WEBVTT 00:00:00.000 --> 00:00:10.640 Hello. It is nine o'clock and we do have a quorum, so I've called to order the City 00:00:10.640 --> 00:00:16.400 of Denton Public Utilities Board meeting for Monday July 10th. We're going to be short 00:00:16.400 --> 00:00:21.220 of a quorum at about 945, is that right Barbara? So we're going to try to get through a lot 00:00:21.220 --> 00:00:26.280 of this quickly. We're actually going to change up the work session and have item B go first 00:00:26.280 --> 00:00:33.320 to see if we can get through that item and hopefully we can do that by 945. First item 00:00:33.320 --> 00:00:39.600 is presentations for members of the public. Does anyone from the public wish to speak? 00:00:39.600 --> 00:00:43.600 Seeing none, we'll move on to consent agenda. Does any board member wish to pull the one 00:00:43.600 --> 00:00:50.640 consent item on the agenda? Okay, seeing none, do we have a motion to approve the consent 00:00:50.640 --> 00:01:00.320 agenda? Okay, Devin moved, Billy seconded. All in favor say aye. Aye. Okay, approval 00:01:00.320 --> 00:01:06.360 of the minutes, PUB 23125. Were there any changes or corrections to the minutes? Move 00:01:06.360 --> 00:01:16.560 approval. Barbara moved approval. Devin seconds. All in favor say aye. Aye. Okay, item B, PUB 00:01:16.560 --> 00:01:25.080 209, solid waste ordinance, Chapter 24. Good morning, Madam Chair, members of the board, 00:01:25.080 --> 00:01:29.560 Brian Burner, Solid Waste Director with the City of Denton. What is before you today is 00:01:29.560 --> 00:01:33.980 basically the culmination of approximately a year's worth of work, major rewrite of 00:01:33.980 --> 00:01:42.720 our Chapter 24 code of ordinance to most importantly include a commercial diversion article. Again, 00:01:42.720 --> 00:01:47.160 with your approval today in two weeks it will go to council under public hearing for final 00:01:47.160 --> 00:01:52.160 approval and incorporation into the code of ordinance. You've seen this before. Again, 00:01:52.160 --> 00:01:58.120 we've had significant community outreach on social media and public meetings since February. 00:01:58.120 --> 00:02:01.600 Even in those past six months, we've only had about 40 comments come in. A third of 00:02:01.600 --> 00:02:07.000 those were enthusiastic support. The remainder of them had just simple questions about locations 00:02:07.000 --> 00:02:11.560 and cost and things like that. We were able to answer those questions. So what we bring 00:02:11.560 --> 00:02:18.280 before you today, I think, is a culmination of a very thoughtful ordinance. It's driven 00:02:18.280 --> 00:02:24.720 mostly by the community's ability to do the work. Other than the fact that we're requiring 00:02:24.720 --> 00:02:31.000 you to do something, it's upon you to actually define what you can do and make it work. So 00:02:31.000 --> 00:02:37.120 with that, we would respectfully request that you approve the article to the council for 00:02:37.120 --> 00:02:41.320 final approval. I do know Barbara has some questions. Go ahead. 00:02:41.320 --> 00:02:51.640 Yeah. In places where there is no place to put a recycle or something of that nature, 00:02:51.640 --> 00:02:54.800 what's your plan? Well, it depends on what your material is. 00:02:54.800 --> 00:03:01.440 If it's just the programmatic material that the city of Denton can take care of, it will 00:03:01.440 --> 00:03:05.600 be fully acceptable as long as you report the material to take that material to your 00:03:05.600 --> 00:03:10.520 house and put it in your curbside container to take it to North Lakes Park or to the landfill 00:03:10.520 --> 00:03:15.920 by recycling facilities and recycle that material there. We understand that in some areas, space 00:03:15.920 --> 00:03:21.360 is a concern and we will be working with you to make that happen. 00:03:21.360 --> 00:03:26.080 Sometimes you don't know what's in there because it gets filled by the public very 00:03:26.080 --> 00:03:32.960 frequently so you don't know what's in there. Who's responsible for that? We can't seem 00:03:32.960 --> 00:03:37.160 to get that handled. Well, again, if we're talking about programmatic 00:03:37.160 --> 00:03:43.400 material that the city of Denton is collecting, currently we're undergoing in any future distribution 00:03:43.400 --> 00:03:48.800 of dumpsters out in, recycled dumpsters out in the community will include locks and chute 00:03:48.800 --> 00:03:53.960 lids which we have shown to significantly reduce contamination because, again, the openings 00:03:53.960 --> 00:03:58.400 are extremely small which allows only the specified materials to be able to put in there 00:03:58.400 --> 00:04:04.640 so we're not seeing the garbage and the illegally dumped material put into the recycle bins. 00:04:04.640 --> 00:04:12.080 So, again, to fully answer your question, the dumpsters are always the responsibility 00:04:12.080 --> 00:04:16.080 of the renter or the owner. However, we were going to work with you to help ensure that 00:04:16.080 --> 00:04:20.480 that gets cleaned and to maintain compliance with the ordinance. 