1
00:00:00,000 --> 00:00:07,200
 Okay, it's 9 o'clock and we have a quorum so it's called to order the May 6, 2019 Public

2
00:00:07,200 --> 00:00:08,640
 Utilities Board meeting.

3
00:00:08,640 --> 00:00:13,800
 The first item on the agenda is to receive a report, hold a discussion and give staff

4
00:00:13,800 --> 00:00:20,120
 direction regarding the customer service fiscal year 2019-2020 operating budget.

5
00:00:20,120 --> 00:00:24,320
 Good morning Madam Chair, Board, Tiffany Thompson, Director of Customer Service.

6
00:00:24,320 --> 00:00:27,460
 Happy to be here this morning to go over our budget presentation.

7
00:00:27,460 --> 00:00:31,260
 So customer service mission is to help serve and educate our customers.

8
00:00:31,260 --> 00:00:35,560
 Last year we calculated and produced over 641,000 bills.

9
00:00:35,560 --> 00:00:41,360
 We filled at 195,000 phone calls, assisted 64,000 customers in our lobby and collected

10
00:00:41,360 --> 00:00:45,920
 and reconciled over $287 million worth of revenue.

11
00:00:45,920 --> 00:00:50,280
 So some of our accomplishments is we did launch the Page-You-Go prepaid metering program.

12
00:00:50,280 --> 00:00:53,640
 We have about 130 customers on that program right now.

13
00:00:53,640 --> 00:00:58,280
 We also launched an after-interaction survey with our lobby customers coming in.

14
00:00:58,280 --> 00:01:01,680
 This is in addition to the survey that we offer over the phone.

15
00:01:01,680 --> 00:01:05,720
 So anytime you interact with our customer service agents, you're given an opportunity

16
00:01:05,720 --> 00:01:10,440
 to answer three short questions about your interaction and then also you can get a callback

17
00:01:10,440 --> 00:01:15,280
 from a supervisor if you'd like to further discuss your interaction or have some concerns.

18
00:01:15,280 --> 00:01:20,720
 We've had over 24,000 surveys completed through that and the customers that are wanting a

19
00:01:20,720 --> 00:01:26,080
 callback, 75% of those customers are wanting a callback to give compliments on the experience

20
00:01:26,080 --> 00:01:29,640
 that they receive from the customer service representative.

21
00:01:29,640 --> 00:01:33,960
 So the other 25% has been opportunities on how we can improve.

22
00:01:33,960 --> 00:01:38,320
 We also conducted the study of the credit and collection processes that we brought forth

23
00:01:38,320 --> 00:01:40,640
 to you in March with that.

24
00:01:40,640 --> 00:01:45,720
 And then we also did an audit, a stem to stern audit in our operation, spent about 400 hours

25
00:01:45,720 --> 00:01:50,720
 with the internal auditor and did some process improvements with that.

26
00:01:50,720 --> 00:01:55,240
 So our goals for this year is to continue to boost the adoption with our prepaid metering

27
00:01:55,240 --> 00:01:56,240
 program.

28
00:01:56,240 --> 00:02:00,920
 We're also adding an additional 18 locations to be able to pay your bill that's going to

29
00:02:00,920 --> 00:02:07,080
 be at our 7-11 locations and also our family tree locations that we have in here.

30
00:02:07,080 --> 00:02:12,000
 And then you'll be able to pay also multiple locations nationwide.

31
00:02:12,000 --> 00:02:16,360
 We're also doing a study of our call center performance metrics with Navigant as well

32
00:02:16,360 --> 00:02:20,400
 to make sure that we have the right performance metrics and that we're up to best industry

33
00:02:20,400 --> 00:02:23,120
 standards with our metrics as well.

34
00:02:23,120 --> 00:02:28,160
 And then we're also going to have some subject matter expert representatives that can help

35
00:02:28,160 --> 00:02:33,600
 our customers that have sensitive and difficult situations that they're working through.

36
00:02:33,600 --> 00:02:37,920
 So not only helping them know what programs the city offers, but also the community and

37
00:02:37,920 --> 00:02:42,800
 home with it, so those are some of our goals that we have this year.

38
00:02:42,800 --> 00:02:48,160
 So our budget emphasis is to maximize value while containing and limiting costs.

39
00:02:48,160 --> 00:02:51,600
 So we do this by focusing on our performance measures.

40
00:02:51,600 --> 00:02:55,680
 So some of the ones I want to point out is obviously bad debt is one that we want to

41
00:02:55,680 --> 00:02:57,160
 continue to look at.

42
00:02:57,160 --> 00:03:01,720
 Over the last several years that has been decreasing, but we did make some recent policy

43
00:03:01,720 --> 00:03:06,280
 changes that is impacting that slightly with this last fiscal year and we're anticipating

44
00:03:06,280 --> 00:03:09,720
 that to increase a little bit more as well.

45
00:03:09,720 --> 00:03:13,560
 And so we also want to make sure our self-service adoption, so our customers are able to make

46
00:03:13,560 --> 00:03:19,200
 payments online without contacting us or having other options to be able to do business online.

47
00:03:19,200 --> 00:03:22,800
 And then first contact resolution, making sure we're offering that complete solution

48
00:03:22,800 --> 00:03:27,200
 when the customer calls in and not creating duplication of effort on our part and also

49
00:03:27,200 --> 00:03:28,600
 the customer's part.

50
00:03:28,600 --> 00:03:32,080
 And then average speed of answer, how quickly we answer that phone call when they come in.

51
00:03:32,080 --> 00:03:36,040
 We have a goal to answer that phone call within 60 seconds or less, right now we're answering

52
00:03:36,040 --> 00:03:39,200
 that in about 29 seconds.

53
00:03:39,200 --> 00:03:43,880
 So the key drivers of our budget is our customer volume, the behaviors of our customers and

54
00:03:43,880 --> 00:03:45,920
 then how we respond to that volume.

55
00:03:45,920 --> 00:03:50,680
 So we want to make sure we're looking at ways to reduce that volume and improve efficiency

56
00:03:50,680 --> 00:03:52,560
 by increasing our customer satisfaction.

57
00:03:52,560 --> 00:03:55,760
 So we do that by investing in self-service options.

58
00:03:55,760 --> 00:03:59,600
 About a year and a half ago we launched the new payment portal that we have.

59
00:03:59,600 --> 00:04:04,640
 We have 46% of our customer base is registered and using that payment portal.

60
00:04:04,640 --> 00:04:08,520
 And then also 25% of our customer base is on electronic billing.

61
00:04:08,520 --> 00:04:12,480
 So that saves us about 10 to 12 cents per bill per month with the customers that go

62
00:04:12,480 --> 00:04:15,200
 on that electronic billing.

63
00:04:15,200 --> 00:04:16,360
 And then approve efficiency.

64
00:04:16,360 --> 00:04:20,160
 So we want to continue to leverage the feedback that we're getting from the survey.

65
00:04:20,160 --> 00:04:22,880
 And I'm going to talk to you just a minute about some of the things that we implemented

66
00:04:22,880 --> 00:04:27,160
 based off of that feedback that we received.

67
00:04:27,160 --> 00:04:31,480
 So here's some of what has happened with our cost containment strategies and also just some

68
00:04:31,480 --> 00:04:33,560
 changes in our customer behavior.

69
00:04:33,560 --> 00:04:35,880
 So our customer base continues to go up.

70
00:04:35,880 --> 00:04:39,640
 Our lobby volume has been decreasing over the last several years and that's directly

71
00:04:39,640 --> 00:04:43,800
 impacted by based off of the self-service options that we've been offering.

72
00:04:43,800 --> 00:04:48,740
 And so they've either transitioned to doing it themselves or they call us over the phone.

73
00:04:48,740 --> 00:04:53,440
 So we are seeing an increase in our call center volume based off of customer base increase

74
00:04:53,440 --> 00:04:56,800
 and that the calls that we're getting are the more complex calls that we do need to

75
00:04:56,800 --> 00:04:58,160
 hear from.

76
00:04:58,160 --> 00:05:02,460
 Our average handle time has also steadily increased over the last several years.

77
00:05:02,460 --> 00:05:06,800
 And this is because, again, the calls that we're handling are more complex calls.

78
00:05:06,800 --> 00:05:08,480
 So signing up for service.

79
00:05:08,480 --> 00:05:11,520
 If they're needing to sign up for prepaid utilities, there's a lot of education that

80
00:05:11,520 --> 00:05:12,600
 goes with that.

81
00:05:12,600 --> 00:05:15,560
 So again, the customers we're hearing from are the ones that we need to talk to and spend

82
00:05:15,560 --> 00:05:17,280
 a little bit of time with.

83
00:05:17,280 --> 00:05:20,720
 And then our average speed of answer, this demonstrates how productive we're being.

84
00:05:20,720 --> 00:05:25,560
 So even though our average handle time has increased, we're being efficient with our

85
00:05:25,560 --> 00:05:29,600
 resources that we have deployed for our customers.

86
00:05:29,600 --> 00:05:34,160
 So some of the process improvements that we've made this year, we've developed over 300 standard

87
00:05:34,160 --> 00:05:36,760
 operating procedures that we previously didn't have.

88
00:05:36,760 --> 00:05:39,600
 We have them in multiple different formats and places.

89
00:05:39,600 --> 00:05:44,000
 And so this last year, we really focused on getting it in one central location to be able

90
00:05:44,000 --> 00:05:49,200
 to know what is the process and really a source of truth for all the processes and methods

91
00:05:49,200 --> 00:05:51,040
 that we have.

92
00:05:51,040 --> 00:05:54,240
 We've also added a Spanish option to our payment portal.

93
00:05:54,240 --> 00:05:59,140
 This was a feedback that we got from our Spanish representatives and also from the survey results.

94
00:05:59,140 --> 00:06:03,280
 So now customers that were calling in needing to do business over the phone with the Spanish

95
00:06:03,280 --> 00:06:06,760
 representatives now have that capability to do that online.

96
00:06:06,760 --> 00:06:11,200
 So that's one example of one of the things we implemented based off the survey feedback.

97
00:06:11,200 --> 00:06:16,080
 And then we also launched a self-service transfer and disconnection capability on our payment

98
00:06:16,080 --> 00:06:17,080
 portal.

99
00:06:17,080 --> 00:06:20,800
 So that's another way that customers don't need to reach out to us directly.

100
00:06:20,800 --> 00:06:26,500
 They can do that online at any time to disconnect or transfer their service.

101
00:06:26,500 --> 00:06:31,160
 So as an internal service fund, our cost allocation is divided among the utilities and general

102
00:06:31,160 --> 00:06:33,840
 government that use our services.

103
00:06:33,840 --> 00:06:38,480
 So that's based off of if they're represented on a bill or we take a phone call from them,

104
00:06:38,480 --> 00:06:42,480
 they get a certain portion of our budget allocation back to them.

105
00:06:42,480 --> 00:06:47,200
 And so based off of that, our budget is increasing and some of the changes I wanted to note with

106
00:06:47,200 --> 00:06:50,980
 that we did have a mid-year change with an additional FTE this year.

107
00:06:50,980 --> 00:06:54,240
 We have some plan changes in our supplemental packages.

108
00:06:54,240 --> 00:06:58,720
 It's a 1.5 CSR and then also a quality control specialist that I'm going to talk about in

109
00:06:58,720 --> 00:07:00,220
 just a couple of minutes.

110
00:07:00,220 --> 00:07:06,260
 And then increased funding from $125,000 to $175,000 for the plus one program.

111
00:07:06,260 --> 00:07:09,600
 And that was based off some direction that we got about a month ago from the board and

112
00:07:09,600 --> 00:07:11,240
 also council.

113
00:07:11,240 --> 00:07:13,440
 And then some contingency preparation.

114
00:07:13,440 --> 00:07:15,840
 So currently we have a contract with Elevon.

115
00:07:15,840 --> 00:07:20,100
 They're our merchant services provider for our online credit and debit card payment.

116
00:07:20,100 --> 00:07:23,360
 We do need to shift over to Wells Fargo Merchant Services.

117
00:07:23,360 --> 00:07:27,340
 There is some changes in the way that we're going to be able to charge the 2.7 commercial

118
00:07:27,340 --> 00:07:28,800
 fee with that.

119
00:07:28,800 --> 00:07:33,720
 So we're going to be coming forth to you with some direction, seeking direction on some

120
00:07:33,720 --> 00:07:37,840
 options in the next couple of weeks because that will have some impacts on if we're going

121
00:07:37,840 --> 00:07:43,480
 to absorb certain costs for our commercial customers and also impacts our electronic

122
00:07:43,480 --> 00:07:45,040
 check payments as well.

123
00:07:45,040 --> 00:07:49,400
 So we're vetting out some options and bringing forth to you again to seek direction.

124
00:07:49,400 --> 00:07:53,560
 But we do need to plan for worst case scenario in our budget if we needed to absorb those

125
00:07:53,560 --> 00:07:54,560
 costs.

126
00:07:54,560 --> 00:08:00,020
 So this $200,000 is what that impact is.

127
00:08:00,020 --> 00:08:04,720
 So some of our highlights, the personal services with the increase, additional FTEs.

128
00:08:04,720 --> 00:08:08,280
 This is a fully loaded budget that you're seeing right here with the supplemental packages

129
00:08:08,280 --> 00:08:09,560
 included.

130
00:08:09,560 --> 00:08:14,640
 We are seeing an increase in our postage and printing due to the cost of paper.

131
00:08:14,640 --> 00:08:22,000
 And then our merchant services fees is included, that additional $200,000 in that operations.

132
00:08:22,000 --> 00:08:26,560
 So for our position summary, we currently have 43.5 FTEs.

133
00:08:26,560 --> 00:08:30,320
 Over the last several years, we have been combining and eliminating positions.

134
00:08:30,320 --> 00:08:34,200
 So this is going to be the first year that we're seeking to add some additional positions

135
00:08:34,200 --> 00:08:38,080
 based off of our customer base and complexity of calls that we're servicing.

136
00:08:38,080 --> 00:08:45,480
 We have the 30 staff that's dedicated just to our front line customer service support.

137
00:08:45,480 --> 00:08:50,000
 So for our supplemental packages, we are seeking an additional 1.5 that's a full-time and a

138
00:08:50,000 --> 00:08:54,080
 part-time customer service representative, again, based off of customer base, wanting

139
00:08:54,080 --> 00:08:58,240
 to make sure that we meet our service level agreements, answering that phone call, first

140
00:08:58,240 --> 00:08:59,920
 contact resolution.

141
00:08:59,920 --> 00:09:04,880
 And then the quality control specialist, this was a recommendation during our audit process,

142
00:09:04,880 --> 00:09:08,580
 is having someone that can do quality control on all of our billing.

143
00:09:08,580 --> 00:09:12,840
 We do have some processes set in place, but there isn't a dedicated person that is looking

144
00:09:12,840 --> 00:09:18,960
 over rate application and additional, again, just quality control for all of our billing

145
00:09:18,960 --> 00:09:19,960
 processes.

146
00:09:19,960 --> 00:09:23,320
 This person would also assist with quality control for our call center and cash, just

147
00:09:23,320 --> 00:09:27,480
 based off of the number of calls that we do quality assurance on.

148
00:09:27,480 --> 00:09:31,480
 And then we have a six-week training program for all of our new customer service representatives

149
00:09:31,480 --> 00:09:35,440
 that start with our department, and we are almost always in some type of training program.

150
00:09:35,440 --> 00:09:41,360
 So this is what this person would be, how they would be spending their time with that.

151
00:09:41,360 --> 00:09:45,240
 And so with that, I'd like to thank the board for their continued support, and happy to

152
00:09:45,240 --> 00:09:47,240
 answer any questions.

153
00:09:47,240 --> 00:09:48,240
 Questions?

154
00:09:48,240 --> 00:09:58,520
 The pay near me plan, did that contract come before us?

155
00:09:58,520 --> 00:10:03,680
 It did not come before you, because it's just an addition to the prepay metering contract.

156
00:10:03,680 --> 00:10:07,840
 With that, we're able to do that, and there is no cost to the city to do that.

157
00:10:07,840 --> 00:10:12,160
 It's going to be passed through to the customers that are utilizing it.

158
00:10:12,160 --> 00:10:14,440
 So there isn't any cost to the city with it.

159
00:10:14,440 --> 00:10:18,160
 But once we go live with that, we're going to be bringing forth an informal staff report

160
00:10:18,160 --> 00:10:22,680
 that will be put to the PUB so you're aware of what's going on, how it works, and then

161
00:10:22,680 --> 00:10:24,000
 marketing to our customers.

162
00:10:24,000 --> 00:10:28,880
 Okay, so essentially, they can pay at 7-Eleven, but they have to pay the percentage fee.

163
00:10:28,880 --> 00:10:29,880
 Any fee associated.

164
00:10:29,880 --> 00:10:32,440
 And 27,000 other locations, that's all the same.

165
00:10:32,440 --> 00:10:35,440
 It's the same thing that we have with MoneyGram and Fidelity Express.

166
00:10:35,440 --> 00:10:38,480
 If you go to Kroger, same type of thing.

167
00:10:38,480 --> 00:10:43,960
 We just wanted to continue to offer additional places to pay, but this also complements the

168
00:10:43,960 --> 00:10:48,480
 pay as you go program, because we need real-time information to be able to get that.

169
00:10:48,480 --> 00:10:53,200
 So it's important to us for our customers to be able to go and have alternate locations

170
00:10:53,200 --> 00:10:55,960
 to pay, and us get that information immediately.

171
00:10:55,960 --> 00:10:57,960
 Sure, sure, sure.

172
00:10:57,960 --> 00:10:59,120
 One more question.

