WEBVTT 00:00:00.000 --> 00:00:07.400 Okay. Good morning. It's 9 o'clock and we have a quorum, so we're called to order the 00:00:07.400 --> 00:00:12.920 Monday, April 25th public utilities board meeting for the city of Denton. The first 00:00:12.920 --> 00:00:17.240 item on the agenda is presentations from the public. Is anybody in the public wishing to 00:00:17.240 --> 00:00:24.120 present first? No. Seeing none. And the second item is consent agenda. Does any board member 00:00:24.120 --> 00:00:32.080 wish to pull any items from A through D? I have a question about item B. B? Okay. B 00:00:32.080 --> 00:00:39.400 as in boy. B as in boy. Thank you, Kevin. Any others? Then do we have a motion to approve 00:00:39.400 --> 00:00:47.800 item A, C, and D? So moved. Okay, Mr. Rebick moved. Do we have a second? Second. Oh, you're 00:00:47.800 --> 00:00:58.600 in second. Thank you. All in favor say aye. Aye. Opposed? Oh, there's A, C. Yeah, there's... 00:00:58.600 --> 00:01:24.480 Oh, really? Maybe that's why I couldn't find it. You're in March. Huh? That's your March 00:01:24.480 --> 00:01:35.400 item. Okay, item B. Thank you, Madam Chair. Looking at this, it appears that this is for... 00:01:35.400 --> 00:01:44.520 This contract is additional maintenance for the period. Was the maintenance not originally 00:01:44.520 --> 00:01:52.720 purchased in the original five-year contract? I believe the original contract did not include 00:01:52.720 --> 00:01:59.940 this part of the sustainment. Sorry about that. The sustainment services were not included 00:01:59.940 --> 00:02:05.040 in the original part of the contract. At that time, we thought it was, but Louis later notified 00:02:05.040 --> 00:02:11.080 by the vendor that it was not. Okay, so the original contract was a five-year contract 00:02:11.080 --> 00:02:17.000 with two years of maintenance, and we've discovered that. It's still five years maintenance. And 00:02:17.000 --> 00:02:42.600 now it's five years, right? From 2020 to 2025. Okay, thank you. All right. Oh, sure. Larry, 00:02:42.600 --> 00:02:49.680 were you voting affirmative on... Yes. Okay, all right. Thank you. Okay, do we have a motion 00:02:49.680 --> 00:02:56.800 to approve item B? So moved. Second. And Barbara seconded. All in favor, say aye. Aye. Carries. 00:02:56.800 --> 00:03:02.720 Okay, items for individual consideration. The first item is the minutes. Do we have 00:03:02.720 --> 00:03:08.720 any changes or corrections? All right. Do we have a motion to approve the minutes? So 00:03:08.720 --> 00:03:16.920 moved. And a second. Mr. Beck seconds. All in favor, say aye. Aye. Okay, that carries. 00:03:16.920 --> 00:03:28.480 Next item, consider recommending the adoption of an ordinance for Ganser Investments, LLC. 00:03:28.480 --> 00:03:36.120 Good morning. Good morning. I'm Christine Taylor in the city manager's office. And today 00:03:36.120 --> 00:03:40.020 we're going to talk to you all about a cost participation agreement that we have come 00:03:40.020 --> 00:03:45.800 to with one of our private developers. So we're going to run through the background 00:03:45.800 --> 00:03:51.720 on this project, the opportunities that we located, some highlights in the agreement, 00:03:51.720 --> 00:03:58.040 estimated project costs, the benefits of the project, and then next steps. So about a year 00:03:58.040 --> 00:04:03.440 ago, 4,000 Ganser Investments, which is a developer, began a feasibility discussions 00:04:03.440 --> 00:04:10.360 with the city in early 2021 regarding a 155-acre multifamily project located on the north side 00:04:10.360 --> 00:04:16.880 of town, which is within the city's ETJ-1. The initial feedback that the developer received 00:04:16.880 --> 00:04:22.880 was that the city had not extended services to the north end of the system, which meant 00:04:22.880 --> 00:04:27.080 for them that they would not be able to get their project within the next couple of years 00:04:27.080 --> 00:04:32.860 until we had wastewater services out there. So in September 2021, the developer notified 00:04:32.860 --> 00:04:37.680 the city manager's office that they were interested in entering into some type of cost participation 00:04:37.680 --> 00:04:43.440 agreement towards the extension of the wastewater services to the area. Water utilities and 00:04:43.440 --> 00:04:48.840 capital projects identified an opportunity to partner with the Texas Department of Transportation 00:04:48.840 --> 00:04:54.840 on their utility relocation project along I-35, which would eliminate two of the city's 00:04:54.840 --> 00:05:00.000 lift stations. The city's Milam Creek, Clear Creek Basin project, which