WEBVTT 00:00:00.000 --> 00:00:07.000 I know that doesn't say it's nine o'clock, but she just gave me the countdown. 00:00:07.000 --> 00:00:10.760 So it's nine o'clock and we have a quorum. 00:00:10.760 --> 00:00:13.600 So we're called to order the public utilities board meeting for 00:00:13.600 --> 00:00:17.440 the city of Denton on Monday, May 22nd, 2023. 00:00:17.440 --> 00:00:20.820 The first item is presentations from members of the public. 00:00:20.820 --> 00:00:24.000 There's anybody from the public wish to speak? 00:00:24.000 --> 00:00:25.800 I see none. 00:00:25.800 --> 00:00:27.160 So we'll close that out. 00:00:27.160 --> 00:00:29.300 The next item is the consent agenda. 00:00:29.300 --> 00:00:32.400 Does any board member wish to pull either item A or B? 00:00:32.400 --> 00:00:35.120 I see none. 00:00:35.120 --> 00:00:37.520 Do we have a motion to approve the consent agenda? 00:00:37.520 --> 00:00:42.000 Moved by Mr. Rybeck, seconded by Barbara. 00:00:42.000 --> 00:00:44.560 All in favor say aye. 00:00:44.560 --> 00:00:46.160 >> Aye. >> Aye. 00:00:46.160 --> 00:00:52.080 >> Okay, next item is consideration approval of the May 8th, 2023 minutes. 00:00:52.080 --> 00:00:55.520 Are there any corrections or changes? 00:00:55.520 --> 00:00:56.080 No? 00:00:56.080 --> 00:00:57.200 Do we have a motion to approve? 00:00:57.200 --> 00:00:58.600 >> So moved. 00:00:58.600 --> 00:01:00.880 >> Mr. Taylor moves, do we have a second? 00:01:00.880 --> 00:01:03.320 Mr. Block, I'm still remembering your name. 00:01:03.320 --> 00:01:04.480 Sorry about that. 00:01:04.480 --> 00:01:06.040 All in favor say aye. 00:01:06.040 --> 00:01:06.720 >> Aye. >> Aye. 00:01:06.720 --> 00:01:09.280 Carries, good thing, Billy already signed him. 00:01:09.280 --> 00:01:13.280 The next two items we're going to pull together, A, B, and C. 00:01:13.280 --> 00:01:27.800 >> Good morning, I am Randy Klingle, the Treasury Manager here with the city of 00:01:27.800 --> 00:01:29.240 Denton and the Finance Department. 00:01:29.240 --> 00:01:33.760 I have a brief presentation regarding the upcoming bond sale. 00:01:33.760 --> 00:01:37.080 So this is your bond ordinance in preparation for that. 00:01:37.080 --> 00:01:44.680 I came to you a couple of months ago with a notice of intent, which is required by law. 00:01:44.680 --> 00:01:46.880 And after your recommendation, I did take that to council. 00:01:46.880 --> 00:01:52.440 So the items that we took to council for notice of intent were completed on April 4th. 00:01:52.440 --> 00:01:58.160 And as stated in the requirements, we posted our notice of intent in the Denton Record 00:01:58.160 --> 00:02:03.700 Chronicle on April 13th and April 20th, which meets the criteria of publicizing and 00:02:03.700 --> 00:02:07.660 having this bond ordinance on the 46th day after the 13th. 00:02:07.660 --> 00:02:11.160 By the time I've received your recommendation here, hopefully today, 00:02:11.160 --> 00:02:15.360 I'll go to the council on June 6th, and so that'll actually be 54 days. 00:02:15.360 --> 00:02:18.360 So we'll be within all the rules and regulations of the notice of intent. 00:02:20.520 --> 00:02:26.980 So for the certificates of obligation for the bond sale, we have $158,500,000, 00:02:26.980 --> 00:02:31.200 which includes all the projects for the COs plus some issuance costs of about 00:02:31.200 --> 00:02:32.520 $1 million for this year. 00:02:32.520 --> 00:02:40.240 We'll go high level over the projects and note that I'm just gonna give you the totals. 00:02:40.240 --> 00:02:43.760 And on this slide presentation, what I've done is give you two columns, 00:02:43.760 --> 00:02:47.680 the notice of intent, which you recommended in the council approved last time. 00:02:47.680 --> 00:02:51.000 And then the bond sale dollar amounts, which we will be taking forward on this 00:02:51.000 --> 00:02:52.380 bond ordinance today. 00:02:52.380 --> 00:02:55.880 And it just shows you the difference, if any, of where we went through that process. 00:02:55.880 --> 00:02:59.680 And during all the timelines and the milestones that we hit for 00:02:59.680 --> 00:03:05.240 the bond sale, when we come to that in June, the departments analyze their projects, 00:03:05.240 --> 00:03:08.320 how much money they have, what product availability they have. 00:03:08.320 --> 00:03:12.600 So each timeline that I come to you with a new project timeline and 00:03:12.600 --> 00:03:16.840 a new dollar amount, they have gone through the task of looking to see what 00:03:16.840 --> 00:03:19.200 they can do, how much they can handle. 00:03:19.200 --> 00:03:21.720 And if they can't, they'll lower their number, 00:03:21.720 --> 00:03:24.440 which most of the utilities did now for the bond ordinance. 00:03:24.440 --> 00:03:27.680 And then it's not that those projects go away or that work's not gonna be done, 00:03:27.680 --> 00:03:30.000 it's probably just gonna be done in future years. 00:03:30.000 --> 00:03:32.560 So that'll be the theme for most of the utilities. 00:03:32.560 --> 00:03:35.920 But for solid waste, you see that they came in at notice of intent and 00:03:35.920 --> 00:03:38.000 bond sale, even at the $16 million. 00:03:38.000 --> 00:03:45.640 The water department had a reduction of about $12 million since the last time I 00:03:45.640 --> 00:03:51.360 was here a couple of months ago, so they are $21,188,000. 00:03:51.360 --> 00:03:55.920 The wastewater department has a reduction of almost $16.5 million, and 00:03:55.920 --> 00:04:01.000 you can see the line items here in specific orders of how they reduce their budget. 00:04:01.000 --> 00:04:04.200 Those are also in your backup in your AIS as well. 00:04:04.200 --> 00:04:07.680 And we also have departments here if you have any further questions specific to 00:04:07.680 --> 00:04:09.000 the project lines or anything. 00:04:09.000 --> 00:04:15.320 The electric department, from notice of intent, reduced theirs by almost $32 million. 00:04:15.320 --> 00:04:17.680 You can see that the transformers are still popular, so 00:04:17.680 --> 00:04:22.960 those stayed pretty close to a budget and to, well, actually to notice of intent. 00:04:22.960 --> 00:04:25.680 And then just had some play within other line items there. 00:04:25.680 --> 00:04:30.240 So the electrics bond sale ordinance item is $70 million even. 00:04:30.240 --> 00:04:38.440 For solid waste and utilities, the total COs only is 123,784,000. 00:04:38.440 --> 00:04:42.680 But in addition to the CO sale, 00:04:42.680 --> 00:04:46.360 we have a bond sale that's also the general obligation portion. 00:04:46.360 --> 00:04:49.560 And the reason I'm bringing that to you today is because of the refunding 00:04:49.560 --> 00:04:50.320 opportunities. 00:04:50.320 --> 00:04:53.560 So we will refund money when we can, and when they're callable, 00:04:53.560 --> 00:04:55.080 we are able to do so. 00:04:55.080 --> 00:04:57.680 So for the upcoming bond sale, the 2012 and 00:04:57.680 --> 00:05:04.080 the 2013 series are eligible, which include utility department and funds. 00:05:04.080 --> 00:05:11.780 So currently, we're looking at refunding 45,560,000 00:05:11.780 --> 00:05:15.200 in par amount on debt that we currently have. 00:05:15.200 --> 00:05:20.120 And that will give us a projected one time saving of $1.4 million currently. 00:05:20.120 --> 00:05:23.800 And that $1.4 million, as you can see, is allocated out here on the bottom of my 00:05:23.800 --> 00:05:28.440 slide regarding what utility or what fund that includes. 00:05:28.440 --> 00:05:31.280 So that is where we are currently in those savings. 00:05:31.280 --> 00:05:33.460 And we won't go to sell until next month, so 00:05:33.460 --> 00:05:37.240 that could have a little bit of variation, but hoping for an increase. 00:05:37.240 --> 00:05:42.000 But we'll just have to wait until that pans out in June. 00:05:42.000 --> 00:05:43.480 So my next step with your recommendation, 00:05:43.480 --> 00:05:46.960 I'll go to council on June 6th to execute this bond ordinances. 00:05:46.960 --> 00:05:50.840 Then we'll have a sale date for the bond sale, third week of June. 00:05:50.840 --> 00:05:57.920 Then after that, the city will receive their actual proceeds on July 21st. 00:05:57.920 --> 00:05:59.680 Any questions? 00:05:59.680 --> 00:06:01.800 Yes, ma'am. 00:06:01.800 --> 00:06:06.240 >> Talk to me about the cost to issue bonds. 00:06:06.240 --> 00:06:06.960 >> What's in that? 00:06:06.960 --> 00:06:11.400 The cost issue bonds includes our outside council and our outside FA. 00:06:11.400 --> 00:06:15.400 And then there's also some, in this actual issuance cost line, 00:06:15.400 --> 00:06:19.000 is some movement for flexibility and pricing once we go out in the market. 00:06:19.000 --> 00:06:20.040 >> Okay, thank you. 00:06:20.040 --> 00:06:22.540 >> Mm-hm. 00:06:22.540 --> 00:06:27.200 >> Question, in general terms, how are these departments able to reduce their 00:06:27.200 --> 00:06:27.960 requests? 00:06:27.960 --> 00:06:29.360 Are these projects eliminated? 00:06:29.360 --> 00:06:30.800 Are they put off? 00:06:30.800 --> 00:06:33.200 Are they covered under something else? 00:06:33.200 --> 00:06:38.000 Each milestone, they have a conversation with their own department as well as 00:06:38.000 --> 00:06:42.120 the budget team and see what they can handle currently, physically able to do, 00:06:42.120 --> 00:06:44.880 and what products and what availability they have. 00:06:44.880 --> 00:06:47.760 And also, what do they have possibly in cash reserves or 00:06:47.760 --> 00:06:50.760 savings from other things, and then what they physically can do. 00:06:50.760 --> 00:06:54.920 So some of those items are not going away, they're just gonna fund them later. 00:06:54.920 --> 00:06:59.560 So you may see the same list that they went from notice of intent to bond sale to 00:06:59.560 --> 00:07:02.480 flat to nothing, next year you'll see a number there. 