00:04:20.480 --> 00:04:26.780 Okay. Sometimes when the dumpster is emptied, they set it back so far you can't close the 00:04:26.780 --> 00:04:35.200 lid on it and that's a problem. Also, what about mixed use like when you see apartments 00:04:35.200 --> 00:04:41.560 above businesses, so you're going to have two different types of waste there? 00:04:41.560 --> 00:04:46.320 Well, to talk about if we're pushing them back so far that you can't close it, let 00:04:46.320 --> 00:04:53.440 us know about that. That's an education issue with our drivers. We have very few complaints 00:04:53.440 --> 00:04:58.600 about that but once we know about it, we can take care of it. So please let us know, call 00:04:58.600 --> 00:05:04.820 our customer service line. With the mixed use though, again, we've got shoot lids and 00:05:04.820 --> 00:05:11.600 locks to keep that area clean. If the businesses below have additional materials that are outside 00:05:11.600 --> 00:05:16.640 of the city's programmatic material but are going to be a divertable material through 00:05:16.640 --> 00:05:20.600 a third party vendor, then we're going to work with them for space and location and 00:05:20.600 --> 00:05:21.600 things of that nature. 00:05:21.600 --> 00:05:26.880 Okay. Do you supply keys to the tenants in the building so that they can get into the 00:05:26.880 --> 00:05:27.880 ... 00:05:27.880 --> 00:05:32.040 If they're tenants, they shouldn't need keys because again, they're very small locks, 00:05:32.040 --> 00:05:37.440 they are very small openings, they can still put the material in there. But we will work 00:05:37.440 --> 00:05:44.040 with the owners of the facility to make sure that their maintenance has keys to the locks 00:05:44.040 --> 00:05:48.920 so that they can get into it, flip the lids and put the locks back should they need to 00:05:48.920 --> 00:05:52.680 put something larger in there or pull something out prior to collection. 00:05:52.680 --> 00:05:54.760 Okay. Thank you. 00:05:54.760 --> 00:05:55.760 Thank you. 00:05:55.760 --> 00:06:00.720 Other questions? And you said there will be a public hearing yet before adoption? 00:06:00.720 --> 00:06:03.120 Correct. On the 17th, I believe is the date. 00:06:03.120 --> 00:06:04.120 Okay. 00:06:04.120 --> 00:06:08.600 I do appreciate, I have attended those meetings. Not all of them but most of them. 00:06:08.600 --> 00:06:09.600 You're welcome. 00:06:09.600 --> 00:06:22.880 Okay. Do we have a motion to approve item PUB23039? Okay. Billy moves. Devin seconds. 00:06:22.880 --> 00:06:24.680 All in favor say aye. 00:06:24.680 --> 00:06:25.680 Aye. 00:06:25.680 --> 00:06:26.680 Opposed? 00:06:26.680 --> 00:06:27.680 Opposed. 00:06:27.680 --> 00:06:28.680 Carries. 00:06:28.680 --> 00:06:31.000 Okay. Thank you very much. 00:06:31.000 --> 00:06:33.000 Barbara opposed. Kim. 00:06:33.000 --> 00:06:34.000 Yes. 00:06:34.000 --> 00:06:41.160 PUB item 23122. 00:06:41.160 --> 00:06:46.200 Morning board members. Scott Fetig, project manager with Capital Projects. Got a couple 00:06:46.200 --> 00:06:52.280 presentations this morning. 00:06:52.280 --> 00:06:57.720 So the first one will be for the neighborhood 1B design contract and this is part of the 00:06:57.720 --> 00:07:06.920 2019 bond program. So a little bit about the project overview. With this there will be 00:07:06.920 --> 00:07:13.280 about 25,000 linear feet of roadway reconstruction, which is about 45 segments. Water main replacement 00:07:13.280 --> 00:07:17.920 will be about 10,000 feet. Wastewater main replacement, we're looking at just almost 00:07:17.920 --> 00:07:23.960 17,000 linear feet. There will be some sidewalk connectivity assessments with this project 00:07:23.960 --> 00:07:31.240 as well as street lighting and photometric study. So design summary, the actual design 00:07:31.240 --> 00:07:37.440 services came in at just over $2 million. And then the hourly additional services, which 00:07:37.440 --> 00:07:41.680 is coordinating meetings, public involvement, project management and such, just over a million 00:07:41.680 --> 00:07:47.160 for a total of just over $3 million. 