Okay, it is nine o'clock and we do have a quorum.
So I'm going to call to order the public utilities board for the city of Denton on Monday,
August 14th, 2023.
The first item is addressing the public utility board by the public.
Does anybody from the public wish to address the board?
I see none. So we'll move into the regular meeting.
Consent agenda, does any board member wish to pull an item A through N?
Okay, I see none. Do we have a motion to approve the consent items A through N?
Move approval.
And a second?
Second.
Board of Seconds, all in favor say aye.
Aye.
Motion carries. Next item is consider the approval of the July 24th, 2023 minutes.
Does anyone have any changes or corrections?
Do we have a motion to approve the minutes?
So moved.
Thomas moves. Do we have a second?
Barbara seconds. All in favor say aye.
Aye.
Okay, moving into PUB 2328, recommend the approval of the solid waste and recycling fiscal year budget 2023-2024.
I was going to say who's coming next to you?
Good morning, Amy Kaslik. I'm the city's interim finance director.
I'm here this morning to seek the board's recommendation on approval of solid waste 2023-2024 budget and capital plan.
Financial assumptions for solid waste and recycling include 2.5% growth rate and a 3% increase in role of customers.
Revenue projections include wholesale agreements totaling a little over $4 million for next fiscal year.
While expenditure projections include annual contributions to the closure/post closure fund as well as increases in personnel and operating costs.
So looking at the performa for this fund, we anticipate ending the year with revenues coming in about $2 million under adopted budget.
The primary driver of this is non-rate revenues, which includes the sale of scrap metal as well as the recycling program and other diversion efforts.
While overall the expenditure budget is in line with last year's adopted budget, increases exist in personnel costs related to the class and comp study as well as a 2% merit increase.
Cost of service transfers related in part to programs and related contracts being moved to environmental services to sustainability, debt service and the purchase of a cart washing truck that is set to be funded from capital.
So then looking at their capital plan, solid waste has $10.7 million in capital expenses planned for fiscal year 2024 and a five-year capital plan of $54.4 million.
Of that $45.8 million will be bond funded and $8.6 million will be revenue funded.
This includes $7.1 million in bond funded capital and $3.6 million in revenue funded capital specific to fiscal year 2024.
Key projects include cell five and six construction for $5.4 million, home chemical collection storage facility for $2 million, and then vehicle replacements for $5.6 million.
Next steps for the solid waste and recycling budget, we'll be coming back to this board on August the 28th to look at changes in fees.
There is not a rate increase planned at this point for 2024, so it will be limited to fees, and then we will move forward to public hearings and then budget adoption on September 26th.
>> City Council? >> Yeah. >> Okay. Sorry. >> Oh, you know, I'm just moving way ahead. >> Goodness. We think so far in advance here that, you know, we've already got it planned.
I'm going to bet you're going to see that throughout this presentation. We just are forward thinkers. >> Okay. >> Any questions?
All right. Do we have a motion to approve the solid waste recycling budget for fiscal year 2023-24?
>> Move approval. >> Okay. Billy moves approval. Do we have a second? >> Second. >> Thomas seconds. All in favor say aye. >> Aye. >> Thank you. >> Carries. Thank you.
Next item is consider recommending the approval of the water fiscal year 2023-24 operating in capital budget. You're doing that one too, aren't you? >> I am.
>> All right. So, again, looking at the water utilities, water budget for fiscal year 2024, financial assumptions for this fund as well as other utilities is a 2.5% increase in our population, our rate of growth.
Expenditure projections include moderate increases in personnel and operating costs. And for this fund, there are no rate increases anticipated for fiscal year 2024.
Both revenue and expenditures are expected to come in under budget for the current fiscal year. Looking at the preliminary fiscal year 2024, and I'm sorry, this actually proposed 2024 budget, you'll see that we are using more impact fees to fund capital projects and debt service.
A 2% increase and six additional positions needed to support water treatment plant operations as well as needed vehicles are included in the proposed budget.
These increased expenditures are offset by reductions in expenses related to the movement of personnel and related costs to environmental services and sustainability.