00:07:02.480 --> 00:07:05.280 So I'll just push it out until they get the product availability and 00:07:05.280 --> 00:07:06.960 the time to do those. 00:07:06.960 --> 00:07:07.520 >> Thank you. 00:07:07.520 --> 00:07:08.020 >> Yes, sir. 00:07:08.020 --> 00:07:13.520 >> Your turn, go ahead. 00:07:13.520 --> 00:07:17.800 >> There's been much talk in the news recently about inflation and interest rates. 00:07:17.800 --> 00:07:20.440 You're showing about a 2.75% interest rate. 00:07:20.440 --> 00:07:27.240 Is that where the municipal bond or market is right now? 00:07:27.240 --> 00:07:31.160 >> The 2.75 here is just on the refunding portion. 00:07:31.160 --> 00:07:35.680 The debt, the new debt that we're bringing on, most of the utility debt is 20-year debt, 00:07:35.680 --> 00:07:39.640 and the portion of utilities for the electric is 30-year debt. 00:07:39.640 --> 00:07:42.920 So the first 15 years of this debt is at 5%, and 00:07:42.920 --> 00:07:47.180 the outlying years up to 30 is down at 4%. 00:07:47.180 --> 00:07:47.680 >> Thank you. 00:07:47.680 --> 00:07:55.320 >> Questions, okay, do we have a motion to approve items B and C? 00:08:02.040 --> 00:08:04.200 >> Did you say B and C or just B and C? 00:08:04.200 --> 00:08:04.840 >> B and C. 00:08:04.840 --> 00:08:05.560 >> Okay. 00:08:05.560 --> 00:08:06.240 >> Did I say A? 00:08:06.240 --> 00:08:07.440 >> No, no, no. 00:08:07.440 --> 00:08:08.600 >> All right. 00:08:08.600 --> 00:08:10.720 >> I'm sick of the consent agenda, sorry. 00:08:10.720 --> 00:08:11.880 >> So moved. 00:08:11.880 --> 00:08:13.480 >> And a second? 00:08:13.480 --> 00:08:14.000 >> Second. 00:08:14.000 --> 00:08:15.000 >> Mr. Bybrook, seconds? 00:08:15.000 --> 00:08:16.480 All in favor, say aye. 00:08:16.480 --> 00:08:17.400 >> Aye. >> Aye. 00:08:17.400 --> 00:08:18.720 >> Opposed? 00:08:18.720 --> 00:08:24.480 Carries, item D, professional services agreement with Kimley-Horn. 00:08:31.160 --> 00:08:39.440 >> Good morning, David Brown, project manager, city and water utilities. 00:08:39.440 --> 00:08:44.880 Excited to bring to you a expansion to 26MGD over at our Pecan Creek 00:08:44.880 --> 00:08:46.120 water reclamation plant. 00:08:46.120 --> 00:08:52.200 So let's discuss, TCEQ requires 7590 rule that we talk about. 00:08:52.200 --> 00:08:58.000 At 75% of the permitted flow, the average flow, daily flow MGD that we have, 00:08:58.000 --> 00:09:03.440 we are, once we reach that, we're required to go into design for an expansion. 00:09:03.440 --> 00:09:08.120 At 90% when we reach that, we need to be in construction and ready to go. 00:09:08.120 --> 00:09:13.000 So with that, let's look at the current, what's going on out there right now. 00:09:13.000 --> 00:09:17.480 Currently, it's at 21MGD with a peak flow of 46MGD. 00:09:17.480 --> 00:09:20.560 That's many gallons per day for a peak two hour flow. 00:09:20.560 --> 00:09:22.080 That would be during rain events. 00:09:23.600 --> 00:09:29.120 We did file for an amendment to our TCEQ permit and we, it's administratively 00:09:29.120 --> 00:09:33.680 complete as of February 6th when this was, we started on this. 00:09:33.680 --> 00:09:38.040 And we anticipate we'll get that, those permits amended in the, in the summer. 00:09:38.040 --> 00:09:44.600 So, right now we have a master plan going on all over the city. 00:09:44.600 --> 00:09:48.880 It didn't, as far as conveyance, it's also plants and wastewater. 00:09:48.880 --> 00:09:54.360 And part of that is a facility master plan at the concrete water reclamation plant. 00:09:54.360 --> 00:10:00.200 Part of that facility master plan, as you see, it recommends a 5MGD expansion of 00:10:00.200 --> 00:10:05.680 MBR technology, which and solids handling and a disinfection improvements. 00:10:05.680 --> 00:10:10.040 I might say this would be the first expansion as far as a new train, 00:10:10.040 --> 00:10:12.960 cuz that's what there's called, there's a north and a south train. 00:10:12.960 --> 00:10:14.880 You can see that on there. 00:10:14.880 --> 00:10:19.320 This would be the first expansion of a, of a new train over there since 1980. 00:10:19.320 --> 00:10:27.600 We've investigated, you know, membrane bioactive treatment process, which, 00:10:27.600 --> 00:10:31.880 you know, includes a bioactive treatment as well as a membrane 00:10:31.880 --> 00:10:35.080 that are very high quality effluent. 00:10:35.080 --> 00:10:39.000 So you cut down some of the, some of the initial process, but 00:10:39.000 --> 00:10:42.720 you're able to use a membrane technology to get a very, 00:10:42.720 --> 00:10:45.520 just a super-duper effluent. 00:10:45.520 --> 00:10:51.400 And also it allows for more treatment in that, in that area, in that train area. 00:10:51.400 --> 00:10:54.080 It's also expandable, it's modularly expandable. 00:10:54.080 --> 00:10:59.040 So with that, this enhancement, you see there that it will, 00:10:59.040 --> 00:11:02.880 it'll help to purify the water that we're putting back into the system for 00:11:02.880 --> 00:11:07.240 the city, the community, and those, that sensitive pecan creek stream that 00:11:07.240 --> 00:11:08.720 eventually ends up in Lake Louisville. 00:11:10.760 --> 00:11:13.520 With that, we also have a solids handling improvement. 00:11:13.520 --> 00:11:17.400 Currently we utilize built, filter presses, and what that is, 00:11:17.400 --> 00:11:20.440 that's for your press of your solids. 00:11:20.440 --> 00:11:23.960 And then that goes also into, you know, our dino dirt. 00:11:23.960 --> 00:11:26.520 That process feeds into the dino dirt. 00:11:26.520 --> 00:11:29.720 Kimley Horne will partner with us to evaluate what is best for 00:11:29.720 --> 00:11:32.160 our solids handling in this process. 00:11:32.160 --> 00:11:36.920 It will be built out for the ultimate built out for the plant, 00:11:36.920 --> 00:11:39.520 meaning it's not just for this expansion. 00:11:39.520 --> 00:11:43.920 It's gonna handle the plant plus whatever else we need to put in. 00:11:43.920 --> 00:11:46.680 This solids handling will be able to handle that. 00:11:46.680 --> 00:11:50.680 Also that we have disinfection improvements. 00:11:50.680 --> 00:11:53.520 Currently we use UV and it's a bottleneck there. 00:11:53.520 --> 00:11:57.440 Everything goes into the UV system and then goes out to the stream. 00:11:57.440 --> 00:12:00.600 So we're gonna look into that and also improve that. 00:12:00.600 --> 00:12:07.880 So with that, we use the pre-qualified list 7574 to select Kimley Horne. 00:12:07.880 --> 00:12:11.800 The staff recommends that we select Kimley Horne with a design contract. 00:12:11.800 --> 00:12:15.480 This will be a design contract for $14,952 million. 00:12:15.480 --> 00:12:16.680 Anybody have any questions? 00:12:16.680 --> 00:12:18.720 >> Questions? 00:12:18.720 --> 00:12:21.320 >> Yes, sir. 00:12:21.320 --> 00:12:24.360 >> What is your max build out on the facility? 00:12:24.360 --> 00:12:28.360 >> Right now I believe it's, what is it, 110? 00:12:28.360 --> 00:12:32.640 We're sizing our head works right now for up to 75. 00:12:32.640 --> 00:12:34.040 >> Okay. >> And that's another project that's 00:12:34.040 --> 00:12:34.760 going on. 00:12:34.760 --> 00:12:36.160 And this is in conjunction with this. 00:12:36.160 --> 00:12:39.600 So our head works is up to 75. 00:12:39.600 --> 00:12:43.800 So that would probably be in 40 year span, 75. 00:12:43.800 --> 00:12:46.920 >> Okay, so the solids handling plan you were discussing, it's gonna be sized for 00:12:46.920 --> 00:12:47.760 the 70? >> It's gonna be sized for 00:12:47.760 --> 00:12:48.840 the ultimate build out, yes. 00:12:48.840 --> 00:12:49.440 >> Okay, thank you. 00:12:49.440 --> 00:12:53.160 >> Yes, sir. >> Question. 00:12:53.160 --> 00:12:56.360 I was behind you a little bit, I was reading some of the backup before the end. 00:12:56.360 --> 00:13:00.600 Did you say what you thought your estimated cost of construction was? 00:13:00.600 --> 00:13:05.280 >> This estimated construction with contingencies is $134 million. 00:13:05.280 --> 00:13:06.320 >> Okay. 00:13:06.320 --> 00:13:11.040 >> And we're gonna use a CMAR method of delivery, meaning we can, 00:13:11.040 --> 00:13:17.000 because of product flow and the time of getting some of this equipment. 00:13:17.000 --> 00:13:20.920 We're gonna use CMAR method so we can evaluate some of the technology in order 00:13:20.920 --> 00:13:23.720 to purchase those quicker, get an economy of scale, 00:13:23.720 --> 00:13:26.520 there's some value to get those here and ready to go. 00:13:26.520 --> 00:13:28.280 >> So yeah, I know what CMAR is, but that's, yeah. 00:13:28.280 --> 00:13:32.680 So Kimberly Horn, you're expecting to run the project, 00:13:32.680 --> 00:13:34.880 be basically almost the GC as well. 00:13:34.880 --> 00:13:39.440 They're gonna be the design, the CMAR will go out on another separate contract. 00:13:39.440 --> 00:13:43.440 Yeah, we'll evaluate those that can help us with the CMAR. 00:13:43.440 --> 00:13:43.940 Yes, sir. 00:13:43.940 --> 00:13:46.920 >> Other questions? 00:13:46.920 --> 00:13:51.480 All right, do we have a motion to approve the Kimberly Horn and 00:13:51.480 --> 00:13:55.080 associates contract to the amount of 14 million 952? 00:13:55.080 --> 00:13:58.420 >> So moved. 00:13:58.420 --> 00:13:59.840 >> Mr. Taylor moved. 00:13:59.840 --> 00:14:00.880 Mr. Rebick seconds. 00:14:00.880 --> 00:14:02.400 All in favor say aye. 00:14:02.400 --> 00:14:04.760 >> Aye. >> Motion carries. 00:14:04.760 --> 00:14:10.240 >> Thank you. >> Item P, Alamo Transformers Supply Company Contract. 00:14:10.240 --> 00:14:12.320 An amount of $10 million. 00:14:12.320 --> 00:14:15.920 [BLANK_AUDIO] 00:14:15.920 --> 00:14:17.000 >> Good morning. 