would extend the 00:05:00.000 --> 00:05:05.080 services was included in the city's CIP, but was in an out year and included a funding 00:05:05.080 --> 00:05:10.240 gap. So with all this information, a cross-functional team was developed within the city to explore 00:05:10.240 --> 00:05:15.920 the feasibility of cost participating in some type of agreement with the developer. So a 00:05:15.920 --> 00:05:19.840 couple of the agreement highlights we want to show to you is the property is located 00:05:19.840 --> 00:05:25.400 within the city's ETJ-1, which means all regulatory approvals for the development will be issued 00:05:25.400 --> 00:05:29.240 in conformance with the city's Code of Ordinance and Development Code. So they'll go through 00:05:29.240 --> 00:05:33.800 platting, they'll do their civil engineering plans, they'll replat if necessary based on 00:05:33.800 --> 00:05:38.180 their CEPs, and then they're subject to all development and impact fees. So none of those 00:05:38.180 --> 00:05:43.660 are being waived with this agreement. And in turn, the city is agreeing to permit the 00:05:43.660 --> 00:05:48.480 developer to go out of sequence since CEPs cannot be completed until the city's project 00:05:48.480 --> 00:05:55.360 is designed. A couple more agreements highlights of the agreement is the city will provide 00:05:55.360 --> 00:05:59.360 the design documents to the developer for the purpose of them developing their civil 00:05:59.360 --> 00:06:04.340 engineering plans. The cost participation of $8 million will provide partial funding 00:06:04.340 --> 00:06:09.860 for the design and construction of the Milam and Clear Creek Basin project. The developer 00:06:09.860 --> 00:06:15.040 in this agreement waives any claims against other developer contributions, dedications, 00:06:15.040 --> 00:06:20.280 or any development proportionality study. And the developer will dedicate a 30-foot 00:06:20.280 --> 00:06:25.240 water and wastewater easement by deed. The developer will pay the city $8 million upon 00:06:25.240 --> 00:06:29.840 execution of the agreement, and we are projecting the project to be completed by the end of 00:06:29.840 --> 00:06:36.260 calendar year 2023. So the estimated project cost is close to $20 million. We're estimating 00:06:36.260 --> 00:06:42.120 a text-dot reimbursement of $7.6 million, along with the developer contribution brings 00:06:42.120 --> 00:06:49.080 the city contribution down to $4.3 million. The benefits of us going forward with this 00:06:49.080 --> 00:06:54.200 agreement is that we'll provide a regional sewer solution, removing the need for individual 00:06:54.200 --> 00:06:58.920 wastewater systems for developments at the north end of the system. We will replace two 00:06:58.920 --> 00:07:04.120 undersized and aged lift stations with gravity sewer, reducing the risk of overflows and 00:07:04.120 --> 00:07:08.440 the cost of operating and maintenance. And we can complete this in conjunction with a 00:07:08.440 --> 00:07:13.960 text-dot project, reducing duplication of work and future relocation of facilities. 00:07:13.960 --> 00:07:18.800 And another huge benefit is it reduces that cost to the city down from $20 million to 00:07:18.800 --> 00:07:24.600 the $4.3 million. Yes, sir. Yes, ma'am. Back to those projected costs. So could you give 00:07:24.600 --> 00:07:28.720 us a little background on where those came from? Sure. The city came up with the estimated 00:07:28.720 --> 00:07:33.800 project cost of what it would be to complete, to extend those services out north, along 00:07:33.800 --> 00:07:39.200 with relocating the utilities that will be required for the text-dot expansion. And so 00:07:39.200 --> 00:07:43.400 the estimated text-dot reimbursement is based off what we think will be reimbursed from 00:07:43.400 --> 00:07:48.160 text-dot. No agreements have been completed yet, but that project is moving forward. And 00:07:48.160 --> 00:07:52.320 the developer contribution, the amount that they wanted to bring forward to us was not 00:07:52.320 --> 00:07:56.520 based on any study. They just had come to the city and said, "We have $8 million. Will 00:07:56.520 --> 00:08:01.380 this close your funding gap to get that project moved up in your capital program?" So that's 00:08:01.380 --> 00:08:08.080 just based on your negotiations with the developer? Correct. Thank you. Becky, did I answer that 00:08:08.080 --> 00:08:13.400 right on text-dot? Okay. I didn't even look at Becky when she has all the answers. So 00:08:13.400 --> 00:08:18.080 next steps, if you all are recommending this, we'll bring forward a design amendment for 00:08:18.080 --> 00:08:24.480 the text-dot relocation. That design amendment is approximately $750,000, which was included 00:08:24.480 --> 00:08:29.180 in those prior costs as well. The developer will remit payment to the city upon execution 00:08:29.180 --> 00:08:34.120 of the agreement, and the construction package will go out for bid and subsequent approval. 