173
00:10:59,120 --> 00:11:06,440
 With respect to the pay as you go program, I know those people can access their usage

174
00:11:06,440 --> 00:11:09,600
 online through some kind of portal.

175
00:11:09,600 --> 00:11:13,200
 When are the rest of our customers going to be able to use that?

176
00:11:13,200 --> 00:11:14,200
 So we're looking at that now.

177
00:11:14,200 --> 00:11:18,280
 Right now, we've been focusing on getting the prepaid customers with that, but that's

178
00:11:18,280 --> 00:11:19,280
 going to be a game plan.

179
00:11:19,280 --> 00:11:22,920
 I'm glad you brought that up, because we can definitely make sure that's an articulated

180
00:11:22,920 --> 00:11:26,200
 goal for our post-pay customers to also be able to do that.

181
00:11:26,200 --> 00:11:31,480
 So what we can do is once we're ready to implement that, we can come forward to the PUB and let

182
00:11:31,480 --> 00:11:33,960
 you know this is ready to go, and here's the process to do that.

183
00:11:33,960 --> 00:11:36,920
 I mean, that's something we've already budgeted for and paid for.

184
00:11:36,920 --> 00:11:37,920
 Yes, sir.

185
00:11:37,920 --> 00:11:38,920
 Okay.

186
00:11:38,920 --> 00:11:43,280
 So as soon as we can get that online, it seems like that might be useful to everybody, especially

187
00:11:43,280 --> 00:11:44,280
 if we've already paid for it.

188
00:11:44,280 --> 00:11:45,800
 It's going to be sooner than later, so.

189
00:11:45,800 --> 00:11:48,480
 And that'll be both electric and water?

190
00:11:48,480 --> 00:11:52,680
 You have to have electric to be able to have the my usage, because that's the trigger.

191
00:11:52,680 --> 00:11:58,880
 If you're a water-only customer, the data isn't there, because we're still estimating

192
00:11:58,880 --> 00:11:59,880
 water usages.

193
00:11:59,880 --> 00:12:04,680
 It's pulling data from the smart meters, and I don't think the water meters are smart.

194
00:12:04,680 --> 00:12:05,680
 Yeah.

195
00:12:05,680 --> 00:12:06,680
 Right.

196
00:12:06,680 --> 00:12:09,680
 I'll let you say that, so.

197
00:12:09,680 --> 00:12:12,640
 That's what you said.

198
00:12:12,640 --> 00:12:17,280
 I just want to say your time to answer is an excellent -- you're doing excellent in

199
00:12:17,280 --> 00:12:18,280
 that.

200
00:12:18,280 --> 00:12:19,280
 Thank you.

201
00:12:19,280 --> 00:12:22,840
 I think there's 43.5 people that make this happen.

202
00:12:22,840 --> 00:12:23,840
 Yeah.

203
00:12:23,840 --> 00:12:25,680
 I just get to be the mouthpiece.

204
00:12:25,680 --> 00:12:26,680
 Yeah.

205
00:12:26,680 --> 00:12:27,680
 Sorry.

206
00:12:27,680 --> 00:12:28,680
 One more thing.

207
00:12:28,680 --> 00:12:29,680
 Sure.

208
00:12:29,680 --> 00:12:32,160
 With our merchant services agreements, you're going to bring that back to us to tell us the

209
00:12:32,160 --> 00:12:33,160
 details of that?

210
00:12:33,160 --> 00:12:34,160
 Yes.

211
00:12:34,160 --> 00:12:38,600
 So right now, just high level, we charge a 2.7% fee on the commercial customers.

212
00:12:38,600 --> 00:12:43,440
 Our contract that we need to go to with Wells Fargo Merchant Services does not support that.

213
00:12:43,440 --> 00:12:48,000
 They say we need to have a flat fee, and so -- and we also would not be considered a general

214
00:12:48,000 --> 00:12:53,500
 government mid, we'd be considered a utility mid, and so there's different complexities

215
00:12:53,500 --> 00:12:56,720
 that go along with that, so there's going to be some costs associated.

216
00:12:56,720 --> 00:12:58,000
 Do we want to absorb the fees?

217
00:12:58,000 --> 00:12:59,880
 Do we want to pass on the fee?

218
00:12:59,880 --> 00:13:00,880
 What should that fee be?

219
00:13:00,880 --> 00:13:01,880
 It also --

220
00:13:01,880 --> 00:13:06,000
 Is there a do we even want to do business with Wells Fargo option?

221
00:13:06,000 --> 00:13:09,660
 That's one of the options that I think we need to discuss is do we want to go out for

222
00:13:09,660 --> 00:13:13,080
 a request for proposal for that one specific service.

223
00:13:13,080 --> 00:13:16,760
 The contract that we're operating under now, which the PUB and council gave us a one-year

224
00:13:16,760 --> 00:13:22,680
 extension just a couple of weeks ago, is up May of 2020, so we have to have a solution

225
00:13:22,680 --> 00:13:27,440
 by that time, and that's a very aggressive goal, just to be able to do that with it.

226
00:13:27,440 --> 00:13:29,640
 So we're vetting out all those options.

227
00:13:29,640 --> 00:13:32,800
 It's going to be coming for you in the next couple of weeks, so we can get your direction

228
00:13:32,800 --> 00:13:35,440
 on where would you like us to go with that.

229
00:13:35,440 --> 00:13:36,440
 Okay.

230
00:13:36,440 --> 00:13:37,440
 All right.

231
00:13:37,440 --> 00:13:38,440
 Thank you.

232
00:13:38,440 --> 00:13:39,440
 Any questions?

233
00:13:39,440 --> 00:13:40,440
 Okay.

234
00:13:40,440 --> 00:13:41,440
 All right.

235
00:13:41,440 --> 00:13:42,440
 Thank you again.

236
00:13:42,440 --> 00:13:43,440
 Thank you.

237
00:13:43,440 --> 00:13:44,440
 All right.

238
00:13:44,440 --> 00:13:48,480
 The next item is to receive a report, hold a discussion, and give staff direction regarding

239
00:13:48,480 --> 00:13:55,960
 the water fiscal year 2019 and 2020 operating in capital budget.

240
00:13:55,960 --> 00:13:59,760
 Okay.

241
00:13:59,760 --> 00:14:01,160
 Good morning, Madam Chair, board members.

242
00:14:01,160 --> 00:14:03,920
 I am Frank Pugsley, director of water utilities.

243
00:14:03,920 --> 00:14:08,680
 First, just like to take a moment to recognize a few people who helped out a lot with this

244
00:14:08,680 --> 00:14:09,680
 budget.

245
00:14:09,680 --> 00:14:10,920
 Crystal Westbrook sitting over there.

246
00:14:10,920 --> 00:14:15,880
 She put up with us and gave us a lot of options and revised the budget over and over for us,

247
00:14:15,880 --> 00:14:19,960
 and you'll see what Nick Vinson is going to present after my operations piece.

248
00:14:19,960 --> 00:14:21,360
 It's all come together pretty well.

249
00:14:21,360 --> 00:14:25,200
 I'd also like to introduce our two superintendents in the water utility.

250
00:14:25,200 --> 00:14:26,400
 We have Mr. Hector Ortiz.

251
00:14:26,400 --> 00:14:28,440
 He joined the city in April.

252
00:14:28,440 --> 00:14:32,560
 He is the water production superintendent, and to his left is Kent Conkle.

253
00:14:32,560 --> 00:14:34,880
 He is our water and wastewater superintendent.

254
00:14:34,880 --> 00:14:37,920
 He manages all the construction and maintenance crews you see around town.

255
00:14:37,920 --> 00:14:43,040
 I just want to thank those guys for coming and watching today, and also I just want to

256
00:14:43,040 --> 00:14:44,680
 also acknowledge Tim Fisher.

257
00:14:44,680 --> 00:14:50,680
 Over the last 10 months since I've been at the city, since June, he's done a lot of mentorship

258
00:14:50,680 --> 00:14:54,000
 with me, and I just will be eternally grateful for all the knowledge he's been able to give

259
00:14:54,000 --> 00:14:57,520
 me, and I hope that we can continue to do a great job running the water utility like

260
00:14:57,520 --> 00:15:02,440
 he's done for the past 20 plus years, so thank you, Tim.

261
00:15:02,440 --> 00:15:09,440
 With that, let's get started.

262
00:15:09,440 --> 00:15:26,320
 There we go.

263
00:15:26,320 --> 00:15:27,320
 Goals and accomplishments.

264
00:15:27,320 --> 00:15:31,920
 Over the last year, we've accomplished a lot, I think, in the organization.

265
00:15:31,920 --> 00:15:36,680
 Number one on my list is back last fall around September timeframe, we began implementing

266
00:15:36,680 --> 00:15:42,320
 a really detailed construction schedule for our water and wastewater construction crews.

267
00:15:42,320 --> 00:15:46,920
 It's really helped our guys focus and achieve their projects on time within budget and make

268
00:15:46,920 --> 00:15:49,160
 sure that we know where we're going down the road.

269
00:15:49,160 --> 00:15:54,160
 We started out with just about a couple of months of planning out with other projects

270
00:15:54,160 --> 00:15:57,040
 out kind of floating out there that we pick from as we go along.

271
00:15:57,040 --> 00:16:00,120
 We've built that into about a two-year look ahead where we have all of our wastewater

272
00:16:00,120 --> 00:16:04,680
 and water projects planned out for two years, and that has been adopted by both the streets

273
00:16:04,680 --> 00:16:08,680
 department and the project management office, and that helps all three of those groups really

274
00:16:08,680 --> 00:16:13,960
 work together so that we can manage our construction projects more seamlessly so that we don't

275
00:16:13,960 --> 00:16:18,100
 have these long lag times between water and wastewater replacing utilities and streets

276
00:16:18,100 --> 00:16:20,280
 coming out to replace the street.

277
00:16:20,280 --> 00:16:24,920
 Sometimes months later, we want to bring that lag time down to weeks rather than months.

278
00:16:24,920 --> 00:16:29,320
 We also updated our water distribution master plan, which is essentially our roadmap for

279
00:16:29,320 --> 00:16:35,440
 where we expect our water distribution system to go in the next 10-plus years, and we also

280
00:16:35,440 --> 00:16:40,240
 updated our five-year impact fee program, which is our roadmap for growth-related projects

281
00:16:40,240 --> 00:16:43,520
 that we can fund with our impact fee revenue.

282
00:16:43,520 --> 00:16:49,320
 We completed some critical repairs to the Lake Louisville 30-inch raw water pipeline.

283
00:16:49,320 --> 00:16:53,640
 It has a parallel 27-inch pipeline that we'll get started on with an assessment and some

284
00:16:53,640 --> 00:16:56,480
 repairs coming in the next couple of fiscal years.

285
00:16:56,480 --> 00:17:02,720
 Our goals coming up were really just maintenance and growth-related issues at the two treatment

286
00:17:02,720 --> 00:17:07,480
 plants, some upgrades for Lake Louisville, additionally adding some zebra mussel controls

287
00:17:07,480 --> 00:17:12,200
 at our raw water intake structures, because both of our lakes do have zebra mussel infestations

288
00:17:12,200 --> 00:17:13,200
 now.

289
00:17:13,200 --> 00:17:15,200
 We need to be cognizant of controlling those.

290
00:17:15,200 --> 00:17:19,520
 Ray Roberts Water Treatment Plant really hasn't had any major upgrades since it was constructed

291
00:17:19,520 --> 00:17:20,920
 and brought online in 2002.

292
00:17:20,920 --> 00:17:24,160
 We've done all the routine maintenance that we need to do, but now it's time to kind

293
00:17:24,160 --> 00:17:30,960
 of do some heavier lifting and bring that plant back into full operating potential.

294
00:17:30,960 --> 00:17:35,480
 We have several large transmission lines that are going to help us move water to the south

295
00:17:35,480 --> 00:17:39,880
 and west sides of town, the north-south water transmission main along Bonnie Bray and the

296
00:17:39,880 --> 00:17:43,680
 Allred and John Payne Road water transmission lines.

297
00:17:43,680 --> 00:17:48,200
 We are very close to securing, I believe, our water reuse permit from the TCEQ, and

298
00:17:48,200 --> 00:17:54,040
 that will get us up to 12 MGD of additional water right, claiming our wastewater effluent

299
00:17:54,040 --> 00:17:56,480
 in the future.

300
00:17:56,480 --> 00:18:00,880
 And we are currently working on our water distribution system asset management plan,

301
00:18:00,880 --> 00:18:06,080
 and what that program is going to do is it's going to allow us to better target our water

302
00:18:06,080 --> 00:18:08,760
 distribution replacement projects.

303
00:18:08,760 --> 00:18:12,160
 We'll have a better risk-based scoring for those lines so that we're not just digging

304
00:18:12,160 --> 00:18:14,520
 up good pipe and replacing it with new pipe.

305
00:18:14,520 --> 00:18:17,880
 We want to make sure we're replacing the correct pipes and correct valves and infrastructure

306
00:18:17,880 --> 00:18:20,120
 when we need to.

307
00:18:20,120 --> 00:18:25,640
 That's going to help, I think, with our budget and operating expenses going forward.

308
00:18:25,640 --> 00:18:30,680
 Between all of our departments, we've centralized on the City Works work order management system,

309
00:18:30,680 --> 00:18:33,840
 so all of our water and wastewater field groups are now speaking the same language as far

310
00:18:33,840 --> 00:18:35,640
 as work orders go.

311
00:18:35,640 --> 00:18:41,080
 We went through a vehicle study to identify our less efficient heavy equipment and make

312
00:18:41,080 --> 00:18:45,560
 sure we have the right equipment for the right jobs so we can be most productive and efficient.

313
00:18:45,560 --> 00:18:50,320
 I mentioned the asset management program.

314
00:18:50,320 --> 00:18:52,320
 Cost-containment strategies in our current budget.

315
00:18:52,320 --> 00:18:57,280
 We have our current proposed budget salary savings of $500,000.

316
00:18:57,280 --> 00:19:01,680
 The asset management program will again help us to reduce our capital expenditures where

317
00:19:01,680 --> 00:19:04,800
 we don't need to be spending it, not that we'll reduce it overall, but we'll be putting

318
00:19:04,800 --> 00:19:07,720
 our money to the best use possible.

319
00:19:07,720 --> 00:19:14,480
 And this past summer, we had a really good summer for water sales, both retail and untreated

320
00:19:14,480 --> 00:19:19,840
 raw water, and we were able to use that revenue to defer any bond sales this spring for the

321
00:19:19,840 --> 00:19:22,840
 water utility.

322
00:19:22,840 --> 00:19:27,000
 And we're currently working, as you probably have all heard, on the timing and size of

323
00:19:27,000 --> 00:19:32,320
 the CIP project for our Ray Roberts water treatment plant expansion.

324
00:19:32,320 --> 00:19:35,800
 As everybody's been doing, we're using a zero-based budget with our supplemental packages, which

325
00:19:35,800 --> 00:19:42,360
 you'll see here shortly, and again, the heavy equipment study to help us improve our efficiency.

326
00:19:42,360 --> 00:19:45,120
 Process improvements, I'm going to hit on that construction schedule a couple of times

327
00:19:45,120 --> 00:19:46,920
 because it really has helped our process.

328
00:19:46,920 --> 00:19:52,040
 I think we've seen a really high level of production from those crews, and I attribute

329
00:19:52,040 --> 00:19:53,240
 it some to that.

330
00:19:53,240 --> 00:19:58,520
 We're way ahead of our projected line replacements for this year.

331
00:19:58,520 --> 00:20:02,120
 We've also started cross-training some of our staff on the various equipment that we

332
00:20:02,120 --> 00:20:04,760
 have in the water and wastewater crews out in the field.

333
00:20:04,760 --> 00:20:10,280
 We have various equipment from various manufacturers, and we want the staff to be comfortable switching

334
00:20:10,280 --> 00:20:14,600
 between equipment so that in the event of an absence, they can see that they can take

335
00:20:14,600 --> 00:20:18,000
 over when they're needed.

336
00:20:18,000 --> 00:20:21,960
 We've also experimented this past year with dual-purpose crews.

337
00:20:21,960 --> 00:20:25,760
 Typically, what we've done is we've had water crews and wastewater crews, and they construct

338
00:20:25,760 --> 00:20:27,760
 water and wastewater respectively.

339
00:20:27,760 --> 00:20:32,080
 When we have the opportunity now on certain projects, we'll have the water distribution

340
00:20:32,080 --> 00:20:35,720
 crew go in and replace both water and wastewater assets on the street.

341
00:20:35,720 --> 00:20:38,240
 Same thing for water or the wastewater collections crews.

342
00:20:38,240 --> 00:20:41,880
 It saves us immobilization, and it saves us some time switching out crews, and it helps

343
00:20:41,880 --> 00:20:48,720
 us complete some of those projects a little bit faster.

344
00:20:48,720 --> 00:20:53,560
 To go over our supplemental packages, we have six ranked on here.

345
00:20:53,560 --> 00:21:00,440
 Water metering maintenance, we're asking for one FTE, and that is a water meter maintenance

346
00:21:00,440 --> 00:21:01,440
 mechanic.

347
00:21:01,440 --> 00:21:08,300
 The water metering group has only increased in full-time employees 2.5, so they've gone

348
00:21:08,300 --> 00:21:12,200
 from 16 and a half FTEs to 18 in the last 20 years.

349
00:21:12,200 --> 00:21:15,640
 We have a lot more meters out in the system than we have ever before, and it's continuing

350
00:21:15,640 --> 00:21:19,560
 to grow, and our replacements are continuing to grow.

351
00:21:19,560 --> 00:21:28,680
 We have a water metering administration, half an FTE, and I think this is rank out of water

352
00:21:28,680 --> 00:21:29,680
 metering admin.