00:14:17.000 --> 00:14:19.360 [BLANK_AUDIO] 00:14:19.360 --> 00:14:20.680 Let's see. 00:14:20.680 --> 00:14:24.640 I'm Rainey Key with the Municipal Electric, Electric Engineering Supervisor. 00:14:24.640 --> 00:14:29.320 Bring in a contract for Alamo Transformers. 00:14:29.320 --> 00:14:39.320 Okay, our lead times are currently 80 plus weeks. 00:14:39.320 --> 00:14:42.160 The industry trend is moving towards two to three years. 00:14:42.160 --> 00:14:47.040 Actually looking into the future is probably gonna be more like four, 00:14:47.040 --> 00:14:48.080 possibly five years. 00:14:48.080 --> 00:14:54.280 Current transformer inventory, we're below our minimum levels at the moment. 00:14:54.280 --> 00:14:57.880 This contract will allow DME to get back to the minimum operating levels for 00:14:57.880 --> 00:15:02.440 maintenance and outages and could also possibly help out with projects as well. 00:15:02.440 --> 00:15:06.080 Shipment for transformers are sporadic. 00:15:06.080 --> 00:15:12.840 We have a spend schedule, however, it's not usually correct. 00:15:12.840 --> 00:15:17.800 [BLANK_AUDIO] 00:15:17.800 --> 00:15:21.520 With this contract, we will rebuild, refurbish our current transformers and 00:15:21.520 --> 00:15:22.720 return to service. 00:15:22.720 --> 00:15:28.400 Right now, on average, we could send out maybe 200, 300 transformers 00:15:28.400 --> 00:15:29.320 with this contract. 00:15:29.320 --> 00:15:33.480 Rebuild and refurbish transformers provide significant cost savings and 00:15:33.480 --> 00:15:35.800 quicker lead times compared to the new transformers, 00:15:35.800 --> 00:15:38.640 which is pretty easy with a three to four year lead time. 00:15:38.640 --> 00:15:43.800 The opportunity to purchase rebuild and refurbished from other utilities, 00:15:43.800 --> 00:15:47.240 this is most likely what we will utilize this contract for for the majority. 00:15:49.760 --> 00:15:54.480 By asking Alamo what they have on hand whenever we are at our minimums 00:15:54.480 --> 00:15:55.400 like we are right now. 00:15:55.400 --> 00:15:59.360 This will provide sustainable practices with pickup and 00:15:59.360 --> 00:16:03.720 disposal of used oil and scrap transformers. 00:16:03.720 --> 00:16:06.040 We'll be able to purchase the transformers with shorter lead times and 00:16:06.040 --> 00:16:10.640 apply credit from scrap transformers that they pick up from our DME yard. 00:16:10.640 --> 00:16:14.760 This will provide a temporary relief in the supply chain challenges that we are 00:16:14.760 --> 00:16:15.840 facing right now. 00:16:15.840 --> 00:16:21.720 This is the table of our estimated spend. 00:16:21.720 --> 00:16:26.400 We're looking at about $3 million a year with a $1 million contingency. 00:16:26.400 --> 00:16:31.240 This will help out with, I've brought through five 00:16:31.240 --> 00:16:36.040 declaration of emergency transformer purchases so far. 00:16:36.040 --> 00:16:40.880 And with that, it's been a little over $2 million. 00:16:40.880 --> 00:16:45.120 So this would help tremendously with the slowing down of the declaration of 00:16:45.120 --> 00:16:47.120 emergencies that Marcella loves so much. 00:16:47.120 --> 00:16:53.600 And at that, I'll take some questions. 00:16:53.600 --> 00:16:56.080 Yes, sir. >> Where did you come up with your cost estimates? 00:16:56.080 --> 00:16:58.840 There's nothing in here that says anything about that. 00:16:58.840 --> 00:17:02.320 I mean, is it like, are you, at this point with transformers, 00:17:02.320 --> 00:17:08.640 is it like a comparison to, I've got Home Depot, Lowe's, and Ace, and 00:17:08.640 --> 00:17:10.480 I don't know what the price is gonna be. 00:17:10.480 --> 00:17:15.080 So, I mean, I looked at your evaluation sheet and, of course, 00:17:15.080 --> 00:17:17.200 I think those are always very subjective. 00:17:17.200 --> 00:17:20.800 >> The pricing is pretty much the same with all of them. 00:17:20.800 --> 00:17:24.240 It's gonna vary by the size, the voltage, and everything else. 00:17:24.240 --> 00:17:27.600 The only difference is we've done the declaration of emergency. 00:17:27.600 --> 00:17:31.840 And a lot of the evaluation went with how quickly people respond and 00:17:31.840 --> 00:17:33.840 how much information we can get from them at the time. 00:17:33.840 --> 00:17:35.400 >> Well, if it's an emergency situation, 00:17:35.400 --> 00:17:37.880 shouldn't you have more than one choice of where to get it? 00:17:37.880 --> 00:17:40.080 >> We do, and that's what the declaration of emergencies are. 00:17:40.080 --> 00:17:43.880 So we still have the option to use Solomon or anybody else, but 00:17:43.880 --> 00:17:45.680 it would be a declaration of emergency. 00:17:45.680 --> 00:17:48.440 This would just be, we would be in contract with them. 00:17:48.440 --> 00:17:52.000 And also with this contract, we would be able to have them in contract to come pick 00:17:52.000 --> 00:17:56.760 up our current transformers that we take off of projects and maintenance. 00:17:56.760 --> 00:17:58.760 And so it wouldn't be an emergency for that, and 00:17:58.760 --> 00:18:00.880 also to get rid of our oil and our scrap. 00:18:00.880 --> 00:18:04.520 We currently don't have a contract for that. 00:18:04.520 --> 00:18:06.200 >> Okay, where'd you come up with the pricing again? 00:18:07.600 --> 00:18:12.200 That's just the $3 million for each year? 00:18:12.200 --> 00:18:14.440 >> Well, you're talking about a $10 million contract total. 00:18:14.440 --> 00:18:15.640 >> $3 million a year. 00:18:15.640 --> 00:18:20.240 >> Yes, $3 million a year, that's just an average spend that we came up with by 00:18:20.240 --> 00:18:26.000 asking around the average prices for each size transformer. 00:18:26.000 --> 00:18:29.000 You're talking about from a half KVA all the way up to a 2,500 KVA at 00:18:29.000 --> 00:18:30.080 different voltages. 00:18:30.080 --> 00:18:34.360 >> And we've seen cost sheets before where you said here's the current prices. 00:18:34.360 --> 00:18:37.320 I just didn't see it on this presentation, so. 00:18:37.320 --> 00:18:40.280 >> It's gonna change every single time that you go out and you ask them. 00:18:40.280 --> 00:18:46.440 >> So it's like just awarding it to Home Depot loads or basement, hardware or whatever. 00:18:46.440 --> 00:18:51.160 >> Yeah, Billy, I think the reality is that we've seen a 200% increase in pricing 00:18:51.160 --> 00:18:52.960 of these transformers. 00:18:52.960 --> 00:18:57.560 And to be frank with you, there's no end in sight on that. 00:18:57.560 --> 00:19:00.720 And we continue to see supply chain issues. 00:19:00.720 --> 00:19:05.120 We continue to see raw material being diverted from transformers to 00:19:05.120 --> 00:19:07.720 the electric vehicle industry. 00:19:07.720 --> 00:19:12.320 And so it's really a crapshoot for us, to be honest with you. 00:19:12.320 --> 00:19:17.080 And I think what Randy's done here is try to give a best cost estimate that we can, 00:19:17.080 --> 00:19:18.880 not really knowing where we're gonna be. 00:19:18.880 --> 00:19:21.280 If it's not enough money, we're gonna come back to you and 00:19:21.280 --> 00:19:22.840 ask you for additional appropriation. 00:19:22.840 --> 00:19:28.240 >> These dollar amounts can roll to additional years, correct, Lynn? 00:19:28.240 --> 00:19:29.120 >> Yes. 00:19:29.120 --> 00:19:32.480 >> Yeah, and I think what he's showing is that that $10 million will be over three 00:19:32.480 --> 00:19:37.760 years, but if we find ourselves that we spent all of it in a year and a half, 00:19:37.760 --> 00:19:40.840 then yeah, we're gonna have to come back for additional appropriation. 00:19:40.840 --> 00:19:41.920 >> Yeah. 00:19:41.920 --> 00:19:43.360 Mr. Rybeck, you had your hand up? 00:19:43.360 --> 00:19:45.040 >> Yes, I had my hand up. 00:19:45.040 --> 00:19:48.520 [LAUGH] I'm more concerned about the weeks than the dollars. 00:19:48.520 --> 00:19:52.360 80 weeks, that's almost a year and a half. 00:19:52.360 --> 00:19:55.960 Now, you're saying that's for an average utility transformer. 00:19:55.960 --> 00:19:57.160 >> Yes, sir. >> A new one. 00:19:57.160 --> 00:20:02.320 >> Yes, so our current contract, we still have POs 00:20:02.320 --> 00:20:05.600 that are open that are at two years right now. 00:20:05.600 --> 00:20:06.280 >> Wow. 00:20:06.280 --> 00:20:10.600 >> Wow, so may I assume that as the transformer size and 00:20:10.600 --> 00:20:15.800 complexity, i.e. higher voltage, goes up, that the time is extending? 00:20:15.800 --> 00:20:16.960 >> No, sir. 00:20:16.960 --> 00:20:18.080 >> Okay. 00:20:18.080 --> 00:20:19.680 >> Not with the refurbished, is what you're saying. 00:20:19.680 --> 00:20:22.000 >> Not with the refurbished or even with our current contract. 00:20:22.000 --> 00:20:25.920 The voltage doesn't, they're all around two plus years. 00:20:25.920 --> 00:20:26.480 >> Wow. 00:20:26.480 --> 00:20:30.120 >> In fact, our three phase transformers are actually shorter lead times, so. 00:20:30.120 --> 00:20:34.560 >> Yeah, and I just want to point out that again, these are supply chain issues 00:20:34.560 --> 00:20:38.600 associated with the raw material that is associated with the transformers that are 00:20:38.600 --> 00:20:40.320 being diverted. 00:20:40.320 --> 00:20:44.360 But in addition to that, there's current efforts at the EPA to put in additional 00:20:44.360 --> 00:20:47.520 standards that will further cause delays. 00:20:47.520 --> 00:20:48.760 And so that's why it's so important for 00:20:48.760 --> 00:20:52.400 us to get into the manufacturing process as soon as we can. 00:20:52.400 --> 00:20:56.440 Get in line, that way when those things happen, we're already in line and 00:20:56.440 --> 00:20:58.920 we're not having to kind of restart all over again. 