WEBVTT

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 Okay, it's 9 o'clock and we have a quorum so it's called to order the May 6, 2019 Public

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 Utilities Board meeting.

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 The first item on the agenda is to receive a report, hold a discussion and give staff

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 direction regarding the customer service fiscal year 2019-2020 operating budget.

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 Good morning Madam Chair, Board, Tiffany Thompson, Director of Customer Service.

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 Happy to be here this morning to go over our budget presentation.

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 So customer service mission is to help serve and educate our customers.

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 Last year we calculated and produced over 641,000 bills.

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 We filled at 195,000 phone calls, assisted 64,000 customers in our lobby and collected

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 and reconciled over $287 million worth of revenue.

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 So some of our accomplishments is we did launch the Page-You-Go prepaid metering program.

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 We have about 130 customers on that program right now.

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 We also launched an after-interaction survey with our lobby customers coming in.

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 This is in addition to the survey that we offer over the phone.

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 So anytime you interact with our customer service agents, you're given an opportunity

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 to answer three short questions about your interaction and then also you can get a callback

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 from a supervisor if you'd like to further discuss your interaction or have some concerns.

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 We've had over 24,000 surveys completed through that and the customers that are wanting a

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 callback, 75% of those customers are wanting a callback to give compliments on the experience

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 that they receive from the customer service representative.

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 So the other 25% has been opportunities on how we can improve.

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 We also conducted the study of the credit and collection processes that we brought forth

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 to you in March with that.

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 And then we also did an audit, a stem to stern audit in our operation, spent about 400 hours

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 with the internal auditor and did some process improvements with that.

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 So our goals for this year is to continue to boost the adoption with our prepaid metering

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 program.

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 We're also adding an additional 18 locations to be able to pay your bill that's going to

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 be at our 7-11 locations and also our family tree locations that we have in here.

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 And then you'll be able to pay also multiple locations nationwide.

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 We're also doing a study of our call center performance metrics with Navigant as well

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 to make sure that we have the right performance metrics and that we're up to best industry

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 standards with our metrics as well.

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 And then we're also going to have some subject matter expert representatives that can help

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 our customers that have sensitive and difficult situations that they're working through.

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 So not only helping them know what programs the city offers, but also the community and

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 home with it, so those are some of our goals that we have this year.

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 So our budget emphasis is to maximize value while containing and limiting costs.

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 So we do this by focusing on our performance measures.

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 So some of the ones I want to point out is obviously bad debt is one that we want to

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 continue to look at.

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 Over the last several years that has been decreasing, but we did make some recent policy

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 changes that is impacting that slightly with this last fiscal year and we're anticipating

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 that to increase a little bit more as well.

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 And so we also want to make sure our self-service adoption, so our customers are able to make

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 payments online without contacting us or having other options to be able to do business online.

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 And then first contact resolution, making sure we're offering that complete solution

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 when the customer calls in and not creating duplication of effort on our part and also

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 the customer's part.

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 And then average speed of answer, how quickly we answer that phone call when they come in.

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 We have a goal to answer that phone call within 60 seconds or less, right now we're answering

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 that in about 29 seconds.

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 So the key drivers of our budget is our customer volume, the behaviors of our customers and

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 then how we respond to that volume.

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 So we want to make sure we're looking at ways to reduce that volume and improve efficiency

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 by increasing our customer satisfaction.

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 So we do that by investing in self-service options.

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 About a year and a half ago we launched the new payment portal that we have.

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 We have 46% of our customer base is registered and using that payment portal.

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 And then also 25% of our customer base is on electronic billing.

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 So that saves us about 10 to 12 cents per bill per month with the customers that go

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 on that electronic billing.

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 And then approve efficiency.

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 So we want to continue to leverage the feedback that we're getting from the survey.

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 And I'm going to talk to you just a minute about some of the things that we implemented

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 based off of that feedback that we received.

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 So here's some of what has happened with our cost containment strategies and also just some

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 changes in our customer behavior.

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 So our customer base continues to go up.

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 Our lobby volume has been decreasing over the last several years and that's directly

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 impacted by based off of the self-service options that we've been offering.

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 And so they've either transitioned to doing it themselves or they call us over the phone.

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 So we are seeing an increase in our call center volume based off of customer base increase

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 and that the calls that we're getting are the more complex calls that we do need to

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 hear from.

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 Our average handle time has also steadily increased over the last several years.

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 And this is because, again, the calls that we're handling are more complex calls.

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 So signing up for service.

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 If they're needing to sign up for prepaid utilities, there's a lot of education that

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 goes with that.

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 So again, the customers we're hearing from are the ones that we need to talk to and spend

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 a little bit of time with.

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 And then our average speed of answer, this demonstrates how productive we're being.

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 So even though our average handle time has increased, we're being efficient with our

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 resources that we have deployed for our customers.

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 So some of the process improvements that we've made this year, we've developed over 300 standard

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 operating procedures that we previously didn't have.

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 We have them in multiple different formats and places.

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 And so this last year, we really focused on getting it in one central location to be able

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 to know what is the process and really a source of truth for all the processes and methods

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 that we have.

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 We've also added a Spanish option to our payment portal.

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 This was a feedback that we got from our Spanish representatives and also from the survey results.

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 So now customers that were calling in needing to do business over the phone with the Spanish

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 representatives now have that capability to do that online.

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 So that's one example of one of the things we implemented based off the survey feedback.

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 And then we also launched a self-service transfer and disconnection capability on our payment

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 portal.

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 So that's another way that customers don't need to reach out to us directly.

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 They can do that online at any time to disconnect or transfer their service.

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 So as an internal service fund, our cost allocation is divided among the utilities and general

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 government that use our services.

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 So that's based off of if they're represented on a bill or we take a phone call from them,

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 they get a certain portion of our budget allocation back to them.

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 And so based off of that, our budget is increasing and some of the changes I wanted to note with

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 that we did have a mid-year change with an additional FTE this year.

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 We have some plan changes in our supplemental packages.

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 It's a 1.5 CSR and then also a quality control specialist that I'm going to talk about in

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 just a couple of minutes.

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 And then increased funding from $125,000 to $175,000 for the plus one program.

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 And that was based off some direction that we got about a month ago from the board and

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 also council.

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 And then some contingency preparation.

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 So currently we have a contract with Elevon.

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 They're our merchant services provider for our online credit and debit card payment.

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 We do need to shift over to Wells Fargo Merchant Services.

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 There is some changes in the way that we're going to be able to charge the 2.7 commercial

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 fee with that.

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 So we're going to be coming forth to you with some direction, seeking direction on some

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 options in the next couple of weeks because that will have some impacts on if we're going

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 to absorb certain costs for our commercial customers and also impacts our electronic

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 check payments as well.

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 So we're vetting out some options and bringing forth to you again to seek direction.

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 But we do need to plan for worst case scenario in our budget if we needed to absorb those

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 costs.

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 So this $200,000 is what that impact is.

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 So some of our highlights, the personal services with the increase, additional FTEs.

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 This is a fully loaded budget that you're seeing right here with the supplemental packages

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 included.

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 We are seeing an increase in our postage and printing due to the cost of paper.

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 And then our merchant services fees is included, that additional $200,000 in that operations.

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 So for our position summary, we currently have 43.5 FTEs.

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 Over the last several years, we have been combining and eliminating positions.