353
00:21:29,680 --> 00:21:30,680
 Yes, sorry.

354
00:21:30,680 --> 00:21:36,080
 Currently, one and a half admins in the water metering group, and again, their call volume

355
00:21:36,080 --> 00:21:37,440
 continues to increase.

356
00:21:37,440 --> 00:21:41,200
 We're asking to take our half-time employee to a full-time employee.

357
00:21:41,200 --> 00:21:45,720
 The annual call volume in the water metering group that these two ladies pick up is over

358
00:21:45,720 --> 00:21:47,440
 15,500 calls a year.

359
00:21:47,440 --> 00:21:53,240
 That's about 65 a day, and those can take some time, and again, the half-time admins

360
00:21:53,240 --> 00:21:57,160
 also volunteer some of her time in excess of when she's supposed to be there to help

361
00:21:57,160 --> 00:22:00,560
 make sure work orders are closed out on a timely basis, and we can really use her help

362
00:22:00,560 --> 00:22:02,320
 full-time.

363
00:22:02,320 --> 00:22:06,480
 The water production operator one is for the Lake Louisville water treatment plant.

364
00:22:06,480 --> 00:22:12,680
 It's shown as a full FTE, but that initial cost is low this year because we don't plan

365
00:22:12,680 --> 00:22:16,080
 to bring on that employee until later in the fiscal year.

366
00:22:16,080 --> 00:22:19,880
 As part of the Lake Louisville treatment plant upgrades, we'll be installing a solids handling

367
00:22:19,880 --> 00:22:25,220
 system, which uses a belt filter press to help dewater our water sludge, and that piece

368
00:22:25,220 --> 00:22:29,680
 of equipment really needs a full-time employee to make sure it's running at its optimal conditions

369
00:22:29,680 --> 00:22:31,760
 and make sure its uptime is high.

370
00:22:31,760 --> 00:22:35,680
 So we'll need that one full-time employee starting towards the end of the fiscal year

371
00:22:35,680 --> 00:22:38,880
 once that project is commissioned and brought online.

372
00:22:38,880 --> 00:22:42,280
 We have a utility admin assistant one and a utility admin intern.

373
00:22:42,280 --> 00:22:44,280
 These are both for sustainability.

374
00:22:44,280 --> 00:22:49,360
 The sustainability group will be leaving the service center for a new facility, and at

375
00:22:49,360 --> 00:22:54,680
 that facility, they won't have admin support to run payroll and do the other admin functions,

376
00:22:54,680 --> 00:23:01,080
 so they will need one FTE admin there, and the utility admin intern for sustainability

377
00:23:01,080 --> 00:23:06,900
 is necessary due to the work we're seeing at the Clear Creek Nature Preserve, as well

378
00:23:06,900 --> 00:23:13,040
 as to handle some of the after hours outreach events that the sustainability group are kind

379
00:23:13,040 --> 00:23:17,360
 of volunteering their time after hours to complete, so that intern could help us accomplish

380
00:23:17,360 --> 00:23:19,760
 a lot of those tasks.

381
00:23:19,760 --> 00:23:26,840
 We have two asks in the water distribution group, an HEO2 and a maintenance crew truck.

382
00:23:26,840 --> 00:23:32,240
 This is going to be targeted mostly towards hydrant painting and hydrant maintenance.

383
00:23:32,240 --> 00:23:35,840
 As our construction load goes up and then we have emergencies, we're pulling our maintenance

384
00:23:35,840 --> 00:23:40,680
 crews into construction occasionally, and by having this extra dedicated person, we

385
00:23:40,680 --> 00:23:44,920
 can really focus their attention on making sure we're getting out there and maintaining

386
00:23:44,920 --> 00:23:45,920
 our fire hydrants.

387
00:23:45,920 --> 00:23:50,240
 We do operate every fire hydrant in the city every year through the maintenance or the

388
00:23:50,240 --> 00:23:55,040
 metering shop, and whenever they identify an issue, they will submit a work order, and

389
00:23:55,040 --> 00:24:02,600
 this employee would then go out and take care of the fire hydrant maintenance issues.

390
00:24:02,600 --> 00:24:08,440
 This is our projection that kind of discusses when our new treatment plant will require

391
00:24:08,440 --> 00:24:10,540
 to be online.

392
00:24:10,540 --> 00:24:17,800
 Right now, we're showing that this is a typo here, not construction to begin in 2023.

393
00:24:17,800 --> 00:24:24,560
 This is actually designed to begin in 2023, construction would begin in 2025 about, and

394
00:24:24,560 --> 00:24:28,400
 then the plant needs to be online in 2028 based on our current projections.

395
00:24:28,400 --> 00:24:33,280
 I mentioned we do have a study ongoing with a consultant to help us kind of narrow this

396
00:24:33,280 --> 00:24:40,080
 down, and between our two estimates, we feel confident that beginning design in 2023 and

397
00:24:40,080 --> 00:24:45,960
 then construction in 2025, we'll be able to have this plant online in time to beat our

398
00:24:45,960 --> 00:24:47,960
 demands.

399
00:24:47,960 --> 00:24:52,520
 The three lines on the graph, the red, blue, and green, we plan our treatment capacity

400
00:24:52,520 --> 00:24:55,760
 based on the dry year, because that's the one that we're really concerned with.

401
00:24:55,760 --> 00:25:01,400
 If we hit a dry year and we don't have capacity, then we would have to enter our draw contingency

402
00:25:01,400 --> 00:25:06,520
 measures, and all the little black dots you can see are our actual pumpage.

403
00:25:06,520 --> 00:25:10,520
 In the last few years, we've been a little bit fortunate that it's been wet for the last

404
00:25:10,520 --> 00:25:15,320
 three, four, five years, so our actual demand has been low, but last summer we did hit a

405
00:25:15,320 --> 00:25:17,240
 near peak record in July.

406
00:25:17,240 --> 00:25:22,680
 We didn't hit our peak, our maximum record, but we do expect that variability to continue

407
00:25:22,680 --> 00:25:27,000
 going forward.

408
00:25:27,000 --> 00:25:33,600
 And with that, I'll turn it over to Nick to handle the financial side.

409
00:25:33,600 --> 00:25:35,040
 Good morning, Chair, PB members.

410
00:25:35,040 --> 00:25:37,660
 As Frank said, I'm Nick Vincent, the city's budget manager.

411
00:25:37,660 --> 00:25:41,880
 I'll be presenting to you the financial portion of the proposed 19-20 water budget.

412
00:25:41,880 --> 00:25:43,680
 Feel free to stop me throughout these slides.

413
00:25:43,680 --> 00:25:46,600
 If you have any questions, I'd be happy to answer your questions.

414
00:25:46,600 --> 00:25:50,400
 A few of the assumptions that went into putting the five-year forecast together, we are proposing

415
00:25:50,400 --> 00:25:54,280
 to change the way that impact fee revenue is currently used in the water fund.

416
00:25:54,280 --> 00:25:56,720
 I'll review that with you on the next slide.

417
00:25:56,720 --> 00:26:01,440
 We are not forecasting any rate increases for the current proposed budget in 2020, but

418
00:26:01,440 --> 00:26:06,120
 we do have some plugged in in '22 and '23 in anticipation of the water treatment plant

419
00:26:06,120 --> 00:26:08,040
 that Frank talked about.

420
00:26:08,040 --> 00:26:11,160
 We are projecting a 2% population growth.

421
00:26:11,160 --> 00:26:17,480
 We do have a declining GPCD plugged in, going down to 152 in fiscal year 2024.

422
00:26:17,480 --> 00:26:24,400
 And then the water treatment plan, it has moved from 24 to 25, as Frank had mentioned.

423
00:26:24,400 --> 00:26:28,320
 So as I said, we are proposing to change the way that water impact fee revenue is currently

424
00:26:28,320 --> 00:26:30,240
 used in the water fund.

425
00:26:30,240 --> 00:26:35,120
 When we receive this revenue currently, we do apply it to eligible debt service.

426
00:26:35,120 --> 00:26:40,000
 Moving forward, we are proposing to change this method to fund both debt service and

427
00:26:40,000 --> 00:26:43,200
 upfront project cost of eligible projects.

428
00:26:43,200 --> 00:26:47,800
 So you can see in the proposed columns, the eligible debt service portion would be 2.7

429
00:26:47,800 --> 00:26:48,800
 million.

430
00:26:48,800 --> 00:26:51,600
 The revenue component would be about 3.8 million.

431
00:26:51,600 --> 00:26:56,000
 Over the five-year period, we would fund about $11.2 million worth of revenue funding of

432
00:26:56,000 --> 00:26:58,040
 upfront project cost.

433
00:26:58,040 --> 00:27:02,600
 This does save the fund money associated with interest of issuing bonds for these projects.

434
00:27:02,600 --> 00:27:08,940
 And I'll show this to you in the five-year forecast also on a few slides.

435
00:27:08,940 --> 00:27:13,200
 This slide summarizes how much revenue the water fund can recover through impact fees

436
00:27:13,200 --> 00:27:15,140
 over a 10-year period.

437
00:27:15,140 --> 00:27:18,720
 Last fall, the impact fee study was completed for the water fund.

438
00:27:18,720 --> 00:27:24,000
 It did identify $66 million in total recoverable costs that we could recoup through impact

439
00:27:24,000 --> 00:27:25,320
 fees.

440
00:27:25,320 --> 00:27:27,880
 When that money does come in, we can apply it to two different things.

441
00:27:27,880 --> 00:27:33,080
 We can pay debt service of eligible projects, or we can cash fund projects upfront.

442
00:27:33,080 --> 00:27:37,960
 Our current project list identified about $17 million worth of projects we can revenue fund

443
00:27:37,960 --> 00:27:42,920
 upfront, and then about $49 million worth of debt service that we can apply towards

444
00:27:42,920 --> 00:27:44,800
 the debt service component.

445
00:27:44,800 --> 00:27:49,120
 So when you look at these tables on the proceeding side, you can see over five-year periods,

446
00:27:49,120 --> 00:27:54,280
 about $21 million towards debt service and about $11.2 million towards revenue funding.

447
00:27:54,280 --> 00:27:57,260
 So we are within those requirements.

448
00:27:57,260 --> 00:27:58,560
 This is the five-year forecast.

449
00:27:58,560 --> 00:28:04,340
 You can see the adopted budget, 2019 in this column, we have $45.7 million in revenue.

450
00:28:04,340 --> 00:28:08,400
 We did have about a drawdown of $4.4 million in reserves.

451
00:28:08,400 --> 00:28:11,400
 The end-of-year projections, we do project to come in a little bit better, only using

452
00:28:11,400 --> 00:28:13,860
 about $4 million in reserves.

453
00:28:13,860 --> 00:28:19,720
 In the proposed budget, we have $47.6 million in rate revenue, a drawdown of about $2.3

454
00:28:19,720 --> 00:28:21,320
 million in reserves.

455
00:28:21,320 --> 00:28:26,800
 So total resource is about $50 million, expenses is $50 million, and as Frank had pointed out,

456
00:28:26,800 --> 00:28:29,760
 we do have supplemental packages already included in the budget.

457
00:28:29,760 --> 00:28:33,560
 You can see that amount here of $304,000.

458
00:28:33,560 --> 00:28:38,160
 Moving down the page, we are not forecasting any rate increases in the current fiscal year

459
00:28:38,160 --> 00:28:39,160
 or in 2021.

460
00:28:39,160 --> 00:28:45,360
 We do have a 2% plugged in in '22 and '23, in anticipation of the plan coming online

461
00:28:45,360 --> 00:28:46,840
 in '25.

462
00:28:46,840 --> 00:28:50,640
 The reserves for this fund do stay above the minimum in each of the years.

463
00:28:50,640 --> 00:28:52,980
 The current year is $19.2 million.

464
00:28:52,980 --> 00:28:56,640
 It does increase to $41 million in the future years.

465
00:28:56,640 --> 00:29:00,320
 I also want to point out, currently, we do have an impact fee reserve.

466
00:29:00,320 --> 00:29:03,640
 In that reserve, we do have about $14.8 million.

467
00:29:03,640 --> 00:29:07,400
 We do want to transition about $9 million of that to a capital reserve, that will be

468
00:29:07,400 --> 00:29:10,440
 used as a future date to revenue fund another eligible project.

469
00:29:10,440 --> 00:29:16,080
 So I just wanted to point that out to everybody also.

470
00:29:16,080 --> 00:29:17,920
 This is the revenue detail for the water fund.

471
00:29:17,920 --> 00:29:21,840
 A couple things I'd like to point out, as I mentioned a couple slides ago, we do want

472
00:29:21,840 --> 00:29:25,840
 to change the way that impact fee revenue is currently used in the water fund.

473
00:29:25,840 --> 00:29:29,320
 You can see, in the previous years, we brought it in and applied it towards the debt service

474
00:29:29,320 --> 00:29:30,320
 of eligible projects.

475
00:29:30,320 --> 00:29:35,240
 Moving forward, we're wanting to divide it into two components, applying about $2.72

476
00:29:35,240 --> 00:29:40,440
 to debt service and about $3.8 million towards revenue funding of eligible projects.

477
00:29:40,440 --> 00:29:44,400
 As I mentioned, this does save the fund interest money from issuing bonds over the 10-year

478
00:29:44,400 --> 00:29:47,120
 term.

479
00:29:47,120 --> 00:29:50,400
 This is the expense detail for the water fund.

480
00:29:50,400 --> 00:29:53,760
 You can see the adopted budget here in this column of $50.1 million.

481
00:29:53,760 --> 00:29:59,040
 The expenses are projected to come in about what was budgeted, about $49.9 and then the

482
00:29:59,040 --> 00:30:06,840
 proposed column is about $15 million, including the supplemental package of $300,000.

483
00:30:06,840 --> 00:30:08,480
 This is the five-year capital plan.

484
00:30:08,480 --> 00:30:10,640
 So fiscal year 2020 is the first column.

485
00:30:10,640 --> 00:30:12,480
 This is the proposed budget.

486
00:30:12,480 --> 00:30:16,880
 We do have $29.2 million worth of projects that are currently planned.

487
00:30:16,880 --> 00:30:22,080
 Of that amount, $15.9 million is planned to be bond funded, $9.2 million is planned to

488
00:30:22,080 --> 00:30:28,040
 be revenue funded, and $3.8 would be funded with impact fee revenue at the initial project

489
00:30:28,040 --> 00:30:33,040
 start.

490
00:30:33,040 --> 00:30:35,760
 This is the FT summary for the water department.

491
00:30:35,760 --> 00:30:37,880
 Currently there's 105.5 positions.

492
00:30:37,880 --> 00:30:39,520
 You can see the number here.

493
00:30:39,520 --> 00:30:43,120
 The supplemental packages that Frank just reviewed with you is five positions, which

494
00:30:43,120 --> 00:30:49,680
 takes the total to 110.5.

495
00:30:49,680 --> 00:30:51,360
 That's all for the water presentation.

496
00:30:51,360 --> 00:30:56,600
 Can we go back to the 2% in the two future years?

497
00:30:56,600 --> 00:31:02,600
 I'm sure you looked at it, but what would it look like if we had just smaller beginning

498
00:31:02,600 --> 00:31:05,700
 this year?

499
00:31:05,700 --> 00:31:08,320
 I do have a scenario that takes us out to a 10-year period.

500
00:31:08,320 --> 00:31:13,320
 We can see it through 2030, but it does have the 2% built in.

501
00:31:13,320 --> 00:31:18,240
 If we lowered it to 1%, when you get out there in the 10th year -- let me pull up another

502
00:31:18,240 --> 00:31:23,800
 slide really quick and I'll address your question -- hang on just a second.

503
00:31:23,800 --> 00:31:30,840
 What if we started it this year with 1% and just did 1% out instead of boom boom?

504
00:31:30,840 --> 00:31:31,840
 We can look at that.

505
00:31:31,840 --> 00:31:32,840
 We have not.

506
00:31:32,840 --> 00:31:34,000
 I haven't brought that scenario forward today.

507
00:31:34,000 --> 00:31:36,600
 If that's something the PUB would like us to bring back, we can.

508
00:31:36,600 --> 00:31:38,840
 We definitely have another meeting scheduled.

509
00:31:38,840 --> 00:31:40,160
 Let me show you this really quick though.

510
00:31:40,160 --> 00:31:49,600
 In 2020 -- I hope everybody can see this here.

511
00:31:49,600 --> 00:31:53,000
 The rate increases are down here on the green line.

512
00:31:53,000 --> 00:31:55,040
 You can see them right here.

513
00:31:55,040 --> 00:31:56,360
 Currently it would be 0%.

514
00:31:56,360 --> 00:31:59,320
 When you get on to '22 and '23, they're 2%.

515
00:31:59,320 --> 00:32:04,200
 The reason we did choose 2% -- if you look at the reserve, the minimum reserve out here

516
00:32:04,200 --> 00:32:06,880
 in 2031 is $20 million.

517
00:32:06,880 --> 00:32:09,480
 That puts the reserve at 21.9.

518
00:32:09,480 --> 00:32:13,360
 So we could do smaller increases, but this may not be above the minimum out here in the

519
00:32:13,360 --> 00:32:14,360
 future years.

520
00:32:14,360 --> 00:32:15,360
 Okay.

521
00:32:15,360 --> 00:32:19,040
 Of course, the earlier you start, you get the compounding effect, but we just chose

522
00:32:19,040 --> 00:32:20,040
 2%.

523
00:32:20,040 --> 00:32:21,040
 Well, 2% isn't big.

524
00:32:21,040 --> 00:32:22,040
 I was just curious.

525
00:32:22,040 --> 00:32:23,040
 Thank you.

526
00:32:23,040 --> 00:32:24,840
 We definitely look at it each year too.

