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 Hello. It is nine o'clock and we do have a quorum, so I've called to order the City

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 of Denton Public Utilities Board meeting for Monday July 10th. We're going to be short

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 of a quorum at about 945, is that right Barbara? So we're going to try to get through a lot

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 of this quickly. We're actually going to change up the work session and have item B go first

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 to see if we can get through that item and hopefully we can do that by 945. First item

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 is presentations for members of the public. Does anyone from the public wish to speak?

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 Seeing none, we'll move on to consent agenda. Does any board member wish to pull the one

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 consent item on the agenda? Okay, seeing none, do we have a motion to approve the consent

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 agenda? Okay, Devin moved, Billy seconded. All in favor say aye. Aye. Okay, approval

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 of the minutes, PUB 23125. Were there any changes or corrections to the minutes? Move

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 approval. Barbara moved approval. Devin seconds. All in favor say aye. Aye. Okay, item B, PUB

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 209, solid waste ordinance, Chapter 24. Good morning, Madam Chair, members of the board,

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 Brian Burner, Solid Waste Director with the City of Denton. What is before you today is

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 basically the culmination of approximately a year's worth of work, major rewrite of

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 our Chapter 24 code of ordinance to most importantly include a commercial diversion article. Again,

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 with your approval today in two weeks it will go to council under public hearing for final

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 approval and incorporation into the code of ordinance. You've seen this before. Again,

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 we've had significant community outreach on social media and public meetings since February.

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 Even in those past six months, we've only had about 40 comments come in. A third of

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 those were enthusiastic support. The remainder of them had just simple questions about locations

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 and cost and things like that. We were able to answer those questions. So what we bring

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 before you today, I think, is a culmination of a very thoughtful ordinance. It's driven

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 mostly by the community's ability to do the work. Other than the fact that we're requiring

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 you to do something, it's upon you to actually define what you can do and make it work. So

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 with that, we would respectfully request that you approve the article to the council for

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 final approval. I do know Barbara has some questions. Go ahead.

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 Yeah. In places where there is no place to put a recycle or something of that nature,

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 what's your plan? Well, it depends on what your material is.

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 If it's just the programmatic material that the city of Denton can take care of, it will

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 be fully acceptable as long as you report the material to take that material to your

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 house and put it in your curbside container to take it to North Lakes Park or to the landfill

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 by recycling facilities and recycle that material there. We understand that in some areas, space

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 is a concern and we will be working with you to make that happen.

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 Sometimes you don't know what's in there because it gets filled by the public very

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 frequently so you don't know what's in there. Who's responsible for that? We can't seem

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 to get that handled. Well, again, if we're talking about programmatic

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 material that the city of Denton is collecting, currently we're undergoing in any future distribution

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 of dumpsters out in, recycled dumpsters out in the community will include locks and chute

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 lids which we have shown to significantly reduce contamination because, again, the openings

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 are extremely small which allows only the specified materials to be able to put in there

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 so we're not seeing the garbage and the illegally dumped material put into the recycle bins.

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 So, again, to fully answer your question, the dumpsters are always the responsibility

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 of the renter or the owner. However, we were going to work with you to help ensure that

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 that gets cleaned and to maintain compliance with the ordinance.

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 Okay. Sometimes when the dumpster is emptied, they set it back so far you can't close the

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 lid on it and that's a problem. Also, what about mixed use like when you see apartments

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 above businesses, so you're going to have two different types of waste there?

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 Well, to talk about if we're pushing them back so far that you can't close it, let

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 us know about that. That's an education issue with our drivers. We have very few complaints

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 about that but once we know about it, we can take care of it. So please let us know, call

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 our customer service line. With the mixed use though, again, we've got shoot lids and

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 locks to keep that area clean. If the businesses below have additional materials that are outside

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 of the city's programmatic material but are going to be a divertable material through

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 a third party vendor, then we're going to work with them for space and location and

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 things of that nature.

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 Okay. Do you supply keys to the tenants in the building so that they can get into the

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 ...

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 If they're tenants, they shouldn't need keys because again, they're very small locks,

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 they are very small openings, they can still put the material in there. But we will work

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 with the owners of the facility to make sure that their maintenance has keys to the locks

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 so that they can get into it, flip the lids and put the locks back should they need to

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 put something larger in there or pull something out prior to collection.

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 Okay. Thank you.

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 Thank you.