00:07:47.160 --> 00:07:52.400 So project schedule with consideration approval today and moving forward to council on the 00:07:52.400 --> 00:07:56.560 18th, approval there. We're expecting our first construction project packages to come 00:07:56.560 --> 00:08:02.000 out in quarter one of 2025. Projects will be phased during construction. This is a rather 00:08:02.000 --> 00:08:10.320 large project with an estimated construction completion quarter four of 2026. And with 00:08:10.320 --> 00:08:15.060 that we ask for the approval for a design contract between city of Denton and Kimley 00:08:15.060 --> 00:08:20.000 Horn Associates for a not to exceed amount of just over $3 million. 00:08:20.000 --> 00:08:25.480 - Questions? - What's your estimated construction cost? 00:08:25.480 --> 00:08:30.240 - For our overall project, we're looking at right about 25 million for this project overall. 00:08:30.240 --> 00:08:32.940 - This was one of the larger projects in the 2019, is it not? 00:08:32.940 --> 00:08:39.520 - It is, yes, yes ma'am. - Other questions? All right, do we have a 00:08:39.520 --> 00:08:43.960 motion to approve? - I'll move approval. 00:08:43.960 --> 00:08:48.480 - Okay, Kimley moves approval. Barbara seconds. All in favor say aye. 00:08:48.480 --> 00:08:59.600 - Aye. - I'm curious. Okay, next item is PUB 23, one, hang on, 23. 00:08:59.600 --> 00:09:03.080 - Yes ma'am, 123. - My eyes went the wrong way. 00:09:03.080 --> 00:09:06.800 - Same repetitive. - Again, Scott Fettig with Capital Projects 00:09:06.800 --> 00:09:12.760 project manager. This is also for neighborhood 1B. This is for our construction manager at 00:09:12.760 --> 00:09:18.280 risk or CMAR that will be participating in the design phase services contract. 00:09:18.280 --> 00:09:25.680 That's also, of course, part of 2019 bond program. This project will be the same overview 00:09:25.680 --> 00:09:31.400 at 25,000 feet of roadway reconstruction, about 45 segments, 10,000 linear feet of water 00:09:31.400 --> 00:09:37.920 main, almost 17,000 feet of wastewater replacement. And then we'll also be doing a sidewalk connectivity 00:09:37.920 --> 00:09:42.640 assessment and a photometric study for street lighting. 00:09:42.640 --> 00:09:47.400 So design phase services on this one, for the CMAR pre-construction services, this is 00:09:47.400 --> 00:09:52.880 our third CMAR that we're putting out. We selected CMAR with this project due to the 00:09:52.880 --> 00:09:59.000 size and complexity of the project. We're seeing good success with the first two CMARs 00:09:59.000 --> 00:10:04.400 in the areas of we're seeing more accurate pricing, better pricing with the cost modeling. 00:10:04.400 --> 00:10:09.960 We're seeing more efficiency in the scheduling with having the CMAR on board during the design 00:10:09.960 --> 00:10:18.920 phases. So they came in at for the design phase services for the CMAR came at a 267,000. 00:10:18.920 --> 00:10:23.440 Same with the approval today and the council on the 18th, we expect to have our first construction 00:10:23.440 --> 00:10:31.320 packages out quarter 1, 2025, and then expected a construction completion in quarter 4, 2026. 00:10:31.320 --> 00:10:34.920 And with that, we asked for an approval with the CMAR design phase services between the 00:10:34.920 --> 00:10:40.840 City of Denton and Sunt Construction for not to exceed the amount of 267,000. 00:10:40.840 --> 00:10:47.740 Questions? Questions. I know Mr. Cheek. Oh, Domingo, you go first. 00:10:47.740 --> 00:10:54.480 So this is the CMAR package just for design? Yes, this is just for the design phase services. 00:10:54.480 --> 00:10:59.360 And will the construction phase be put out to bid again or is there just going to be 00:10:59.360 --> 00:11:04.200 a follow-on contract with Sunt? Yes. No, they will have to, for the actual, we'll have several 00:11:04.200 --> 00:11:09.280 different packages. For each construction package, they will have to go out for bid 00:11:09.280 --> 00:11:15.060 for all the construction services and we'll bring those back again to the board and council 00:11:15.060 --> 00:11:21.480 as well for those individual contracts. I guess is Sunt, is the 267,000 for the entire 00:11:21.480 --> 00:11:24.840 construction phase as well or just design? No, just for the design phase services. 00:11:24.840 --> 00:11:29.280 So there'll be a follow-up contract with Sunt? Yes, exactly. 00:11:29.280 --> 00:11:38.080 I mean, Devin kind of went on the same line as I'm about to go on. Sunt's got the $267,000, 00:11:38.080 --> 00:11:41.560 which obviously for design does not seem like that much money, obviously. 00:11:41.560 --> 00:11:44.520 Right. In comparison, we just approved a $3 million 00:11:44.520 --> 00:11:46.520 one, right? Right, right. 