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 So this is going to be the first year that we're seeking to add some additional positions

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 based off of our customer base and complexity of calls that we're servicing.

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 We have the 30 staff that's dedicated just to our front line customer service support.

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 So for our supplemental packages, we are seeking an additional 1.5 that's a full-time and a

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 part-time customer service representative, again, based off of customer base, wanting

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 to make sure that we meet our service level agreements, answering that phone call, first

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 contact resolution.

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 And then the quality control specialist, this was a recommendation during our audit process,

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 is having someone that can do quality control on all of our billing.

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 We do have some processes set in place, but there isn't a dedicated person that is looking

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 over rate application and additional, again, just quality control for all of our billing

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 processes.

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 This person would also assist with quality control for our call center and cash, just

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 based off of the number of calls that we do quality assurance on.

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 And then we have a six-week training program for all of our new customer service representatives

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 that start with our department, and we are almost always in some type of training program.

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 So this is what this person would be, how they would be spending their time with that.

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 And so with that, I'd like to thank the board for their continued support, and happy to

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 answer any questions.

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 Questions?

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 The pay near me plan, did that contract come before us?

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 It did not come before you, because it's just an addition to the prepay metering contract.

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 With that, we're able to do that, and there is no cost to the city to do that.

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 It's going to be passed through to the customers that are utilizing it.

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 So there isn't any cost to the city with it.

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 But once we go live with that, we're going to be bringing forth an informal staff report

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 that will be put to the PUB so you're aware of what's going on, how it works, and then

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 marketing to our customers.

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 Okay, so essentially, they can pay at 7-Eleven, but they have to pay the percentage fee.

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 Any fee associated.

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 And 27,000 other locations, that's all the same.

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 It's the same thing that we have with MoneyGram and Fidelity Express.

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 If you go to Kroger, same type of thing.

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 We just wanted to continue to offer additional places to pay, but this also complements the

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 pay as you go program, because we need real-time information to be able to get that.

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 So it's important to us for our customers to be able to go and have alternate locations

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 to pay, and us get that information immediately.

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 Sure, sure, sure.

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 One more question.

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 With respect to the pay as you go program, I know those people can access their usage

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 online through some kind of portal.

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 When are the rest of our customers going to be able to use that?

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 So we're looking at that now.

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 Right now, we've been focusing on getting the prepaid customers with that, but that's

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 going to be a game plan.

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 I'm glad you brought that up, because we can definitely make sure that's an articulated

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 goal for our post-pay customers to also be able to do that.

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 So what we can do is once we're ready to implement that, we can come forward to the PUB and let

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 you know this is ready to go, and here's the process to do that.

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 I mean, that's something we've already budgeted for and paid for.

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 Yes, sir.

00:11:37.920 --> 00:11:38.920
 Okay.

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 So as soon as we can get that online, it seems like that might be useful to everybody, especially

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 if we've already paid for it.

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 It's going to be sooner than later, so.

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 And that'll be both electric and water?

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 You have to have electric to be able to have the my usage, because that's the trigger.

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 If you're a water-only customer, the data isn't there, because we're still estimating

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 water usages.

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.

00:12:04.680 --> 00:12:05.680
 Yeah.

00:12:05.680 --> 00:12:06.680
 Right.

00:12:06.680 --> 00:12:09.680
 I'll let you say that, so.

00:12:09.680 --> 00:12:12.640
 That's what you said.

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 I just want to say your time to answer is an excellent -- you're doing excellent in

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 that.

00:12:18.280 --> 00:12:19.280
 Thank you.

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 I think there's 43.5 people that make this happen.

00:12:22.840 --> 00:12:23.840
 Yeah.

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 I just get to be the mouthpiece.

00:12:25.680 --> 00:12:26.680
 Yeah.

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 Sorry.

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 One more thing.

00:12:28.680 --> 00:12:29.680
 Sure.

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 With our merchant services agreements, you're going to bring that back to us to tell us the

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 details of that?

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 Yes.

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 So right now, just high level, we charge a 2.7% fee on the commercial customers.

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 Our contract that we need to go to with Wells Fargo Merchant Services does not support that.

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 They say we need to have a flat fee, and so -- and we also would not be considered a general

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 government mid, we'd be considered a utility mid, and so there's different complexities

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 that go along with that, so there's going to be some costs associated.

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 Do we want to absorb the fees?

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 Do we want to pass on the fee?

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 What should that fee be?

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 It also --

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 Is there a do we even want to do business with Wells Fargo option?

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

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 a request for proposal for that one specific service.

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 The contract that we're operating under now, which the PUB and council gave us a one-year

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 extension just a couple of weeks ago, is up May of 2020, so we have to have a solution

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 by that time, and that's a very aggressive goal, just to be able to do that with it.

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 So we're vetting out all those options.

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 It's going to be coming for you in the next couple of weeks, so we can get your direction

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 on where would you like us to go with that.

00:13:35.440 --> 00:13:36.440
 Okay.

00:13:36.440 --> 00:13:37.440
 All right.

00:13:37.440 --> 00:13:38.440
 Thank you.

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 Any questions?

00:13:39.440 --> 00:13:40.440
 Okay.

00:13:40.440 --> 00:13:41.440
 All right.

00:13:41.440 --> 00:13:42.440
 Thank you again.

00:13:42.440 --> 00:13:43.440
 Thank you.

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 All right.

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 The next item is to receive a report, hold a discussion, and give staff direction regarding

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 the water fiscal year 2019 and 2020 operating in capital budget.

00:13:55.960 --> 00:13:59.760
 Okay.

00:13:59.760 --> 00:14:01.160
 Good morning, Madam Chair, board members.

00:14:01.160 --> 00:14:03.920
 I am Frank Pugsley, director of water utilities.

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

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 budget.

00:14:09.680 --> 00:14:10.920
 Crystal Westbrook sitting over there.

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,

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 and you'll see what Nick Vinson is going to present after my operations piece.

00:14:19.960 --> 00:14:21.360
 It's all come together pretty well.

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 I'd also like to introduce our two superintendents in the water utility.

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 We have Mr. Hector Ortiz.

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 He joined the city in April.

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 He is the water production superintendent, and to his left is Kent Conkle.

00:14:32.560 --> 00:14:34.880
 He is our water and wastewater superintendent.

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 He manages all the construction and maintenance crews you see around town.

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

00:14:43.040 --> 00:14:44.680
 also acknowledge Tim Fisher.

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

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

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

00:14:57.520 --> 00:15:02.440
 he's done for the past 20 plus years, so thank you, Tim.

00:15:02.440 --> 00:15:09.440
 With that, let's get started.

00:15:09.440 --> 00:15:26.320
 There we go.

00:15:26.320 --> 00:15:27.320
 Goals and accomplishments.

00:15:27.320 --> 00:15:31.920
 Over the last year, we've accomplished a lot, I think, in the organization.

00:15:31.920 --> 00:15:36.680
 Number one on my list is back last fall around September timeframe, we began implementing

00:15:36.680 --> 00:15:42.320
 a really detailed construction schedule for our water and wastewater construction crews.

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

00:15:46.920 --> 00:15:49.160
 sure that we know where we're going down the road.

00:15:49.160 --> 00:15:54.160
 We started out with just about a couple of months of planning out with other projects

00:15:54.160 --> 00:15:57.040
 out kind of floating out there that we pick from as we go along.