00:08:34.120 --> 00:08:38.880 You'll see all of those construction packages come forward. If we don't decide to move forward 00:08:38.880 --> 00:08:43.580 this agreement, the city will move forward with just a text-dot portion only. No design 00:08:43.580 --> 00:08:47.700 amendment will be required, and then wastewater services would not be extended to the north 00:08:47.700 --> 00:08:59.000 end of the system for the next three to five years. Here's a couple pictures. Did you say 00:08:59.000 --> 00:09:04.000 would not be extended? Correct. Could you go back to that slide? The slide said didn't 00:09:04.000 --> 00:09:09.640 have the not in there. Yes, it's would not. Okay. Thank you. Would not be extended for 00:09:09.640 --> 00:09:17.400 the next three to five years. Go ahead. This extension, is it going to just go to the point 00:09:17.400 --> 00:09:22.000 where the developer can pick it up, or are we going to try and go to the other end of 00:09:22.000 --> 00:09:26.660 their development and anticipate some future growth there? I'm going to let Stephen Gaye, 00:09:26.660 --> 00:09:31.000 our water utility director, answer that question. I have this picture, but I'm not exactly sure 00:09:31.000 --> 00:09:38.660 where it stops. Okay. And if we do or don't, how far, what's the difference between the 00:09:38.660 --> 00:09:44.080 shortest point and the longest point? To answer your question, we're bringing the, if you 00:09:44.080 --> 00:09:49.160 see that, those green lines right there on the map, that's where we're extending the 00:09:49.160 --> 00:09:53.080 services to, and then the other developments coming into the area would be able to tie 00:09:53.080 --> 00:09:59.600 onto the system. Now part of the newer development in the area will want them to run lines to 00:09:59.600 --> 00:10:04.960 connect to the system there. Okay. Does that answer your question? I think so. Yes, sir. 00:10:04.960 --> 00:10:09.600 Okay. Thank you. While you're up there, I have a few questions. I love this map. I was 00:10:09.600 --> 00:10:13.400 trying to figure out where all this stuff was just by the presentation. Didn't include 00:10:13.400 --> 00:10:23.180 this map. So the yellow is existing? No. So the yellow is going to be our gravity line 00:10:23.180 --> 00:10:28.700 and no, that's the force main line. I'm sorry. So if I go back, let me go back one here. 00:10:28.700 --> 00:10:34.640 So this is the existing configuration right now. So if we do the text dot relocation, 00:10:34.640 --> 00:10:39.440 this is the work that we have to do. That yellow line is an existing four inch force 00:10:39.440 --> 00:10:45.160 main. So with the redesign, what we're doing is we're putting gravity, that's what the 00:10:45.160 --> 00:10:49.800 green lines are, those are the gravity feeds, into a lift station, which I don't think you 00:10:49.800 --> 00:11:00.440 can see it. It's that red dot right over here. That red square represents a lift station 00:11:00.440 --> 00:11:05.760 that will then now pump into that yellow line and use that yellow line as a force main, 00:11:05.760 --> 00:11:11.180 but we're also increasing the capacity to support the future growth in that area. 00:11:11.180 --> 00:11:14.760 And it says, I guess it's going to be a 12 inch force main and the gravity, do you know 00:11:14.760 --> 00:11:21.520 the size of the gravity lines yet? I thought that was on the map. I'd have to get back 00:11:21.520 --> 00:11:26.980 with you on that. That's okay, I was just curious. And then, and so that lift station 00:11:26.980 --> 00:11:31.920 doesn't exist right now, but there's another, or two smaller lift stations? Yeah, if we 00:11:31.920 --> 00:11:38.320 go back, you see these other lift stations, the blue dots there. Well, actually the red 00:11:38.320 --> 00:11:42.960 dot is the border cowboy, that's a relocation. We'd have to relocate that lift station and 00:11:42.960 --> 00:11:50.640 then the other blue dot or blue square lower is the TA lift station. And with this configuration, 00:11:50.640 --> 00:11:55.360 we eliminate both of those lift stations from our service. Get it all the way over the hill 00:11:55.360 --> 00:12:01.600 at the loop there? Yes, sir. And also, which isn't in the presentation, there's two private 00:12:01.600 --> 00:12:05.760 lift stations that go away as well with this configuration. So we actually lose four lift 00:12:05.760 --> 00:12:13.000 stations. And this will provide services to the entire checked area? Yes, sir. And will 00:12:13.000 --> 00:12:23.080 it also allow services to the east or will that area be connected to a different future? 