So, while we are meeting reserve balances and debt ratio targets in fiscal year 2024, we are anticipating rate increases in the four years following that.
And then in looking at the capital plan, it includes $96.5 million in fiscal year 2024, and a five year total of $377.7 million in capital projects.
Of this $82.8 million is proposed to be bond funded and $8 million revenue funded, as well as $5 million funded by impact fees in fiscal year 2024.
Key projects include the automated meter reading infrastructure for $14 million, the Lake Louisville plant raw water transmission line for $7.5 million, Ray Roberts plant expansion for $154 million, Ray Roberts plant upgrades for $33 million, and then $27 million that supports the 2019 bond election.
Next steps on this one since we will not be bringing back any rate or fee changes will be the public hearing on September 19.
Questions.
Okay, if there's no questions, do we have a motion to approve the water fiscal year 2023, 2024 operating and capital budgets.
It's easy. Good. Glad to hear that.
All right, so next up we have the wastewater fund and looking at the 2024 budget and capital plan.
As with the water fund we assume a 2.5% growth rate expenditures include moderate increases for personnel and operating costs.
We're going to cover that in detail at our next meeting revenues and expenditures included in the proposed budget are below last year's adopted budget.
This is due to revenues associated with cost participation not being expected until further years out, unless revenue funded capital included in the proposed budget is the 2% merit increase for water reclamation operators for pecan Creek, a project manager and an inspector.
These increases are offset by again the movement of personnel and related costs to environmental services and sustainability.
The anticipated rate increases we are projected to meet cash balance requirements in all years and debt coverage in two out of the five years.
And then it's important to know when we're looking at utilities that the rating agencies look at coverage for all utilities combined rather than one by one.
Thank you for that note.
So here's a look at the drainage port pro forma, which was also included in the numbers you saw on the previous slide but we want to show it here separately revenues and expenditures are in line with current year estimates proposed budget again includes that 2% increase for merit, a
subdivision truck for examining infrastructure, a flushing truck cost of service study and an asset condition assessment.
The wastewater capital plan includes $61.3 million in fiscal year 2024 and 385.1 million over the next five years of this 56 million is proposed to be funded with debt 2.9 million with revenues.
2.5 million for vehicle replacement for fiscal year 2024 key projects include the pecan Creek plan expansion to 26 mgd the pecan Creek plant 75 mgd headworks project oversized participation and funds and support again of that 2019 bond election.
So sorry.
Once again, here's that schedule of our next meetings to cover the wastewater funds needs and again that will include changes in the rates.
Questions.
Thomas seconds all in favor say aye. Aye. Carries next items consider recommending the approval of the electric electric fiscal year 2023 24 operating in capital budgets.
We're looking at DMEs budget and capital plan for fiscal year 2024. Again we assume a with this one we're assuming a 2.5% low growth and purchase power forecast and moderate increases in personnel and operating costs.
The proposed budget is in line with last year's actuals but does include an additional 6.9 million in cash funded capital. The budget also includes the 2% merit increase escape a network assessment and outage coordinator relay technician
and construction standards for voltage voltage conversion and that was part of their supplemental requests that are now included in the proposed budget. In addition, three vehicles are proposed to be purchased from the existing vehicle replacement funds.
Knowing no rate increase has been included for fiscal year 2024. We are anticipating 3% rate increases from 2025 through 2028. There is also an option to do a one time rate increase and ask next fiscal year 2025 for 12.5%.
And that helps to support and maintain the required reserve balances for this fund.
So here is a high level summary of the CIP for the electric fund. The total proposed for 2024 is $93.1 million and a total of $411.9 million for the next five years.
In addition, the CIP for the electric fund is $1.5 million in bonds, 6.9 million as I mentioned in revenue funded capital as well as $3.7 million for cost participation in fiscal year 2024.
So the CIP for the electric fund is $1.5 million going forward and again there are no fee or rate increases for fiscal year 2024 included in this budget.
So we have additional items coming forward for D&E.