527
00:32:24,840 --> 00:32:30,680
 As we progress in '21, we come back to the '21 budget, it very well may be 2% still.

528
00:32:30,680 --> 00:32:33,720
 It may be a smaller amount.

529
00:32:33,720 --> 00:32:34,720
 Other questions?

530
00:32:34,720 --> 00:32:35,720
 Sorry.

531
00:32:35,720 --> 00:32:36,720
 I jumped in there.

532
00:32:36,720 --> 00:32:37,720
 I know you always had -- no.

533
00:32:37,720 --> 00:32:38,720
 Brendan doesn't have one.

534
00:32:38,720 --> 00:32:39,720
 I had a question --

535
00:32:39,720 --> 00:32:40,720
 Yes, ma'am.

536
00:32:40,720 --> 00:32:41,720
 -- with Frank.

537
00:32:41,720 --> 00:32:46,200
 I was just curious about what you were doing for the zebra mussels.

538
00:32:46,200 --> 00:32:49,920
 I'm very sad that they're down here.

539
00:32:49,920 --> 00:32:50,920
 Yes.

540
00:32:50,920 --> 00:32:55,920
 There -- we'll be adding some chemical addition systems at the intake structures to discourage

541
00:32:55,920 --> 00:32:57,680
 growth.

542
00:32:57,680 --> 00:32:58,680
 Does it work?

543
00:32:58,680 --> 00:32:59,680
 Yes, it does.

544
00:32:59,680 --> 00:33:00,680
 Yeah.

545
00:33:00,680 --> 00:33:01,680
 Yeah.

546
00:33:01,680 --> 00:33:06,200
 It provides -- it's an oxidant and a copper ion generator that will be operated in kind

547
00:33:06,200 --> 00:33:09,640
 of a pulse fashion so that it discourages them from attaching.

548
00:33:09,640 --> 00:33:11,040
 They'll find somewhere else to grow.

549
00:33:11,040 --> 00:33:12,040
 Okay.

550
00:33:12,040 --> 00:33:14,880
 Why don't you e-mail the city of Chicago because they're working on this too.

551
00:33:14,880 --> 00:33:15,880
 Yeah.

552
00:33:15,880 --> 00:33:20,160
 There's -- and a lot of cities in Texas are doing the exact same thing, proposing identical

553
00:33:20,160 --> 00:33:21,440
 systems that we are too.

554
00:33:21,440 --> 00:33:22,440
 It seems to be --

555
00:33:22,440 --> 00:33:24,760
 So it's just right at the pipe head?

556
00:33:24,760 --> 00:33:25,760
 Yes.

557
00:33:25,760 --> 00:33:26,760
 Yeah.

558
00:33:26,760 --> 00:33:27,760
 It's right at the intake structure.

559
00:33:27,760 --> 00:33:30,480
 It stops them from, you know, attaching to that intake.

560
00:33:30,480 --> 00:33:31,480
 Okay.

561
00:33:31,480 --> 00:33:32,480
 Good luck.

562
00:33:32,480 --> 00:33:33,480
 Thank you.

563
00:33:33,480 --> 00:33:36,520
 Well, no other questions.

564
00:33:36,520 --> 00:33:37,520
 Thank you.

565
00:33:37,520 --> 00:33:38,520
 Appreciate it.

566
00:33:38,520 --> 00:33:39,520
 All right.

567
00:33:39,520 --> 00:33:43,480
 Our next item is to receive a report and hold a discussion and give staff direction regarding

568
00:33:43,480 --> 00:33:49,800
 the wastewater and drainage fiscal year 2019-2020 operating and capital budget.

569
00:33:49,800 --> 00:33:55,360
 Good morning, Madam Chair, PV members.

570
00:33:55,360 --> 00:33:56,360
 My name is Kenny Banks.

571
00:33:56,360 --> 00:33:58,080
 I'm the general manager of utilities.

572
00:33:58,080 --> 00:34:02,840
 I'll be handling the wastewater portion of this presentation.

573
00:34:02,840 --> 00:34:09,880
 Before I start, I also want to echo the same sentiments that Frank had put out earlier,

574
00:34:09,880 --> 00:34:12,540
 acknowledge Crystal, Nick, David.

575
00:34:12,540 --> 00:34:17,240
 There's been a lot of work done on this budget and I really appreciate everyone's help to

576
00:34:17,240 --> 00:34:20,100
 get us to the point where we're at right now.

577
00:34:20,100 --> 00:34:26,360
 So in terms of our goals and accomplishments, we submitted the final, and I want to repeat

578
00:34:26,360 --> 00:34:29,320
 final, annual report for the EPA administrative order.

579
00:34:29,320 --> 00:34:33,240
 This has been a long, ongoing project.

580
00:34:33,240 --> 00:34:39,240
 PS Aurora has been the lead on this and essentially we've been able to implement programs that

581
00:34:39,240 --> 00:34:45,200
 allowed us to go through an administrative order instead of a consent decree and essentially

582
00:34:45,200 --> 00:34:52,000
 has saved the utility a lot of money, plus been able to demonstrably reduce the amount

583
00:34:52,000 --> 00:34:55,260
 of sanitary sewer overflows that we've had.

584
00:34:55,260 --> 00:34:59,160
 We've updated the five-year impact fee, as Frank mentioned earlier, completed the

585
00:34:59,160 --> 00:35:02,440
 construction of Cooper Creek Phase 1 and 2 interceptor projects.

586
00:35:02,440 --> 00:35:05,080
 These are two very large projects.

587
00:35:05,080 --> 00:35:09,000
 You've probably seen them at the intersection of 288 and 380.

588
00:35:09,000 --> 00:35:13,200
 Some of the work that's going on there near the channel is related to this project.

589
00:35:13,200 --> 00:35:19,440
 A very important interceptor project for the whole Cooper Creek Basin.

590
00:35:19,440 --> 00:35:25,360
 We have bid the Hickory Creek and West Wetflow Detention Facility projects, so the Hickory

591
00:35:25,360 --> 00:35:31,720
 Creek system is an approximately 3.5 million gallon storage system that is located in the

592
00:35:31,720 --> 00:35:33,680
 Hickory Creek Basin.

593
00:35:33,680 --> 00:35:38,400
 It will allow us to collect water at times of high flow and then feed that back in at

594
00:35:38,400 --> 00:35:39,400
 times of lower flow.

595
00:35:39,400 --> 00:35:44,120
 So it's just a mechanism to help us balance our system a little bit more effectively.

596
00:35:44,120 --> 00:35:49,480
 The West Peak Flow Detention Facility is actually located on the Pecan Creek Wastewater Treatment

597
00:35:49,480 --> 00:35:51,760
 Plant property.

598
00:35:51,760 --> 00:35:56,400
 It is about a nine million gallon capacity storage system that has a 30 million gallon

599
00:35:56,400 --> 00:36:01,040
 per day pumping system that allows us also to store waste and then basically move it

600
00:36:01,040 --> 00:36:02,040
 into the system.

601
00:36:02,040 --> 00:36:07,040
 So it's just a way of balancing out those peak flows that we see.

602
00:36:07,040 --> 00:36:13,200
 We've completed the design of the sludge handling project at Pecan Creek and bid the solids

603
00:36:13,200 --> 00:36:16,080
 handling equipment for procurement.

604
00:36:16,080 --> 00:36:20,600
 The solids handling system at Pecan Creek is a fairly old system.

605
00:36:20,600 --> 00:36:25,400
 This is a much more modern version that will help us dewater and more effectively deal

606
00:36:25,400 --> 00:36:27,080
 with our sludge.

607
00:36:27,080 --> 00:36:33,160
 I also want to acknowledge that we have a project that we've been working on that's

608
00:36:33,160 --> 00:36:39,560
 been kind of spearheaded by PS to look at the ability of using enhanced treatment technologies

609
00:36:39,560 --> 00:36:44,720
 to expand the capacity of the Pecan Creek wastewater system without actually increasing

610
00:36:44,720 --> 00:36:47,040
 the footprint of that system.

611
00:36:47,040 --> 00:36:53,840
 So I'll talk about that a little bit in just a few slides or just a few bullets.

612
00:36:53,840 --> 00:37:01,280
 But that solids handling is a big component of that chemical feed system.

613
00:37:01,280 --> 00:37:05,060
 So we kind of designed them and implemented them hand in hand.

614
00:37:05,060 --> 00:37:09,880
 And then of course we updated the wastewater collection system master plan that was part

615
00:37:09,880 --> 00:37:15,920
 of the overall impact fee study that we did earlier this year.

616
00:37:15,920 --> 00:37:22,320
 So goals for 19-20, we want to complete the construction of the sludge handling project

617
00:37:22,320 --> 00:37:28,320
 and complete construction of Hickory Creek and West Wet Flow detention facilities, bid

618
00:37:28,320 --> 00:37:32,660
 and begin construction on Hickory Creek phase one and phase two interceptor projects.

619
00:37:32,660 --> 00:37:38,360
 These are two very large interceptors that are in the Hickory Creek system that are going

620
00:37:38,360 --> 00:37:45,040
 to help increase the capacity to convey wastewater into that area where we've got our storage

621
00:37:45,040 --> 00:37:46,120
 system.

622
00:37:46,120 --> 00:37:52,920
 We've also got the Hickory Creek pump station upgrade which will again allow us to just

623
00:37:52,920 --> 00:37:59,480
 really modernize and enhance that whole side of the city and moving the waste through that

624
00:37:59,480 --> 00:38:01,080
 system.

625
00:38:01,080 --> 00:38:07,720
 We want to submit performance data to TCEQ to look at that capacity addition.

626
00:38:07,720 --> 00:38:13,860
 We have to do a pilot study for the chemically enhanced primary treatment that we're looking

627
00:38:13,860 --> 00:38:20,160
 at and demonstrate that that will work effectively and then we can move on to full scale.

628
00:38:20,160 --> 00:38:26,360
 And then we want to also complete the construction of the Robeson wastewater diversion project.

629
00:38:26,360 --> 00:38:33,960
 This came in front of you a few weeks ago and essentially what this is is it's a system

630
00:38:33,960 --> 00:38:38,160
 that's going to be put in place that allows the current Robeson wastewater treatment plant

631
00:38:38,160 --> 00:38:39,160
 to be taken offline.

632
00:38:39,160 --> 00:38:45,400
 They've got a small batch plant there, that batch plant is going to have to be substantially

633
00:38:45,400 --> 00:38:49,700
 expanded to be able to accommodate Robeson at full growth.

634
00:38:49,700 --> 00:38:54,440
 So through discussions and negotiations we have come up with a deal to basically divert

635
00:38:54,440 --> 00:39:00,200
 that wastewater flow from Robeson and then move it through the Hickory Creek system ultimately

636
00:39:00,200 --> 00:39:04,600
 to the concrete for treatment.

637
00:39:04,600 --> 00:39:12,440
 So in terms of budget emphasis on our operating expense side as we stated on water we fully

638
00:39:12,440 --> 00:39:17,160
 implemented City Works through the field group to standardize our work orders.

639
00:39:17,160 --> 00:39:21,880
 We've been really looking at our equipment and vehicles and identifying places where

640
00:39:21,880 --> 00:39:27,560
 we can replace heavier equipment with more right size, more nimble equipment both in

641
00:39:27,560 --> 00:39:33,160
 terms of equipment size and in terms of equipment type.

642
00:39:33,160 --> 00:39:37,440
 Also one of the main goals that we're doing right now is phasing out a significant amount

643
00:39:37,440 --> 00:39:43,240
 of our backhoe inventory and replacing it with excavators for doing linear pipe projects.

644
00:39:43,240 --> 00:39:45,520
 The excavators are much more efficient.

645
00:39:45,520 --> 00:39:49,840
 So that's one example of how we're trying to get smaller and more nimble machines out

646
00:39:49,840 --> 00:39:55,200
 there to do a better and more efficient job.

647
00:39:55,200 --> 00:40:00,160
 Basically are looking at our asset management data.

648
00:40:00,160 --> 00:40:07,240
 We have an initiative that Frank spoke about a little bit on the water side about increasing

649
00:40:07,240 --> 00:40:09,160
 our asset management capabilities.

650
00:40:09,160 --> 00:40:14,160
 We've got a very good program for asset management in wastewater and we've been able to use that

651
00:40:14,160 --> 00:40:19,640
 program to make sure that the way in which we're managing the system is efficient.

652
00:40:19,640 --> 00:40:22,760
 We're not replacing pipes just because they've reached a certain age.

653
00:40:22,760 --> 00:40:30,040
 We're replacing pipes because they have reached a certain level of inefficiency or degradation.

654
00:40:30,040 --> 00:40:37,000
 So we're trying to get the maximum amount of time possible out of our system.

655
00:40:37,000 --> 00:40:44,920
 Again, part of that is enacting infrastructure solutions to lower asset life cost and reduce

656
00:40:44,920 --> 00:40:46,560
 environmental impacts.

657
00:40:46,560 --> 00:40:52,080
 We continue to look at all different types of technologies, plant modeling processes,

658
00:40:52,080 --> 00:40:58,160
 the chemical treatment that I mentioned earlier, our work order system, our GPS system, all

659
00:40:58,160 --> 00:41:02,520
 of those things working together to help us be as efficient as possible.

660
00:41:02,520 --> 00:41:07,500
 And then, of course, we've had a consistent theme under the administrative order that

661
00:41:07,500 --> 00:41:15,520
 we will continue to perform proactive operations and management activities to basically improve

662
00:41:15,520 --> 00:41:20,700
 our customer service by reducing those mainline service calls, sewer chokes, and sanitary

663
00:41:20,700 --> 00:41:22,320
 sewer overflows.

664
00:41:22,320 --> 00:41:29,280
 The overall goal there is to minimize the emergency response by maximizing our preventative

665
00:41:29,280 --> 00:41:31,920
 maintenance.

666
00:41:31,920 --> 00:41:37,800
 So cost containment strategies, we've got budgeted salary savings of about $400,000.

667
00:41:37,800 --> 00:41:41,440
 There was a reorganization of the Beneficial Reuse Department that occurred earlier in

668
00:41:41,440 --> 00:41:50,120
 this year and we've been able to save about $53,000 on an annual basis through that reorganization.

669
00:41:50,120 --> 00:41:54,360
 We've reduced our revenue funded capital and FY20 by about $3 million.

670
00:41:54,360 --> 00:41:58,440
 Nick will talk about this a little bit more, but it's an attempt to kind of normalize our

671
00:41:58,440 --> 00:42:02,920
 capital expenditures over the five-year capital improvement plan.

672
00:42:02,920 --> 00:42:07,440
 We continue to use asset management programs to improve our capital management and replacement

673
00:42:07,440 --> 00:42:09,240
 scheduling.

674
00:42:09,240 --> 00:42:13,760
 We enacted a feasibility study that we talked about a little earlier to get that increased

675
00:42:13,760 --> 00:42:15,840
 capacity at the plant.

676
00:42:15,840 --> 00:42:22,760
 And as everyone else says, we're using zero-based budgeting with supplemental packages and then

677
00:42:22,760 --> 00:42:29,160
 we are, just as in water, looking at that heavy equipment and trying to right size it.

678
00:42:29,160 --> 00:42:35,320
 So process improvements for '18-'19, you'll see some consistent themes overlapping with

679
00:42:35,320 --> 00:42:36,600
 water.

680
00:42:36,600 --> 00:42:40,240
 Water distribution and wastewater crews are looking at that dual purpose crew to be out

681
00:42:40,240 --> 00:42:44,840
 there and be more efficient, not having to mobilize twice and be able to get both the

682
00:42:44,840 --> 00:42:50,360
 water and wastewater side of the project taken care of by a single crew.

683
00:42:50,360 --> 00:42:55,200
 We continue to use and explore trenchless technology for sewer line repairs, whether

684
00:42:55,200 --> 00:43:01,160
 that's in-situ small point repairs or doing pipe bursting projects where we can basically

685
00:43:01,160 --> 00:43:05,920
 replace an existing pipe by breaking that pipe apart and pulling a larger pipe through

686
00:43:05,920 --> 00:43:08,000
 it or even a pipe of the same size through it.

687
00:43:08,000 --> 00:43:13,900
 So it's less disruptive, it tends to be faster and it tends to be less expensive.

688
00:43:13,900 --> 00:43:19,400
 We are working on emergency response plans for all lift stations and pump stations in

689
00:43:19,400 --> 00:43:20,400
 the city.

690
00:43:20,400 --> 00:43:27,560
 Each station is somewhat unique and so the opportunity is there to put together a station

691
00:43:27,560 --> 00:43:33,240
 specific plan so that everybody understands if we have an emergency, this is what we do,

692
00:43:33,240 --> 00:43:38,800
 this is how we mobilize, this is where we need to look at putting the waste, etc., etc.

693
00:43:38,800 --> 00:43:43,960
 And then the collection system asset management plan is something that we are continuing to

694
00:43:43,960 --> 00:43:46,240
 enhance as we move forward.

695
00:43:46,240 --> 00:43:50,360
 So the future process improvement, I've already talked quite a bit about this, but this is

696
00:43:50,360 --> 00:43:57,360
 basically the installing of the solids handling and the chemically enhanced primary treatment

697
00:43:57,360 --> 00:44:03,320
 facilities at Pecan Creek and we're in process right now by setting that up to run it in

698
00:44:03,320 --> 00:44:09,120
 test mode and see how it works and then provide that information to TCEQ.

699
00:44:09,120 --> 00:44:13,080
 At that point, if everything looks good, we'll be looking for an increase of a plant capacity

700
00:44:13,080 --> 00:44:16,320
 for that plant based on this technology.