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

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

00:16:04.680 --> 00:16:08.680
 department and the project management office, and that helps all three of those groups really

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

00:16:13.960 --> 00:16:18.100
 have these long lag times between water and wastewater replacing utilities and streets

00:16:18.100 --> 00:16:20.280
 coming out to replace the street.

00:16:20.280 --> 00:16:24.920
 Sometimes months later, we want to bring that lag time down to weeks rather than months.

00:16:24.920 --> 00:16:29.320
 We also updated our water distribution master plan, which is essentially our roadmap for

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

00:16:35.440 --> 00:16:40.240
 updated our five-year impact fee program, which is our roadmap for growth-related projects

00:16:40.240 --> 00:16:43.520
 that we can fund with our impact fee revenue.

00:16:43.520 --> 00:16:49.320
 We completed some critical repairs to the Lake Louisville 30-inch raw water pipeline.

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

00:16:53.640 --> 00:16:56.480
 repairs coming in the next couple of fiscal years.

00:16:56.480 --> 00:17:02.720
 Our goals coming up were really just maintenance and growth-related issues at the two treatment

00:17:02.720 --> 00:17:07.480
 plants, some upgrades for Lake Louisville, additionally adding some zebra mussel controls

00:17:07.480 --> 00:17:12.200
 at our raw water intake structures, because both of our lakes do have zebra mussel infestations

00:17:12.200 --> 00:17:13.200
 now.

00:17:13.200 --> 00:17:15.200
 We need to be cognizant of controlling those.

00:17:15.200 --> 00:17:19.520
 Ray Roberts Water Treatment Plant really hasn't had any major upgrades since it was constructed

00:17:19.520 --> 00:17:20.920
 and brought online in 2002.

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

00:17:24.160 --> 00:17:30.960
 of do some heavier lifting and bring that plant back into full operating potential.

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

00:17:35.480 --> 00:17:39.880
 and west sides of town, the north-south water transmission main along Bonnie Bray and the

00:17:39.880 --> 00:17:43.680
 Allred and John Payne Road water transmission lines.

00:17:43.680 --> 00:17:48.200
 We are very close to securing, I believe, our water reuse permit from the TCEQ, and

00:17:48.200 --> 00:17:54.040
 that will get us up to 12 MGD of additional water right, claiming our wastewater effluent

00:17:54.040 --> 00:17:56.480
 in the future.

00:17:56.480 --> 00:18:00.880
 And we are currently working on our water distribution system asset management plan,

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

00:18:06.080 --> 00:18:08.760
 distribution replacement projects.

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

00:18:12.160 --> 00:18:14.520
 up good pipe and replacing it with new pipe.

00:18:14.520 --> 00:18:17.880
 We want to make sure we're replacing the correct pipes and correct valves and infrastructure

00:18:17.880 --> 00:18:20.120
 when we need to.

00:18:20.120 --> 00:18:25.640
 That's going to help, I think, with our budget and operating expenses going forward.

00:18:25.640 --> 00:18:30.680
 Between all of our departments, we've centralized on the City Works work order management system,

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

00:18:33.840 --> 00:18:35.640
 as work orders go.

00:18:35.640 --> 00:18:41.080
 We went through a vehicle study to identify our less efficient heavy equipment and make

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.

00:18:45.560 --> 00:18:50.320
 I mentioned the asset management program.

00:18:50.320 --> 00:18:52.320
 Cost-containment strategies in our current budget.

00:18:52.320 --> 00:18:57.280
 We have our current proposed budget salary savings of $500,000.

00:18:57.280 --> 00:19:01.680
 The asset management program will again help us to reduce our capital expenditures where

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

00:19:04.800 --> 00:19:07.720
 our money to the best use possible.

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

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

00:19:19.840 --> 00:19:22.840
 water utility.

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

00:19:27.000 --> 00:19:32.320
 the CIP project for our Ray Roberts water treatment plant expansion.

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

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.

00:19:42.360 --> 00:19:45.120
 Process improvements, I'm going to hit on that construction schedule a couple of times

00:19:45.120 --> 00:19:46.920
 because it really has helped our process.

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

00:19:52.040 --> 00:19:53.240
 it some to that.

00:19:53.240 --> 00:19:58.520
 We're way ahead of our projected line replacements for this year.

00:19:58.520 --> 00:20:02.120
 We've also started cross-training some of our staff on the various equipment that we

00:20:02.120 --> 00:20:04.760
 have in the water and wastewater crews out in the field.

00:20:04.760 --> 00:20:10.280
 We have various equipment from various manufacturers, and we want the staff to be comfortable switching

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

00:20:14.600 --> 00:20:18.000
 over when they're needed.

00:20:18.000 --> 00:20:21.960
 We've also experimented this past year with dual-purpose crews.

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

00:20:25.760 --> 00:20:27.760
 water and wastewater respectively.

00:20:27.760 --> 00:20:32.080
 When we have the opportunity now on certain projects, we'll have the water distribution

00:20:32.080 --> 00:20:35.720
 crew go in and replace both water and wastewater assets on the street.

00:20:35.720 --> 00:20:38.240
 Same thing for water or the wastewater collections crews.

00:20:38.240 --> 00:20:41.880
 It saves us immobilization, and it saves us some time switching out crews, and it helps

00:20:41.880 --> 00:20:48.720
 us complete some of those projects a little bit faster.

00:20:48.720 --> 00:20:53.560
 To go over our supplemental packages, we have six ranked on here.

00:20:53.560 --> 00:21:00.440
 Water metering maintenance, we're asking for one FTE, and that is a water meter maintenance

00:21:00.440 --> 00:21:01.440
 mechanic.

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

00:21:08.300 --> 00:21:12.200
 from 16 and a half FTEs to 18 in the last 20 years.

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

00:21:15.640 --> 00:21:19.560
 to grow, and our replacements are continuing to grow.

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

00:21:28.680 --> 00:21:29.680
 metering admin.

00:21:29.680 --> 00:21:30.680
 Yes, sorry.

00:21:30.680 --> 00:21:36.080
 Currently, one and a half admins in the water metering group, and again, their call volume

00:21:36.080 --> 00:21:37.440
 continues to increase.

00:21:37.440 --> 00:21:41.200
 We're asking to take our half-time employee to a full-time employee.

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

00:21:45.720 --> 00:21:47.440
 15,500 calls a year.

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

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

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

00:22:00.560 --> 00:22:02.320
 full-time.

00:22:02.320 --> 00:22:06.480
 The water production operator one is for the Lake Louisville water treatment plant.

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

00:22:12.680 --> 00:22:16.080
 to bring on that employee until later in the fiscal year.

00:22:16.080 --> 00:22:19.880
 As part of the Lake Louisville treatment plant upgrades, we'll be installing a solids handling

00:22:19.880 --> 00:22:25.220
 system, which uses a belt filter press to help dewater our water sludge, and that piece

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

00:22:29.680 --> 00:22:31.760
 and make sure its uptime is high.

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

00:22:35.680 --> 00:22:38.880
 once that project is commissioned and brought online.

00:22:38.880 --> 00:22:42.280
 We have a utility admin assistant one and a utility admin intern.

00:22:42.280 --> 00:22:44.280
 These are both for sustainability.