So any other questions? Do we have a motion to approve the electric fiscal year 2023-24 operating in capital budget?
Move approval. Thank you, Billy. Second? Second. All in favor say aye. Aye. Motion carries.
I'm recommending the approval of the customer service fiscal year 2023-24 operating in capital budgets.
All right. And this is the last one that we'll be looking at this morning.
In looking at the FORMA customer service is fully funded by the departments that it serves with the largest contributor being D&E. Costs are allocated based on call volume, bills processed as well as revenues collected from each of the contributing departments.
At the end of the year, we do a true up to ensure that expenses have been correctly allocated and then actual expenditures and support each of the departments again that have been served.
Preliminary expenditures show an increase of approximately $1.8 million.
This is due to increases in personnel costs related to comp and class as well as a baseline adjustment of $700,000 for banking related to credit card usage.
These increases are also reflected in the current year budget for customer service.
An adjustment has been included for the plus one program increasing that program by $50,000 for a total program budget for plus one of $225,000.
And this is just really based on an increased need for that assistance proposed budget also includes the 2% merit increase as well as additional staffing due to the implementation of the customer relationship system.
Next steps are public hearing on September 19th and then budget adoption on September 26th. Okay. Any further questions.
All right. Do we have a motion to approve the customer service fiscal year 2023 24 operating and capital budgets.
So moved. Thomas moose. Do we have a second or seconds. All in favor say aye. Aye. Carries. Thank you. Thank you. Next item is P you be 23 140 contract with Oscar render come contracting ink for $18,064,385 and 85 cents.
Good morning. This is going to be a I 35 quarter relocation utility another project that we've been doing continuation.
This project will be from the split merge to us 380 that's that small portion there.
The overview of the project. As I mentioned, it goes from the split up to the university 380 area and it crosses it a little bit, but this is the main section of construction and we'll be doing wastewater and water utility relocations.
Like I said, this is in support of the wide end of the I 35 and this is 100% reimbursable project from text on excuse me. So that's that's schematic doesn't look like it's just showing the existing highway with where the new utilities will go.
It's not showing the new highway. No, this is just the existing service not showing the flyovers and no sir. Okay.
This is just what when we're done. This is what it'll look like. Okay. And then textile will come in with their whiting and the changes they have. Okay, that's good.
Yeah, you look at it and it looks like the same thing.
Yeah, it's a pretty good extensive projects about 10,000 linear feet, give or take with between the wastewater and water.
And there'll be some abandonments and some and some removals as well.
Any further questions in the slide.
We had, this is a.
It was an invitation for been IFP.
These are the two companies out of the three we had pre qualified previously to do these projects.
Only two applied this time, and it's Oscar Renda contracting a mountain cascade. They're pretty close in bed and Oscar Renda came in less with the 17 million.
We've completed design in this around May, and we're going to public utility board today and we're going to counsel tomorrow.
The reason for the short timeline is just because of text dots rush to get these projects done.
The notice proceed will be after today or tomorrow if it gets approved today and tomorrow then I'll give a partial notice to proceed to purchase material, the following day on the 16th and then I anticipate the actual notice to proceed sometime in September.
This is also a rush projects 180 day project so you can see right here, that's a very short timeline. And that's, you know, that's in line with what we've been doing just to meet text on.
And we finished final completion will be sometime in the second quarter of 2024.
It is very fast. As I mentioned before, they came in at seven logistics under over 17 million, and with a 5% contingency it'll bring it right over 18 million for total construction costs.
But you remember this is going to be 100% reimbursable through text off. So we will get this money back.
Any questions.
Questions.
Yes, ma'am. Thank you. Do we have a motion to approve pb 23 140.
And a second second. All in favor say aye. Aye. Thank you. Motion carries. Thank you.
Next item.
Next item is pb 23 151 consider recommending an ordinance to approve contract with some construction for the bonnie bray three widening and reconstruction, and the amount of $40,318, $18,845 and 47 cents.
Good morning everyone I'm Robin Davis with capital projects, and I'm here to present the bonnie bray phase three project.