00:12:23.080 --> 00:12:28.000 This map represents this actual improvement. There are some services down lower on the 00:12:28.000 --> 00:12:33.280 east side that we'll be able to provide services for, if that's what you're asking. Okay, thank 00:12:33.280 --> 00:12:44.520 you very much. Other questions? All right, thank you. That concludes, right? Yes. Yeah, 00:12:44.520 --> 00:12:50.880 unless you have any other questions, and then this will go for council consideration the 00:12:50.880 --> 00:12:56.920 first week of May. All right, do we have a motion to approve? I just want to say, it's 00:12:56.920 --> 00:13:03.280 really great to see the city and developers working together, bringing really needed housing 00:13:03.280 --> 00:13:08.080 and at the same time, improving our infrastructure for future development. And I would move to 00:13:08.080 --> 00:13:14.000 approve this. Thank you, Devin. And do we have a second? Second. Okay, Mr. Rybeck seconds. 00:13:14.000 --> 00:13:19.320 All in favor say aye. Aye. Opposed? Carries. Thank you. I think the only other thing I wanted 00:13:19.320 --> 00:13:24.040 to mention that I forgot during the presentation is that Becky's team, the capital projects 00:13:24.040 --> 00:13:27.900 team will actually deliver it, but this project we've been working on for a year with water 00:13:27.900 --> 00:13:32.200 utilities, capital projects, legal, so it was a really great team effort to get this 00:13:32.200 --> 00:13:40.640 done. Thank you. Thank you. Management reports. Madam Chair, members of the PAB, no changes 00:13:40.640 --> 00:13:46.040 to the new business action items that we have, still the two items that we have on there. 00:13:46.040 --> 00:13:50.000 We did have a minor change in our future agenda that's a little bit different from what you 00:13:50.000 --> 00:13:55.800 have, and so finance is added on the 23rd of May. They're planning to come and have 00:13:55.800 --> 00:14:00.160 a discussion with the board about rates and a couple of other just kind of housekeeping 00:14:00.160 --> 00:14:07.080 items for the budget as they kind of prepare for the real budgetary presentations, which 00:14:07.080 --> 00:14:13.840 should start on June 13th. So I just wanted to kind of make you aware that the 23rd, there'll 00:14:13.840 --> 00:14:17.200 be a presentation specifically about the budget and some things that are going to be coming 00:14:17.200 --> 00:14:23.560 up for you. So with that, there's really no other updates from management, but happy to 00:14:23.560 --> 00:14:29.440 answer any questions that anyone may have. Any questions? Just a quick question. If I 00:14:29.440 --> 00:14:36.280 understood you correctly, the May meeting, we're going to talk about rates, proposed 00:14:36.280 --> 00:14:41.960 rates, and then the budget will follow after. Yes, and Cassie Ogden, who's our CFO, will 00:14:41.960 --> 00:14:47.560 come up here and kind of give a little bit more about what that's going to all entail. 00:14:47.560 --> 00:14:52.640 Good morning. So May 23rd, we're planning on having a discussion about the forecast, 00:14:52.640 --> 00:14:58.400 so revenue forecast for all of the utilities along with the CIP. And then we will be bringing 00:14:58.400 --> 00:15:03.320 back the full budgets with the five-year forecast and the 10-year forecast in June. 00:15:03.320 --> 00:15:10.040 Okay, so we're going to look at a cost forecast in May and then the budget in June. Yes. I 00:15:10.040 --> 00:15:13.800 was afraid you were doing it the other way around. We're going to look at the rates first. 00:15:13.800 --> 00:15:21.960 It kind of seemed backwards, but thank you. All right. On to concluding items. Does any 00:15:21.960 --> 00:15:28.920 board member wish to have something put on a future agenda or have anything to say? All 00:15:28.920 --> 00:15:38.720 right. I need to discuss the excused absences. I was absent on 3/28 and I received approval 00:15:38.720 --> 00:15:46.040 from the City Council for my absence. Barbara Russell had an excused absence for 3/28, and 00:15:46.040 --> 00:15:54.240 today Ben was sick and he has an excused absence for today. Did I do that right, Kim? All right. 00:15:54.240 --> 00:16:02.040 All right. That is all on the agenda. Do we have a motion to adjourn? Mr. Beck adjourns. 00:16:02.040 --> 00:16:05.040 Okay. 9/16. Wow. Record.