development. And I would move to

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 approve this. Thank you, Devin. And do we have a second? Second. Okay, Mr. Rybeck seconds.

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 All in favor say aye. Aye. Opposed? Carries. Thank you. I think the only other thing I wanted

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 to mention that I forgot during the presentation is that Becky's team, the capital projects

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 team will actually deliver it, but this project we've been working on for a year with water

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 utilities, capital projects, legal, so it was a really great team effort to get this

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 done. Thank you. Thank you. Management reports. Madam Chair, members of the PAB, no changes

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 to the new business action items that we have, still the two items that we have on there.

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 We did have a minor change in our future agenda that's a little bit different from what you

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 have, and so finance is added on the 23rd of May. They're planning to come and have

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 a discussion with the board about rates and a couple of other just kind of housekeeping

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 items for the budget as they kind of prepare for the real budgetary presentations, which

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 should start on June 13th. So I just wanted to kind of make you aware that the 23rd, there'll

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 be a presentation specifically about the budget and some things that are going to be coming

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 up for you. So with that, there's really no other updates from management, but happy to

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 answer any questions that anyone may have. Any questions? Just a quick question. If I

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 understood you correctly, the May meeting, we're going to talk about rates, proposed

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 rates, and then the budget will follow after. Yes, and Cassie Ogden, who's our CFO, will

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 come up here and kind of give a little bit more about what that's going to all entail.

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 Good morning. So May 23rd, we're planning on having a discussion about the forecast,

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 so revenue forecast for all of the utilities along with the CIP. And then we will be bringing

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 back the full budgets with the five-year forecast and the 10-year forecast in June.

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 Okay, so we're going to look at a cost forecast in May and then the budget in June. Yes. I

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 was afraid you were doing it the other way around. We're going to look at the rates first.

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 It kind of seemed backwards, but thank you. All right. On to concluding items. Does any

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 board member wish to have something put on a future agenda or have anything to say? All

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 right. I need to discuss the excused absences. I was absent on 3/28 and I received approval

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 from the City Council for my absence. Barbara Russell had an excused absence for 3/28, and

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 today Ben was sick and he has an excused absence for today. Did I do that right, Kim? All right.

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 All right. That is all on the agenda. Do we have a motion to adjourn? Mr. Beck adjourns.

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 Okay. 9/16. Wow. Record.