So this is the project that we've been working on for a long time, and we've been working on it for a long time, and we've been working on it for a long time, and we've been working on it for a long time, and we've been working on it for a long time, and we've been working on it for a long time, and we've been working on it for a long time, and we've been working on it for a long time, and we've been working on it for a long time.
So we put these out for contractor so proposals, and we received three beds, so it was the lowest bid, but we also did the evaluations, based on their.
The key personnel and these different scoring criteria, they were evaluated as the, as the best contractor, not just for price but on the other evaluation criteria as well.
So you weren't required to do that, if you did the sealed bid but it's good to know that they also were the most qualified is that that's a correct statement, it was part of the, of the evaluation process for the CSP.
Okay, so every one of those criteria were actually given a score.
And we did include pricing as one of those criteria that were scored.
Okay.
Any other question on this slide.
So, based on today and tomorrow, we anticipate Council award the project to the contractor, and we'll issue a notice to proceed will probably do that on September 5, since we have a holiday, and we're planning to host a public meeting prior to construction
day, so that'll give us time to get all that done.
We did put in there a substantial completion goal of 24 months with a final completion of 30 months.
So we expect it to be finished in March of 2026 with that final completion.
I'm curious, are there utility relocate you're waiting on out there still.
No utilities we do have in like what we're working with right now that I'm sorry in link gas, oh gas.
But everything else has been relocated.
So with that, staff recommends approving the contract with site construction for the reconstruction and widening of Bonnie break phase three.
And this was in the 2019 bond.
I know. No, actually this project is funded from some RTR funds that we have for binary south, along with some other funding sources, we have some county funds.
Additional county funds. We have trip funding that we've applied to it for the section from 35 to Woodrow. I mean, I'm sorry.
Wood for the sidewalk and the side path completion. There's actually several DCT a stops in that area. So it qualified for the for some trip funding as well.
Other questions.
We have a motion to approve this contract with construction for 40 million three hundred and eighteen thousand four hundred and eighty five dollars and 47 cents.
So moved.
Seconds. All in favor say aye. Aye. I just want to make one statement.
Laurie Hill purchasing manager with any competitive sale proposals we have to evaluate no matter what.
Even if they want to go with low price, they just need to check references and go through the normal process, which is evaluating everything.
I think that's a good practice.
All right. Thank you.
Okay. Management reports, Mr. Dixon. All right. Good morning, Madam Chair and committee.
So the two first to the electric deck dashboard and the winter storm your update both have been published.
We do have staff here to answer any questions you may have any questions.
All right. And then we'll be coming back with any future agenda items and new business action items. But we have no none for today.
Okay.
That brings us to concluding items. Does any board member wish to say anything to the public or have something added to a future agenda item?
Go ahead. Yes, I would like to see if there's something we can do about on the electrical lines, the poles that are used when other people attach to them.
Can we and they leave excess wiring hanging sometimes on the ground and in the ground, the boxes that have wires that have no lids on them.
And sometimes wires outside the public doesn't know if those are live or not.
And it's usually not an electric line. It's somebody else that's attaching to our pole. Yes.
It's been there since she moved in four years ago.
It's not ours, but we're in control of that. We're the only people who can enforce it.
The public doesn't know if those are live or not.
So we we have a kind of an ongoing issue with pole attachments.
You know, we any of the telecommunications companies or anybody else that wants to attach to our poles goes through a process to get authority to attach to the poles.
We have had issues. We continue to have issues with both stub poles.
These would be the poles that are cut off after we've moved electric lines to another pole structure.
And then the telecommunications companies have not moved their lines over.
We also have issues, as you mentioned, Miss Russell, with telecom drops and the boxes themselves.
So we are we are reviewing that. I think one of the things that you approved earlier today was a vegetation management program that gives us the teeth.
We need to go in and enforce some of the issues associated with the problem that you're describing.
But we'll be glad to bring back to you a further detailed discussion about our what we're doing on these matters.
Any other? All right. It is nine twenty eight. Do we have a motion to adjourn, Billy?