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 Other questions? And you said there will be a public hearing yet before adoption?

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 Correct. On the 17th, I believe is the date.

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 Okay.

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 I do appreciate, I have attended those meetings. Not all of them but most of them.

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 You're welcome.

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 Okay. Do we have a motion to approve item PUB23039? Okay. Billy moves. Devin seconds.

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 All in favor say aye.

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 Aye.

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 Opposed?

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 Opposed.

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 Carries.

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 Okay. Thank you very much.

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 Barbara opposed. Kim.

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 Yes.

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 PUB item 23122.

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 Morning board members. Scott Fetig, project manager with Capital Projects. Got a couple

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 presentations this morning.

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 So the first one will be for the neighborhood 1B design contract and this is part of the

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 2019 bond program. So a little bit about the project overview. With this there will be

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 about 25,000 linear feet of roadway reconstruction, which is about 45 segments. Water main replacement

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 will be about 10,000 feet. Wastewater main replacement, we're looking at just almost

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 17,000 linear feet. There will be some sidewalk connectivity assessments with this project

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 as well as street lighting and photometric study. So design summary, the actual design

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 services came in at just over $2 million. And then the hourly additional services, which

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 is coordinating meetings, public involvement, project management and such, just over a million

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 for a total of just over $3 million.

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 So project schedule with consideration approval today and moving forward to council on the

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 18th, approval there. We're expecting our first construction project packages to come

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 out in quarter one of 2025. Projects will be phased during construction. This is a rather

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 large project with an estimated construction completion quarter four of 2026. And with

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 that we ask for the approval for a design contract between city of Denton and Kimley

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 Horn Associates for a not to exceed amount of just over $3 million.

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 - Questions? - What's your estimated construction cost?

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 - For our overall project, we're looking at right about 25 million for this project overall.

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 - This was one of the larger projects in the 2019, is it not?

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 - It is, yes, yes ma'am. - Other questions? All right, do we have a

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 motion to approve? - I'll move approval.

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 - Okay, Kimley moves approval. Barbara seconds. All in favor say aye.

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 - Aye. - I'm curious. Okay, next item is PUB 23, one, hang on, 23.

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 - Yes ma'am, 123. - My eyes went the wrong way.

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 - Same repetitive. - Again, Scott Fettig with Capital Projects

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 project manager. This is also for neighborhood 1B. This is for our construction manager at

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 risk or CMAR that will be participating in the design phase services contract.

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 That's also, of course, part of 2019 bond program. This project will be the same overview

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 at 25,000 feet of roadway reconstruction, about 45 segments, 10,000 linear feet of water

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 main, almost 17,000 feet of wastewater replacement. And then we'll also be doing a sidewalk connectivity

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 assessment and a photometric study for street lighting.

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 So design phase services on this one, for the CMAR pre-construction services, this is

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 our third CMAR that we're putting out. We selected CMAR with this project due to the

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 size and complexity of the project. We're seeing good success with the first two CMARs

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 in the areas of we're seeing more accurate pricing, better pricing with the cost modeling.

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 We're seeing more efficiency in the scheduling with having the CMAR on board during the design

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 phases. So they came in at for the design phase services for the CMAR came at a 267,000.

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 Same with the approval today and the council on the 18th, we expect to have our first construction

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 packages out quarter 1, 2025, and then expected a construction completion in quarter 4, 2026.

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 And with that, we asked for an approval with the CMAR design phase services between the

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 City of Denton and Sunt Construction for not to exceed the amount of 267,000.

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 Questions? Questions. I know Mr. Cheek. Oh, Domingo, you go first.

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 So this is the CMAR package just for design? Yes, this is just for the design phase services.

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 And will the construction phase be put out to bid again or is there just going to be

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 a follow-on contract with Sunt? Yes. No, they will have to, for the actual, we'll have several

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 different packages. For each construction package, they will have to go out for bid

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 for all the construction services and we'll bring those back again to the board and council

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 as well for those individual contracts. I guess is Sunt, is the 267,000 for the entire

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 construction phase as well or just design? No, just for the design phase services.

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 So there'll be a follow-up contract with Sunt? Yes, exactly.

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 I mean, Devin kind of went on the same line as I'm about to go on. Sunt's got the $267,000,

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 which obviously for design does not seem like that much money, obviously.

133
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 Right. In comparison, we just approved a $3 million

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 one, right? Right, right.