00:11:46.520 --> 00:11:54.640 So once you lock Sunt into the CMAR, they're going to go out and talk to contractors and 00:11:54.640 --> 00:11:59.400 try to give you the best price and best construction you can get. 00:11:59.400 --> 00:12:01.480 Correct. Do they have a set percentage that they'd 00:12:01.480 --> 00:12:12.760 mark up those dollar amounts? I may have to defer to Seth here on this one. 00:12:12.760 --> 00:12:15.800 Good morning, board members. Seth Garcia, program manager with Capital 00:12:15.800 --> 00:12:19.920 Projects. Yeah, so part of their RFQ, they have to submit what is their construction 00:12:19.920 --> 00:12:24.320 fee. So that will carry through the construction phase process. I believe for this one, they 00:12:24.320 --> 00:12:29.600 submitted 5.95%. So once they publicly advertise the entire 00:12:29.600 --> 00:12:36.440 project, if they win 0% of the work as they're not self-performing anything, they will still 00:12:36.440 --> 00:12:40.560 collect a 5.95% construction fee on the total construction cost. 00:12:40.560 --> 00:12:44.720 Is that in this contract, that 5.95%? It's not in this contract. You'll see it 00:12:44.720 --> 00:12:50.200 in the second contract. That will go with their general conditions costs and that construction 00:12:50.200 --> 00:12:55.000 fee once they actually give us their guaranteed maximum price. The only piece that comes forward 00:12:55.000 --> 00:12:59.360 out of the RFQ with this one is that pre-construction fee, which is that 267. 00:12:59.360 --> 00:13:05.360 Okay, yeah, 5.95 doesn't seem too much of a markup for managing a pretty healthy project 00:13:05.360 --> 00:13:09.760 like this. But some of my questions are going to be on 00:13:09.760 --> 00:13:17.040 the way that these have been ranked, for lack of a better word, project-specific delivery 00:13:17.040 --> 00:13:21.560 approach, which is probably their highest where they beat everybody else, along with 00:13:21.560 --> 00:13:25.080 community engagement. What was the community engagement? 00:13:25.080 --> 00:13:30.520 Yeah, so during their technical proposal, they really focused in on how they were going 00:13:30.520 --> 00:13:35.920 to engage each individual resident and street following the requirements of our technical 00:13:35.920 --> 00:13:39.680 specifications. So in our specifications, we have a 48 hours 00:13:39.680 --> 00:13:43.960 of notice that you're supposed to go out and knock on doors to let them know you're going 00:13:43.960 --> 00:13:49.480 to be crossing driveways. They kind of put that plan in place in their schedule and then 00:13:49.480 --> 00:13:53.720 talked about it very thoroughly, how they were going to adhere to each of the requirements 00:13:53.720 --> 00:13:59.160 that the city didn't has in our contracts. So they made sure to draw specific attention 00:13:59.160 --> 00:14:04.000 to that. They also talked about different ways, setting 00:14:04.000 --> 00:14:08.120 up QR codes that they're going to be able to put on different materials to get people 00:14:08.120 --> 00:14:12.440 plugged straight into our Discuss Denton and other pages, which was a neat idea that we 00:14:12.440 --> 00:14:16.600 had not seen before from some of our other contractors. So those were the two things 00:14:16.600 --> 00:14:22.360 that really stuck out to me in their technical proposal for those community engagement scores. 00:14:22.360 --> 00:14:28.400 Okay, and what about the project-specific delivery approach, which is highly ranked 00:14:28.400 --> 00:14:31.080 as well? Yeah, once again, they did a very thorough 00:14:31.080 --> 00:14:36.240 job explaining the phasing of construction, how many crews they were going to use for 00:14:36.240 --> 00:14:41.760 each piece. Of course, CMAR, one of the beautiful things about it is you work as an entire project 00:14:41.760 --> 00:14:47.840 team to phase out the entire construction portion to really wring out all the efficiencies 00:14:47.840 --> 00:14:52.520 that you can. One of the great things we loved about Sunt and some of the other submittals 00:14:52.520 --> 00:14:58.840 was they had a great pre-plan coming in, which they weren't necessarily tied to. But hey, 00:14:58.840 --> 00:15:02.880 we think as a contractor who does billions of dollars of work in the United States every 00:15:02.880 --> 00:15:07.720 year, this is a good way to start. And so that gave us a good baseline drawing board. 00:15:07.720 --> 00:15:14.240 So being able to come in through that RFQ process to say this is how many crews we anticipate, 00:15:14.240 --> 00:15:18.440 this is how we would like to phase it, gives us a really good starting place. 