00:22:44.280 --> 00:22:49.360
 The sustainability group will be leaving the service center for a new facility, and at

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,

00:22:54.680 --> 00:23:01.080
 so they will need one FTE admin there, and the utility admin intern for sustainability

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

00:23:06.900 --> 00:23:13.040
 as to handle some of the after hours outreach events that the sustainability group are kind

00:23:13.040 --> 00:23:17.360
 of volunteering their time after hours to complete, so that intern could help us accomplish

00:23:17.360 --> 00:23:19.760
 a lot of those tasks.

00:23:19.760 --> 00:23:26.840
 We have two asks in the water distribution group, an HEO2 and a maintenance crew truck.

00:23:26.840 --> 00:23:32.240
 This is going to be targeted mostly towards hydrant painting and hydrant maintenance.

00:23:32.240 --> 00:23:35.840
 As our construction load goes up and then we have emergencies, we're pulling our maintenance

00:23:35.840 --> 00:23:40.680
 crews into construction occasionally, and by having this extra dedicated person, we

00:23:40.680 --> 00:23:44.920
 can really focus their attention on making sure we're getting out there and maintaining

00:23:44.920 --> 00:23:45.920
 our fire hydrants.

00:23:45.920 --> 00:23:50.240
 We do operate every fire hydrant in the city every year through the maintenance or the

00:23:50.240 --> 00:23:55.040
 metering shop, and whenever they identify an issue, they will submit a work order, and

00:23:55.040 --> 00:24:02.600
 this employee would then go out and take care of the fire hydrant maintenance issues.

00:24:02.600 --> 00:24:08.440
 This is our projection that kind of discusses when our new treatment plant will require

00:24:08.440 --> 00:24:10.540
 to be online.

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.

00:24:17.800 --> 00:24:24.560
 This is actually designed to begin in 2023, construction would begin in 2025 about, and

00:24:24.560 --> 00:24:28.400
 then the plant needs to be online in 2028 based on our current projections.

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

00:24:33.280 --> 00:24:40.080
 down, and between our two estimates, we feel confident that beginning design in 2023 and

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

00:24:45.960 --> 00:24:47.960
 demands.

00:24:47.960 --> 00:24:52.520
 The three lines on the graph, the red, blue, and green, we plan our treatment capacity

00:24:52.520 --> 00:24:55.760
 based on the dry year, because that's the one that we're really concerned with.

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

00:25:01.400 --> 00:25:06.520
 measures, and all the little black dots you can see are our actual pumpage.

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

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

00:25:15.320 --> 00:25:17.240
 near peak record in July.

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

00:25:22.680 --> 00:25:27.000
 going forward.

00:25:27.000 --> 00:25:33.600
 And with that, I'll turn it over to Nick to handle the financial side.

00:25:33.600 --> 00:25:35.040
 Good morning, Chair, PB members.

00:25:35.040 --> 00:25:37.660
 As Frank said, I'm Nick Vincent, the city's budget manager.

00:25:37.660 --> 00:25:41.880
 I'll be presenting to you the financial portion of the proposed 19-20 water budget.

00:25:41.880 --> 00:25:43.680
 Feel free to stop me throughout these slides.

00:25:43.680 --> 00:25:46.600
 If you have any questions, I'd be happy to answer your questions.

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

00:25:50.400 --> 00:25:54.280
 to change the way that impact fee revenue is currently used in the water fund.

00:25:54.280 --> 00:25:56.720
 I'll review that with you on the next slide.

00:25:56.720 --> 00:26:01.440
 We are not forecasting any rate increases for the current proposed budget in 2020, but

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

00:26:06.120 --> 00:26:08.040
 that Frank talked about.

00:26:08.040 --> 00:26:11.160
 We are projecting a 2% population growth.

00:26:11.160 --> 00:26:17.480
 We do have a declining GPCD plugged in, going down to 152 in fiscal year 2024.

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.

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

00:26:28.320 --> 00:26:30.240
 used in the water fund.

00:26:30.240 --> 00:26:35.120
 When we receive this revenue currently, we do apply it to eligible debt service.

00:26:35.120 --> 00:26:40.000
 Moving forward, we are proposing to change this method to fund both debt service and

00:26:40.000 --> 00:26:43.200
 upfront project cost of eligible projects.

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

00:26:47.800 --> 00:26:48.800
 million.

00:26:48.800 --> 00:26:51.600
 The revenue component would be about 3.8 million.

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

00:26:56.000 --> 00:26:58.040
 upfront project cost.

00:26:58.040 --> 00:27:02.600
 This does save the fund money associated with interest of issuing bonds for these projects.

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.

00:27:08.940 --> 00:27:13.200
 This slide summarizes how much revenue the water fund can recover through impact fees

00:27:13.200 --> 00:27:15.140
 over a 10-year period.

00:27:15.140 --> 00:27:18.720
 Last fall, the impact fee study was completed for the water fund.

00:27:18.720 --> 00:27:24.000
 It did identify $66 million in total recoverable costs that we could recoup through impact

00:27:24.000 --> 00:27:25.320
 fees.

00:27:25.320 --> 00:27:27.880
 When that money does come in, we can apply it to two different things.

00:27:27.880 --> 00:27:33.080
 We can pay debt service of eligible projects, or we can cash fund projects upfront.

00:27:33.080 --> 00:27:37.960
 Our current project list identified about $17 million worth of projects we can revenue fund

00:27:37.960 --> 00:27:42.920
 upfront, and then about $49 million worth of debt service that we can apply towards

00:27:42.920 --> 00:27:44.800
 the debt service component.

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,

00:27:49.120 --> 00:27:54.280
 about $21 million towards debt service and about $11.2 million towards revenue funding.

00:27:54.280 --> 00:27:57.260
 So we are within those requirements.

00:27:57.260 --> 00:27:58.560
 This is the five-year forecast.

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.

00:28:04.340 --> 00:28:08.400
 We did have about a drawdown of $4.4 million in reserves.

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

00:28:11.400 --> 00:28:13.860
 about $4 million in reserves.

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

00:28:19.720 --> 00:28:21.320
 million in reserves.

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,

00:28:26.800 --> 00:28:29.760
 we do have supplemental packages already included in the budget.

00:28:29.760 --> 00:28:33.560
 You can see that amount here of $304,000.

00:28:33.560 --> 00:28:38.160
 Moving down the page, we are not forecasting any rate increases in the current fiscal year

00:28:38.160 --> 00:28:39.160
 or in 2021.

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

00:28:45.360 --> 00:28:46.840
 in '25.

00:28:46.840 --> 00:28:50.640
 The reserves for this fund do stay above the minimum in each of the years.

00:28:50.640 --> 00:28:52.980
 The current year is $19.2 million.

00:28:52.980 --> 00:28:56.640
 It does increase to $41 million in the future years.

00:28:56.640 --> 00:29:00.320
 I also want to point out, currently, we do have an impact fee reserve.

00:29:00.320 --> 00:29:03.640
 In that reserve, we do have about $14.8 million.

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

00:29:07.400 --> 00:29:10.440
 used as a future date to revenue fund another eligible project.

00:29:10.440 --> 00:29:16.080
 So I just wanted to point that out to everybody also.

00:29:16.080 --> 00:29:17.920
 This is the revenue detail for the water fund.

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

00:29:21.840 --> 00:29:25.840
 to change the way that impact fee revenue is currently used in the water fund.

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

00:29:29.320 --> 00:29:30.320
 of eligible projects.