00:20:58.920 --> 00:21:03.160 But certainly, again, I don't want to give a doomsday scenario here. 00:21:03.160 --> 00:21:07.040 But it's, we're trying to purchase as much as we can, as quickly as we can. 00:21:07.040 --> 00:21:11.840 That way we can continue to operate, not just to serve our current customers. 00:21:11.840 --> 00:21:13.920 Certainly that's our number one priority. 00:21:13.920 --> 00:21:19.040 But also to have an inventory level in the event of an emergency. 00:21:19.040 --> 00:21:22.640 And then thirdly is to serve new development. 00:21:22.640 --> 00:21:28.000 >> Right, in addition to the transformers, maybe that's just the area you're working 00:21:28.000 --> 00:21:31.680 on, but does this also apply to switch gear, main distribution panels? 00:21:31.680 --> 00:21:32.400 >> Yes. 00:21:32.400 --> 00:21:35.040 >> The same equipment that's getting the power to the transformers? 00:21:35.040 --> 00:21:39.480 >> Yeah, Lee, we're having challenges right now with wood poles. 00:21:39.480 --> 00:21:42.480 And we're looking at other options as well. 00:21:42.480 --> 00:21:45.000 That's another discussion that we'll be coming back with you. 00:21:45.000 --> 00:21:47.240 But yeah, we're having issues across the board. 00:21:47.240 --> 00:21:50.080 And it's not just DME, it's industry wide. 00:21:50.080 --> 00:21:50.640 >> Well, I understand that. 00:21:50.640 --> 00:21:54.080 I mean, I realize we're not being singled out for this. 00:21:54.080 --> 00:21:58.960 I was just curious, a transformer is a relatively straightforward piece of equipment to build. 00:21:58.960 --> 00:22:04.120 But you start getting distribution panels, and switch gear, and the complexity is increasing. 00:22:04.120 --> 00:22:09.360 I'm just wondering if those time frames are even worse than the 80 to 100 weeks that we're talking about. 00:22:09.360 --> 00:22:10.280 >> They're not worse. 00:22:10.280 --> 00:22:12.000 However, they have at least doubled. 00:22:12.000 --> 00:22:15.880 So when you talk about switch gears, they've more than doubled in lead times. 00:22:15.880 --> 00:22:17.080 >> So what are they now? 00:22:17.080 --> 00:22:19.880 >> So for right now, they were about five months. 00:22:19.880 --> 00:22:21.880 They're over a year at this point. 00:22:21.880 --> 00:22:24.200 >> So they're now in the same boat as the transformers essentially? 00:22:24.200 --> 00:22:24.800 >> Yes, sir. 00:22:24.800 --> 00:22:26.960 >> Okay, so the whole industry- >> The whole industry. 00:22:26.960 --> 00:22:29.600 >> Has the problem, regardless of what part of the- 00:22:29.600 --> 00:22:31.800 >> Yes. >> Electrical supply chain we're talking about. 00:22:31.800 --> 00:22:32.400 >> Yes. >> Thank you. 00:22:32.400 --> 00:22:35.000 >> I have a question, go ahead, no, go ahead. 00:22:35.000 --> 00:22:36.720 >> So these are rebuilt and refurbished? 00:22:36.720 --> 00:22:37.520 >> Yes, sir. 00:22:37.520 --> 00:22:40.920 >> Are there any concerns about reliability or lifespan? 00:22:40.920 --> 00:22:42.000 >> Honestly, no. 00:22:42.000 --> 00:22:49.440 In fact, right now, these have a better production rate than our new contract. 00:22:49.440 --> 00:22:51.240 Our new contract, the transformers that are coming in, 00:22:51.240 --> 00:22:53.360 we're seeing a higher failure rate. 00:22:53.360 --> 00:22:57.840 And with these, the warranty that's in place, if they show bad, 00:22:57.840 --> 00:22:59.600 then we'll get a replacement. 00:22:59.600 --> 00:23:03.480 And so far, we're having a very good turnout from our refurbished. 00:23:03.480 --> 00:23:07.320 >> What's the cost difference on average between a new one and a refurbished? 00:23:07.320 --> 00:23:10.400 >> That varies because there are so many different sizes with single phase, 00:23:10.400 --> 00:23:13.080 three phase, all the way from half KVA to 2,500. 00:23:13.080 --> 00:23:19.760 However, they are a lot less expensive. 00:23:19.760 --> 00:23:24.080 >> Can we divert more resources into a program such as this versus going after new, 00:23:24.080 --> 00:23:26.680 if they're used as better? 00:23:26.680 --> 00:23:34.960 >> You can, however, the amount that you would need would not be here for the refurbished. 00:23:34.960 --> 00:23:36.080 >> Gotcha, thank you. 00:23:36.080 --> 00:23:39.560 >> They need inventory of refurbishable transformers and so then we have the same issue. 00:23:39.560 --> 00:23:42.960 >> Yeah, you're not going to have the amount that you would need on the refurb contract. 00:23:42.960 --> 00:23:45.960 >> You stole my question, but thank you for asking it. 00:23:45.960 --> 00:23:46.440 >> You're welcome. 00:23:46.440 --> 00:23:54.200 >> I applaud your creativity in trying to solve this issue because boy, that's all we have to say. 00:23:54.200 --> 00:23:57.080 >> I would also just expand a little bit on what Randy said. 00:23:57.080 --> 00:24:04.440 So we are seeing a larger failure rate on transformers and just to give you a preview, 00:24:04.440 --> 00:24:08.640 we are, through the budget process, going to be requesting for a piece 00:24:08.640 --> 00:24:12.440 of equipment that's pretty standard in the industry to test these transformers 00:24:12.440 --> 00:24:13.360 when they come in the yard. 00:24:13.360 --> 00:24:18.280 The last thing we want is to have our folks putting up these transformers and then they fail, 00:24:18.280 --> 00:24:19.520 you know, when they're working on them. 00:24:19.520 --> 00:24:24.200 And so that is, you know, about a quarter of a million dollar piece of machinery 00:24:24.200 --> 00:24:28.840 that we're going to be asking for to do exactly as these come in. 00:24:28.840 --> 00:24:31.640 We're testing them in the yard before they ever go out. 00:24:31.640 --> 00:24:34.560 But we're seeing about a 20% failure rate on new transformers. 00:24:34.560 --> 00:24:35.120 >> On new? 00:24:35.120 --> 00:24:35.760 >> So, yes. 00:24:35.760 --> 00:24:36.160 >> Is it new? 00:24:36.160 --> 00:24:37.960 >> On new, yeah. 00:24:37.960 --> 00:24:39.360 >> Listen. 00:24:39.360 --> 00:24:39.960 >> Yeah. 00:24:39.960 --> 00:24:43.280 >> Yeah, I don't think it comes with AI yet, but if it does, we'll look into it. 00:24:43.280 --> 00:24:48.400 So we won't be able to plug in our cars anytime soon, so. 00:24:48.400 --> 00:24:49.480 >> I'm sorry. 00:24:49.480 --> 00:24:53.080 So this is based on your current inventory too, right? 00:24:53.080 --> 00:24:53.320 >> Yes. 00:24:53.320 --> 00:24:54.560 >> What your needs are going to be. 00:24:54.560 --> 00:24:56.960 How is your current inventory? 00:24:56.960 --> 00:24:58.280 >> Depending on the size. 00:24:58.280 --> 00:25:02.560 So we are at below minimums on certain sizes. 00:25:02.560 --> 00:25:05.480 On certain sizes, we have an abundance of-- 00:25:05.480 --> 00:25:06.720 >> Like the larger ones probably? 00:25:06.720 --> 00:25:10.680 >> The larger ones we have over what we need currently. 00:25:10.680 --> 00:25:15.240 However, we do have projects where the growth is steadily happening. 00:25:15.240 --> 00:25:18.920 And we will probably hit a low at some point at these sizes as well. 00:25:18.920 --> 00:25:22.400 But on our most common single-phase transformers, 00:25:22.400 --> 00:25:24.760 on a few sizes we are below our minimums. 00:25:24.760 --> 00:25:25.360 >> Is that right? 00:25:25.360 --> 00:25:27.080 Okay. Thank you. 00:25:27.080 --> 00:25:29.920 >> And I know we've talked about this before, 00:25:29.920 --> 00:25:31.760 but what's the impact to the new development? 00:25:31.760 --> 00:25:36.400 Have we told people to slow their roll? 00:25:36.400 --> 00:25:40.360 >> Yeah, we work with development services and we got some information 00:25:40.360 --> 00:25:41.840 out to developers. 00:25:41.840 --> 00:25:46.920 Randy and Jerry have gone to a couple places and talked with developers as well, 00:25:46.920 --> 00:25:48.480 let them know what's happening. 00:25:48.480 --> 00:25:54.800 What we've been trying to do is work with each developer, each development, right? 00:25:54.800 --> 00:25:57.120 Make sure that we understand what their phasing is, right? 00:25:57.120 --> 00:25:59.240 Make sure that we prioritize people. 00:25:59.240 --> 00:26:05.240 We try to do a first come first basis type of assignment on these things. 00:26:05.240 --> 00:26:08.200 And then we have folks like I think Brad Watts is here, you know? 00:26:08.200 --> 00:26:12.560 Brad's one of our superintendents, and they get really creative out in the field 00:26:12.560 --> 00:26:16.200 on how we energize people and what we can do. 00:26:16.200 --> 00:26:19.440 And so we're certainly not doing anything outside what's norm or dangerous, 00:26:19.440 --> 00:26:23.600 but certainly we're trying to accommodate everybody as much as we can. 00:26:23.600 --> 00:26:27.040 Our number one priority though is our existing customers, right? 00:26:27.040 --> 00:26:31.640 And in the event of emergency, so we're holding onto stock and we know we are, 00:26:31.640 --> 00:26:34.560 and it's a difficult conversation we're having with developers, but we're not going 00:26:34.560 --> 00:26:38.520 to jeopardize our current customers for new development that's not even there yet. 00:26:38.520 --> 00:26:40.200 >> There's some jumper cables out there. 00:26:40.200 --> 00:26:45.600 >> You can talk to Brad later and tell him what they're doing. 00:26:45.600 --> 00:26:46.880 >> All right, and -- oh, go ahead. 00:26:46.880 --> 00:26:51.280 >> Is there a possibility of forming a partnership with other utilities? 00:26:51.280 --> 00:26:55.640 >> Yes, there is, and I've been in talks with a few other electric utilities about that. 00:26:55.640 --> 00:26:57.000 >> Okay, thank you. 00:26:57.000 --> 00:27:01.800 >> And this contract included refurbishing from other utilities transformers, correct? 00:27:01.800 --> 00:27:02.400 >> Yes. 00:27:02.400 --> 00:27:03.720 >> Did I steal your -- oh. 00:27:03.720 --> 00:27:10.440 >> I would just point out real quick, you know, Mr. Plotk, remember, for new development, 00:27:10.440 --> 00:27:15.960 if it's happening in dual or triple certified area, we're in competition, right? 