135
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 So once you lock Sunt into the CMAR, they're going to go out and talk to contractors and

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 try to give you the best price and best construction you can get.

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 Correct. Do they have a set percentage that they'd

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 mark up those dollar amounts? I may have to defer to Seth here on this one.

139
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 Good morning, board members. Seth Garcia, program manager with Capital

140
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 Projects. Yeah, so part of their RFQ, they have to submit what is their construction

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 fee. So that will carry through the construction phase process. I believe for this one, they

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 submitted 5.95%. So once they publicly advertise the entire

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 project, if they win 0% of the work as they're not self-performing anything, they will still

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 collect a 5.95% construction fee on the total construction cost.

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 Is that in this contract, that 5.95%? It's not in this contract. You'll see it

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 in the second contract. That will go with their general conditions costs and that construction

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 fee once they actually give us their guaranteed maximum price. The only piece that comes forward

148
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 out of the RFQ with this one is that pre-construction fee, which is that 267.

149
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 Okay, yeah, 5.95 doesn't seem too much of a markup for managing a pretty healthy project

150
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 like this. But some of my questions are going to be on

151
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 the way that these have been ranked, for lack of a better word, project-specific delivery

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 approach, which is probably their highest where they beat everybody else, along with

153
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 community engagement. What was the community engagement?

154
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 Yeah, so during their technical proposal, they really focused in on how they were going

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 to engage each individual resident and street following the requirements of our technical

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 specifications. So in our specifications, we have a 48 hours

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 of notice that you're supposed to go out and knock on doors to let them know you're going

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 to be crossing driveways. They kind of put that plan in place in their schedule and then

159
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 talked about it very thoroughly, how they were going to adhere to each of the requirements

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 that the city didn't has in our contracts. So they made sure to draw specific attention

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 to that. They also talked about different ways, setting

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 up QR codes that they're going to be able to put on different materials to get people

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 plugged straight into our Discuss Denton and other pages, which was a neat idea that we

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 had not seen before from some of our other contractors. So those were the two things

165
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 that really stuck out to me in their technical proposal for those community engagement scores.

166
00:14:22,360 --> 00:14:28,400
 Okay, and what about the project-specific delivery approach, which is highly ranked

167
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 as well? Yeah, once again, they did a very thorough

168
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 job explaining the phasing of construction, how many crews they were going to use for

169
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 each piece. Of course, CMAR, one of the beautiful things about it is you work as an entire project

170
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 team to phase out the entire construction portion to really wring out all the efficiencies

171
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 that you can. One of the great things we loved about Sunt and some of the other submittals

172
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 was they had a great pre-plan coming in, which they weren't necessarily tied to. But hey,

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 we think as a contractor who does billions of dollars of work in the United States every

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 year, this is a good way to start. And so that gave us a good baseline drawing board.

175
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 So being able to come in through that RFQ process to say this is how many crews we anticipate,

176
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 this is how we would like to phase it, gives us a really good starting place.

177
00:15:18,440 --> 00:15:29,280
 Okay. Did they participate in any of the bond committee original passing of the bonds that

178
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 we had in 2019? I don't believe they did. They didn't bid

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 on our first CMAR project. They kind of heard through the contractor world that we were

180
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 doing some CMAR stuff. And so we saw them on our second CMAR, which was neighborhood

181
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 two and six, which they actually won. You probably have small businesses working

182
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 more to get your bond passed, didn't you? We did. But one of the beautiful things is

183
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 so they advertise it publicly to our local community. So similar to neighborhood Southeast

184
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 in package B, we have a lot of our local vendors that are participating under McCarthy for

185
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 that project that are doing a lot of that work. So even though they're the GC, we still

186
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 have a lot of local vendors that are participating in these larger CMAR projects.

187
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 Obviously, I've been asked questions because I have concerns about the CMAR approach. I

188
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 think that this, and I know you're not supposed to consider the political ramifications of

189
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 what this might do, but I think we're eventually going to be answering some questions we don't

190
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 want to be asked. And I say we, you. But I'll just leave it as speculation. I'll leave it

191
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 at that. But I worry a little bit about CMAR. And when you're doing the evaluation, it's

192
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 cross-functional. It's purchasing, it's engineering. You score separately and then you bring them

193
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 all together. That's correct. So we have generally five people on the team, a handful from capital

194
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 projects. And then typically we have a roadway or street stakeholder and a utility stakeholder.