701
00:44:16,320 --> 00:44:23,740
 Right now, just to give you an idea, rough cost estimates, looking at the amount of expansion

702
00:44:23,740 --> 00:44:29,040
 that we anticipate getting on this, which is about 5 million gallons per day of additional

703
00:44:29,040 --> 00:44:39,820
 plant treatment capacity, the cost for using the CEPT system versus the building new traditional

704
00:44:39,820 --> 00:44:46,480
 plant capacity, the CEPT is going to be about 20% of what we would normally pay for plant

705
00:44:46,480 --> 00:44:47,560
 expansion.

706
00:44:47,560 --> 00:44:51,720
 So very beneficial dollar-wise.

707
00:44:51,720 --> 00:44:57,880
 In terms of the supplemental package, we've got a couple of them here.

708
00:44:57,880 --> 00:45:05,600
 Basically the wastewater collections is looking at adding two FTEs or heavy equipment operator

709
00:45:05,600 --> 00:45:06,600
 ones.

710
00:45:06,600 --> 00:45:14,720
 Basically, right now, we have two two-person crews and one one-person crew and essentially

711
00:45:14,720 --> 00:45:20,040
 what we're looking at is adding two positions to bring the one-person crew to a two-person

712
00:45:20,040 --> 00:45:25,500
 crew and then to bring one of the crews that has currently got two people to three.

713
00:45:25,500 --> 00:45:32,900
 It's better to have three people for confined space entry and it also gives us an opportunity

714
00:45:32,900 --> 00:45:40,060
 to do a little better job from a workload standpoint and being able to have coverage

715
00:45:40,060 --> 00:45:48,200
 when people are out or someone's in a training or someone is otherwise unable to be on the

716
00:45:48,200 --> 00:45:50,200
 job site.

717
00:45:50,200 --> 00:45:58,120
 What's more about coverage are, as Frank had mentioned, our amount of capital construction

718
00:45:58,120 --> 00:46:03,800
 has continued to increase pretty dramatically and our maintenance activities are also increasing

719
00:46:03,800 --> 00:46:04,800
 at the same time.

720
00:46:04,800 --> 00:46:09,360
 So this is an opportunity to plug in a few of those gaps, reduce a little bit over time

721
00:46:09,360 --> 00:46:12,040
 and get better coverage.

722
00:46:12,040 --> 00:46:16,140
 The HEO2, right now, we have two crews.

723
00:46:16,140 --> 00:46:17,640
 One of them has five members.

724
00:46:17,640 --> 00:46:19,440
 One of them has six.

725
00:46:19,440 --> 00:46:25,740
 The idea here is to balance out those crews with six members apiece and do it with a heavy

726
00:46:25,740 --> 00:46:31,280
 equipment operator, too, which is a higher level, more skilled individual.

727
00:46:31,280 --> 00:46:34,160
 Multiple pieces of equipment can be run.

728
00:46:34,160 --> 00:46:36,960
 There's two main goals there.

729
00:46:36,960 --> 00:46:41,520
 One is to balance out the size of the crews, which is an efficiency issue, and then the

730
00:46:41,520 --> 00:46:47,040
 second is having that experienced personnel there to act as a, for lack of a better word,

731
00:46:47,040 --> 00:46:52,640
 the floater position in case we need to have coverage somewhere else in the group.

732
00:46:52,640 --> 00:46:56,080
 And then the flushing truck crew leader.

733
00:46:56,080 --> 00:47:04,600
 Right now, the flushing truck crew is a fairly large portion of the organization and they're

734
00:47:04,600 --> 00:47:05,940
 teams of two people.

735
00:47:05,940 --> 00:47:10,880
 We have a total of five and they report into a field service supervisor in addition to

736
00:47:10,880 --> 00:47:16,320
 three other crew leaders reporting into that field service supervisor.

737
00:47:16,320 --> 00:47:21,040
 So things are spread pretty thin right now and the ability to make sure that we're documenting

738
00:47:21,040 --> 00:47:27,600
 everything on the flushing crew side, to make sure that we're covering our permit requirements,

739
00:47:27,600 --> 00:47:31,760
 that we're demonstrating, that we're continuing on with the activities of the administrative

740
00:47:31,760 --> 00:47:38,000
 order, and then just being able to analyze all of that activity, the videos, et cetera,

741
00:47:38,000 --> 00:47:45,440
 to determine better how to go out and replace our system, we're getting spread a little

742
00:47:45,440 --> 00:47:46,720
 bit too thin.

743
00:47:46,720 --> 00:47:54,240
 And so the idea there is to basically get a crew leader in there.

744
00:47:54,240 --> 00:48:00,720
 That crew leader would be responsible for just the flushing crew section of the organization

745
00:48:00,720 --> 00:48:05,040
 and then the existing crew leader would be over all those other three areas.

746
00:48:05,040 --> 00:48:06,840
 It's a little confusing.

747
00:48:06,840 --> 00:48:11,920
 I do have org charts if you want to see them, but yes.

748
00:48:11,920 --> 00:48:16,120
 And coordinated between water and wastewater with all the heavy equipment operators, right?

749
00:48:16,120 --> 00:48:17,120
 Absolutely.

750
00:48:17,120 --> 00:48:19,480
 So that we, because you're trying to do this efficiency.

751
00:48:19,480 --> 00:48:20,480
 Yes.

752
00:48:20,480 --> 00:48:21,480
 Okay.

753
00:48:21,480 --> 00:48:22,480
 Yes, yes.

754
00:48:22,480 --> 00:48:30,840
 Both of those crews report to Mr. Conkle on the water and wastewater side.

755
00:48:30,840 --> 00:48:37,240
 So real quickly, the plant flow versus treatment capacity graph, I know it wouldn't be a budget

756
00:48:37,240 --> 00:48:41,840
 presentation if we didn't show you all these, so I didn't want to break theme.

757
00:48:41,840 --> 00:48:49,560
 But we're looking at right now about 2026 time frame when we're going to get at 90%

758
00:48:49,560 --> 00:48:51,640
 of capacity.

759
00:48:51,640 --> 00:48:58,520
 The difference here is that now we have the ability to look at this chemically enhanced

760
00:48:58,520 --> 00:49:00,000
 primary treatment.

761
00:49:00,000 --> 00:49:05,880
 And so the opportunity exists here to actually go through that plant expansion, get it online

762
00:49:05,880 --> 00:49:16,840
 probably easily by 2029 and basically be able to meet the expected future growth demands

763
00:49:16,840 --> 00:49:18,760
 that we're looking at right now.

764
00:49:18,760 --> 00:49:25,160
 So we're looking at about a 1.8% growth, that's been pretty standard for us.

765
00:49:25,160 --> 00:49:30,000
 And we have noticed that our annual flows are going down a little bit, you can kind

766
00:49:30,000 --> 00:49:31,000
 of see that.

767
00:49:31,000 --> 00:49:35,520
 We only have a couple of years worth of data there.

768
00:49:35,520 --> 00:49:41,280
 We are thinking that this could be related to some of the declining GPCD, gallons per

769
00:49:41,280 --> 00:49:45,920
 capita per day that we've seen on the water side, but it's still a little bit early to

770
00:49:45,920 --> 00:49:46,920
 tell.

771
00:49:46,920 --> 00:49:50,480
 So we're watching that and it is a possibility as we reevaluate this every year that this

772
00:49:50,480 --> 00:49:53,680
 could slide out a little bit further.

773
00:49:53,680 --> 00:49:57,120
 And I believe that is the end of my portion of this.

774
00:49:57,120 --> 00:50:02,800
 So any questions for me before I turn it over to Mr. Vincent?

775
00:50:02,800 --> 00:50:08,520
 Okay, thank you for your time.

776
00:50:08,520 --> 00:50:12,480
 Good morning Chair, PUB members, my name is Nick Vincent, the city's budget manager.

777
00:50:12,480 --> 00:50:17,280
 I'll be reviewing with you the financial portion of the proposed 19-20 wastewater budget, similar

778
00:50:17,280 --> 00:50:18,280
 to water.

779
00:50:18,280 --> 00:50:20,920
 If you have any questions, please feel free to stop me throughout the presentation and

780
00:50:20,920 --> 00:50:22,840
 I will address them.

781
00:50:22,840 --> 00:50:27,120
 We are also recommended to change the way we use wastewater impact fees for this fund.

782
00:50:27,120 --> 00:50:30,240
 I'll review that with you on a similar side here shortly.

783
00:50:30,240 --> 00:50:32,960
 We're projecting a 2% population growth.

784
00:50:32,960 --> 00:50:38,360
 And the fund does maintain a debt coverage ratio of 1.25% and a reserve fund above the

785
00:50:38,360 --> 00:50:41,760
 minimum in each of the years and I'll review that with you also.

786
00:50:41,760 --> 00:50:45,520
 And there are no rate increases in the 10-year forecast or five-year forecast of the wastewater

787
00:50:45,520 --> 00:50:46,520
 fund.

788
00:50:46,520 --> 00:50:51,400
 And I'll show that to you here shortly.

789
00:50:51,400 --> 00:50:56,400
 So we are proposing to change the way the wastewater impact fees are currently used.

790
00:50:56,400 --> 00:51:00,560
 In the current method, they are applied directly to eligible debt service.

791
00:51:00,560 --> 00:51:04,560
 So you can see about $4.2 million is applied to debt service.

792
00:51:04,560 --> 00:51:09,280
 Moving forward, we will want to apply it towards debt service and revenue funding of projects.

793
00:51:09,280 --> 00:51:14,120
 So in the 2020 proposed budget, we have about $3.7 million going towards debt service and

794
00:51:14,120 --> 00:51:17,720
 about $500,000 going towards revenue funding of projects.

795
00:51:17,720 --> 00:51:21,840
 Over the five-year period, we would revenue fund about $1.3 million of upfront project

796
00:51:21,840 --> 00:51:29,120
 cost and apply about $20 million towards debt service.

797
00:51:29,120 --> 00:51:33,520
 This table summarizes the amount of impact fee revenue the wastewater fund can receive

798
00:51:33,520 --> 00:51:35,200
 over a 10-year period.

799
00:51:35,200 --> 00:51:40,400
 Similar to water, this was identified in the 2018 impact fee study that was recently completed.

800
00:51:40,400 --> 00:51:45,120
 So you can see total, we can recover about $49 million in impact fee revenue through

801
00:51:45,120 --> 00:51:47,080
 the wastewater side.

802
00:51:47,080 --> 00:51:53,000
 Of that, we can apply about $19 million towards cash funding upfront project cost, and then

803
00:51:53,000 --> 00:52:01,000
 we can apply about $30 million towards debt servicing of projects.

804
00:52:01,000 --> 00:52:02,000
 This is the five-year forecast.

805
00:52:02,000 --> 00:52:07,040
 So the 2019 adopted budget, we have $32.7 million in rate revenue.

806
00:52:07,040 --> 00:52:10,520
 We were planning to use $4.7 million in reserve.

807
00:52:10,520 --> 00:52:15,180
 If you recall, we did do the 5% rate reduction last year for wastewater customers.

808
00:52:15,180 --> 00:52:20,520
 We are projecting to come in a little bit better using about $4.2 million in reserve,

809
00:52:20,520 --> 00:52:24,800
 so about $500,000 less than the original budget anticipated.

810
00:52:24,800 --> 00:52:31,920
 Moving forward into 2020, we got $36.4 million in rate revenue, you can see that number here,

811
00:52:31,920 --> 00:52:37,760
 using about $1.5 million in reserves for a total resource of about $38 million.

812
00:52:37,760 --> 00:52:40,880
 Expenses is also $38 million for a balanced budget.

813
00:52:40,880 --> 00:52:44,640
 There are no rate increases or decreases in the current proposed budget or in the five-year

814
00:52:44,640 --> 00:52:46,480
 forecast.

815
00:52:46,480 --> 00:52:49,600
 As you move down the page, the reserve does stay above the minimum.

816
00:52:49,600 --> 00:52:55,640
 So you can see it's $12.7 million in 2020, the minimum being 10.6.

817
00:52:55,640 --> 00:53:00,280
 As you go out, it goes to 15.2, with the minimum being 10.

818
00:53:00,280 --> 00:53:02,640
 I would like to point out Dr. Banks had made a comment earlier.

819
00:53:02,640 --> 00:53:07,700
 We did reduce the amount of revenue-funded project money that we're setting aside.

820
00:53:07,700 --> 00:53:11,060
 So you can see in 2019, it was actually $10 million.

821
00:53:11,060 --> 00:53:14,360
 We have brought that down close to $7 million in the current year.

822
00:53:14,360 --> 00:53:19,760
 But we are, at the same time, planning to revenue-fund that $500,000 in projects that

823
00:53:19,760 --> 00:53:22,400
 I had pointed out earlier.

824
00:53:22,400 --> 00:53:28,040
 I know we can deal with it in the future, but it looks like in 2023 and 2024, we could

825
00:53:28,040 --> 00:53:30,960
 have a rate decrease again.

826
00:53:30,960 --> 00:53:31,960
 But that's way out there.

827
00:53:31,960 --> 00:53:32,960
 So let's not talk about it.

828
00:53:32,960 --> 00:53:33,960
 It is.

829
00:53:33,960 --> 00:53:35,680
 If you want to see the 10-year forecast, I'd be happy to pull it up for the Waste Water

830
00:53:35,680 --> 00:53:36,680
 Fund also.

831
00:53:36,680 --> 00:53:56,600
 When we get to that point, this will give you a better picture past that window.

832
00:53:56,600 --> 00:53:57,600
 There we go.

833
00:53:57,600 --> 00:53:58,600
 Now we got it.

834
00:53:58,600 --> 00:53:59,600
 All right.

835
00:53:59,600 --> 00:54:00,600
 So 2020.

836
00:54:00,600 --> 00:54:01,600
 Let me scroll down a little bit here.

837
00:54:01,600 --> 00:54:04,440
 So you're going to see the $12.7 million here.

838
00:54:04,440 --> 00:54:08,520
 As you go out, it does go down some, and the majority of the reason for that is when the

839
00:54:08,520 --> 00:54:12,960
 Waste Water Treatment Plan expansion comes online, the debt service does go back up.

840
00:54:12,960 --> 00:54:13,960
 So to answer your question.

841
00:54:13,960 --> 00:54:14,960
 Thank you.

842
00:54:14,960 --> 00:54:15,960
 You answered me.

843
00:54:15,960 --> 00:54:16,960
 Yeah.

844
00:54:16,960 --> 00:54:17,960
 Thank you.

845
00:54:17,960 --> 00:54:18,960
 All right.

846
00:54:18,960 --> 00:54:31,760
 Anybody else got any questions on a five-year forecast?

847
00:54:31,760 --> 00:54:38,680
 So this budget and the plan moving forward hinges on approval of, is it the cert system?

848
00:54:38,680 --> 00:54:41,680
 Is that what it's called?

849
00:54:41,680 --> 00:54:49,920
 But we haven't actually even implemented that test project yet, right?

850
00:54:49,920 --> 00:54:56,480
 Let me ask Dr. Banks to come back up here because he's the expert on that and he can

851
00:54:56,480 --> 00:55:00,480
 address it.

852
00:55:00,480 --> 00:55:01,480
 You're correct.

853
00:55:01,480 --> 00:55:06,800
 We haven't implemented it in full, but we've been undergoing a feasibility and modeling

854
00:55:06,800 --> 00:55:13,540
 study now for a little over a year to determine that this would work in the system.

855
00:55:13,540 --> 00:55:16,880
 So it's kind of a stepwise process because it involves the permit.

856
00:55:16,880 --> 00:55:20,720
 You've got to first look at the feasibility of it to decide whether you want to spend

857
00:55:20,720 --> 00:55:23,680
 any more money pursuing it further.

858
00:55:23,680 --> 00:55:24,680
 We've done that.

859
00:55:24,680 --> 00:55:28,320
 The feasibility, which involves both testing and modeling of the plant, has indicated that

860
00:55:28,320 --> 00:55:29,860
 it will work.

861
00:55:29,860 --> 00:55:37,160
 We then move to the next stage, which is essentially doing a test case study to demonstrate to

862
00:55:37,160 --> 00:55:43,360
 the TCEQ that we can meet all of our permitting conditions by using this particular type of

863
00:55:43,360 --> 00:55:44,920
 technology.

864
00:55:44,920 --> 00:55:49,480
 Once we've done that, we've got to then approach the state, and the state will have to review

865
00:55:49,480 --> 00:55:56,480
 to grant us the additional capacity to discharge by studying all of that information.

866
00:55:56,480 --> 00:56:04,360
 Once they do that and we've got the permit in hand, we then move to full-scale implementation.

867
00:56:04,360 --> 00:56:09,200
 So we've got a feasibility study that indicates that it will work.

868
00:56:09,200 --> 00:56:15,120
 We're right now on an actual test case study to demonstrate it in practice, and then if

869
00:56:15,120 --> 00:56:20,120
 everything turns out as anticipated, we'll then move to the next phases, which is actual

870
00:56:20,120 --> 00:56:22,760
 permit modification.

871
00:56:22,760 --> 00:56:28,360
 And so we don't feel like there's the need for a contingency budget to switch gears to

872
00:56:28,360 --> 00:56:32,360
 actually build a plant instead of doing the chemical treatment system.

873
00:56:32,360 --> 00:56:35,000
 At this point, no.

874
00:56:35,000 --> 00:56:38,880
 As we move forward, things could change.

875
00:56:38,880 --> 00:56:43,280
 I think it's unlikely, given the results of the feasibility study, but that's definitely

876
00:56:43,280 --> 00:56:45,240
 something that we're looking at.

877
00:56:45,240 --> 00:56:48,920
 Either way, we're going to have to approach the state for a permit expansion, it's just

878
00:56:48,920 --> 00:56:53,680
 how do we want to do it, through a traditional system or through this CEPT.

