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 good morning it's 9 a.m. and we have a quorum present so let's call the Monday

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 January 14th 2019 meeting of the public utility board to order we're going to

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 move the first item the closed meeting item to the end of the meeting and so

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 let's start with a regular meeting item 1 the consent agenda does any public

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 utility board member want to pull item a B C or D for any further discussion so

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 we're gonna pull item C any other items would like to be pulled for any further

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 clarification or discussion so pulling item C do we have a motion to approve

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 consent consent agenda items a B and D do we have a motion for approval

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 recommend approval second so we have a motion and a second any further

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 discussion on any of those items without hearing any all those in favor of

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 approving items a B and D say aye aye those against nay motion to approve

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 consent agenda items a B and D passes how are these purchases of the recycling

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 bins treated on the books are they assets that are depreciated or my

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 understanding right now is we actually move this to an operating expense since

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 these are fairly low cost items I think they're about 40 some odd dollars each

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 depending on the size and so we just kind of treat those as an operational

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 expense which comes in as a one-year expense okay that's correct all right

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 thank you I'll second we have a motion and second to approve item C of the

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 consent agenda any further discussion clarification no all those in favor of

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 approving item C of the consent agenda say aye aye those against nay the item C

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 passes number two items for individual consideration the first item is a the

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 consider approval of the Public Utility Board meetings from December 10th 2018

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 those minutes have been distributed prior to this meeting does any member

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 have any amendments clarifications that they'd like to make to those minutes

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 hearing none do we have a motion for approval of the Public Utility Board

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 meeting minutes from December 10th 2018 so moved second second all those in

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 favor of approval say aye aye those against nay the Public Utility Board

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 meeting minutes from December 10th 2018 are approved item B under items for

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 individual individual consideration consider recommending adoption of an

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 ordinance of the city of Denton a Texas home rule municipal corporation

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 authorizing the city manager to execute a contract with Thale Construction

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 Company incorporated for the construction of the north-south phase 2

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 36 inch 42 inch water transmission line project for the city of Denton providing

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 for the expenditures of fund therefore and providing an effective date in the

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 not to exceed amount of seven million seven hundred ninety eight thousand

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 eight hundred seven dollars good morning board my name is Lee Perry I'm program

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 manager for capital project delivery I'm here today talking about the north

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 south water main phase 2 36 inches 42 42 inch water main project so we've got

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 about 10,000 feet of water me we're going to install between Rose Lawn and I-35

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 this is the second phase of this project it's going to follow along Bonnie Bray

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 from Rose Lawn it's on the city's master plan this is one of the top five

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 projects there oh sorry

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 so this is on the city's water master plan it's one of the top five projects

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 water projects that we need to that we need to get done the construction time

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 frame is about a year

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 so our bid results we got six bids in thali construction was a little better

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 at just under 7.8 million our engineers estimate was 8.4 million and the high

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 bid was at 9.8 million so our estimate was was sitting right in the middle of

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 the the six bid so we feel pretty good about our our bidder that we got our

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 consultant recommended approval they've this contractor hasn't worked for the

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 city of Denton in the past but our our consultant has worked with them on other

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 projects and so they recommended them for approval and so we are here

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 recommending that y'all recommend approval for the construction contract

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 without any construction set just under 7.8 million if you have any questions

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 does this project have anything to do will it have anything to do with the 377

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 extension is it no there will be a third phase which is the final phase of this

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 project which goes from I-35 up to McKenna Park along Bonnie Bray as well

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 and that will complete the loop or I'll say the loop but that will complete the

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 link between Ray Roberts and then Rose Lawn the transmission main at Rose Lawn

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 are they gonna have to dig up Bonnie Bray yes so related question is it

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 connected to the expansion of Bonnie Bray this will go ahead of the roadway

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 project okay yes this will be constructed this year and then the

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 roadway project will begin towards the beginning of next of 2020 are they

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 dependent on each other schedule-wise yes yeah we need to get the water line in

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 first this is such a big project we want to get this out of the way before we

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 start the roadway does this replace existing transmission lines or are they

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 is this all additional capacity this is new this is right now there's kind of a

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 bottleneck between Rose Lawn and McKenna Park we got a 42 inch down to a 16 inch

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 so this is to increase that okay capacity okay yeah any further questions

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 or discussion

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 yeah the feedback that I received was that they did a pretty good job at

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 completing their projects on time and so we don't have any reason to think

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 otherwise I know I've I've worked with SJ Lewis construction personally in

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 another city but the other contractors I didn't recognize them Tim might might

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 have some this is just a loose yeah just okay okay I actually have one more

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 question okay maybe just general assumption but we see a lot of projects

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 and and I guess my assumption all along although it doesn't come up much I don't

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 think is that the city requires that all of these companies like this are bonded

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 yeah great no further discussion do we have a motion for approval of me second

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 and a second any further discussion or comments all those in favor of approving

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 item B for individual consideration say aye aye those against nay motion approved

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 is approved item C is the ACM update sure yes mr. vice chair members of the

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 board a few things to report in your in your packet you'll see a memo from

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 Kenny banks to me about a water system fee for 2018 typically we would bring

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 those things to the PUB to get approved and then paid unfortunately with the

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 fact that the PUB did not meet at the end of December the invoice was sent by

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 Lee was TCEQ and they needed a 30-day turnaround on that annual payment so we

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 went ahead and and process that through our finance department but wanted to

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 provide just a little bit of an overview for you all to let you know that that

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 payment went ahead so that we would not be behind on that payment the other

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 thing that you have other items you have in your packet are presentation

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 material that was presented by PS Aurora late last year the fourth quarter

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 financial report if you have any questions I believe David Gaines is here

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 to answer any specifics that you have and then the future agenda list was a

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 few items up for your meeting next next time at the end of January and then if

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 you have any questions be happy to answer

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 I do have a question for you I went through most of the fourth quarter

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 financial report and then I noticed on the matrix that my request for the CIP

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 and bomb projects some information on those it looked like it was that with is

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 that that information or are we going to discuss that at the 24 no sir my

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 intentions if we can get everything put together is to have is to have a verbal

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 report to the PUB on on CIP so just present that information to the board

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 hopefully it meets the needs of the board and then if so then we'll continue

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 that process on a quarterly basis okay okay thank you so item three for

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 concluding items under section five five one zero four two of the Texas Open

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 Meetings Act would respond to inquiries from the public identity board or the

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 public with specific factual information of recitation of policy or accept a

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 proposal to place the matter on the agenda for an upcoming meeting I'm not

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 going to read the rest of that but does anybody like would like anything brought

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 up on the agenda or anything to add to the new business matrix nobody was

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 requesting any additional information or items for future so I guess we need a

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 motion to adjourn this meeting so we can proceed I think we need a motion to

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 adjourn is that correct but do we need a motion to close it okay all right so at

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 this moment then we're going to close the public the public portion of the

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 public utility board meeting and go into our closed session if everybody will

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 turn off their microphones please