00:29:30.320 --> 00:29:35.240
 Moving forward, we're wanting to divide it into two components, applying about $2.72

00:29:35.240 --> 00:29:40.440
 to debt service and about $3.8 million towards revenue funding of eligible projects.

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

00:29:44.400 --> 00:29:47.120
 term.

00:29:47.120 --> 00:29:50.400
 This is the expense detail for the water fund.

00:29:50.400 --> 00:29:53.760
 You can see the adopted budget here in this column of $50.1 million.

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

00:29:59.040 --> 00:30:06.840
 proposed column is about $15 million, including the supplemental package of $300,000.

00:30:06.840 --> 00:30:08.480
 This is the five-year capital plan.

00:30:08.480 --> 00:30:10.640
 So fiscal year 2020 is the first column.

00:30:10.640 --> 00:30:12.480
 This is the proposed budget.

00:30:12.480 --> 00:30:16.880
 We do have $29.2 million worth of projects that are currently planned.

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

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

00:30:28.040 --> 00:30:33.040
 start.

00:30:33.040 --> 00:30:35.760
 This is the FT summary for the water department.

00:30:35.760 --> 00:30:37.880
 Currently there's 105.5 positions.

00:30:37.880 --> 00:30:39.520
 You can see the number here.

00:30:39.520 --> 00:30:43.120
 The supplemental packages that Frank just reviewed with you is five positions, which

00:30:43.120 --> 00:30:49.680
 takes the total to 110.5.

00:30:49.680 --> 00:30:51.360
 That's all for the water presentation.

00:30:51.360 --> 00:30:56.600
 Can we go back to the 2% in the two future years?

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

00:31:02.600 --> 00:31:05.700
 this year?

00:31:05.700 --> 00:31:08.320
 I do have a scenario that takes us out to a 10-year period.

00:31:08.320 --> 00:31:13.320
 We can see it through 2030, but it does have the 2% built in.

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

00:31:18.240 --> 00:31:23.800
 slide really quick and I'll address your question -- hang on just a second.

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?

00:31:30.840 --> 00:31:31.840
 We can look at that.

00:31:31.840 --> 00:31:32.840
 We have not.

00:31:32.840 --> 00:31:34.000
 I haven't brought that scenario forward today.

00:31:34.000 --> 00:31:36.600
 If that's something the PUB would like us to bring back, we can.

00:31:36.600 --> 00:31:38.840
 We definitely have another meeting scheduled.

00:31:38.840 --> 00:31:40.160
 Let me show you this really quick though.

00:31:40.160 --> 00:31:49.600
 In 2020 -- I hope everybody can see this here.

00:31:49.600 --> 00:31:53.000
 The rate increases are down here on the green line.

00:31:53.000 --> 00:31:55.040
 You can see them right here.

00:31:55.040 --> 00:31:56.360
 Currently it would be 0%.

00:31:56.360 --> 00:31:59.320
 When you get on to '22 and '23, they're 2%.

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

00:32:04.200 --> 00:32:06.880
 in 2031 is $20 million.

00:32:06.880 --> 00:32:09.480
 That puts the reserve at 21.9.

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

00:32:13.360 --> 00:32:14.360
 future years.

00:32:14.360 --> 00:32:15.360
 Okay.

00:32:15.360 --> 00:32:19.040
 Of course, the earlier you start, you get the compounding effect, but we just chose

00:32:19.040 --> 00:32:20.040
 2%.

00:32:20.040 --> 00:32:21.040
 Well, 2% isn't big.

00:32:21.040 --> 00:32:22.040
 I was just curious.

00:32:22.040 --> 00:32:23.040
 Thank you.

00:32:23.040 --> 00:32:24.840
 We definitely look at it each year too.

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.

00:32:30.680 --> 00:32:33.720
 It may be a smaller amount.

00:32:33.720 --> 00:32:34.720
 Other questions?

00:32:34.720 --> 00:32:35.720
 Sorry.

00:32:35.720 --> 00:32:36.720
 I jumped in there.

00:32:36.720 --> 00:32:37.720
 I know you always had -- no.

00:32:37.720 --> 00:32:38.720
 Brendan doesn't have one.

00:32:38.720 --> 00:32:39.720
 I had a question --

00:32:39.720 --> 00:32:40.720
 Yes, ma'am.

00:32:40.720 --> 00:32:41.720
 -- with Frank.

00:32:41.720 --> 00:32:46.200
 I was just curious about what you were doing for the zebra mussels.

00:32:46.200 --> 00:32:49.920
 I'm very sad that they're down here.

00:32:49.920 --> 00:32:50.920
 Yes.

00:32:50.920 --> 00:32:55.920
 There -- we'll be adding some chemical addition systems at the intake structures to discourage

00:32:55.920 --> 00:32:57.680
 growth.

00:32:57.680 --> 00:32:58.680
 Does it work?

00:32:58.680 --> 00:32:59.680
 Yes, it does.

00:32:59.680 --> 00:33:00.680
 Yeah.

00:33:00.680 --> 00:33:01.680
 Yeah.

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

00:33:06.200 --> 00:33:09.640
 of a pulse fashion so that it discourages them from attaching.

00:33:09.640 --> 00:33:11.040
 They'll find somewhere else to grow.

00:33:11.040 --> 00:33:12.040
 Okay.

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.

00:33:14.880 --> 00:33:15.880
 Yeah.

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

00:33:20.160 --> 00:33:21.440
 systems that we are too.

00:33:21.440 --> 00:33:22.440
 It seems to be --

00:33:22.440 --> 00:33:24.760
 So it's just right at the pipe head?

00:33:24.760 --> 00:33:25.760
 Yes.

00:33:25.760 --> 00:33:26.760
 Yeah.

00:33:26.760 --> 00:33:27.760
 It's right at the intake structure.

00:33:27.760 --> 00:33:30.480
 It stops them from, you know, attaching to that intake.

00:33:30.480 --> 00:33:31.480
 Okay.

00:33:31.480 --> 00:33:32.480
 Good luck.

00:33:32.480 --> 00:33:33.480
 Thank you.

00:33:33.480 --> 00:33:36.520
 Well, no other questions.

00:33:36.520 --> 00:33:37.520
 Thank you.

00:33:37.520 --> 00:33:38.520
 Appreciate it.

00:33:38.520 --> 00:33:39.520
 All right.

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

00:33:43.480 --> 00:33:49.800
 the wastewater and drainage fiscal year 2019-2020 operating and capital budget.

00:33:49.800 --> 00:33:55.360
 Good morning, Madam Chair, PV members.

00:33:55.360 --> 00:33:56.360
 My name is Kenny Banks.

00:33:56.360 --> 00:33:58.080
 I'm the general manager of utilities.

00:33:58.080 --> 00:34:02.840
 I'll be handling the wastewater portion of this presentation.

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,

00:34:09.880 --> 00:34:12.540
 acknowledge Crystal, Nick, David.

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

00:34:17.240 --> 00:34:20.100
 get us to the point where we're at right now.

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

00:34:26.360 --> 00:34:29.320
 final, annual report for the EPA administrative order.

00:34:29.320 --> 00:34:33.240
 This has been a long, ongoing project.

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

00:34:39.240 --> 00:34:45.200
 allowed us to go through an administrative order instead of a consent decree and essentially

00:34:45.200 --> 00:34:52.000
 has saved the utility a lot of money, plus been able to demonstrably reduce the amount

00:34:52.000 --> 00:34:55.260
 of sanitary sewer overflows that we've had.