195
00:17:03,080 --> 00:17:07,080
 And then, of course, purchasing is watching over the entire process. Yeah. Yeah, absolutely.

196
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 Just mention again, I am unemployed, by the way. Other questions. You guys did a great

197
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 job on this. I'm sorry to ask those questions, but I think it's important that we. Oh, not

198
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 a problem. We appreciate it. Get into the details here. I appreciate it. Thank you.

199
00:17:26,880 --> 00:17:36,040
 Other questions. All right. Do we have a motion to approve PUB 23123? Barber moves approval.

200
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 Second? Devin seconds. All in favor say aye. Aye. Opposed? Billy opposes. Okay. Next item

201
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 is 23124 with power engineers. Turn that off. I say something stupid again. Good morning.

202
00:18:03,520 --> 00:18:11,600
 Cody Tenorio, DME Engineering, here to discuss a contract for professional engineering services.

203
00:18:11,600 --> 00:18:17,360
 Contract will cover services for DME CIP projects as well as compliance support. Our engineers

204
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 scored the highest for the requested services. Here's a table that shows the estimated cost

205
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 per project. We recommend a contract with power engineers for three years. Two point

206
00:18:30,720 --> 00:18:40,120
 seven million dollars. Majority of the costs will be recoverable through PUC and TCOS programs.

207
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 Any questions? Questions? We see none, wow. Everything you guys buy now costs too much.

208
00:18:52,720 --> 00:18:59,360
 But I think you can get it. Pretty good gig if you can get it, right? Do we have a motion

209
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 to approve item PUB 23124? Devin moves. Second? Barber seconds. All in favor say aye. Aye.

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 I guess you did the best job. Well thank you. Okay, next item PUB 23127 with Denton and

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 the warehousing. Good morning members of the PUB. I'm Randy Key, Municipal Electric, Electric

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 Engineering Supervisor. Okay, all right. This is for a contract for concrete pull boxes.

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 These precast concrete pull boxes are subsurface enclosures that provide space for cable pulling,

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 routing, splicing and place for us to terminate our primary underground electric cables. Our

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 DME standards state that any primary run of cable that exceeds four elbows or 1,000 feet

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 must install a concrete pull box. These assets will be managed at the DME pull yard. Here

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 is a table of estimated five-year spend and staff recommends this contract be approved.

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 It's going to be with Techline with the NTE of $4.2 million. Any questions? Go ahead Barber.

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 Describe to me this pull box. It's either a three by five or a four by six pull box and

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 we will pull our cable into it and then we will splice into it. Is it seal off? Yes ma'am.

221
00:20:57,400 --> 00:21:02,720
 Thank you. I appreciate it. Yes ma'am. Do you have a question? No. I always go back and

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 look at your bid tabulation. Yes. And there's a big difference between the other two and

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 this one. Do you have any concerns? No ma'am. Okay. So it's not like they bid really low?

224
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 No ma'am. Okay. All right. Do we have a motion to approve PUB item 23127 with Techline? Moved?

225
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 Second. Devin seconds. All in favor say aye. Aye. Carries. Management reports. So Madam

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 Chair, members of PUB on the management report we did include a memo from finance to the

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 board just advising you of an item that's going to be coming to you regarding some new

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 requirements from ERCOT. Basically what we've done is we've issued an RFP to secure a letter

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 of credit to replace what used to be basically an unsecured collateral. Now we're required

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 to have actual collateral whether it's cash or letter of credit. We are looking at a possibility

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 of a surety bond. We're still kind of looking through that. So things might change between

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 now and the time this item comes to you but at present we just wanted to advise you that

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 that's something that we are doing. We're required to do it. It's not just us. It's

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 the entire, all the participants in the ERCOT market and so it is something new that really

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 came out of, as a result of Winter Storm URI and some of the defaults that happened. Terry's

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 here. I think Randy may be here so if you have any other questions they're happy to

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 jump up here and respond to those. Questions? Okay. So just future agenda items. The next

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 thing that we have for you is on the 24th we are going to be asking the board at that

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 time to approve, to make a recommendation, actually formally approve budgets, rate ordinances

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 to go to the council. The council has a budget workshop scheduled for August 5th. That's

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 a Saturday which they'll review all the city's budgets and then that process kind of begins.