00:27:15.960 --> 00:27:20.880 And so there's not a lot of cooperation in those areas, just be sure of that, right? 00:27:20.880 --> 00:27:25.200 And so within our existing area, I think that's a different situation, but when we're 00:27:25.200 --> 00:27:31.000 out there competing, you know, you're going to use everything you can at your disposal. 00:27:31.000 --> 00:27:37.120 >> Are the transformers that are out on the poles in the residential areas, 00:27:37.120 --> 00:27:41.000 are those the ones that you're most in shortage of? 00:27:41.000 --> 00:27:47.240 >> The ones that are on the poles, right now, we are low on certain size of the overhead, 00:27:47.240 --> 00:27:53.240 which is what you're speaking of, but the biggest issue that we face are the pad mounted, 00:27:53.240 --> 00:27:54.960 so the ones that are underground. 00:27:54.960 --> 00:28:04.280 >> I wouldn't have thought that, but oh, eye opening. 00:28:04.280 --> 00:28:06.800 All right, other questions? 00:28:06.800 --> 00:28:09.920 Do we have a motion to approve item E? 00:28:09.920 --> 00:28:11.000 >> So moved. 00:28:11.000 --> 00:28:12.480 >> Second. 00:28:12.480 --> 00:28:13.800 >> Thank you very much. 00:28:13.800 --> 00:28:15.280 >> All in favor, say aye. 00:28:15.280 --> 00:28:15.680 >> Aye. 00:28:15.680 --> 00:28:16.800 >> Aye. 00:28:16.800 --> 00:28:17.960 >> Carries. 00:28:17.960 --> 00:28:26.040 Okay, item F, approve a contract with Peer Technologies U.S. Inc. for the amount of $10 million. 00:28:26.040 --> 00:28:33.960 >> Good morning. 00:28:33.960 --> 00:28:34.720 >> Good morning. 00:28:34.720 --> 00:28:35.800 >> My name is Tyler Dawson. 00:28:35.800 --> 00:28:37.200 I'm with Water Utilities. 00:28:37.200 --> 00:28:39.720 It's been a couple of years since I've presented to this board. 00:28:39.720 --> 00:28:41.840 It's good to be back in front of you. 00:28:41.840 --> 00:28:46.720 I'm here to present a contract for approval for the condition assessment 00:28:46.720 --> 00:28:49.120 of our water transmission mains. 00:28:49.120 --> 00:28:52.880 Starting off with some understanding of what assets we're looking at, 00:28:52.880 --> 00:28:59.600 transmission mains are typically, we consider them 14 inches in diameter or larger. 00:28:59.600 --> 00:29:04.080 Really, we define them by their function, which is these transmission mains send water 00:29:04.080 --> 00:29:10.000 to different parts of the city before they branch off to serve individual homes and businesses. 00:29:10.000 --> 00:29:14.560 They carry much higher flows than your typical residential water mains running 00:29:14.560 --> 00:29:19.280 down the street in front of your house, and they are critical assets. 00:29:19.280 --> 00:29:25.160 They ensure that all of our customers on all regions of our city have enough water, 00:29:25.160 --> 00:29:28.720 not only for their use, but for fire protection as well. 00:29:28.720 --> 00:29:33.440 They also, interestingly, have some of the longest design life of our water assets. 00:29:33.440 --> 00:29:40.200 Your small diameter water mains are typically designed for about a 50-year life cycle. 00:29:40.200 --> 00:29:44.600 Some of your mechanical assets, like your plant assets that we constantly maintain may have as low 00:29:44.600 --> 00:29:46.920 as a 10- to 25-year life cycle. 00:29:46.920 --> 00:29:50.960 Transmission mains are typically designed for a 70-year life cycle. 00:29:50.960 --> 00:29:57.120 So if you look at any of these mains that's reaching the end of its design life now in 2023, 00:29:57.120 --> 00:30:01.040 we're talking about mains that were installed in the early 1950s. 00:30:01.040 --> 00:30:02.800 So there's a lot of unknowns. 00:30:02.800 --> 00:30:04.000 They are buried assets. 00:30:04.000 --> 00:30:08.600 We don't get to put eyes on them in any simple method. 00:30:08.600 --> 00:30:13.360 So we're looking at doing assessments on some of our most critical transmission mains 00:30:13.360 --> 00:30:16.320 to determine where they might have failure points 00:30:16.320 --> 00:30:19.880 and how much life they have left in them. 00:30:19.880 --> 00:30:25.320 The methodology on this is equipment that's going to be sent through the pipe. 00:30:25.320 --> 00:30:31.200 Typically under pressure, there's a variety of equipment that can serve different functions 00:30:31.200 --> 00:30:34.600 and tell us different things about each pipe. 00:30:34.600 --> 00:30:41.160 Some of that includes acoustic technology that can listen for irregular flow in the pipe. 00:30:41.160 --> 00:30:44.040 So if there is a leak, there's a certain acoustic signature 00:30:44.040 --> 00:30:46.840 that can lead us to believe there is a leak. 00:30:46.840 --> 00:30:50.240 Same with if there are air gaps in the pipe. 00:30:50.240 --> 00:30:53.400 If we're not sufficiently releasing air from those pipes, 00:30:53.400 --> 00:30:56.000 there's a certain acoustic signature that goes with those 00:30:56.000 --> 00:30:58.920 and some equipment can tell us where those spots are. 00:30:58.920 --> 00:31:02.480 There's also equipment that can look at the steel cylinder within the pipe wall. 00:31:02.480 --> 00:31:08.520 So your typical transmission main is about a three-layer structure. 00:31:08.520 --> 00:31:12.240 The center of that is a steel cylinder. 00:31:12.240 --> 00:31:17.440 And then there's a mortar coating or concrete on the inside to protect that steel from the water 00:31:17.440 --> 00:31:20.320 so we don't have rust and corrosion on the steel cylinder. 00:31:20.320 --> 00:31:23.800 And then there's more concrete and sometimes some reinforcing bars or wires 00:31:23.800 --> 00:31:29.800 on the outside of the steel cylinder to provide more reinforcement to hold that water pressure in. 00:31:29.800 --> 00:31:33.320 The most critical part of that is the steel cylinder. 00:31:33.320 --> 00:31:38.840 And there's some electromagnetic technology that can send an electromagnetic signal 00:31:38.840 --> 00:31:41.920 through the pipe wall and tell us where it's thinning. 00:31:41.920 --> 00:31:48.160 So if water has bypassed that mortar coating on the inside and started to corrode the steel, 00:31:48.160 --> 00:31:52.880 we can find that before it ruptures and causes a main breaker leak. 00:31:52.880 --> 00:31:58.280 There are also camera technologies that can just get a visual look at the pipe, 00:31:58.280 --> 00:32:03.400 see if you have cracks, see if there are any signs of degradation within the pipe. 00:32:03.400 --> 00:32:06.960 Those inspections typically don't involve any excavation. 00:32:06.960 --> 00:32:10.520 They are considered trenchless technologies. 00:32:10.520 --> 00:32:13.800 The only exception to that will be for access points. 00:32:13.800 --> 00:32:20.360 So we have to be able to deploy the technology into the pipe and then retrieve it at another point. 00:32:20.360 --> 00:32:22.520 So sometimes we can do that through hydrants. 00:32:22.520 --> 00:32:26.600 Sometimes we can do that through other existing approaches to the pipe. 00:32:26.600 --> 00:32:32.760 In other cases, we will have to install an access point, which luckily we can do at our own timing 00:32:32.760 --> 00:32:36.200 and not under emergency scenarios such as a main break. 00:32:36.200 --> 00:32:41.040 And then the most important part of this is we will get reports 00:32:41.040 --> 00:32:44.240 with the vendor's review of all the results. 00:32:44.240 --> 00:32:45.720 That will tell us a couple of things. 00:32:45.720 --> 00:32:51.080 One, where we have known or potential leaks that we need to send out and repair. 00:32:51.080 --> 00:32:57.200 And then it will tell us overall pipe condition, which will help inform capital decisions. 00:32:57.200 --> 00:33:04.600 Make sure we're spending money where we really need to, not just because a pipe has reached a certain age. 00:33:04.600 --> 00:33:08.920 So the biggest improvement that we'll see from this, 00:33:08.920 --> 00:33:12.160 the most visible improvement is preventing main breaks. 00:33:12.160 --> 00:33:18.280 Again, especially with being able to see thinning of the steel cylinder in the pipe wall, 00:33:18.280 --> 00:33:23.000 that will tell us in advance of a main break that there is a potential break coming. 00:33:23.000 --> 00:33:27.240 So any main break, we know, we don't like it. 00:33:27.240 --> 00:33:28.440 We don't want main breaks. 00:33:28.440 --> 00:33:30.400 We want to prevent them wherever possible. 00:33:30.400 --> 00:33:33.560 Any main break can have the potential for water outages. 00:33:33.560 --> 00:33:36.120 If we have to shut down pressure to make the repair, 00:33:36.120 --> 00:33:40.560 any time water inside the pipe comes in contact with anything outside the pipe, 00:33:40.560 --> 00:33:42.600 we have potential for contamination. 00:33:42.600 --> 00:33:46.280 And then if you're losing water, that could result in loss of fire protection 00:33:46.280 --> 00:33:52.720 or even a boil water notice if we can't maintain the TCEQ required pressures within that pipe. 00:33:52.720 --> 00:33:56.000 Of course, some of the smaller but more visible effects. 00:33:56.000 --> 00:34:01.040 Any time there's a main break in or near a road, we're going to have traffic interruptions, 00:34:01.040 --> 00:34:05.240 both for the repair of the main break and sometimes for the water itself. 00:34:05.240 --> 00:34:08.360 And then temporary damage to whatever rests over that main. 00:34:08.360 --> 00:34:11.560 So the streets, the yards, we're going to have to dig through that. 00:34:11.560 --> 00:34:15.320 There may be even damage from the break itself that we have to go back and backfill 00:34:15.320 --> 00:34:17.720 and restore to its original condition. 00:34:17.720 --> 00:34:20.000 So that's for any main break. 