Okay. Good morning. It's 9 o'clock and we have a quorum, so we're called to order the
Monday, April 25th public utilities board meeting for the city of Denton. The first
item on the agenda is presentations from the public. Is anybody in the public wishing to
present first? No. Seeing none. And the second item is consent agenda. Does any board member
wish to pull any items from A through D? I have a question about item B. B? Okay. B
as in boy. B as in boy. Thank you, Kevin. Any others? Then do we have a motion to approve
item A, C, and D? So moved. Okay, Mr. Rebick moved. Do we have a second? Second. Oh, you're
in second. Thank you. All in favor say aye. Aye. Opposed? Oh, there's A, C. Yeah, there's...
Oh, really? Maybe that's why I couldn't find it. You're in March. Huh? That's your March
item. Okay, item B. Thank you, Madam Chair. Looking at this, it appears that this is for...
This contract is additional maintenance for the period. Was the maintenance not originally
purchased in the original five-year contract? I believe the original contract did not include
this part of the sustainment. Sorry about that. The sustainment services were not included
in the original part of the contract. At that time, we thought it was, but Louis later notified
by the vendor that it was not. Okay, so the original contract was a five-year contract
with two years of maintenance, and we've discovered that. It's still five years maintenance. And
now it's five years, right? From 2020 to 2025. Okay, thank you. All right. Oh, sure. Larry,
were you voting affirmative on... Yes. Okay, all right. Thank you. Okay, do we have a motion
to approve item B? So moved. Second. And Barbara seconded. All in favor, say aye. Aye. Carries.
Okay, items for individual consideration. The first item is the minutes. Do we have
any changes or corrections? All right. Do we have a motion to approve the minutes? So
moved. And a second. Mr. Beck seconds. All in favor, say aye. Aye. Okay, that carries.
Next item, consider recommending the adoption of an ordinance for Ganser Investments, LLC.
Good morning. Good morning. I'm Christine Taylor in the city manager's office. And today
we're going to talk to you all about a cost participation agreement that we have come
to with one of our private developers. So we're going to run through the background
on this project, the opportunities that we located, some highlights in the agreement,
estimated project costs, the benefits of the project, and then next steps. So about a year
ago, 4,000 Ganser Investments, which is a developer, began a feasibility discussions
with the city in early 2021 regarding a 155-acre multifamily project located on the north side
of town, which is within the city's ETJ-1. The initial feedback that the developer received
was that the city had not extended services to the north end of the system, which meant
for them that they would not be able to get their project within the next couple of years
until we had wastewater services out there. So in September 2021, the developer notified
the city manager's office that they were interested in entering into some type of cost participation
agreement towards the extension of the wastewater services to the area. Water utilities and
capital projects identified an opportunity to partner with the Texas Department of Transportation
on their utility relocation project along I-35, which would eliminate two of the city's
lift stations. The city's Milam Creek, Clear Creek Basin project, which would extend the
services was included in the city's CIP, but was in an out year and included a funding
gap. So with all this information, a cross-functional team was developed within the city to explore
the feasibility of cost participating in some type of agreement with the developer. So a
couple of the agreement highlights we want to show to you is the property is located
within the city's ETJ-1, which means all regulatory approvals for the development will be issued
in conformance with the city's Code of Ordinance and Development Code. So they'll go through
platting, they'll do their civil engineering plans, they'll replat if necessary based on
their CEPs, and then they're subject to all development and impact fees. So none of those
are being waived with this agreement. And in turn, the city is agreeing to permit the
developer to go out of sequence since CEPs cannot be completed until the city's project
is designed. A couple more agreements highlights of the agreement is the city will provide
the design documents to the developer for the purpose of them developing their civil
engineering plans. The cost participation of $8 million will provide partial funding
for the design and construction of the Milam and Clear Creek Basin project. The developer
in this agreement waives any claims against other developer contributions, dedications,
or any development proportionality study. And the developer will dedicate a 30-foot
water and wastewater easement by deed. The developer will pay the city $8 million upon
execution of the agreement, and we are projecting the project to be completed by the end of
calendar year 2023. So the estimated project cost is close to $20 million. We're estimating
a text-dot reimbursement of $7.6 million, along with the developer contribution brings
the city contribution down to $4.3 million. The benefits of us going forward with this
agreement is that we'll provide a regional sewer solution, removing the need for individual
wastewater systems for developments at the north end of the system. We will replace two
undersized and aged lift stations with gravity sewer, reducing the risk of overflows and
the cost of operating and maintenance. And we can complete this in conjunction with a
text-dot project, reducing duplication of work and future relocation of facilities.
And another huge benefit is it reduces that cost to the city down from $20 million to
the $4.3 million. Yes, sir. Yes, ma'am. Back to those projected costs. So could you give
us a little background on where those came from? Sure. The city came up with the estimated
project cost of what it would be to complete, to extend those services out north, along
with relocating the utilities that will be required for the text-dot expansion. And so
the estimated text-dot reimbursement is based off what we think will be reimbursed from
text-dot. No agreements have been completed yet, but that project is moving forward. And
the developer contribution, the amount that they wanted to bring forward to us was not
based on any study. They just had come to the city and said, "We have $8 million. Will
this close your funding gap to get that project moved up in your capital program?" So that's
just based on your negotiations with the developer? Correct. Thank you. Becky, did I answer that
right on text-dot? Okay. I didn't even look at Becky when she has all the answers. So
next steps, if you all are recommending this, we'll bring forward a design amendment for
the text-dot relocation. That design amendment is approximately $750,000, which was included
in those prior costs as well. The developer will remit payment to the city upon execution
of the agreement, and the construction package will go out for bid and subsequent approval.