00:15:18.440 --> 00:15:29.280 Okay. Did they participate in any of the bond committee original passing of the bonds that 00:15:29.280 --> 00:15:32.920 we had in 2019? I don't believe they did. They didn't bid 00:15:32.920 --> 00:15:39.040 on our first CMAR project. They kind of heard through the contractor world that we were 00:15:39.040 --> 00:15:42.920 doing some CMAR stuff. And so we saw them on our second CMAR, which was neighborhood 00:15:42.920 --> 00:15:46.380 two and six, which they actually won. You probably have small businesses working 00:15:46.380 --> 00:15:52.160 more to get your bond passed, didn't you? We did. But one of the beautiful things is 00:15:52.160 --> 00:15:58.160 so they advertise it publicly to our local community. So similar to neighborhood Southeast 00:15:58.160 --> 00:16:03.680 in package B, we have a lot of our local vendors that are participating under McCarthy for 00:16:03.680 --> 00:16:08.280 that project that are doing a lot of that work. So even though they're the GC, we still 00:16:08.280 --> 00:16:12.800 have a lot of local vendors that are participating in these larger CMAR projects. 00:16:12.800 --> 00:16:18.000 Obviously, I've been asked questions because I have concerns about the CMAR approach. I 00:16:18.000 --> 00:16:25.720 think that this, and I know you're not supposed to consider the political ramifications of 00:16:25.720 --> 00:16:31.960 what this might do, but I think we're eventually going to be answering some questions we don't 00:16:31.960 --> 00:16:41.920 want to be asked. And I say we, you. But I'll just leave it as speculation. I'll leave it 00:16:41.920 --> 00:16:47.920 at that. But I worry a little bit about CMAR. And when you're doing the evaluation, it's 00:16:47.920 --> 00:16:52.400 cross-functional. It's purchasing, it's engineering. You score separately and then you bring them 00:16:52.400 --> 00:16:58.200 all together. That's correct. So we have generally five people on the team, a handful from capital 00:16:58.200 --> 00:17:03.080 projects. And then typically we have a roadway or street stakeholder and a utility stakeholder. 00:17:03.080 --> 00:17:07.080 And then, of course, purchasing is watching over the entire process. Yeah. Yeah, absolutely. 00:17:07.080 --> 00:17:16.120 Just mention again, I am unemployed, by the way. Other questions. You guys did a great 00:17:16.120 --> 00:17:21.360 job on this. I'm sorry to ask those questions, but I think it's important that we. Oh, not 00:17:21.360 --> 00:17:26.880 a problem. We appreciate it. Get into the details here. I appreciate it. Thank you. 00:17:26.880 --> 00:17:36.040 Other questions. All right. Do we have a motion to approve PUB 23123? Barber moves approval. 00:17:36.040 --> 00:17:44.720 Second? Devin seconds. All in favor say aye. Aye. Opposed? Billy opposes. Okay. Next item 00:17:44.720 --> 00:18:03.520 is 23124 with power engineers. Turn that off. I say something stupid again. Good morning. 00:18:03.520 --> 00:18:11.600 Cody Tenorio, DME Engineering, here to discuss a contract for professional engineering services. 00:18:11.600 --> 00:18:17.360 Contract will cover services for DME CIP projects as well as compliance support. Our engineers 00:18:17.360 --> 00:18:23.640 scored the highest for the requested services. Here's a table that shows the estimated cost 00:18:23.640 --> 00:18:30.720 per project. We recommend a contract with power engineers for three years. Two point 00:18:30.720 --> 00:18:40.120 seven million dollars. Majority of the costs will be recoverable through PUC and TCOS programs. 00:18:40.120 --> 00:18:52.720 Any questions? Questions? We see none, wow. Everything you guys buy now costs too much. 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 00:18:59.360 --> 00:19:09.320 to approve item PUB 23124? Devin moves. Second? Barber seconds. All in favor say aye. Aye. 00:19:09.320 --> 00:19:20.440 I guess you did the best job. Well thank you. Okay, next item PUB 23127 with Denton and 00:19:20.440 --> 00:19:36.060 the warehousing. Good morning members of the PUB. I'm Randy Key, Municipal Electric, Electric 00:19:36.060 --> 00:19:54.080 Engineering Supervisor. Okay, all right. This is for a contract for concrete pull boxes. 00:19:54.080 --> 00:20:00.240 These precast concrete pull boxes are subsurface enclosures that provide space for cable pulling, 00:20:00.240 --> 00:20:07.160 routing, splicing and place for us to terminate our primary underground electric cables. Our 00:20:07.160 --> 00:20:13.160 DME standards state that any primary run of cable that exceeds four elbows or 1,000 feet 00:20:13.160 --> 00:20:19.120 must install a concrete pull box. These assets will be managed at the DME pull yard. Here 00:20:19.120 --> 00:20:27.040 is a table of estimated five-year spend and staff recommends this contract be approved. 