00:34:20.000 --> 00:34:23.360 We're talking about our larger mains here with higher flows. 00:34:23.360 --> 00:34:26.160 They're going to have a higher impact. 00:34:26.160 --> 00:34:33.200 We had one unexpected main break on a 16 inch about four months ago that it was more difficult to repair. 00:34:33.200 --> 00:34:35.520 It caused a bigger issue. 00:34:35.520 --> 00:34:37.880 We want to prevent those wherever possible. 00:34:37.880 --> 00:34:43.120 We can we can justify tolerating a few of our smaller main breaks. 00:34:43.120 --> 00:34:45.360 You know, the impact tends to be very localized. 00:34:45.360 --> 00:34:46.720 They tend to be easy to repair. 00:34:46.720 --> 00:34:48.680 We have those repair parts in stock. 00:34:48.680 --> 00:34:52.600 It's pretty easy to get to those and fix them with minimal impact. 00:34:52.600 --> 00:34:59.280 But on the larger mains, we want to prevent those wherever possible. 00:34:59.280 --> 00:35:05.160 And then to look at the cost side of things, we just talked about the impact to a single main break, 00:35:05.160 --> 00:35:06.880 the impact that comes from a single main break. 00:35:06.880 --> 00:35:18.200 But when we're talking about capital, these mains, they go on the average in the range of about $500 to $15 per linear foot to install. 00:35:18.200 --> 00:35:26.960 So if we were to replace one of these mains today, that's what we would be paying to restore that asset and renew it to that 70 year design life. 00:35:26.960 --> 00:35:32.640 You annualize that down to about seven to twenty one dollars per year over the life of that investment. 00:35:32.640 --> 00:35:41.280 The inspection costs, depending on which technology we deploy and we'll work with a consultant to decide which technology is best for each pipe. 00:35:41.280 --> 00:35:45.160 That ranges from about five to twenty five dollars per linear foot. 00:35:45.160 --> 00:35:48.680 We assume I assumed an annualized life of that inspection of about 10 years. 00:35:48.680 --> 00:35:50.840 We could go back in 10 years and repeat this process. 00:35:50.840 --> 00:35:53.920 We could wait a little bit longer and reduce that annualized cost. 00:35:53.920 --> 00:35:59.120 But that comes down to 50 cents to two dollars and 50 cents per year per linear foot. 00:35:59.120 --> 00:36:08.840 So by simple comparison of capital cost versus assessment cost, at worst, we're talking about a 35 percent of capital expenditure. 00:36:08.840 --> 00:36:10.920 At best, we're going to be much lower than that. 00:36:10.920 --> 00:36:21.240 And ideally, we're going to be able to drive capital decisions by saying, yes, we have a 70 year old pipe here, but it may have 10 or 20 years left in its life. 00:36:21.240 --> 00:36:22.840 Again, these are buried assets. 00:36:22.840 --> 00:36:25.040 We don't readily get eyes on these pipes. 00:36:25.040 --> 00:36:26.720 We don't know the actual condition. 00:36:26.720 --> 00:36:33.200 But the best we can do sometimes is make assumptions by how old they are, what they're made of, what their break history is. 00:36:33.200 --> 00:36:44.160 So this will give us so much more information and help us make smarter capital decisions and defer a lot of those installation costs for the right time. 00:36:44.160 --> 00:36:46.680 At this point, I'll take any questions. 00:36:46.680 --> 00:36:58.040 So as you're replacing mains, what percentage or how much of your mains that you're replacing would you have not replaced if you were able to inspect them prior to replacing them? 00:36:58.040 --> 00:36:59.400 That's a really hard question. 00:36:59.400 --> 00:37:02.240 And we don't have firm numbers on that. 00:37:02.240 --> 00:37:12.840 We do find that to be an issue sometimes, particularly it's easier to see in our small diameter mains that those are more common to replace. 00:37:12.840 --> 00:37:14.680 They're done at higher numbers. 00:37:14.680 --> 00:37:24.920 But we may be replacing half a mile of water main and find that there may be one or two localized locations where based on soil conditions or installation factors 00:37:24.920 --> 00:37:34.160 or some aspect of that pipe and the effects of the environment around it, those are the really bad parts. 00:37:34.160 --> 00:37:40.000 But we end up replacing the whole pipe without necessarily knowing where those bad pockets are. 00:37:40.000 --> 00:37:42.120 So a technology like this would minimize? 00:37:42.120 --> 00:37:44.800 Yes. 00:37:44.800 --> 00:37:56.160 Speaking of the technology, while this whatever testing methodologies you choose or between you and the consultant choose and that work is going on, 00:37:56.160 --> 00:38:02.160 will water department personnel be witnessing any of this or watching this as it's underway? 00:38:02.160 --> 00:38:02.800 Absolutely. 00:38:02.800 --> 00:38:05.080 It will be heavily monitored. 00:38:05.080 --> 00:38:07.400 There's a lot of preparation work that goes into it, too. 00:38:07.400 --> 00:38:08.640 Oh, absolutely. 00:38:08.640 --> 00:38:12.760 I made reference to the access points to make sure we have proper access points. 00:38:12.760 --> 00:38:17.800 We're also looking at what exists on that entire stretch of pipe. 00:38:17.800 --> 00:38:21.360 We may be doing, say, half a mile or a full mile and one deployment. 00:38:21.360 --> 00:38:29.320 And we need to know where are there valves that we may need to open or close or valves that may hinder the equipment from coming through it. 00:38:29.320 --> 00:38:35.080 So we'll be doing heavy research into the original designs of these pipelines. 00:38:35.080 --> 00:38:40.120 And we'll make sure we know, put some eyes on wherever we can to make sure we know what's there. 00:38:40.120 --> 00:38:51.920 And then when it comes time to do the actual inspection, we'll have both contractor personnel and water utilities personnel on site to execute that inspection as best we can. 00:38:51.920 --> 00:38:52.760 Well, that's great. 00:38:52.760 --> 00:38:57.840 What kind of turnaround do you typically get on the reporting? 00:38:57.840 --> 00:39:03.920 We did inspections on our raw water pipelines coming from Lake Louisville. 00:39:03.920 --> 00:39:06.360 And I'm not sure about the turnaround. 00:39:06.360 --> 00:39:09.640 Stephen, do you know what timeline we're on on those projects? 00:39:09.640 --> 00:39:11.960 This is with the same consultant and similar technologies. 00:39:11.960 --> 00:39:18.640 Stephen Gay, Director of Water Utilities. 00:39:18.640 --> 00:39:24.000 Mr. Rybeck, that inspection, we're still pending the results from the raw water line. 00:39:24.000 --> 00:39:28.080 And it's usually about a three to six month turnaround time, depending on the amount of data. 00:39:28.080 --> 00:39:33.120 Because they have to go through all the data, analyze it, and then come up with the recommendations. 00:39:33.120 --> 00:39:35.520 Okay, very good. Thank you. 00:39:35.520 --> 00:39:37.360 Go ahead, David. 00:39:37.360 --> 00:39:39.360 Thank you. 00:39:39.360 --> 00:39:40.720 So I have several questions. 00:39:40.720 --> 00:39:48.400 Is this the first program we've had to do the internal inspection of water mains? 00:39:48.400 --> 00:39:51.640 So again, we've done a similar inspection on our raw water mains. 00:39:51.640 --> 00:40:03.080 There's about a nine mile set of parallel pipelines that goes from our Lake Louisville raw water station up to the plant on Spencer Road using similar technologies with the same consultant. 00:40:03.080 --> 00:40:10.360 To my knowledge, in my time with the city, this is the first time we've executed this on finished water transmission mains. 00:40:10.360 --> 00:40:14.960 I thought we had the camera before. 00:40:14.960 --> 00:40:24.640 One point of clarification is in 2021, Freeze and Nichols launched a study that looked at our transmission main, and they did a condition assessment on them, 00:40:24.640 --> 00:40:30.160 identified the most critical mains and the ones that had the highest consequence of failure and probability of failure. 00:40:30.160 --> 00:40:31.800 And those will be included in this study. 00:40:31.800 --> 00:40:38.680 Now, what you may be thinking about, Susan, is the assessment that we did on the raw water line. 00:40:38.680 --> 00:40:43.680 So we did look at the raw water lines with the pure technology equipment. 00:40:43.680 --> 00:40:49.080 So we're using the same methodology on our active transmission of finished water. 00:40:49.080 --> 00:40:50.880 So that's the distinction. 00:40:50.880 --> 00:40:56.320 So the previous study was like a desktop analysis of risk, basically? 00:40:56.320 --> 00:41:03.760 Basically, looking at, OK, method of installation, does it cross a railroad track, depth, soil conditions? 00:41:03.760 --> 00:41:05.520 Is it a dead end? 00:41:05.520 --> 00:41:10.120 Is it serving a major, densely populated area? 00:41:10.120 --> 00:41:15.800 Those types of factors were taken into consideration, as well as age and pipe material as well. 00:41:15.800 --> 00:41:23.000 And I don't want to get too in the weeds, but I'm curious if we know, since the 1950s, 00:41:23.000 --> 00:41:27.040 are we looking at how many different technologies of manufacturing technologies? 00:41:27.040 --> 00:41:34.120 Do we have like cast iron and PVC as well as the pre-stressed concrete, or is it pretty much all pre-stressed concrete? 00:41:34.120 --> 00:41:38.600 Yeah, I think it's pretty much all pre-stressed concrete because of the pressures, 00:41:38.600 --> 00:41:46.560 because the construction methodology of the actual pipe is based off pressure and the pressure rating and the flows. 00:41:46.560 --> 00:41:50.040 And that's the most favorable design. 00:41:50.040 --> 00:41:52.200 You can correct me if I'm wrong. 