879
00:56:53,680 --> 00:56:58,680
 Right, but if we have to use a traditional system, we're seeing a significant increase

880
00:56:58,680 --> 00:57:02,880
 in how much money we have to spend, and it's going to take longer, I would imagine, to

881
00:57:02,880 --> 00:57:04,400
 build it and get it in place.

882
00:57:04,400 --> 00:57:05,400
 That's correct.

883
00:57:05,400 --> 00:57:08,320
 So it would be a scramble mode at that point, kind of.

884
00:57:08,320 --> 00:57:14,080
 Yeah, I think that at this point, I mean, we are fully aware of the timeframe associated

885
00:57:14,080 --> 00:57:21,640
 with it, unless something just completely unexpected happens, we anticipate that the

886
00:57:21,640 --> 00:57:26,560
 testing will be done and we'll be able to apply for the permit.

887
00:57:26,560 --> 00:57:32,240
 To be honest with you, I'm much more concerned about the permit getting through than I am

888
00:57:32,240 --> 00:57:37,560
 in terms of the review time for the TCEQ than I am of what we're going to have to face proving

889
00:57:37,560 --> 00:57:40,480
 up this concept.

890
00:57:40,480 --> 00:57:48,300
 But all that being said, yeah, the fallback position is to just do standard increase,

891
00:57:48,300 --> 00:57:57,160
 but keep in mind, we're required by permit to hit these analytical points at a particular

892
00:57:57,160 --> 00:57:59,840
 level of plant capacity.

893
00:57:59,840 --> 00:58:07,800
 So that amount of time is kind of built into it, and as a result, we shouldn't have a

894
00:58:07,800 --> 00:58:13,120
 problem that if something comes up, we are looking at it every year and we will have

895
00:58:13,120 --> 00:58:18,520
 a fallback contingency of just standard construction, which is what we were intending to do until

896
00:58:18,520 --> 00:58:20,760
 we hit on this new technology.

897
00:58:20,760 --> 00:58:21,760
 Okay.

898
00:58:21,760 --> 00:58:22,760
 Thank you.

899
00:58:22,760 --> 00:58:23,760
 Sure.

900
00:58:23,760 --> 00:58:24,760
 All right.

901
00:58:24,760 --> 00:58:28,480
 Keep moving forward here.

902
00:58:28,480 --> 00:58:30,680
 This is the revenue detail for the wastewater fund.

903
00:58:30,680 --> 00:58:35,440
 A couple things I'd like to point out, similar on the water presentation, you can see we were

904
00:58:35,440 --> 00:58:39,580
 bringing impact fee revenue in and applying it directly to debt service.

905
00:58:39,580 --> 00:58:43,920
 Moving forward, we were breaking it up into two components, applying about $3.7 million

906
00:58:43,920 --> 00:58:51,480
 towards debt service and about $500,000 towards revenue-funded eligible projects upfront cost.

907
00:58:51,480 --> 00:58:53,640
 This is the expense detail for the wastewater department.

908
00:58:53,640 --> 00:58:56,760
 You can see expenses by department within wastewater.

909
00:58:56,760 --> 00:59:01,480
 A couple of the important things on this slide, you can see us transferring out the $500,000

910
00:59:01,480 --> 00:59:05,600
 in revenue to cash fund those projects, and you can see the supplemental packages that

911
00:59:05,600 --> 00:59:09,840
 Dr. Banks explained a few slides ago.

912
00:59:09,840 --> 00:59:13,240
 This is a five-year capital plan.

913
00:59:13,240 --> 00:59:18,920
 In the five-year window, there are a total of $69.8 million in projects.

914
00:59:18,920 --> 00:59:22,880
 In 2020, the proposed budget, there's 23.1.

915
00:59:22,880 --> 00:59:28,040
 Of that amount, there's 15.7 million proposed to be bond-funded, 6.7 million proposed to

916
00:59:28,040 --> 00:59:33,940
 be revenue-funded, and then the $500,000 for impact fee revenue-funded projects.

917
00:59:33,940 --> 00:59:38,640
 This is the FTE summary for the wastewater department.

918
00:59:38,640 --> 00:59:41,160
 So currently, there's 113.5 positions.

919
00:59:41,160 --> 00:59:50,700
 If the four supplementals are approved, you can see those here, we get a 117.5.

920
00:59:50,700 --> 00:59:52,860
 That concludes this presentation.

921
00:59:52,860 --> 00:59:54,960
 Drainage is a separate presentation.

922
00:59:54,960 --> 00:59:58,240
 Daniel Kramer will come up here in just a second to do drainage.

923
00:59:58,240 --> 01:00:02,320
 If anybody has any more questions about wastewater, we'd be happy to address them.

924
01:00:02,320 --> 01:00:05,320
 Thank you, Nick.

925
01:00:05,320 --> 01:00:11,880
 Good morning, Chair, PUP members.

926
01:00:11,880 --> 01:00:18,640
 Apologize, I'm a little stuffed up.

927
01:00:18,640 --> 01:00:23,200
 Apparently, I caught something for my kids this weekend.

928
01:00:23,200 --> 01:00:27,360
 So I'm the Deputy Director of Operations, Streets and Drainage, Department's report

929
01:00:27,360 --> 01:00:29,040
 to me.

930
01:00:29,040 --> 01:00:32,800
 So some of the goals and accomplishments that we've gone through with drainage this year,

931
01:00:32,800 --> 01:00:37,040
 Rockwood Lane and Mistywood, we installed a neighborhood storm drain system to help with

932
01:00:37,040 --> 01:00:38,400
 some of the localized flood in the area.

933
01:00:38,400 --> 01:00:41,320
 It's about 1,300 linear feet of storm drain.

934
01:00:41,320 --> 01:00:46,080
 Currently, right now, we're working on the McKinney Street widening project in conjunction

935
01:00:46,080 --> 01:00:47,080
 with engineering.

936
01:00:47,080 --> 01:00:50,880
 We're doing a section of that right now, and then we'll be going in and doing some paving

937
01:00:50,880 --> 01:00:53,840
 over the top of that, coming up with that.

938
01:00:53,840 --> 01:00:54,840
 Excuse me.

939
01:00:54,840 --> 01:01:00,000
 Also, Hercules storm drain system is actually going to be going on later this year, as we're

940
01:01:00,000 --> 01:01:05,520
 looking for a water relocation from a developer as we put in that storm drain system for that.

941
01:01:05,520 --> 01:01:10,920
 Going forward for the next year, we're looking at oak tree and Choctaw storm drain improvements.

942
01:01:10,920 --> 01:01:14,640
 Both of those are currently in design right now, going through our internal engineering

943
01:01:14,640 --> 01:01:17,520
 department to get ready for construction.

944
01:01:17,520 --> 01:01:22,540
 We're also going to complete our mapping system for the storm drainage master plan.

945
01:01:22,540 --> 01:01:27,080
 Currently, right now, we're missing a few sections here and there as we go through.

946
01:01:27,080 --> 01:01:30,120
 Most of it's different inlets, different pipe sizes.

947
01:01:30,120 --> 01:01:32,200
 We may have the locations, but we're missing the full depth.

948
01:01:32,200 --> 01:01:35,080
 We're missing the diameter and stuff, so we're going out and getting that information so

949
01:01:35,080 --> 01:01:39,160
 that we can make a full storm water plan for the whole city.

950
01:01:39,160 --> 01:01:43,600
 Also, our goal is to increase the storm drain inspections.

951
01:01:43,600 --> 01:01:48,640
 Currently, right now, we're somewhere around 5% is what we're able to inspect.

952
01:01:48,640 --> 01:01:53,040
 Most of those are some of the troubled areas we know and calls that come in.

953
01:01:53,040 --> 01:02:03,880
 Our goal is to start moving more towards maintenance to be proactive instead of reactive.

954
01:02:03,880 --> 01:02:08,200
 As I said, we're looking at to increase the mapping productivity for the storm water master

955
01:02:08,200 --> 01:02:09,200
 plan.

956
01:02:09,200 --> 01:02:12,480
 We're working very closely with engineering on that so we can get all the information

957
01:02:12,480 --> 01:02:16,400
 to do our full mapping systems on those.

958
01:02:16,400 --> 01:02:24,240
 Upgrade, our systems for the current FEMA flood maps, they did put out some new maps

959
01:02:24,240 --> 01:02:25,360
 here recently.

960
01:02:25,360 --> 01:02:29,840
 We're working with engineering also to help them out to get our rating score back off

961
01:02:29,840 --> 01:02:31,360
 the extra two points.

962
01:02:31,360 --> 01:02:34,200
 With all the information we have, we're looking we should be able to raise it a couple more

963
01:02:34,200 --> 01:02:37,680
 points past that to help our citizens.

964
01:02:37,680 --> 01:02:41,880
 Also, to maintain our existing system, reduce the amount of trash and sediment in our waterways

965
01:02:41,880 --> 01:02:46,040
 and do more maintenance.

966
01:02:46,040 --> 01:02:51,720
 Some of our inefficiencies that we worked on for our -- we talked last year about street

967
01:02:51,720 --> 01:02:55,160
 sweepers, seeing if we needed a third one, and we were looking at that in the budget.

968
01:02:55,160 --> 01:02:57,360
 Currently right now, we don't see one.

969
01:02:57,360 --> 01:03:00,320
 Next probably three to five years, we probably will need another sweeper.

970
01:03:00,320 --> 01:03:07,960
 What we're looking at is about 18, 19, we're doing about 850 miles per cycle on our sweepers,

971
01:03:07,960 --> 01:03:12,280
 and that's about eight and a half cycles per year for the average residential area, and

972
01:03:12,280 --> 01:03:19,160
 24 cycles on our north and south thoroughfares and downtown is what we try to run on those.

973
01:03:19,160 --> 01:03:22,160
 We've upped that to about 870 with the new development and looking at more efficient

974
01:03:22,160 --> 01:03:26,880
 ways to run it, so that adds about 300 miles, 600 curved miles of sweeping that we've been

975
01:03:26,880 --> 01:03:31,720
 able to add with very minimal on there.

976
01:03:31,720 --> 01:03:34,700
 We're also working on our 24-hour response time.

977
01:03:34,700 --> 01:03:39,520
 This last week or so with all the rain, we've had quite a bit more calls that come in as

978
01:03:39,520 --> 01:03:43,760
 normal, but we do try to get out there 24 to 48 hours to talk with the residents to

979
01:03:43,760 --> 01:03:47,880
 look at the area and see what we can do to help address their issues as they come up.

980
01:03:47,880 --> 01:03:52,760
 A couple different ones, we do a lot of mowing of our channels.

981
01:03:52,760 --> 01:03:56,220
 We are better situated for the big mowing of the channels.

982
01:03:56,220 --> 01:03:58,640
 We have a couple small areas that we take care of.

983
01:03:58,640 --> 01:04:02,720
 Currently CIS uses a small mowing contract, so we're working with them to try to get some

984
01:04:02,720 --> 01:04:06,360
 of the smaller areas on there so we don't have to use our forces to do that so we can

985
01:04:06,360 --> 01:04:09,840
 more efficiently work on some of the bigger ones.

986
01:04:09,840 --> 01:04:14,160
 We've also been working on our inlet inspections.

987
01:04:14,160 --> 01:04:18,760
 As we go out and do cleanings and everything as they come up, we got reports that are coming

988
01:04:18,760 --> 01:04:23,360
 out telling us exactly what information is missing and from all of it so that we can

989
01:04:23,360 --> 01:04:26,760
 actually see it on the iPads and the guys can go out there and log it into our system

990
01:04:26,760 --> 01:04:30,180
 so we know all the information of every inlet we have.

991
01:04:30,180 --> 01:04:33,920
 Last year we did ask for a half a person increase.

992
01:04:33,920 --> 01:04:39,640
 We had a seasonal person, we added another half FTE and took one of our actually interns

993
01:04:39,640 --> 01:04:43,860
 who had been working at the city and they're our full time GIS analysts right now making

994
01:04:43,860 --> 01:04:47,280
 sure all of our information is up to date in our system and getting everything in there

995
01:04:47,280 --> 01:04:55,120
 so we can track it more efficiently.

996
01:04:55,120 --> 01:05:00,480
 As we're moving forward, we've been working for the standardization of all of our work

997
01:05:00,480 --> 01:05:02,680
 orders and everything we go across the board.

998
01:05:02,680 --> 01:05:08,680
 We use internally for street strainage and traffic, we use a system called Cartograph.

999
01:05:08,680 --> 01:05:11,200
 We're putting all of our work orders and all of our systems in there so we can plan out

1000
01:05:11,200 --> 01:05:16,680
 our work going ahead so that we can actually see it and everything in there.

1001
01:05:16,680 --> 01:05:21,320
 Making sure that all the groups have the correct equipment so that they can log them in the

1002
01:05:21,320 --> 01:05:25,580
 fields and we're not doing double work as they come back in and get them back into the

1003
01:05:25,580 --> 01:05:26,580
 system.

1004
01:05:26,580 --> 01:05:33,360
 For future use, we're working right now on use of an aerial impervious surface mapping.

1005
01:05:33,360 --> 01:05:36,880
 Currently right now when any of these new businesses come up, we take the plats, we

1006
01:05:36,880 --> 01:05:40,400
 see how much they have so we can estimate their drainage fee.

1007
01:05:40,400 --> 01:05:44,480
 So what this system does is they fly over, use LIDAR and they can actually send back

1008
01:05:44,480 --> 01:05:45,480
 a report.

1009
01:05:45,480 --> 01:05:50,720
 We're looking at a pilot program over towards the Rager Ranch area to see what we're missing,

1010
01:05:50,720 --> 01:05:54,080
 what it shows that it's coming up and then we will look at the data there and see if

1011
01:05:54,080 --> 01:05:58,340
 it's worth doing it across the whole city on that.

1012
01:05:58,340 --> 01:06:02,080
 So with one of our supplementals we are looking at, and I'll get to that here in the next

1013
01:06:02,080 --> 01:06:06,480
 slide, so we're looking at 100% inspection of our channels and ditches.

1014
01:06:06,480 --> 01:06:12,000
 Currently we're only at about 20% and also bringing our current inlet inspection up from

1015
01:06:12,000 --> 01:06:16,500
 20% which we are currently 5%.

1016
01:06:16,500 --> 01:06:22,920
 So what we're asking for in a supplemental package is one crew with 4 FTEs and one vehicle.

1017
01:06:22,920 --> 01:06:27,440
 What this crew's main goal is is to get the rest of our mapping up and they'll be our

1018
01:06:27,440 --> 01:06:28,440
 inspection crews.

1019
01:06:28,440 --> 01:06:31,360
 We'll be able to get out there and get all the inlets inspected, do any maintenance that

1020
01:06:31,360 --> 01:06:37,360
 needs to be done on those as it comes up and also for all of our ditches.

1021
01:06:37,360 --> 01:06:42,200
 I wanted to just show you this, kind of our numbers and what we're looking at.

1022
01:06:42,200 --> 01:06:51,520
 So right now we have 154, almost 155 miles of drainage ditch right now.

1023
01:06:51,520 --> 01:06:57,920
 We hit roughly 30, 31 miles, those are all of our concrete channels and all of our small

1024
01:06:57,920 --> 01:07:00,520
 ditches that we know we have issues with, the ones that we mow and they're out there

1025
01:07:00,520 --> 01:07:04,000
 all the time, that's what we hit on a yearly basis.

1026
01:07:04,000 --> 01:07:09,720
 Our goal would be to get up to 100%, that's an extra 124 miles of actually most of our

1027
01:07:09,720 --> 01:07:10,720
 bar ditches.

1028
01:07:10,720 --> 01:07:14,640
 Now not everyone needs to be maintained every year, but we do need to lay eyes on it and

1029
01:07:14,640 --> 01:07:17,800
 verify that the culverts are clear and all the water when we do have these rain events

1030
01:07:17,800 --> 01:07:22,320
 that it's actually draining where it's supposed to be and be able to look at them yearly.

1031
01:07:22,320 --> 01:07:27,960
 As for our curb inlet inspection, currently we have 7,800 inlets, we're roughly doing

1032
01:07:27,960 --> 01:07:33,520
 about 390 and as those come up, one of the issues that we had this past year was Welp

1033
01:07:33,520 --> 01:07:34,520
 Street.

1034
01:07:34,520 --> 01:07:38,000
 If you know, we had to take that street down and replace the culvert underneath.

1035
01:07:38,000 --> 01:07:40,920
 One of those, the only reason that we found that is because a truck made the corner and

1036
01:07:40,920 --> 01:07:44,560
 broke the inlet so we had to go out there and look at it and looking up underneath we

1037
01:07:44,560 --> 01:07:48,160
 did see that there were some cracks and that we needed to shut that down and get to it.

1038
01:07:48,160 --> 01:07:52,120
 So with this, this will allow us to hit everything within 5 years and be able to go through our

1039
01:07:52,120 --> 01:07:57,320
 whole system and actually know what we need to do and make better plans going forward.

1040
01:07:57,320 --> 01:08:03,600
 So, any questions on that before I hand it over to Nick?

1041
01:08:03,600 --> 01:08:05,640
 Questions?

1042
01:08:05,640 --> 01:08:09,320
 Thank you.

1043
01:08:09,320 --> 01:08:10,320
 Thank you.

1044
01:08:10,320 --> 01:08:14,000
 Good morning Chair, PB members, my name is Nick Vinson, the City's Budget Manager.

1045
01:08:14,000 --> 01:08:19,320
 I'll be reviewing with you the financial portion of the proposed 19-20 drainage budget.

1046
01:08:19,320 --> 01:08:21,840
 Feel free to stop me if you have any questions throughout the presentation, I'd be happy

1047
01:08:21,840 --> 01:08:23,280
 to address them.