00:20:27.040 --> 00:20:40.520 It's going to be with Techline with the NTE of $4.2 million. Any questions? Go ahead Barber. 00:20:40.520 --> 00:20:48.240 Describe to me this pull box. It's either a three by five or a four by six pull box and 00:20:48.240 --> 00:20:57.400 we will pull our cable into it and then we will splice into it. Is it seal off? Yes ma'am. 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 00:21:02.720 --> 00:21:07.680 look at your bid tabulation. Yes. And there's a big difference between the other two and 00:21:07.680 --> 00:21:17.880 this one. Do you have any concerns? No ma'am. Okay. So it's not like they bid really low? 00:21:17.880 --> 00:21:26.160 No ma'am. Okay. All right. Do we have a motion to approve PUB item 23127 with Techline? Moved? 00:21:26.160 --> 00:21:35.480 Second. Devin seconds. All in favor say aye. Aye. Carries. Management reports. So Madam 00:21:35.480 --> 00:21:41.200 Chair, members of PUB on the management report we did include a memo from finance to the 00:21:41.200 --> 00:21:46.880 board just advising you of an item that's going to be coming to you regarding some new 00:21:46.880 --> 00:21:53.400 requirements from ERCOT. Basically what we've done is we've issued an RFP to secure a letter 00:21:53.400 --> 00:21:59.440 of credit to replace what used to be basically an unsecured collateral. Now we're required 00:21:59.440 --> 00:22:05.400 to have actual collateral whether it's cash or letter of credit. We are looking at a possibility 00:22:05.400 --> 00:22:08.840 of a surety bond. We're still kind of looking through that. So things might change between 00:22:08.840 --> 00:22:12.640 now and the time this item comes to you but at present we just wanted to advise you that 00:22:12.640 --> 00:22:16.000 that's something that we are doing. We're required to do it. It's not just us. It's 00:22:16.000 --> 00:22:20.920 the entire, all the participants in the ERCOT market and so it is something new that really 00:22:20.920 --> 00:22:27.200 came out of, as a result of Winter Storm URI and some of the defaults that happened. Terry's 00:22:27.200 --> 00:22:30.640 here. I think Randy may be here so if you have any other questions they're happy to 00:22:30.640 --> 00:22:41.000 jump up here and respond to those. Questions? Okay. So just future agenda items. The next 00:22:41.000 --> 00:22:44.960 thing that we have for you is on the 24th we are going to be asking the board at that 00:22:44.960 --> 00:22:51.240 time to approve, to make a recommendation, actually formally approve budgets, rate ordinances 00:22:51.240 --> 00:22:56.920 to go to the council. The council has a budget workshop scheduled for August 5th. That's 00:22:56.920 --> 00:23:01.920 a Saturday which they'll review all the city's budgets and then that process kind of begins. 00:23:01.920 --> 00:23:07.600 But July 24th is kind of the end for the PEB as far as this year's budgets. So certainly 00:23:07.600 --> 00:23:13.640 if you have any questions please let us know. And then finally the last item is just new 00:23:13.640 --> 00:23:17.800 transaction items. I do have one item on there which was just an update on Winter Storm URI. 00:23:17.800 --> 00:23:22.440 I didn't move that to July 10th. I may be able to get that to the board in advance of 00:23:22.440 --> 00:23:26.960 that meeting that you have it. But just took me a little longer to get that wrapped up. 00:23:26.960 --> 00:23:30.680 But happy to answer any questions you may have. If there's anything else you want to 00:23:30.680 --> 00:23:35.920 add. Now I will not be here on the 24th but Lee will be here to chair and I know Lee will 00:23:35.920 --> 00:23:44.880 be here so. And you won't? Oh that's right. So okay. So do we have no appointment for 00:23:44.880 --> 00:23:56.120 Larry Beck? Not yet. So. Okay. So Devin will be out as well? Yes. Okay. Okay. Right now 00:23:56.120 --> 00:24:05.800 we have a quorum. Just, yeah. Mr. Plotkin is the other one? Yeah. Okay. Thank you. Okay. 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 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 00:24:16.060 --> 00:24:26.520 first and that is the water, solid waste water and waste water rates for 23-24. Good morning 00:24:26.520 --> 00:24:32.460 PUB. Tanyel Stanford, budget manager. And this morning we're here to talk about utility 00:24:32.460 --> 00:24:39.200 rates. So the first part of these you've already seen beginning with the solid waste rates. 