00:41:52.200 --> 00:42:01.000 Sure. I think the only different technologies we would see is there's bar wrapped and there is a pre-stressed wire. 00:42:01.000 --> 00:42:09.040 So we'll see some difference whether there's a wire wrapping around the steel cylinder encased in concrete or basically rebar steel bars around the concrete. 00:42:09.040 --> 00:42:17.240 I know Pure is a technological leader in the pre-stressed concrete analysis. 00:42:17.240 --> 00:42:24.200 I'm also curious, this is a five-year contract and you're showing you on an inspection about every 10 years on average. 00:42:24.200 --> 00:42:37.480 Is the plan to turn this into an ongoing program to do half of it every five years covering the whole system or initial assessment in only high risk areas? 00:42:37.480 --> 00:42:42.800 Since this is the first time that we're really doing it on the finished water side of the equation, 00:42:42.800 --> 00:42:48.520 we're going to look at the data and that's going to drive the frequency of this analysis. 00:42:48.520 --> 00:42:49.760 So it will become a program. 00:42:49.760 --> 00:42:59.680 So once we get the analysis done and we identify what we need to fix, we'll also come up with a frequency of re-evaluating this infrastructure. 00:42:59.680 --> 00:43:04.120 And this amount in this contract, I guess is it 10 million? 00:43:04.120 --> 00:43:05.440 10 million over three years, yes. 00:43:05.440 --> 00:43:12.400 And this will cover an initial assessment everywhere or is this only the higher risk? 00:43:12.400 --> 00:43:15.080 It is the higher risk. 00:43:15.080 --> 00:43:16.200 It's pretty broad. 00:43:16.200 --> 00:43:21.360 In fact, I can show you quickly, I have some backup slides here. 00:43:21.360 --> 00:43:28.680 If you can see the colored lines on here, that is our working map of project areas we want to touch. 00:43:28.680 --> 00:43:36.440 If you remember the map of all of our transmission mains, this covers probably 60 to 70 percent of them. 00:43:36.440 --> 00:43:47.640 A lot of those were installed in the 50s and 60s, and so those are getting near end of design life where it would be critical to do that assessment before we replace. 00:43:47.640 --> 00:43:57.160 We also have in particular up here the 54 inch main that takes water from the Ray Roberts treatment plant down to the city. 00:43:57.160 --> 00:44:01.280 That is the only pipeline that brings water from Ray Roberts down to the city at this point. 00:44:01.280 --> 00:44:08.560 So even though it is only about 20 years old, we want to do an assessment there because it's highly, highly critical. 00:44:08.560 --> 00:44:21.560 Yes, so I think while we're approving this contract, what I like seeing here is this long term program to risk based assessment of these pipeline assets 00:44:21.560 --> 00:44:32.240 because some of this stuff will last 100 or 150 years in the ground if it's, you know, well cared for and doesn't get a lot of pressure variation. 00:44:32.240 --> 00:44:36.760 And other could be extremely critical if it fails or has a premature failure. 00:44:36.760 --> 00:44:44.640 So being able to do this initial assessment and then set up a risk based analysis going forward, I think, it sounds great. 00:44:44.640 --> 00:44:53.720 Well said. A lot of the variation and the condition of the pipes over time is based on the installation practices of the pipe. 00:44:53.720 --> 00:45:02.160 And we found that in our raw main where we had one installed in the 50s, one installed in the 70s, the newer pipe was installed without proper bedding. 00:45:02.160 --> 00:45:06.040 And it has actually started to fail sooner than the pipe that's 20 years older than it. 00:45:06.040 --> 00:45:15.920 So that's a very critical factor and the ability of these pipes to last and continue to service the customers. 00:45:15.920 --> 00:45:22.120 And it's really hard to know what those installation practices were in the 1950s and 1960s. 00:45:22.120 --> 00:45:28.400 So this will help identify that. 00:45:28.400 --> 00:45:36.800 Other questions? All right. You had one just it's disappointing to just get one response. 00:45:36.800 --> 00:45:41.880 I know that one hundred three hundred sixty. Obviously, there's probably people that weren't interested in that at all. 00:45:41.880 --> 00:45:52.720 But thirteen was the number of suppliers that viewed the solicitation itself and only one response. 00:45:52.720 --> 00:45:59.480 That's that's true. We did have two that said they intended to respond and did not follow up. 00:45:59.480 --> 00:46:02.800 I don't know the reasoning behind that. 00:46:02.800 --> 00:46:09.040 We were happy to get Pure's response, though, and two reasons we were happy with their proposal. 00:46:09.040 --> 00:46:12.680 One, their pricing was right in line with our estimates. 00:46:12.680 --> 00:46:20.720 So we were happy to go along with their pricing to they are, as you mentioned, a leader in this technology and an industry leader for sure. 00:46:20.720 --> 00:46:26.840 And we actually reached out to them to help build our specs since they were an industry leader. 00:46:26.840 --> 00:46:32.680 So they were a perfect fit for this contract. 00:46:32.680 --> 00:46:34.560 Other questions? All right. 00:46:34.560 --> 00:46:38.280 Do we have a motion to approve Pure Technologies, U.S. 00:46:38.280 --> 00:46:40.520 Inc. contract for ten million dollars? 00:46:40.520 --> 00:46:43.960 So Devin moves. Do we have a second? 00:46:43.960 --> 00:46:46.720 Thank you, Barbara. Second. All in favor say aye. 00:46:46.720 --> 00:46:54.160 Motion carries. Thank you. Management reports. 00:46:54.160 --> 00:46:58.240 Madam Chair, members of the PAB, just going through the future agenda items. 00:46:58.240 --> 00:47:02.680 Again, no changes to to the items that are on there. 00:47:02.680 --> 00:47:06.440 A lot of budget stuff coming on. I think I've said that every time that we've met. 00:47:06.440 --> 00:47:10.800 There is a presentation today on some of the forecasts. 00:47:10.800 --> 00:47:15.120 So I think Danielle, the finance team will have that with you today. 00:47:15.120 --> 00:47:18.880 And then going to new business, a new business item. 00:47:18.880 --> 00:47:22.840 We've already completed the the dead low trends that was provided at the last meeting. 00:47:22.840 --> 00:47:27.080 And we did have a question last week, a request at the last meeting for an update. 00:47:27.080 --> 00:47:29.320 I wonder if you're working on a memo to you on that. 00:47:29.320 --> 00:47:32.160 I hope to have it to you for your next meeting. 00:47:32.160 --> 00:47:34.400 So with that, that's all we have for the management report. 00:47:34.400 --> 00:47:40.120 Happy to answer any questions or if there's anything else you need. 00:47:40.120 --> 00:47:43.480 I see none. Brings us to concluding items. 00:47:43.480 --> 00:47:50.800 Does any board member wish to say anything to the public or add something to a future agenda? 00:47:50.800 --> 00:47:53.560 OK, and we'll go into work session. 00:47:53.560 --> 00:47:56.960 The first one is receive a report and hold a discussion and give staff direction 00:47:56.960 --> 00:48:05.320 regarding fiscal year 2023, 2024 utility budgets forecast. 00:48:05.320 --> 00:48:11.000 Good morning, P.U.B. Danielle Stanford, budget manager. 00:48:11.000 --> 00:48:15.600 And this morning I have a brief presentation on the utility forecast presentation. 00:48:15.600 --> 00:48:21.440 So this is what guides the budgets that you will see in the next few months. 00:48:21.440 --> 00:48:31.640 So today we'll go over a quick overview of the budget process, a growth forecast for each utility and then the next steps. 00:48:31.640 --> 00:48:37.440 So our budget cycle started in January of this year, so we did our budget kickoff in January. 00:48:37.440 --> 00:48:45.760 In March through May, the budget team worked with the departments for continued budget development and planning. 00:48:45.760 --> 00:48:51.400 In June and July, you will see presentations to both P.U.B. and to city council. 00:48:51.400 --> 00:49:00.360 In August, we'll do our budget workshop with city council and any follow up workshops in August and September. 00:49:00.360 --> 00:49:10.040 And then our public hearings in September and finally budget adoption and rate adoption in late September. 00:49:10.040 --> 00:49:18.240 So our financial assumptions include Hunter Cole being accounted for in year 2024 for all utilities. 00:49:18.240 --> 00:49:23.840 Solid waste forecast is based on customer counts, tonnage and service frequency. 00:49:23.840 --> 00:49:28.800 The water wastewater forecast is based. It's a volume based forecast. 00:49:28.800 --> 00:49:34.800 We do continue to seek alternative funding sources for the water wastewater fund. 00:49:34.800 --> 00:49:41.440 And then finally, the Lake Ray Roberts plant expansion is accounted for beginning in 2024. 00:49:41.440 --> 00:49:47.800 And then finally, the electric forecast is based on megawatt hours. 00:49:47.800 --> 00:49:50.160 So the solid waste forecast is seen here. 00:49:50.160 --> 00:49:52.600 It's broken out into four different components. 00:49:52.600 --> 00:50:01.360 The residential customer count that's growing on an average two and a half percent increase from from this year forward. 00:50:01.360 --> 00:50:07.800 The front load, side load hauls, the roll off hauls and the landfill transaction count. 00:50:07.800 --> 00:50:12.120 The front load side load is growing at an average of one percent. 00:50:12.120 --> 00:50:20.760 And then the roll off and landfill transactions are growing at one point seven five percent. 00:50:20.760 --> 00:50:24.240 So this is the water volume forecast. 00:50:24.240 --> 00:50:34.320 So if you remember last year when we shared this, the Lake Ray Roberts plant expansion was not planned until 2032. 00:50:34.320 --> 00:50:41.880 This forecast does include that being moved up to 2025. 00:50:41.880 --> 00:50:45.320 And that's just based on the master planning effort. 