00:34:55.260 --> 00:34:59.160
 We've updated the five-year impact fee, as Frank mentioned earlier, completed the

00:34:59.160 --> 00:35:02.440
 construction of Cooper Creek Phase 1 and 2 interceptor projects.

00:35:02.440 --> 00:35:05.080
 These are two very large projects.

00:35:05.080 --> 00:35:09.000
 You've probably seen them at the intersection of 288 and 380.

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.

00:35:13.200 --> 00:35:19.440
 A very important interceptor project for the whole Cooper Creek Basin.

00:35:19.440 --> 00:35:25.360
 We have bid the Hickory Creek and West Wetflow Detention Facility projects, so the Hickory

00:35:25.360 --> 00:35:31.720
 Creek system is an approximately 3.5 million gallon storage system that is located in the

00:35:31.720 --> 00:35:33.680
 Hickory Creek Basin.

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

00:35:38.400 --> 00:35:39.400
 times of lower flow.

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.

00:35:44.120 --> 00:35:49.480
 The West Peak Flow Detention Facility is actually located on the Pecan Creek Wastewater Treatment

00:35:49.480 --> 00:35:51.760
 Plant property.

00:35:51.760 --> 00:35:56.400
 It is about a nine million gallon capacity storage system that has a 30 million gallon

00:35:56.400 --> 00:36:01.040
 per day pumping system that allows us also to store waste and then basically move it

00:36:01.040 --> 00:36:02.040
 into the system.

00:36:02.040 --> 00:36:07.040
 So it's just a way of balancing out those peak flows that we see.

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

00:36:13.200 --> 00:36:16.080
 handling equipment for procurement.

00:36:16.080 --> 00:36:20.600
 The solids handling system at Pecan Creek is a fairly old system.

00:36:20.600 --> 00:36:25.400
 This is a much more modern version that will help us dewater and more effectively deal

00:36:25.400 --> 00:36:27.080
 with our sludge.

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

00:36:33.160 --> 00:36:39.560
 been kind of spearheaded by PS to look at the ability of using enhanced treatment technologies

00:36:39.560 --> 00:36:44.720
 to expand the capacity of the Pecan Creek wastewater system without actually increasing

00:36:44.720 --> 00:36:47.040
 the footprint of that system.

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.

00:36:53.840 --> 00:37:01.280
 But that solids handling is a big component of that chemical feed system.

00:37:01.280 --> 00:37:05.060
 So we kind of designed them and implemented them hand in hand.

00:37:05.060 --> 00:37:09.880
 And then of course we updated the wastewater collection system master plan that was part

00:37:09.880 --> 00:37:15.920
 of the overall impact fee study that we did earlier this year.

00:37:15.920 --> 00:37:22.320
 So goals for 19-20, we want to complete the construction of the sludge handling project

00:37:22.320 --> 00:37:28.320
 and complete construction of Hickory Creek and West Wet Flow detention facilities, bid

00:37:28.320 --> 00:37:32.660
 and begin construction on Hickory Creek phase one and phase two interceptor projects.

00:37:32.660 --> 00:37:38.360
 These are two very large interceptors that are in the Hickory Creek system that are going

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

00:37:45.040 --> 00:37:46.120
 system.

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

00:37:52.920 --> 00:37:59.480
 really modernize and enhance that whole side of the city and moving the waste through that

00:37:59.480 --> 00:38:01.080
 system.

00:38:01.080 --> 00:38:07.720
 We want to submit performance data to TCEQ to look at that capacity addition.

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

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.

00:38:20.160 --> 00:38:26.360
 And then we want to also complete the construction of the Robeson wastewater diversion project.

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

00:38:33.960 --> 00:38:38.160
 that's going to be put in place that allows the current Robeson wastewater treatment plant

00:38:38.160 --> 00:38:39.160
 to be taken offline.

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

00:38:45.400 --> 00:38:49.700
 expanded to be able to accommodate Robeson at full growth.

00:38:49.700 --> 00:38:54.440
 So through discussions and negotiations we have come up with a deal to basically divert

00:38:54.440 --> 00:39:00.200
 that wastewater flow from Robeson and then move it through the Hickory Creek system ultimately

00:39:00.200 --> 00:39:04.600
 to the concrete for treatment.

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

00:39:12.440 --> 00:39:17.160
 implemented City Works through the field group to standardize our work orders.

00:39:17.160 --> 00:39:21.880
 We've been really looking at our equipment and vehicles and identifying places where

00:39:21.880 --> 00:39:27.560
 we can replace heavier equipment with more right size, more nimble equipment both in

00:39:27.560 --> 00:39:33.160
 terms of equipment size and in terms of equipment type.

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

00:39:37.440 --> 00:39:43.240
 of our backhoe inventory and replacing it with excavators for doing linear pipe projects.

00:39:43.240 --> 00:39:45.520
 The excavators are much more efficient.

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

00:39:49.840 --> 00:39:55.200
 there to do a better and more efficient job.

00:39:55.200 --> 00:40:00.160
 Basically are looking at our asset management data.

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

00:40:07.240 --> 00:40:09.160
 our asset management capabilities.

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

00:40:14.160 --> 00:40:19.640
 program to make sure that the way in which we're managing the system is efficient.

00:40:19.640 --> 00:40:22.760
 We're not replacing pipes just because they've reached a certain age.

00:40:22.760 --> 00:40:30.040
 We're replacing pipes because they have reached a certain level of inefficiency or degradation.

00:40:30.040 --> 00:40:37.000
 So we're trying to get the maximum amount of time possible out of our system.

00:40:37.000 --> 00:40:44.920
 Again, part of that is enacting infrastructure solutions to lower asset life cost and reduce

00:40:44.920 --> 00:40:46.560
 environmental impacts.

00:40:46.560 --> 00:40:52.080
 We continue to look at all different types of technologies, plant modeling processes,

00:40:52.080 --> 00:40:58.160
 the chemical treatment that I mentioned earlier, our work order system, our GPS system, all

00:40:58.160 --> 00:41:02.520
 of those things working together to help us be as efficient as possible.

00:41:02.520 --> 00:41:07.500
 And then, of course, we've had a consistent theme under the administrative order that

00:41:07.500 --> 00:41:15.520
 we will continue to perform proactive operations and management activities to basically improve

00:41:15.520 --> 00:41:20.700
 our customer service by reducing those mainline service calls, sewer chokes, and sanitary

00:41:20.700 --> 00:41:22.320
 sewer overflows.

00:41:22.320 --> 00:41:29.280
 The overall goal there is to minimize the emergency response by maximizing our preventative

00:41:29.280 --> 00:41:31.920
 maintenance.

00:41:31.920 --> 00:41:37.800
 So cost containment strategies, we've got budgeted salary savings of about $400,000.

00:41:37.800 --> 00:41:41.440
 There was a reorganization of the Beneficial Reuse Department that occurred earlier in

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.

00:41:50.120 --> 00:41:54.360
 We've reduced our revenue funded capital and FY20 by about $3 million.

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

00:41:58.440 --> 00:42:02.920
 capital expenditures over the five-year capital improvement plan.

00:42:02.920 --> 00:42:07.440
 We continue to use asset management programs to improve our capital management and replacement

00:42:07.440 --> 00:42:09.240
 scheduling.