00:24:39.200 --> 00:24:46.200 We are proposing no residential or commercial customer rate changes in FY 23-24. However 00:24:46.200 --> 00:24:54.440 we are anticipating rate increases to be needed beginning as early as 2025. That is pending 00:24:54.440 --> 00:25:02.320 the final cost of service study that NUGEN is currently in progress. We do intend to 00:25:02.320 --> 00:25:10.440 bring those back, that cost of service study results to you late fall, early winter. Like 00:25:10.440 --> 00:25:15.840 we talked about in the budget presentation for solid waste we are proposing an additional 00:25:15.840 --> 00:25:22.780 recycling cart fee of $15. That's what apply to customers receiving three or more carts 00:25:22.780 --> 00:25:28.820 and then some additional rate ordinance language clarifications. If you have any questions 00:25:28.820 --> 00:25:36.240 on those we can go through those but you have already seen them in a previous presentation. 00:25:36.240 --> 00:25:41.560 Again you've already seen these rate increases or rate changes an increase of $5 for these 00:25:41.560 --> 00:25:48.980 four rate categories. And the removal of the contaminated grass, brush and leaf rate and 00:25:48.980 --> 00:25:56.540 the whole trees and stumps rate. Water rates we're proposing to remove two rates the dino 00:25:56.540 --> 00:26:04.620 dirt overs and the dino deco colored mulch removing both of those rates. No additional 00:26:04.620 --> 00:26:11.920 rate changes for water. Wastewater is where it gets fun today. So we I know you have not 00:26:11.920 --> 00:26:18.280 seen the wastewater budget presentation so this is a snippet of the pro forma. As you 00:26:18.280 --> 00:26:27.680 can see we are anticipated to end our current fiscal year with about $15.3 million of a 00:26:27.680 --> 00:26:36.040 surplus that will go into our I'm sorry our fund balance will be $15.3 million. And we 00:26:36.040 --> 00:26:43.000 anticipate using 2 million of that in FY 2024 to offset some costs. However you'll notice 00:26:43.000 --> 00:26:52.360 that in FY 2024 we do have an 11 percent increase. That is largely contributed to the CIP that 00:26:52.360 --> 00:27:00.920 we'll see in the next few slides. In FY 25 through 28 we also have 11 12 and to 10 percent 00:27:00.920 --> 00:27:08.000 rate increases again to support that CIP that's necessary. These rate increases do keep us 00:27:08.000 --> 00:27:14.120 within our target minimum balance or reserves. It does not keep us above the debt service 00:27:14.120 --> 00:27:21.400 coverage ratio for this specific fund in years 27 and 28. We dip just below but as a reminder 00:27:21.400 --> 00:27:29.960 that's looked at across the utility system versus just the individual fund. So this slide 00:27:29.960 --> 00:27:37.640 shows you a rate increase comparison. So currently Denton is the light blue in the middle there 00:27:37.640 --> 00:27:47.360 at 41 40. This is the average rate increase or the rate the bill for the average customer. 00:27:47.360 --> 00:27:53.880 This is based on a W.W.A. standard of a three quarter inch base and eight thousand gallons 00:27:53.880 --> 00:27:59.740 usage. I would like to note that the average usage usage for a city of Denton customer 00:27:59.740 --> 00:28:15.740 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. 00:28:15.740 --> 00:28:41.040 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. 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. 00:29:10.960 --> 00:29:29.040 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. 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. 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. 00:29:56.080 --> 00:30:13.000 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. 00:30:13.000 --> 00:30:39.600 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. 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. 00:30:56.840 --> 00:31:17.120 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. 00:31:17.480 --> 00:31:37.040 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. 00:31:37.440 --> 00:32:02.640 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. 00:32:02.640 --> 00:32:19.080 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. 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. 00:32:33.240 --> 00:32:42.120 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. 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. 00:33:04.800 --> 00:33:18.720 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. 00:33:18.720 --> 00:33:29.280 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. 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. 