00:50:45.320 --> 00:50:57.360 We've evaluated both the water and wastewater demands in the current development climate and identified the need to accelerate that expansion. 00:50:57.360 --> 00:51:01.880 This slide shows the water production and the trend of that year to date. 00:51:01.880 --> 00:51:05.400 As you can see, the red line is where we are year to date. 00:51:05.400 --> 00:51:16.440 Yellow is last year and the blue line is the budget. So we are above above both last year's demand and the budget for this year. 00:51:16.440 --> 00:51:19.920 Could I can we go back just really quickly? 00:51:19.920 --> 00:51:23.160 If I'm reading this right. Sorry, I went the wrong way. 00:51:23.160 --> 00:51:24.920 No problem. There you go. 00:51:24.920 --> 00:51:31.440 So the gray is the five year, the gray is the five year average, and that's two and a half years on top of that. 00:51:31.440 --> 00:51:34.920 So so there has been significant like the five year average. 00:51:34.920 --> 00:51:41.760 So years three, four and five were at or below that gray line. 00:51:41.760 --> 00:51:43.560 I'm sorry, say that again. 00:51:43.560 --> 00:51:51.440 OK, I'm just saying the five year average was noticeably lower than our last three years. 00:51:51.440 --> 00:51:57.680 So that means the four years ago and five years ago were were significantly lower. 00:51:57.680 --> 00:52:00.760 So we continue to see that significant growth. 00:52:00.760 --> 00:52:02.600 Yes, sir. That's correct. Thank you. 00:52:02.600 --> 00:52:09.120 Sure. So the water demand is a little bit higher than the other utilities. 00:52:09.120 --> 00:52:11.560 You'll hear more about this in the next presentation. 00:52:11.560 --> 00:52:22.960 And you heard a little bit in Tyler's presentation on why the water growth is projected at four percent with wastewater at three and a half percent until FY 28. 00:52:22.960 --> 00:52:37.280 And then it slowly declines for electric. This is their residential and commercial service forecast. 00:52:37.280 --> 00:52:42.480 So both of these are are lining up with solid waste projection rates. 00:52:42.480 --> 00:52:47.520 So the the residential is growing at about two and a half percent. 00:52:47.520 --> 00:52:54.360 And then the same for commercial, it's an average of about one and a half percent in the future years. 00:52:54.360 --> 00:52:59.480 So this slide shows the same information in graph form. 00:52:59.480 --> 00:53:10.600 And then the next steps will be back to you on June 12th and June 26th with our utility budgets presentation and the rates and then a follow up. 00:53:10.600 --> 00:53:20.240 We'll ask for your approval on July 24th and then we'll begin our city council presentations following your recommendation. 00:53:20.240 --> 00:53:26.720 And with that, I'll take any questions. Questions. 00:53:26.720 --> 00:53:33.000 It's too early. It's too early to know what to ask. 00:53:33.000 --> 00:53:35.000 Go ahead. I think you want to ask something. 00:53:35.000 --> 00:53:42.160 I do want to ask each year you have a budget workshop with the city council. 00:53:42.160 --> 00:53:48.360 Yes, sir. And we see the budget preliminary and then the revised. 00:53:48.360 --> 00:54:02.800 I'm wondering if the board would be interested, but I'd be curious if it might be useful for us to consider having at least a mini workshop to go over the budget in more detail. 00:54:02.800 --> 00:54:15.400 I mean, I think we'd be happy to have a workshop or if you make if you make the information available, that would be good. 00:54:15.400 --> 00:54:25.360 Yes. So what we do with the budget workshop is we put all of the so for our supplemental requests, we request a white paper for each supplemental request. 00:54:25.360 --> 00:54:32.600 And what that does is really explain the need, explain the cost, explain, you know, whether it's a one time recurring, how that fits into the bigger picture. 00:54:32.600 --> 00:54:34.600 That's what we do with the budget workshop. 00:54:34.600 --> 00:54:40.600 That's what we do with the budget workshop. 00:54:40.600 --> 00:54:55.800 We do have the same for pub, wherever it fits, possibly on the July date where, you know, you're going for approval or if you'd rather have it at the follow up at the end of June, we could certainly do that as well. 00:54:55.800 --> 00:54:57.800 I think I'd feel better if we got it in June. 00:54:57.800 --> 00:54:59.800 We'd have some opportunity to review it. 00:54:59.800 --> 00:55:03.800 Okay. 00:55:03.800 --> 00:55:05.800 You don't need anything further, right? 00:55:05.800 --> 00:55:06.800 Thank you very much. 00:55:06.800 --> 00:55:07.800 Thank you. 00:55:07.800 --> 00:55:08.800 All right. 00:55:08.800 --> 00:55:16.800 Next, we will receive a report, hold a discussion and give staff direction regarding the update on the wastewater master plan. 00:55:16.800 --> 00:55:18.800 They saved the best for last. 00:55:18.800 --> 00:55:21.800 Yeah. 00:55:21.800 --> 00:55:29.800 I am still Stephen gay and I'm still the director of water utilities and I even have my own presentation is called out. 00:55:29.800 --> 00:55:37.800 So we're going to go through the wastewater master plan update. 00:55:37.800 --> 00:55:40.800 We're going to talk about the phasing and growth that we've seen. 00:55:40.800 --> 00:55:43.800 We're going to talk about the five year a little bit about the five year capital plan. 00:55:43.800 --> 00:55:52.800 And we're focusing on both Hickory Creek Basin and the Clear Creek Basin of a watershed and then we'll discuss next steps. 00:55:52.800 --> 00:55:59.800 So phasing and growth, we're projecting about an eight point one percent growth in population over the next five years. 00:55:59.800 --> 00:56:05.800 Now, this this information is developed in concert with our development services team. 00:56:05.800 --> 00:56:07.800 We've looked at the comprehensive land use plan. 00:56:07.800 --> 00:56:15.800 We've looked at all of the projects that are currently under construction and or those in the development review process, evaluated them. 00:56:15.800 --> 00:56:19.800 And that's where we're coming up with this number. 00:56:19.800 --> 00:56:22.800 Looking forward, all good master plans, we want to look at a little bit further out. 00:56:22.800 --> 00:56:26.800 So we took another we took a snapshot ten years out. 00:56:26.800 --> 00:56:31.800 We're seeing that growth cool a little bit, dropping down to about an eight point five percent increase. 00:56:31.800 --> 00:56:38.800 And then at the twenty five year horizon, we're looking at roughly about two percent growth rate. 00:56:38.800 --> 00:56:51.800 If you notice the shading, it's just demonstrating the growth that we see the projects that we know that are on the books and that development services is having conversations with developers on currently. 00:56:51.800 --> 00:57:05.800 So when we met with you in October, we we took a you know, the sixty thousand foot view and we looked way out and we said, hey, if we were going to build all this stuff today, this would be the conveyance, the infrastructure that we need to serve these communities into the future. 00:57:05.800 --> 00:57:10.800 And that was a price tag of about one point two six billion dollars. 00:57:10.800 --> 00:57:21.800 As all good master plans do we as the closer we get, the more data we get, the more refined our projections get, we look to see what's more realistic within that five year window. 00:57:21.800 --> 00:57:23.800 We know that Hunter Cole is coming online. 00:57:23.800 --> 00:57:25.800 We know that we have significant growth within our system. 00:57:25.800 --> 00:57:32.800 And these improvements are what we believe is what's needed to support the growth, the future growth of this community. 00:57:32.800 --> 00:57:42.800 Yes. And so now that's dropped from one point two six to five hundred and seventy two million, which is I think a pretty good reduction. 00:57:42.800 --> 00:57:59.800 So looking out at the Clear Creek Basin, again, we looking at the growth, we're if you've seen anything that's happening along the Milam up in Milam Creek, which is on thirty five in Milam and Ganzer Road, we're seeing some unprecedented growth in that region as well. 00:57:59.800 --> 00:58:10.800 This this snapshot took into consideration a couple of municipal utility districts at the furthest far north end of our CCN or our E.T.J. 00:58:10.800 --> 00:58:13.800 That was a cost about three hundred and forty five million. 00:58:13.800 --> 00:58:20.800 Again, with all good master plans, we've taken and honed it down, looked at that five year window, we see what's more realistic. 00:58:20.800 --> 00:58:26.800 And this is the conveyance and treatment that we're looking for currently. 00:58:26.800 --> 00:58:45.800 So with regards to conveyance total about two hundred and ninety three million and treatment facilities are roughly three hundred and five hundred and thirty two million for a grand total of eight hundred and twenty five million, which is less than just what we were projecting in the Hickory Creek Basin. 00:58:45.800 --> 00:59:03.800 So our next steps, we're going to complete the five, ten and twenty five year improvement plans, refine those numbers, do the financial analysis, have another meeting with the P.B. and city council to review the final report or what we propose to be the final before we complete the report. 00:59:03.800 --> 00:59:06.800 And then we'll we'll seek final approval once complete. 00:59:06.800 --> 00:59:16.800 And then with that, I'll stand for any questions. Questions? Again, too early. 00:59:16.800 --> 00:59:20.800 Okay. All right. Well, thank you. Thank you. 00:59:20.800 --> 00:59:30.800 All right. With that, that concludes the agenda. Billy, do we have a motion to approve at nine fifty nine? 00:59:30.800 --> 00:59:36.800 Okay, we are adjourned.