242
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 But July 24th is kind of the end for the PEB as far as this year's budgets. So certainly

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 if you have any questions please let us know. And then finally the last item is just new

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 transaction items. I do have one item on there which was just an update on Winter Storm URI.

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 I didn't move that to July 10th. I may be able to get that to the board in advance of

246
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 that meeting that you have it. But just took me a little longer to get that wrapped up.

247
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 But happy to answer any questions you may have. If there's anything else you want to

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 add. Now I will not be here on the 24th but Lee will be here to chair and I know Lee will

249
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 be here so. And you won't? Oh that's right. So okay. So do we have no appointment for

250
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 Larry Beck? Not yet. So. Okay. So Devin will be out as well? Yes. Okay. Okay. Right now

251
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 we have a quorum. Just, yeah. Mr. Plotkin is the other one? Yeah. Okay. Thank you. Okay.

252
00:24:05,800 --> 00:24:09,600
 Asking items. Does any board member wish to say something to the public or add a future

253
00:24:09,600 --> 00:24:16,060
 agenda item? None. Okay. We'll go into work session and like I said we'll pull item B

254
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 first and that is the water, solid waste water and waste water rates for 23-24. Good morning

255
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 PUB. Tanyel Stanford, budget manager. And this morning we're here to talk about utility

256
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 rates. So the first part of these you've already seen beginning with the solid waste rates.

257
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 We are proposing no residential or commercial customer rate changes in FY 23-24. However

258
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 we are anticipating rate increases to be needed beginning as early as 2025. That is pending

259
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 the final cost of service study that NUGEN is currently in progress. We do intend to

260
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 bring those back, that cost of service study results to you late fall, early winter. Like

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 we talked about in the budget presentation for solid waste we are proposing an additional

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 recycling cart fee of $15. That's what apply to customers receiving three or more carts

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 and then some additional rate ordinance language clarifications. If you have any questions

264
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 on those we can go through those but you have already seen them in a previous presentation.

265
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 Again you've already seen these rate increases or rate changes an increase of $5 for these

266
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 four rate categories. And the removal of the contaminated grass, brush and leaf rate and

267
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 the whole trees and stumps rate. Water rates we're proposing to remove two rates the dino

268
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 dirt overs and the dino deco colored mulch removing both of those rates. No additional

269
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 rate changes for water. Wastewater is where it gets fun today. So we I know you have not

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 seen the wastewater budget presentation so this is a snippet of the pro forma. As you

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 can see we are anticipated to end our current fiscal year with about $15.3 million of a

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 surplus that will go into our I'm sorry our fund balance will be $15.3 million. And we

273
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 anticipate using 2 million of that in FY 2024 to offset some costs. However you'll notice

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 that in FY 2024 we do have an 11 percent increase. That is largely contributed to the CIP that

275
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 we'll see in the next few slides. In FY 25 through 28 we also have 11 12 and to 10 percent

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 rate increases again to support that CIP that's necessary. These rate increases do keep us

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 within our target minimum balance or reserves. It does not keep us above the debt service

278
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 coverage ratio for this specific fund in years 27 and 28. We dip just below but as a reminder

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 that's looked at across the utility system versus just the individual fund. So this slide

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 shows you a rate increase comparison. So currently Denton is the light blue in the middle there

281
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 at 41 40. This is the average rate increase or the rate the bill for the average customer.

282
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 This is based on a W.W.A. standard of a three quarter inch base and eight thousand gallons

283
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 usage. I would like to note that the average usage usage for a city of Denton customer

284
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 is below eight thousand. The average usage usage for Denton customer is five thousand forty gallons which equates to about a thirty three dollar and thirty cent average bill. So these numbers in the table are slightly elevated just because of the usage difference.

285
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 He said why is that? Why is what? That's the average on what we've seen used so that that's based on. So you got no opinion on that you're just saying that's what it is. I'm not being smart. I probably have more low flow kind of things that were implemented early on that causes ours to be lower.

286
00:28:41,040 --> 00:29:10,960
 Haven't you, haven't you been doing something to I don't know how to describe it. Close the leakage in the pipes. Stephen Gay director of water utilities. The the the water wastewater rate is determined by the the winter use. So we're looking at indoor consumption and so we do is we look at the three months during the year when I think it's December January January February those three months and that we calculate that.