1048
01:08:23,280 --> 01:08:27,960
 The proposed budget does maintain existing drainage fees or rates.

1049
01:08:27,960 --> 01:08:33,480
 The drainage fee is calculated based off the square feet of impermeable surface and then

1050
01:08:33,480 --> 01:08:37,720
 also the fund does maintain a fund balance of $1 million each of the five-year forecast

1051
01:08:37,720 --> 01:08:40,120
 and I'll show that to you here shortly.

1052
01:08:40,120 --> 01:08:43,640
 And ultimately the drainage budget does include watershed department.

1053
01:08:43,640 --> 01:08:47,080
 Both of those departments ultimately roll up into the wastewater fund so we are presented

1054
01:08:47,080 --> 01:08:52,280
 to you separate today but ultimately it's part of the wastewater department.

1055
01:08:52,280 --> 01:08:53,540
 This is the five-year forecast.

1056
01:08:53,540 --> 01:08:58,040
 You can see the adopted budget in this column here so we have about $5 million in adopted

1057
01:08:58,040 --> 01:08:59,040
 revenues.

1058
01:08:59,040 --> 01:09:01,640
 Same thing in expenses, they had a balanced budget.

1059
01:09:01,640 --> 01:09:07,000
 In the proposed column we have revenues increased to $5.2 million based on new development.

1060
01:09:07,000 --> 01:09:10,000
 Expenses are $5.2 million also.

1061
01:09:10,000 --> 01:09:14,000
 As I'd said, we're proposing no rate increases to drainage fees so it's staying flat in

1062
01:09:14,000 --> 01:09:18,440
 the five-year forecast and the drainage reserve is maintained in a million dollars in each

1063
01:09:18,440 --> 01:09:21,440
 of the years.

1064
01:09:21,440 --> 01:09:26,120
 This is the revenue detail for the drainage department.

1065
01:09:26,120 --> 01:09:29,640
 So in the proposed 20-20 budget column you can see we have a little bit of transfers

1066
01:09:29,640 --> 01:09:32,080
 in about $340,000 from the general fund.

1067
01:09:32,080 --> 01:09:36,760
 We have about $4.8 million in drainage fees, these are residential and non-residential

1068
01:09:36,760 --> 01:09:37,760
 fees.

1069
01:09:37,760 --> 01:09:45,840
 And a little bit of auction proceeds for a total of $5.2 million.

1070
01:09:45,840 --> 01:09:50,280
 This is the expense detail for, sorry there's a typo right here, this is actually expenses.

1071
01:09:50,280 --> 01:09:52,320
 This is the expense detail for the drainage department.

1072
01:09:52,320 --> 01:09:56,200
 You can see the proposed 20-20 budget column to the far right.

1073
01:09:56,200 --> 01:09:59,920
 One of the things I wanted to point out is the supplemental package that Daniel did touch

1074
01:09:59,920 --> 01:10:02,320
 on is included in the proposed budget.

1075
01:10:02,320 --> 01:10:03,560
 It's $300,000.

1076
01:10:03,560 --> 01:10:05,880
 You can see that amount listed here.

1077
01:10:05,880 --> 01:10:08,680
 So total expenses of $5.2 million.

1078
01:10:08,680 --> 01:10:14,080
 They do have a balanced budget this year.

1079
01:10:14,080 --> 01:10:16,200
 This is the drainage five-year capital plan.

1080
01:10:16,200 --> 01:10:20,680
 You can see in the five-year period there is about a million dollars in projects or

1081
01:10:20,680 --> 01:10:22,920
 excuse me that's 20-24 is a million.

1082
01:10:22,920 --> 01:10:29,400
 In 2020 the proposed budget column is about $630,000 in projects planned, $385,000 goes

1083
01:10:29,400 --> 01:10:34,640
 to our channels rehab, $100,000 towards Choctaw drainage and a little bit of vehicle replacement

1084
01:10:34,640 --> 01:10:40,920
 money in there.

1085
01:10:40,920 --> 01:10:44,080
 This is the FT summary for the drainage department.

1086
01:10:44,080 --> 01:10:47,200
 Currently there is 24 positions, you can see the number out here.

1087
01:10:47,200 --> 01:10:52,720
 If the supplementals are approved, the four people, it would take the total to 28 positions.

1088
01:10:52,720 --> 01:10:58,520
 That wraps up the drainage presentation.

1089
01:10:58,520 --> 01:11:02,520
 Questions?

1090
01:11:02,520 --> 01:11:05,520
 Thank you.

1091
01:11:05,520 --> 01:11:08,400
 All right.

1092
01:11:08,400 --> 01:11:11,160
 Next is the consent agenda.

1093
01:11:11,160 --> 01:11:16,920
 Does any board member wish to pull an item off of the consent agenda?

1094
01:11:16,920 --> 01:11:21,040
 Pull item B as in boy.

1095
01:11:21,040 --> 01:11:23,520
 Any others?

1096
01:11:23,520 --> 01:11:28,680
 Do we have a motion to approve items A, C and D?

1097
01:11:28,680 --> 01:11:29,680
 Second.

1098
01:11:29,680 --> 01:11:33,080
 All in favor say aye.

1099
01:11:33,080 --> 01:11:34,080
 Aye.

1100
01:11:34,080 --> 01:11:35,080
 Opposed?

1101
01:11:35,080 --> 01:11:36,080
 Okay.

1102
01:11:36,080 --> 01:11:37,080
 Item B.

1103
01:11:37,080 --> 01:12:00,560
 I don't really need any additional details.

1104
01:12:00,560 --> 01:12:04,280
 We just had a conflict of interest so she had to step out of the room and I guess I

1105
01:12:04,280 --> 01:12:07,360
 had to pull it so that's why we did that.

1106
01:12:07,360 --> 01:12:08,360
 Yes sir.

1107
01:12:08,360 --> 01:12:09,360
 Thank you.

1108
01:12:09,360 --> 01:12:13,480
 Anyway, if that's it, that's it.

1109
01:12:13,480 --> 01:12:14,480
 That's it.

1110
01:12:14,480 --> 01:12:15,480
 That is it.

1111
01:12:15,480 --> 01:12:16,720
 Do we have a motion to approve item B?

1112
01:12:16,720 --> 01:12:18,360
 Move to approve item B.

1113
01:12:18,360 --> 01:12:19,360
 Second.

1114
01:12:19,360 --> 01:12:21,240
 All in favor say aye.

1115
01:12:21,240 --> 01:12:22,240
 Aye.

1116
01:12:22,240 --> 01:12:23,240
 Opposed?

1117
01:12:23,240 --> 01:12:24,240
 Motion carries.

1118
01:12:24,240 --> 01:12:25,680
 Will you tell her she can come back in?

1119
01:12:25,680 --> 01:12:28,680
 Tell her she can come back in.

1120
01:12:28,680 --> 01:12:29,680
 Oh yeah.

1121
01:12:29,680 --> 01:12:30,680
 Oh yeah.

1122
01:12:30,680 --> 01:12:31,680
 That's right.

1123
01:12:31,680 --> 01:12:32,680
 You have to leave now.

1124
01:12:32,680 --> 01:12:33,680
 Okay.

1125
01:12:33,680 --> 01:12:34,680
 Okay.

1126
01:12:34,680 --> 01:12:47,040
 Do we'll recluse q zeroes today, I can't say that word.

1127
01:12:47,040 --> 01:12:48,040
 All right.

1128
01:12:48,040 --> 01:12:53,960
 Next item is consider, oh he didn't need to step out quite yet, but consider approval

1129
01:12:53,960 --> 01:12:58,320
 of public utility board meetings of April 22, 2019.

1130
01:12:58,320 --> 01:13:02,040
 Were there any changes or corrections?

1131
01:13:02,040 --> 01:13:04,800
 And they'll stand approved as presented.

1132
01:13:04,800 --> 01:13:09,960
 And now item B, consider recommending the adoption of an ordinance for the city of Denton,

1133
01:13:09,960 --> 01:13:16,240
 a Texas home rule municipal corporation, authorizing the city manager to execute a contract with,

1134
01:13:16,240 --> 01:13:22,240
 I can never say that, JAGO, public company Inc. for the construction of PEC for drainage

1135
01:13:22,240 --> 01:13:27,320
 improvements phase one and two and Elm and Locust street water improvements phase one

1136
01:13:27,320 --> 01:13:33,040
 for the city of Denton.

1137
01:13:33,040 --> 01:13:34,040
 Good morning.

1138
01:13:34,040 --> 01:13:35,040
 Good morning.

1139
01:13:35,040 --> 01:13:36,600
 Board chair and board members.

1140
01:13:36,600 --> 01:13:37,760
 My name is Jim Jenks.

1141
01:13:37,760 --> 01:13:40,280
 I'm with the city's engineering department.

1142
01:13:40,280 --> 01:13:43,800
 I'm the project manager on this particular project.

1143
01:13:43,800 --> 01:13:51,040
 Sorry, I'm going to need a little help just for a moment getting their presentation up

1144
01:13:51,040 --> 01:13:59,080
 and running here.

1145
01:13:59,080 --> 01:14:07,160
 Is it not there?

1146
01:14:07,160 --> 01:14:14,240
 Is it hiding underneath the little menu there?

1147
01:14:14,240 --> 01:14:17,520
 I think it's in the corner.

1148
01:14:17,520 --> 01:14:29,200
 Click there so we can get rid of the box.

1149
01:14:29,200 --> 01:14:38,560
 And there it is in the corner.

1150
01:14:38,560 --> 01:14:39,560
 Thank you.

1151
01:14:39,560 --> 01:14:40,560
 Sorry about that.

1152
01:14:40,560 --> 01:14:46,240
 I have a very brief presentation this morning just to go over the basics of this project.

1153
01:14:46,240 --> 01:14:52,920
 But basically, this is again the PEC for phase one and two drainage improvements project

1154
01:14:52,920 --> 01:15:03,120
 that includes the Elm and Locust water and sewer improvements from Hickory to Eagle.

1155
01:15:03,120 --> 01:15:08,960
 Basically the scope of the project is illustrated in this map here.

1156
01:15:08,960 --> 01:15:14,400
 The major portion of the drainage is what's shown in red.

1157
01:15:14,400 --> 01:15:22,480
 That is our box culvert that's an 18 foot wide by 8 foot tall reinforced box culvert.

1158
01:15:22,480 --> 01:15:29,920
 There are also some drainage pipes that extend northward along Elm and Locust streets also.

1159
01:15:29,920 --> 01:15:36,360
 And what's shown in blue here is the public water and wastewater improvement projects

1160
01:15:36,360 --> 01:15:45,080
 or portions of this project going along Elm and Locust from Eagle up to Hickory.

1161
01:15:45,080 --> 01:15:52,960
 All in all, there's about 1,500 feet of this large 18 by 8 foot box culvert, about 3,100

1162
01:15:52,960 --> 01:16:02,640
 feet of the drainage concrete pipe, 18 inch to 48 inch in diameter, about 5,900 feet of

1163
01:16:02,640 --> 01:16:10,960
 water lines ranging from 8 inch to 20 inch and about 7,800 feet of sewer lines, sanitary

1164
01:16:10,960 --> 01:16:15,520
 sewer ranging from 8 inch to 24 inch.

1165
01:16:15,520 --> 01:16:24,600
 It's with the scope of the project and the sequencing issues involved, the contract construction

1166
01:16:24,600 --> 01:16:32,780
 timeframe is 730 calendar days.

1167
01:16:32,780 --> 01:16:39,200
 This project was bid and this was actually the re-bid following the initial bid last

1168
01:16:39,200 --> 01:16:47,520
 fall which was ultimately rejected due to the price from the one bid being higher than

1169
01:16:47,520 --> 01:16:51,520
 staff thought it should be for this project.

1170
01:16:51,520 --> 01:17:01,040
 We went back, valued engineered, added some options in design and bidding, pardon me,

1171
01:17:01,040 --> 01:17:05,760
 and here are the results that came from the re-bid.

1172
01:17:05,760 --> 01:17:11,680
 You'll see there was three bidders, the lowest being Jago Public Company.

1173
01:17:11,680 --> 01:17:24,240
 What is shown here is we have a base bid and an alternate bid and those total to the scope

1174
01:17:24,240 --> 01:17:32,880
 of work that I had shown you in the previous slide with the map, basically to get the award

1175
01:17:32,880 --> 01:17:38,120
 amount under what was funded for this project.

1176
01:17:38,120 --> 01:17:44,240
 We found that we would need to delete the fiber optic and traffic items.

1177
01:17:44,240 --> 01:17:51,360
 Basically what I'm talking about there is there's two 2 inch conduits along Elm and

1178
01:17:51,360 --> 01:18:00,740
 Locust, kind of similar to what is shown in blue here as far as extents.

1179
01:18:00,740 --> 01:18:07,040
 Those were to facilitate the future installation of fiber optic lines there.

1180
01:18:07,040 --> 01:18:12,920
 Division of those items, we consulted with purchasing, make sure it was okay to do that.

1181
01:18:12,920 --> 01:18:16,600
 It did not change the order of the bidders and so it was determined that that would be

1182
01:18:16,600 --> 01:18:17,600
 fine.

1183
01:18:17,600 --> 01:18:18,600
 That was going to be my question.

1184
01:18:18,600 --> 01:18:21,600
 You took it out of all of them.

1185
01:18:21,600 --> 01:18:22,600
 Right.

1186
01:18:22,600 --> 01:18:29,720
 The amounts that you see here reflect that deletion.

1187
01:18:29,720 --> 01:18:39,840
 Basically the low bid amount with Jago Public is about 10.96 million.

1188
01:18:39,840 --> 01:18:52,440
 What we have found in your AIS, I mentioned towards the end of the information for bidder

1189
01:18:52,440 --> 01:19:01,000
 background section, there was a funding gap still, although the re-bidding process knocked

1190
01:19:01,000 --> 01:19:05,300
 a couple million dollars off the bid amounts, there was still a funding gap that we had.

1191
01:19:05,300 --> 01:19:13,200
 So we worked with the drainage department to identify funds that could be transferred

1192
01:19:13,200 --> 01:19:18,060
 and so that's what I'm speaking to in that part of the AIS.

1193
01:19:18,060 --> 01:19:23,440
 There was funds transferred from the oak tree project, from the Choctaw project, and from

1194
01:19:23,440 --> 01:19:27,240
 the channel rehab account.

1195
01:19:27,240 --> 01:19:33,600
 In the oak tree project and the Choctaw project, there is still money left in those projects

1196
01:19:33,600 --> 01:19:38,040
 to complete design.

1197
01:19:38,040 --> 01:19:42,960
 The last slide I have here is just the formal recommendation.

1198
01:19:42,960 --> 01:19:49,000
 RF is recommending that the city approve an ordinance to execute the construction contract

1199
01:19:49,000 --> 01:20:00,160
 between the city and Jago Public Company in the amount of $10,960,623.19 for the PEK-4

1200
01:20:00,160 --> 01:20:04,520
 phase 1 and 2 drainage improvements and elm and locust water and sewer improvements from

1201
01:20:04,520 --> 01:20:06,120
 Hickory to Eagle.

1202
01:20:06,120 --> 01:20:10,220
 And again, this would correspond to the award of the base bid plus the alternate bid minus

1203
01:20:10,220 --> 01:20:13,200
 the fiber optic and traffic improvements.

1204
01:20:13,200 --> 01:20:15,440
 And that is the extent of my presentation.

1205
01:20:15,440 --> 01:20:17,360
 I'd be happy to stand for any questions.

1206
01:20:17,360 --> 01:20:18,360
 Questions?

1207
01:20:18,360 --> 01:20:25,960
 I just had a quick question, I need some education on how bond money works with this.

1208
01:20:25,960 --> 01:20:31,760
 There was, in the 2014 bond, there was $2.4 million for PEK-4.

1209
01:20:31,760 --> 01:20:37,000
 Is that being folded into this $10 million or has that already been spent for design

1210
01:20:37,000 --> 01:20:41,880
 or what happened with the bond money that was going towards this?

1211
01:20:41,880 --> 01:20:44,680
 Do we have any idea?

1212
01:20:44,680 --> 01:20:45,680
 Yeah, here it comes.

1213
01:20:45,680 --> 01:20:51,880
 I have the breakdown of the accounts that maybe what she's referring to perhaps.

1214
01:20:51,880 --> 01:20:52,880
 Hi.

1215
01:20:52,880 --> 01:20:53,880
 Hi.

1216
01:20:53,880 --> 01:20:54,880
 Lee Perry, Assistant City Engineer.

1217
01:20:54,880 --> 01:20:59,520
 So PEK-4, yeah, phase 1 and phase 2 both had bond money and that's a part of this.

1218
01:20:59,520 --> 01:21:03,240
 And that's just been folded in, those bonds have already been sold?

1219
01:21:03,240 --> 01:21:04,240
 Yes.

1220
01:21:04,240 --> 01:21:05,240
 Okay.

1221
01:21:05,240 --> 01:21:07,160
 I wasn't sure how that worked.

1222
01:21:07,160 --> 01:21:08,160
 Other question?

1223
01:21:08,160 --> 01:21:09,160
 Thank you.

1224
01:21:09,160 --> 01:21:11,600
 I have a question about the fiber optic and the traffic improvements.

1225
01:21:11,600 --> 01:21:16,720
 I know they're not going to be done here, but is that something that is needed and are

1226
01:21:16,720 --> 01:21:23,160
 we looking at doing that later on or are we looking at having that funded in some other

1227
01:21:23,160 --> 01:21:24,160
 way or?

1228
01:21:24,160 --> 01:21:27,880
 We'll be looking at that with our traffic department as far as other options to make

1229
01:21:27,880 --> 01:21:28,880
 that happen.