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. 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. 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. 00:34:40.920 --> 00:34:50.760 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. 00:34:54.000 --> 00:34:55.960 And then with that we'll take any additional questions. 00:34:55.960 --> 00:35:06.640 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. 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. 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. 00:35:20.640 --> 00:35:24.560 I don't understand the reasoning of kicking the can down the road. 00:35:24.560 --> 00:35:27.760 We're trying to minimize the rate increase. 00:35:27.760 --> 00:35:32.040 How is CIP funded. 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. 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. 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. 00:36:06.000 --> 00:36:13.280 One other thing that we did was expand some of the debt from 20 year to 30 year try to make that more palatable. 00:36:14.280 --> 00:36:16.240 Get that debt service. Yes. 00:36:16.240 --> 00:36:20.640 I'm gonna go back to the unfunded. Good. 00:36:20.640 --> 00:36:24.000 Okay. 00:36:24.000 --> 00:36:26.320 The questions. 00:36:26.320 --> 00:36:29.800 And what do you need from us. 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. 00:36:34.920 --> 00:36:40.080 All right. Thank you. And now we'll go to the capital improvement program. 00:36:44.800 --> 00:36:46.160 Is that is that the most important. 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. 00:37:00.200 --> 00:37:05.720 Maybe we want to do something else. It would be MC. Okay. Item C. Thank you. 00:37:05.720 --> 00:37:12.680 So this is the wastewater budget presentation. This is their metric for 00:37:13.560 --> 00:37:15.600 Actually Steven. This is your portion but I can 00:37:15.600 --> 00:37:28.120 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 00:37:28.120 --> 00:37:39.200 Wastewater has 173 employees. This is this org chart is combined with water and wastewater. 00:37:41.480 --> 00:37:46.800 Oh I'm sorry. Wastewater specifically has 106 and a half employees. 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. 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. 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. 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. 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. 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. 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. 00:38:59.800 --> 00:39:03.880 So again here's a snippet of that same pro forma. 00:39:03.880 --> 00:39:12.760 The wastewater capital plan which we previously discussed. This is all the same information. 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. 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. 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. 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. 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. 00:40:22.640 --> 00:40:37.440 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. 00:40:39.200 --> 00:40:44.720 As you can see on this slide. That's OK. 00:40:44.720 --> 00:40:52.440 To turn it over to Ethan here. 00:40:52.440 --> 00:40:56.520 Long time no see. 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 00:41:09.440 --> 00:41:12.400 French drain that we installed to run that and connect it into 00:41:12.400 --> 00:41:18.320 Got some weird. 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. 00:41:23.200 --> 00:41:26.240 I don't know that question. I don't know the answer to that. 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 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. 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 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. 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 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. 00:42:27.000 --> 00:42:36.680 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 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. 00:42:42.680 --> 00:42:45.320 Related to that and I 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 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 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. 00:43:19.760 --> 00:43:23.360 Asset inventory is certainly a part of the inspection. 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. 00:43:28.760 --> 00:43:32.120 All right, I killed the meeting. 00:43:35.040 --> 00:43:36.080 Put that in the minutes, Kim. 00:43:36.080 --> 00:43:42.320 All right, it's 943 we lost her quorum. So we are adjourned.