287
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 The average out the average use for Denton resident is that five thousand forty gallons per month is what they use and that's just driven by either low flow fixtures or their their use profile and that's we really can't explain why why ours is lower but that eight thousand gallons that's an industry standard.

288
00:29:29,040 --> 00:29:43,720
 So that's what the American Water Works Association suggests that we use to kind of level the playing field. So without looking at each individual jurisdiction and their actual use profile we use that same number. That's pretty consistent across the country. Does that answer your question.

289
00:29:43,720 --> 00:29:55,800
 So really the answer is we really don't know why we're we don't. It's really it's really it's customer preference is the way that our customers actually use the water and we you know all we can do is look at the data.

290
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 You almost think that a hotter area like we live in would be more than the average. Well take it into consideration. It's during the winter use. Yeah it's during the winter months is when we measure that. So it's not what they do but you know they do that as well. Yes sir.

291
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 And the same standard. Yeah. All right. But it's the entire country and it's just our country average. Go ahead. I'm sorry. I don't want to jump ahead to the next report but is the primary driver of this property or population growth and expansion of new infrastructure or is it driven by.

292
00:30:40,080 --> 00:30:56,480
 When when you look at the CIP what you'll see is you'll see a large project of the concrete and that is based off of our flows. So they have the seventy five ninety rule with TCEQ. We've exceeded seventy five percent of our average flows at the concrete for the last two years.

293
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 And so we're in that design phase required design. So this is fully being driven by the demand on the plant. So it's a significant improvement. We're adding five M.G.D. of M.B.R. of additional treatment technology. And we're also we have a headworks project and a solids handling project that complement that additional flow.

294
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 And so this is primarily just the concrete. Yes. Yeah. And there we are programming in initiating the design and construction up in our Clear Creek Basin where we're seeing a significant amount of growth. But that's not until the out years. That's coming on. And I think it's a 25 26 is when we got that coming in.

295
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 OK. And just so this is this shows this that 30 dollar average bill at current rate will go to 33 30. That's for the first year. That's for next year. Yes. And so if it continues at the 10 10 11 11 12 whatever that rate was we're going to end up in 20 28 somewhere around 45 to 50 average bill right.

296
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 We're going to compound about four times. Yes. So ours is getting better. And please keep in mind that that's consistent with what we're seeing in the region as well. So our average use or our average our customers average bill will be competitive with those in the surrounding communities as well.

297
00:32:19,360 --> 00:32:33,240
 Right. I understand. Also just looking at this chart older slower growth areas are you know over here on the on the left and the areas that have had the highest growth are over on the right had to pay for that infrastructure somehow.

298
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 I'm just trying to understand like like you know what all it comes. So whenever. OK. Well also my other questions for the capital improvement project.

299
00:32:43,760 --> 00:33:02,080
 And like you touched on Mr. Taylor these Lewisville Irving are also proposing a rate increase for FY 2024. We've got all of the rate increases the proposed rate increases in orange so you can see that Denton is raising their rates and you know in parallel to comparison cities.

300
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 So this is the rate history. I thought we thought that this was important to tell the story that rates have actually been decreased over the last fiscal years. So we're somewhat making up for that now with this 11 percent increase.

301
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 And then also that kind of goes back to solid waste needing that rate increase in future years. We've decreased their rates 29 percent in the last three fiscal years.

302
00:33:31,320 --> 00:33:47,880
 So this is a summary of this funded CIP. So we have a large portion of the CIP that's actually unfunded this year. Stephen did work with his team to determine what is priority and what can be pushed off. So we tried to keep that rate increase as minimal as possible.

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00:33:48,920 --> 00:34:07,720
 We are looking at a CIP of 62 million for 2024 74 million in 2025 75 million in 2026 and 2027 and then your 2028 jumps to about 99 million for a total five year CIP of three hundred and eighty five million.

304
00:34:10,000 --> 00:34:22,000
 So this is the project list of funded CIP projects. The blue is related to capacity. Those highlighted in orange are related to regulatory projects.

305
00:34:24,320 --> 00:34:40,920
 Again these are the numbers we just went over for the total of the five five year CIP of three hundred and eighty five million. This slide shows the projects that are unfunded. So these projects are not included in the CIP in the current pro forma.

306
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 It's about three hundred and twenty five million. So you can see that Stephen's team did a really great job of trying to prioritize and keep that rate increase at a minimum.

307
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 And then with that we'll take any additional questions.