You'll see all of those construction packages come forward. If we don't decide to move forward
this agreement, the city will move forward with just a text-dot portion only. No design
amendment will be required, and then wastewater services would not be extended to the north
end of the system for the next three to five years. Here's a couple pictures. Did you say
would not be extended? Correct. Could you go back to that slide? The slide said didn't
have the not in there. Yes, it's would not. Okay. Thank you. Would not be extended for
the next three to five years. Go ahead. This extension, is it going to just go to the point
where the developer can pick it up, or are we going to try and go to the other end of
their development and anticipate some future growth there? I'm going to let Stephen Gaye,
our water utility director, answer that question. I have this picture, but I'm not exactly sure
where it stops. Okay. And if we do or don't, how far, what's the difference between the
shortest point and the longest point? To answer your question, we're bringing the, if you
see that, those green lines right there on the map, that's where we're extending the
services to, and then the other developments coming into the area would be able to tie
onto the system. Now part of the newer development in the area will want them to run lines to
connect to the system there. Okay. Does that answer your question? I think so. Yes, sir.
Okay. Thank you. While you're up there, I have a few questions. I love this map. I was
trying to figure out where all this stuff was just by the presentation. Didn't include
this map. So the yellow is existing? No. So the yellow is going to be our gravity line
and no, that's the force main line. I'm sorry. So if I go back, let me go back one here.
So this is the existing configuration right now. So if we do the text dot relocation,
this is the work that we have to do. That yellow line is an existing four inch force
main. So with the redesign, what we're doing is we're putting gravity, that's what the
green lines are, those are the gravity feeds, into a lift station, which I don't think you
can see it. It's that red dot right over here. That red square represents a lift station
that will then now pump into that yellow line and use that yellow line as a force main,
but we're also increasing the capacity to support the future growth in that area.
And it says, I guess it's going to be a 12 inch force main and the gravity, do you know
the size of the gravity lines yet? I thought that was on the map. I'd have to get back
with you on that. That's okay, I was just curious. And then, and so that lift station
doesn't exist right now, but there's another, or two smaller lift stations? Yeah, if we
go back, you see these other lift stations, the blue dots there. Well, actually the red
dot is the border cowboy, that's a relocation. We'd have to relocate that lift station and
then the other blue dot or blue square lower is the TA lift station. And with this configuration,
we eliminate both of those lift stations from our service. Get it all the way over the hill
at the loop there? Yes, sir. And also, which isn't in the presentation, there's two private
lift stations that go away as well with this configuration. So we actually lose four lift
stations. And this will provide services to the entire checked area? Yes, sir. And will
it also allow services to the east or will that area be connected to a different future?
This map represents this actual improvement. There are some services down lower on the
east side that we'll be able to provide services for, if that's what you're asking. Okay, thank
you very much. Other questions? All right, thank you. That concludes, right? Yes. Yeah,
unless you have any other questions, and then this will go for council consideration the
first week of May. All right, do we have a motion to approve? I just want to say, it's
really great to see the city and developers working together, bringing really needed housing
and at the same time, improving our infrastructure for future development. And I would move to
approve this. Thank you, Devin. And do we have a second? Second. Okay, Mr. Rybeck seconds.
All in favor say aye. Aye. Opposed? Carries. Thank you. I think the only other thing I wanted
to mention that I forgot during the presentation is that Becky's team, the capital projects
team will actually deliver it, but this project we've been working on for a year with water
utilities, capital projects, legal, so it was a really great team effort to get this
done. Thank you. Thank you. Management reports. Madam Chair, members of the PAB, no changes
to the new business action items that we have, still the two items that we have on there.
We did have a minor change in our future agenda that's a little bit different from what you
have, and so finance is added on the 23rd of May. They're planning to come and have
a discussion with the board about rates and a couple of other just kind of housekeeping
items for the budget as they kind of prepare for the real budgetary presentations, which
should start on June 13th. So I just wanted to kind of make you aware that the 23rd, there'll
be a presentation specifically about the budget and some things that are going to be coming
up for you. So with that, there's really no other updates from management, but happy to
answer any questions that anyone may have. Any questions? Just a quick question. If I
understood you correctly, the May meeting, we're going to talk about rates, proposed
rates, and then the budget will follow after. Yes, and Cassie Ogden, who's our CFO, will
come up here and kind of give a little bit more about what that's going to all entail.
Good morning. So May 23rd, we're planning on having a discussion about the forecast,
so revenue forecast for all of the utilities along with the CIP. And then we will be bringing
back the full budgets with the five-year forecast and the 10-year forecast in June.
Okay, so we're going to look at a cost forecast in May and then the budget in June. Yes. I
was afraid you were doing it the other way around. We're going to look at the rates first.
It kind of seemed backwards, but thank you. All right. On to concluding items. Does any
board member wish to have something put on a future agenda or have anything to say? All
right. I need to discuss the excused absences. I was absent on 3/28 and I received approval
from the City Council for my absence. Barbara Russell had an excused absence for 3/28, and
today Ben was sick and he has an excused absence for today. Did I do that right, Kim? All right.
All right. That is all on the agenda. Do we have a motion to adjourn? Mr. Beck adjourns.
Okay. 9/16. Wow. Record.