00:42:09.240 --> 00:42:13.760
 We enacted a feasibility study that we talked about a little earlier to get that increased

00:42:13.760 --> 00:42:15.840
 capacity at the plant.

00:42:15.840 --> 00:42:22.760
 And as everyone else says, we're using zero-based budgeting with supplemental packages and then

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.

00:42:29.160 --> 00:42:35.320
 So process improvements for '18-'19, you'll see some consistent themes overlapping with

00:42:35.320 --> 00:42:36.600
 water.

00:42:36.600 --> 00:42:40.240
 Water distribution and wastewater crews are looking at that dual purpose crew to be out

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

00:42:44.840 --> 00:42:50.360
 water and wastewater side of the project taken care of by a single crew.

00:42:50.360 --> 00:42:55.200
 We continue to use and explore trenchless technology for sewer line repairs, whether

00:42:55.200 --> 00:43:01.160
 that's in-situ small point repairs or doing pipe bursting projects where we can basically

00:43:01.160 --> 00:43:05.920
 replace an existing pipe by breaking that pipe apart and pulling a larger pipe through

00:43:05.920 --> 00:43:08.000
 it or even a pipe of the same size through it.

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.

00:43:13.900 --> 00:43:19.400
 We are working on emergency response plans for all lift stations and pump stations in

00:43:19.400 --> 00:43:20.400
 the city.

00:43:20.400 --> 00:43:27.560
 Each station is somewhat unique and so the opportunity is there to put together a station

00:43:27.560 --> 00:43:33.240
 specific plan so that everybody understands if we have an emergency, this is what we do,

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.

00:43:38.800 --> 00:43:43.960
 And then the collection system asset management plan is something that we are continuing to

00:43:43.960 --> 00:43:46.240
 enhance as we move forward.

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

00:43:50.360 --> 00:43:57.360
 basically the installing of the solids handling and the chemically enhanced primary treatment

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

00:44:03.320 --> 00:44:09.120
 test mode and see how it works and then provide that information to TCEQ.

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

00:44:13.080 --> 00:44:16.320
 for that plant based on this technology.

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

00:44:23.740 --> 00:44:29.040
 that we anticipate getting on this, which is about 5 million gallons per day of additional

00:44:29.040 --> 00:44:39.820
 plant treatment capacity, the cost for using the CEPT system versus the building new traditional

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

00:44:46.480 --> 00:44:47.560
 expansion.

00:44:47.560 --> 00:44:51.720
 So very beneficial dollar-wise.

00:44:51.720 --> 00:44:57.880
 In terms of the supplemental package, we've got a couple of them here.

00:44:57.880 --> 00:45:05.600
 Basically the wastewater collections is looking at adding two FTEs or heavy equipment operator

00:45:05.600 --> 00:45:06.600
 ones.

00:45:06.600 --> 00:45:14.720
 Basically, right now, we have two two-person crews and one one-person crew and essentially

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

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.

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

00:45:32.900 --> 00:45:40.060
 to do a little better job from a workload standpoint and being able to have coverage

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

00:45:48.200 --> 00:45:50.200
 job site.

00:45:50.200 --> 00:45:58.120
 What's more about coverage are, as Frank had mentioned, our amount of capital construction

00:45:58.120 --> 00:46:03.800
 has continued to increase pretty dramatically and our maintenance activities are also increasing

00:46:03.800 --> 00:46:04.800
 at the same time.

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

00:46:09.360 --> 00:46:12.040
 and get better coverage.

00:46:12.040 --> 00:46:16.140
 The HEO2, right now, we have two crews.

00:46:16.140 --> 00:46:17.640
 One of them has five members.

00:46:17.640 --> 00:46:19.440
 One of them has six.

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

00:46:25.740 --> 00:46:31.280
 equipment operator, too, which is a higher level, more skilled individual.

00:46:31.280 --> 00:46:34.160
 Multiple pieces of equipment can be run.

00:46:34.160 --> 00:46:36.960
 There's two main goals there.

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

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,

00:46:47.040 --> 00:46:52.640
 the floater position in case we need to have coverage somewhere else in the group.

00:46:52.640 --> 00:46:56.080
 And then the flushing truck crew leader.

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

00:47:04.600 --> 00:47:05.940
 teams of two people.

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

00:47:10.880 --> 00:47:16.320
 three other crew leaders reporting into that field service supervisor.

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

00:47:21.040 --> 00:47:27.600
 everything on the flushing crew side, to make sure that we're covering our permit requirements,

00:47:27.600 --> 00:47:31.760
 that we're demonstrating, that we're continuing on with the activities of the administrative

00:47:31.760 --> 00:47:38.000
 order, and then just being able to analyze all of that activity, the videos, et cetera,

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

00:47:45.440 --> 00:47:46.720
 bit too thin.

00:47:46.720 --> 00:47:54.240
 And so the idea there is to basically get a crew leader in there.

00:47:54.240 --> 00:48:00.720
 That crew leader would be responsible for just the flushing crew section of the organization

00:48:00.720 --> 00:48:05.040
 and then the existing crew leader would be over all those other three areas.

00:48:05.040 --> 00:48:06.840
 It's a little confusing.

00:48:06.840 --> 00:48:11.920
 I do have org charts if you want to see them, but yes.

00:48:11.920 --> 00:48:16.120
 And coordinated between water and wastewater with all the heavy equipment operators, right?

00:48:16.120 --> 00:48:17.120
 Absolutely.

00:48:17.120 --> 00:48:19.480
 So that we, because you're trying to do this efficiency.

00:48:19.480 --> 00:48:20.480
 Yes.

00:48:20.480 --> 00:48:21.480
 Okay.

00:48:21.480 --> 00:48:22.480
 Yes, yes.

00:48:22.480 --> 00:48:30.840
 Both of those crews report to Mr. Conkle on the water and wastewater side.

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

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.

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%

00:48:49.560 --> 00:48:51.640
 of capacity.

00:48:51.640 --> 00:48:58.520
 The difference here is that now we have the ability to look at this chemically enhanced

00:48:58.520 --> 00:49:00.000
 primary treatment.

00:49:00.000 --> 00:49:05.880
 And so the opportunity exists here to actually go through that plant expansion, get it online

00:49:05.880 --> 00:49:16.840
 probably easily by 2029 and basically be able to meet the expected future growth demands

00:49:16.840 --> 00:49:18.760
 that we're looking at right now.

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.

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

00:49:30.000 --> 00:49:31.000
 of see that.

00:49:31.000 --> 00:49:35.520
 We only have a couple of years worth of data there.

00:49:35.520 --> 00:49:41.280
 We are thinking that this could be related to some of the declining GPCD, gallons per

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

00:49:45.920 --> 00:49:46.920
 tell.

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

00:49:50.480 --> 00:49:53.680
 could slide out a little bit further.

00:49:53.680 --> 00:49:57.120
 And I believe that is the end of my portion of this.

00:49:57.120 --> 00:50:02.800
 So any questions for me before I turn it over to Mr. Vincent?

00:50:02.800 --> 00:50:08.520
 Okay, thank you for your time.

00:50:08.520 --> 00:50:12.480
 Good morning Chair, PUB members, my name is Nick Vincent, the city's budget manager.

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

00:50:17.280 --> 00:50:18.280
 to water.