1230
01:21:28,880 --> 01:21:29,880
 Okay.

1231
01:21:29,880 --> 01:21:30,880
 All right, great.

1232
01:21:30,880 --> 01:21:31,880
 All right.

1233
01:21:31,880 --> 01:21:32,880
 Just wanted to make sure.

1234
01:21:32,880 --> 01:21:33,880
 And then I have a question.

1235
01:21:33,880 --> 01:21:38,880
 With the bids, there's about a $2 million difference between bidders.

1236
01:21:38,880 --> 01:21:43,880
 How confident are we that something didn't get missed by JAGO that's going to come back

1237
01:21:43,880 --> 01:21:47,200
 as a change order or something like that?

1238
01:21:47,200 --> 01:21:55,600
 Well, we have about a $1.2 million difference there between them and the second low bidder.

1239
01:21:55,600 --> 01:22:01,840
 JAGO was the, in the fall when we bid it the first time and got the one bid, they were

1240
01:22:01,840 --> 01:22:04,400
 the one bidder.

1241
01:22:04,400 --> 01:22:11,120
 So they have, they're, they've been looking at the project for a while.

1242
01:22:11,120 --> 01:22:12,120
 Sorry.

1243
01:22:12,120 --> 01:22:14,280
 Go ahead.

1244
01:22:14,280 --> 01:22:17,440
 And they're also currently mobilized at the Eagle Drainage Project.

1245
01:22:17,440 --> 01:22:18,440
 Gotcha.

1246
01:22:18,440 --> 01:22:19,440
 That makes a difference.

1247
01:22:19,440 --> 01:22:20,440
 Okay.

1248
01:22:20,440 --> 01:22:24,120
 And so they're, they'll be ready to start this project right once they're wrapping

1249
01:22:24,120 --> 01:22:25,120
 it up.

1250
01:22:25,120 --> 01:22:26,120
 That makes a difference.

1251
01:22:26,120 --> 01:22:27,120
 Thank you.

1252
01:22:27,120 --> 01:22:28,120
 Okay.

1253
01:22:28,120 --> 01:22:34,440
 Do we have a motion to approve?

1254
01:22:34,440 --> 01:22:35,440
 So moved.

1255
01:22:35,440 --> 01:22:36,440
 I second.

1256
01:22:36,440 --> 01:22:37,440
 All in favor say aye.

1257
01:22:37,440 --> 01:22:38,440
 Aye.

1258
01:22:38,440 --> 01:22:39,440
 Opposed?

1259
01:22:39,440 --> 01:22:40,440
 Okay.

1260
01:22:40,440 --> 01:22:41,440
 That carries.

1261
01:22:41,440 --> 01:22:42,440
 Next item.

1262
01:22:42,440 --> 01:22:46,080
 Consider recommending adoption of an ordinance of the City of Denton, Texas, a Texas Home

1263
01:22:46,080 --> 01:22:52,080
 Rule Municipal Corporation, authorizing the city manager to execute a public works contract

1264
01:22:52,080 --> 01:22:56,960
 with Raymar Construction for the construction of Hickory Creek Lift Station for the City

1265
01:22:56,960 --> 01:23:01,560
 of Denton, providing for the expenditure of funds, therefore, and providing an effective

1266
01:23:01,560 --> 01:23:10,720
 date, and the contract is not to exceed $3,418,000.

1267
01:23:10,720 --> 01:23:15,280
 Good morning again.

1268
01:23:15,280 --> 01:23:18,560
 Ken Banks, General Manager of Utilities.

1269
01:23:18,560 --> 01:23:26,520
 This project is one that we had spoke about a little bit earlier in the, in the budget.

1270
01:23:26,520 --> 01:23:31,320
 The existing Hickory Creek Lift Station pumps all the wastewater flows from the entire Hickory

1271
01:23:31,320 --> 01:23:37,320
 Creek sewer sub-base into the concrete plant, and that station's getting pretty, pretty

1272
01:23:37,320 --> 01:23:39,000
 old.

1273
01:23:39,000 --> 01:23:47,100
 If you recall, there was a failure of this station back in February of 2018.

1274
01:23:47,100 --> 01:23:53,640
 We had a pump that appears to have been trained a piece of material and caused a catastrophic

1275
01:23:53,640 --> 01:23:55,920
 failure at the pump station.

1276
01:23:55,920 --> 01:24:00,880
 Essentially, the electronics are getting outdated.

1277
01:24:00,880 --> 01:24:07,360
 The initial design is starting to create a backup in the interceptor itself, and that's

1278
01:24:07,360 --> 01:24:13,440
 just under normal conditions, so it's time to basically go in and put a more modern version

1279
01:24:13,440 --> 01:24:16,520
 of a pump station in there.

1280
01:24:16,520 --> 01:24:23,440
 There have been a few service interruptions, as I spoke about, and this was actually authorized

1281
01:24:23,440 --> 01:24:28,600
 in terms of the design contract by the City Council back in February 7th of 2017, so we've

1282
01:24:28,600 --> 01:24:31,360
 had this on our radar screen for a little while.

1283
01:24:31,360 --> 01:24:37,200
 Funding for construction was included in the FY19 budget at about $3.7 million.

1284
01:24:37,200 --> 01:24:41,200
 Just to give you a rough idea, and it's not a, not a great map, but you can see kind of

1285
01:24:41,200 --> 01:24:44,400
 where, where we're talking about.

1286
01:24:44,400 --> 01:24:50,600
 This is the Hickory Creek interceptor right here, and this is the pump station that we're

1287
01:24:50,600 --> 01:24:54,920
 referring to that pumps into a force main here, and then gravity feeds onto the concrete

1288
01:24:54,920 --> 01:24:56,280
 plant.

1289
01:24:56,280 --> 01:25:02,480
 So this is Teasley where it turns, and this is where old Alton comes across and goes over

1290
01:25:02,480 --> 01:25:06,160
 Hickory Creek, so kind of give you an idea of where this thing is.

1291
01:25:06,160 --> 01:25:11,840
 So you can see it's collecting from a pretty sizable area of that portion of the basin.

1292
01:25:11,840 --> 01:25:17,240
 So it was advertised for bid in November of 2018 after the final plans were completed.

1293
01:25:17,240 --> 01:25:19,160
 We got two bids.

1294
01:25:19,160 --> 01:25:28,480
 The lowest bidder was Raymar Construction, and their experience was evaluated, and they

1295
01:25:28,480 --> 01:25:32,000
 have the qualifications to be able to complete this job.

1296
01:25:32,000 --> 01:25:34,100
 Bid came in at $3.4 million.

1297
01:25:34,100 --> 01:25:40,600
 We had budgeted around $3.7, so came in a little bit under budget, and that's pretty

1298
01:25:40,600 --> 01:25:42,680
 much the extent of the project.

1299
01:25:42,680 --> 01:25:46,880
 Staff is recommending approval of this contract with Raymar so we can progress on the Hickory

1300
01:25:46,880 --> 01:25:47,880
 Creek station.

1301
01:25:47,880 --> 01:25:51,280
 And I'd be glad to answer any questions.

1302
01:25:51,280 --> 01:25:52,280
 Questions?

1303
01:25:52,280 --> 01:25:53,280
 No?

1304
01:25:53,280 --> 01:25:57,720
 Do we have a motion to approve?

1305
01:25:57,720 --> 01:25:58,720
 Motion to approve.

1306
01:25:58,720 --> 01:25:59,720
 Second.

1307
01:25:59,720 --> 01:26:01,320
 All in favor say aye.

1308
01:26:01,320 --> 01:26:02,320
 Aye.

1309
01:26:02,320 --> 01:26:03,320
 Thank you.

1310
01:26:03,320 --> 01:26:04,320
 Motion carries.

1311
01:26:04,320 --> 01:26:05,320
 Let's see.

1312
01:26:05,320 --> 01:26:06,800
 Next item.

1313
01:26:06,800 --> 01:26:10,920
 Consider recommending adoption of an ordinance of the City of Denton authorizing the City

1314
01:26:10,920 --> 01:26:17,040
 Manager or is designated to execute a purchase agreement by and between MD Massoud Rizab

1315
01:26:17,040 --> 01:26:24,140
 and the City regarding the sale and purchase of a fee simple to an approximate 1.656 acre

1316
01:26:24,140 --> 01:26:28,280
 track more or less situated in the Alexander Hill survey area.

1317
01:26:28,280 --> 01:26:32,440
 I'm going to skip through.

1318
01:26:32,440 --> 01:26:39,000
 For the amount of $2,999,750.

1319
01:26:39,000 --> 01:26:40,000
 Good morning.

1320
01:26:40,000 --> 01:26:43,620
 Paul Williamson, Real Estate Manager.

1321
01:26:43,620 --> 01:26:49,840
 Today before you for your consideration is a purchase agreement for the proposed Eagle

1322
01:26:49,840 --> 01:26:59,600
 Drive substation site, electric substation, location map showing it at the corner of Bernard

1323
01:26:59,600 --> 01:27:08,400
 and Eagle Drive.

1324
01:27:08,400 --> 01:27:13,440
 Things to consider, this track's been in play for quite a long time now so we're

1325
01:27:13,440 --> 01:27:18,760
 kind of toward the end, the culmination of an actual acquisition.

1326
01:27:18,760 --> 01:27:26,160
 We've got a counteroffer for settlement by the owner that's been delivered to us and

1327
01:27:26,160 --> 01:27:30,800
 for y'all's consideration for a potential recommendation and I stand for any questions

1328
01:27:30,800 --> 01:27:33,440
 y'all might have.

1329
01:27:33,440 --> 01:27:34,440
 Questions?

1330
01:27:34,440 --> 01:27:35,440
 Paul.

1331
01:27:35,440 --> 01:27:36,440
 Good morning.

1332
01:27:36,440 --> 01:27:37,440
 Good morning.

1333
01:27:37,440 --> 01:27:42,040
 Is there any other expenses that are associated with this or relocations or?

1334
01:27:42,040 --> 01:27:47,320
 Yeah, there are relocation entitlements for not only the tenants, any tenants that may

1335
01:27:47,320 --> 01:27:48,920
 be there.

1336
01:27:48,920 --> 01:27:50,120
 It's somewhat vacant now.

1337
01:27:50,120 --> 01:27:54,640
 I think there's the tenant in the convenience store and there may be one additional tenant

1338
01:27:54,640 --> 01:28:02,960
 but the tenants, those entitlements are there and so they're due by law for those and even

1339
01:28:02,960 --> 01:28:09,160
 the business, the owner of the land himself, he may be entitled to some relocation benefits

1340
01:28:09,160 --> 01:28:10,160
 as well.

1341
01:28:10,160 --> 01:28:11,600
 That's not in this budget.

1342
01:28:11,600 --> 01:28:15,040
 No, they're considered as a separate matter.

1343
01:28:15,040 --> 01:28:22,560
 Well, we've been talking about this for a while so do we have a motion to approve?

1344
01:28:22,560 --> 01:28:23,560
 Motion to approve.

1345
01:28:23,560 --> 01:28:24,560
 I second it.

1346
01:28:24,560 --> 01:28:26,040
 All in favor say aye.

1347
01:28:26,040 --> 01:28:27,040
 Aye.

1348
01:28:27,040 --> 01:28:28,040
 Thank you.

1349
01:28:28,040 --> 01:28:29,040
 Motion carries.

1350
01:28:29,040 --> 01:28:30,040
 ACM update.

1351
01:28:30,040 --> 01:28:31,040
 Thank you.

1352
01:28:31,040 --> 01:28:32,040
 I just have two items.

1353
01:28:32,040 --> 01:28:33,040
 You've got the new business action items.

1354
01:28:33,040 --> 01:28:41,840
 We've got the one pending item to discuss the meeting time.

1355
01:28:41,840 --> 01:28:47,720
 I'm going to work with the city manager's office before I get that scheduled here, upcoming

1356
01:28:47,720 --> 01:28:48,720
 meeting here shortly.

1357
01:28:48,720 --> 01:28:55,720
 And then the future public utility board agenda items, predominantly you can see that we're

1358
01:28:55,720 --> 01:29:00,720
 in budget time.

1359
01:29:00,720 --> 01:29:05,640
 You can see that we're in budget time right now, so we've got a lot of upcoming budget

1360
01:29:05,640 --> 01:29:06,640
 presentations.

1361
01:29:06,640 --> 01:29:13,720
 So that's all I have and oh, I didn't want to acknowledge, I'm sorry.

1362
01:29:13,720 --> 01:29:18,520
 We do have a tour scheduled for the water, wastewater and solid waste facilities that

1363
01:29:18,520 --> 01:29:23,720
 is going to occur on May the 17th.

1364
01:29:23,720 --> 01:29:27,080
 It's going to be from 830 till approximately noon.

1365
01:29:27,080 --> 01:29:35,160
 We have three takers so far, so I'm looking forward to all of y'all seeing the plans.

1366
01:29:35,160 --> 01:29:38,600
 I think you'll enjoy the tour.

1367
01:29:38,600 --> 01:29:43,080
 If another PUD member is interested, you're more than welcome, but keep in mind we have

1368
01:29:43,080 --> 01:29:45,320
 to post if we go above three.

1369
01:29:45,320 --> 01:29:49,880
 So just if you could let us know.

1370
01:29:49,880 --> 01:29:50,880
 That's all I have.

1371
01:29:50,880 --> 01:29:52,440
 All right.

1372
01:29:52,440 --> 01:29:58,120
 Boarding items, is there any item that a board member would like placed on the agenda in

1373
01:29:58,120 --> 01:29:59,120
 the future?

1374
01:29:59,120 --> 01:30:08,080
 I don't have an agenda item, but through email we received information about attendance.

1375
01:30:08,080 --> 01:30:09,080
 Yes.

1376
01:30:09,080 --> 01:30:14,320
 And I wanted to know, was that a change in the current attendance policy or was that

1377
01:30:14,320 --> 01:30:18,960
 just a reminder or how come we got sent the attendance policy?

1378
01:30:18,960 --> 01:30:22,840
 Oh, that's been a policy forever.

1379
01:30:22,840 --> 01:30:28,240
 I think we were just not enforcing it maybe.

1380
01:30:28,240 --> 01:30:31,640
 It came up with city council.

1381
01:30:31,640 --> 01:30:32,640
 Say that again.

1382
01:30:32,640 --> 01:30:35,680
 It came up with city council, but this is a trickle down.

1383
01:30:35,680 --> 01:30:41,880
 So no one wants to own up to why we got sent that particular email.

1384
01:30:41,880 --> 01:30:42,880
 Kim sent it.

1385
01:30:42,880 --> 01:30:43,880
 I don't know who told you to send it.

1386
01:30:43,880 --> 01:30:44,880
 You're the messenger.

1387
01:30:44,880 --> 01:30:51,880
 You're not going to tell us who told you?

1388
01:30:51,880 --> 01:30:54,640
 I actually thought it was two, not three.

1389
01:30:54,640 --> 01:30:55,640
 It said three, right?

1390
01:30:55,640 --> 01:30:56,640
 And I thought it was two.

1391
01:30:56,640 --> 01:31:01,320
 I swear my handbook says two, so at any rate.

1392
01:31:01,320 --> 01:31:02,320
 Can I make a suggestion?

1393
01:31:02,320 --> 01:31:03,320
 Sure.

1394
01:31:03,320 --> 01:31:08,720
 Let me follow up with that and we'll provide a small informal staff report and send it

1395
01:31:08,720 --> 01:31:10,080
 out to the board.

1396
01:31:10,080 --> 01:31:11,080
 That would be wonderful.

1397
01:31:11,080 --> 01:31:14,680
 I'm curious if that's the same for all boards and commissions, because some only meet like

1398
01:31:14,680 --> 01:31:20,760
 four times a year, and some of us meet 12 times a year, and it seems like attendance.

1399
01:31:20,760 --> 01:31:21,760
 Hospital 24.

1400
01:31:21,760 --> 01:31:22,760
 What's that?

1401
01:31:22,760 --> 01:31:23,760
 Hospital 24.

1402
01:31:23,760 --> 01:31:24,760
 Indeed.

1403
01:31:24,760 --> 01:31:27,560
 I was just throwing out some numbers there, you know, because I know some only meet when

1404
01:31:27,560 --> 01:31:28,560
 they have to.

1405
01:31:28,560 --> 01:31:34,920
 But really we're just going to let it be us that discusses this, and you, nobody's got

1406
01:31:34,920 --> 01:31:35,920
 it.

1407
01:31:35,920 --> 01:31:36,920
 Okay.

1408
01:31:36,920 --> 01:31:37,920
 All right.

1409
01:31:37,920 --> 01:31:38,920
 Well, it was always the policy.

1410
01:31:38,920 --> 01:31:39,920
 Yeah, yeah, yeah.

1411
01:31:39,920 --> 01:31:40,920
 I understand that.

1412
01:31:40,920 --> 01:31:41,920
 I read the policy.

1413
01:31:41,920 --> 01:31:46,040
 And Kim sent us a reminder of the policy, I guess.

1414
01:31:46,040 --> 01:31:47,040
 Yeah.

1415
01:31:47,040 --> 01:31:48,040
 No problem.

1416
01:31:48,040 --> 01:31:49,040
 Thank you.

1417
01:31:49,040 --> 01:31:50,040
 All right.

1418
01:31:50,040 --> 01:31:52,480
 Any other items?

1419
01:31:52,480 --> 01:31:53,480
 Motion to adjourn?

1420
01:31:53,480 --> 01:31:54,480
 It's a high move.

1421
01:31:54,480 --> 01:31:55,480
 We adjourn.

1422
01:31:55,480 --> 01:31:56,480
 We're adjourned.

1423
01:31:56,480 --> 01:31:56,480
 Without my answer about attendance.