308
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 You have a question. No I don't have a question. I'm going to save mine for the CIP because I think it's going to be covered there.

309
00:35:06,640 --> 00:35:12,560
 OK. Well then mine is too. It's about that sheet right there. But that's what we're going to discuss next. Right.

310
00:35:12,560 --> 00:35:19,760
 We're going to do the budget presentation if we have time. If you want to ask your questions now. The same information is in the budget.

311
00:35:20,640 --> 00:35:24,560
 I don't understand the reasoning of kicking the can down the road.

312
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 We're trying to minimize the rate increase.

313
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 How is CIP funded.

314
00:35:32,040 --> 00:35:45,080
 It's funded in a variety of ways. So here we have revenue our debt funding impact fees and the vehicle replacement fund. So you can see we're trying to break it up as best we can to keep that rate increase at a minimum.

315
00:35:45,480 --> 00:35:54,520
 And the impact fees are coming is for the wastewater part. Correct. Or is it both water and waste water. This is specifically for wastewater. Thank you.

316
00:35:54,520 --> 00:36:06,000
 And we also that's important. I mean that's why we're needing to do this. Yes. These are specifically for wastewater. Water does have their own impact fees but that's not included here.

317
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 One other thing that we did was expand some of the debt from 20 year to 30 year try to make that more palatable.

318
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 Get that debt service. Yes.

319
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 I'm gonna go back to the unfunded. Good.

320
00:36:20,640 --> 00:36:24,000
 Okay.

321
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 The questions.

322
00:36:26,320 --> 00:36:29,800
 And what do you need from us.

323
00:36:29,800 --> 00:36:34,920
 No nothing at this time. So I'll be back on the 24th to ask for actual approval.

324
00:36:34,920 --> 00:36:40,080
 All right. Thank you. And now we'll go to the capital improvement program.

325
00:36:44,800 --> 00:36:46,160
 Is that is that the most important.

326
00:36:46,160 --> 00:37:00,200
 Only the CIP first. Or do you think item C for I think Danielle do you want to cover. Let's do the wastewater budget. This information you've actually seen. All right. In the budget presentation. I just looked down. Oh wait.

327
00:37:00,200 --> 00:37:05,720
 Maybe we want to do something else. It would be MC. Okay. Item C. Thank you.

328
00:37:05,720 --> 00:37:12,680
 So this is the wastewater budget presentation. This is their metric for

329
00:37:13,560 --> 00:37:15,600
 Actually Steven. This is your portion but I can

330
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 Run with it if you want. So this shows that zero main chokes per hundred miles per hundred miles of main. So we are under the standard

331
00:37:28,120 --> 00:37:39,200
 Wastewater has 173 employees. This is this org chart is combined with water and wastewater.

332
00:37:41,480 --> 00:37:46,800
 Oh I'm sorry. Wastewater specifically has 106 and a half employees.

333
00:37:46,800 --> 00:37:58,000
 The decrease from 23 to 24 is there are four and a half positions moving to the Environmental Services and Sustainability Fund which you saw previously.

334
00:38:00,520 --> 00:38:11,760
 Wastewater is requesting six FTEs a plant operator project manager and an inspector for plant operators and we'll get into those more in detail in the supplemental slides.

335
00:38:11,760 --> 00:38:22,720
 Strategic initiatives. These were also the strategic initiatives discussed during the water presentation. So initiative one is to develop and update their master plans.

336
00:38:23,160 --> 00:38:32,280
 Initiative two is the contracts and operating agreements. And then finally as the regional partnerships that they have with Chrome, Sanger, Lake Cities and Corinth.

337
00:38:32,280 --> 00:38:40,360
 Now we'll get into the financials like the other utilities two and a half percent residential growth.

338
00:38:40,360 --> 00:38:47,240
 The expense projections include an increase in personnel services costs related to the comp and class study.

339
00:38:47,840 --> 00:38:59,800
 Merit increases in annual inflation and then the 2 percent increase in operations and maintenance growth and also the pro forma includes the 11 percent rate increase that we just discussed.

340
00:38:59,800 --> 00:39:03,880
 So again here's a snippet of that same pro forma.

341
00:39:03,880 --> 00:39:12,760
 The wastewater capital plan which we previously discussed. This is all the same information.

342
00:39:14,960 --> 00:39:24,680
 The wastewater major projects and included are the Pecan Creek Plant expansion of 185 million. Those are that these totals are across the five year.

343
00:39:24,680 --> 00:39:38,800
 The concrete plant 75 MGD headworks for 46 million oversized participation for 44 million. And finally the supplement to the bond program the 2019 broad program of 22 million.

344
00:39:41,280 --> 00:39:54,400
 So their wastewater supplemental requests of course the merit increase for personnel services they're requesting for plant operators to for Lake Ray Robertson to for concrete.

345
00:39:54,400 --> 00:40:09,560
 It's all concrete. OK. I'm sorry. It's all concrete had your excavation truck a project manager and an inspector their supplemental request total one point five million that being six FTEs and two new vehicles.

346
00:40:12,280 --> 00:40:22,640
 And then the rate changes have we've already discussed in the previous item that takes us into the drainage piece of wastewater drainage metrics.

347
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 The inlet injunction box inspections. They projected 25 92 for this for the current fiscal year. That is their goal as well. They're expected to meet their goal and all of their metrics this year.

348
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 As you can see on this slide. That's OK.

349
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 To turn it over to Ethan here.

350
00:40:52,440 --> 00:40:56,520
 Long time no see.

351
00:40:56,520 --> 00:41:08,960
 Good morning everybody. Ethan Cox director of streets. So on Blackberry Way we had a lot of groundwater that was seeping across the sidewalk and into the road. We've had some slips and trips and falls out there. And so that was a

352
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 French drain that we installed to run that and connect it into

353
00:41:12,400 --> 00:41:18,320
 Got some weird.

354
00:41:18,320 --> 00:41:23,200
 There is an empty lot pretty close to it. I don't know if we're talking about the same one on Matthew behind it.

355
00:41:23,200 --> 00:41:26,240
 I don't know that question. I don't know the answer to that.

356
00:41:26,240 --> 00:41:38,240
 We've got groundwater all over the place. And so it was one of those to where that was about the only way we were going to get the groundwater off of the right away. So

357
00:41:39,120 --> 00:41:49,600
 That's what we're trying to do right now and I'm just curious not to if it's a quick. Why did we only do 46 inlet junction box inspections in 2022 now.

358
00:41:49,600 --> 00:41:56,400
 So one of the big things you'll see in a slide coming up is we do have a stormwater master plan that we're undergoing. And so

359
00:41:56,400 --> 00:42:08,240
 You know, for ever since I've been with the city drainage has been really focused on maintenance and construction and really what we're trying to shift to is we have an aging network of infrastructure here. And then we also have a lot of new growth.

360
00:42:09,080 --> 00:42:15,920
 Transitions that we're going to be making is more toward inspections and condition assessments for our assets. And so you're starting to see us start to work that in

361
00:42:15,920 --> 00:42:27,000
 This fiscal year. I think next fiscal year, we're going to have a lot of inspections for our supplemental packages. We're going to be proposing a CCTV truck to start inspecting the lines underneath the roadways.

362
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 That way, when we look at roadway reconstructs things like that. We have an idea of we have drainage lines that also need to be repaired when we push them on program for

363
00:42:37,360 --> 00:42:42,680
 So I think you'll start seeing that in the years ahead is we're really going to start focusing in on more and more inspections. Okay.

364
00:42:42,680 --> 00:42:45,320
 Related to that and I

365
00:42:45,320 --> 00:42:55,760
 I ran into a crew that was doing a bunch of GIS locates of I believe drainage lines is are those considered inspections as part of this that

366
00:42:55,760 --> 00:43:04,440
 Location of all the assets in the ground. I think it certainly can be, you know, I think there's a probably still some elements of our

367
00:43:05,360 --> 00:43:19,760
 System that we're uncovering there. The plans aren't always exactly what they need to be. And so when we go out to do some inspections. It's not unusual for us to discover assets or to try to geo locate those and upload those into our asset management system.

368
00:43:19,760 --> 00:43:23,360
 Asset inventory is certainly a part of the inspection.

369
00:43:23,360 --> 00:43:28,760
 All right, Susan, we lost her form. Do we need to shut down. There's no decisions. Okay.

370
00:43:28,760 --> 00:43:32,120
 All right, I killed the meeting.

371
00:43:35,040 --> 00:43:36,080
 Put that in the minutes, Kim.

372
00:43:36,080 --> 00:43:42,320
 All right, it's 943 we lost her quorum. So we are adjourned.