00:50:18.280 --> 00:50:20.920
 If you have any questions, please feel free to stop me throughout the presentation and

00:50:20.920 --> 00:50:22.840
 I will address them.

00:50:22.840 --> 00:50:27.120
 We are also recommended to change the way we use wastewater impact fees for this fund.

00:50:27.120 --> 00:50:30.240
 I'll review that with you on a similar side here shortly.

00:50:30.240 --> 00:50:32.960
 We're projecting a 2% population growth.

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

00:50:38.360 --> 00:50:41.760
 minimum in each of the years and I'll review that with you also.

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

00:50:45.520 --> 00:50:46.520
 fund.

00:50:46.520 --> 00:50:51.400
 And I'll show that to you here shortly.

00:50:51.400 --> 00:50:56.400
 So we are proposing to change the way the wastewater impact fees are currently used.

00:50:56.400 --> 00:51:00.560
 In the current method, they are applied directly to eligible debt service.

00:51:00.560 --> 00:51:04.560
 So you can see about $4.2 million is applied to debt service.

00:51:04.560 --> 00:51:09.280
 Moving forward, we will want to apply it towards debt service and revenue funding of projects.

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

00:51:14.120 --> 00:51:17.720
 about $500,000 going towards revenue funding of projects.

00:51:17.720 --> 00:51:21.840
 Over the five-year period, we would revenue fund about $1.3 million of upfront project

00:51:21.840 --> 00:51:29.120
 cost and apply about $20 million towards debt service.

00:51:29.120 --> 00:51:33.520
 This table summarizes the amount of impact fee revenue the wastewater fund can receive

00:51:33.520 --> 00:51:35.200
 over a 10-year period.

00:51:35.200 --> 00:51:40.400
 Similar to water, this was identified in the 2018 impact fee study that was recently completed.

00:51:40.400 --> 00:51:45.120
 So you can see total, we can recover about $49 million in impact fee revenue through

00:51:45.120 --> 00:51:47.080
 the wastewater side.

00:51:47.080 --> 00:51:53.000
 Of that, we can apply about $19 million towards cash funding upfront project cost, and then

00:51:53.000 --> 00:52:01.000
 we can apply about $30 million towards debt servicing of projects.

00:52:01.000 --> 00:52:02.000
 This is the five-year forecast.

00:52:02.000 --> 00:52:07.040
 So the 2019 adopted budget, we have $32.7 million in rate revenue.

00:52:07.040 --> 00:52:10.520
 We were planning to use $4.7 million in reserve.

00:52:10.520 --> 00:52:15.180
 If you recall, we did do the 5% rate reduction last year for wastewater customers.

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,

00:52:20.520 --> 00:52:24.800
 so about $500,000 less than the original budget anticipated.

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,

00:52:31.920 --> 00:52:37.760
 using about $1.5 million in reserves for a total resource of about $38 million.

00:52:37.760 --> 00:52:40.880
 Expenses is also $38 million for a balanced budget.

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

00:52:44.640 --> 00:52:46.480
 forecast.

00:52:46.480 --> 00:52:49.600
 As you move down the page, the reserve does stay above the minimum.

00:52:49.600 --> 00:52:55.640
 So you can see it's $12.7 million in 2020, the minimum being 10.6.

00:52:55.640 --> 00:53:00.280
 As you go out, it goes to 15.2, with the minimum being 10.

00:53:00.280 --> 00:53:02.640
 I would like to point out Dr. Banks had made a comment earlier.

00:53:02.640 --> 00:53:07.700
 We did reduce the amount of revenue-funded project money that we're setting aside.

00:53:07.700 --> 00:53:11.060
 So you can see in 2019, it was actually $10 million.

00:53:11.060 --> 00:53:14.360
 We have brought that down close to $7 million in the current year.

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

00:53:19.760 --> 00:53:22.400
 I had pointed out earlier.

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

00:53:28.040 --> 00:53:30.960
 have a rate decrease again.

00:53:30.960 --> 00:53:31.960
 But that's way out there.

00:53:31.960 --> 00:53:32.960
 So let's not talk about it.

00:53:32.960 --> 00:53:33.960
 It is.

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

00:53:35.680 --> 00:53:36.680
 Fund also.

00:53:36.680 --> 00:53:56.600
 When we get to that point, this will give you a better picture past that window.

00:53:56.600 --> 00:53:57.600
 There we go.

00:53:57.600 --> 00:53:58.600
 Now we got it.

00:53:58.600 --> 00:53:59.600
 All right.

00:53:59.600 --> 00:54:00.600
 So 2020.

00:54:00.600 --> 00:54:01.600
 Let me scroll down a little bit here.

00:54:01.600 --> 00:54:04.440
 So you're going to see the $12.7 million here.

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

00:54:08.520 --> 00:54:12.960
 Waste Water Treatment Plan expansion comes online, the debt service does go back up.

00:54:12.960 --> 00:54:13.960
 So to answer your question.

00:54:13.960 --> 00:54:14.960
 Thank you.

00:54:14.960 --> 00:54:15.960
 You answered me.

00:54:15.960 --> 00:54:16.960
 Yeah.

00:54:16.960 --> 00:54:17.960
 Thank you.

00:54:17.960 --> 00:54:18.960
 All right.

00:54:18.960 --> 00:54:31.760
 Anybody else got any questions on a five-year forecast?

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?

00:54:38.680 --> 00:54:41.680
 Is that what it's called?

00:54:41.680 --> 00:54:49.920
 But we haven't actually even implemented that test project yet, right?

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

00:54:56.480 --> 00:55:00.480
 address it.

00:55:00.480 --> 00:55:01.480
 You're correct.

00:55:01.480 --> 00:55:06.800
 We haven't implemented it in full, but we've been undergoing a feasibility and modeling

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.

00:55:13.540 --> 00:55:16.880
 So it's kind of a stepwise process because it involves the permit.

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

00:55:20.720 --> 00:55:23.680
 any more money pursuing it further.

00:55:23.680 --> 00:55:24.680
 We've done that.

00:55:24.680 --> 00:55:28.320
 The feasibility, which involves both testing and modeling of the plant, has indicated that

00:55:28.320 --> 00:55:29.860
 it will work.

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

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

00:55:43.360 --> 00:55:44.920
 technology.

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

00:55:49.480 --> 00:55:56.480
 to grant us the additional capacity to discharge by studying all of that information.

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.

00:56:04.360 --> 00:56:09.200
 So we've got a feasibility study that indicates that it will work.

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

00:56:15.120 --> 00:56:20.120
 everything turns out as anticipated, we'll then move to the next phases, which is actual

00:56:20.120 --> 00:56:22.760
 permit modification.

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

00:56:28.360 --> 00:56:32.360
 actually build a plant instead of doing the chemical treatment system.

00:56:32.360 --> 00:56:35.000
 At this point, no.

00:56:35.000 --> 00:56:38.880
 As we move forward, things could change.

00:56:38.880 --> 00:56:43.280
 I think it's unlikely, given the results of the feasibility study, but that's definitely

00:56:43.280 --> 00:56:45.240
 something that we're looking at.

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

00:56:48.920 --> 00:56:53.680
 how do we want to do it, through a traditional system or through this CEPT.

00:56:53.680 --> 00:56:58.680
 Right, but if we have to use a traditional system, we're seeing a significant increase

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

00:57:02.880 --> 00:57:04.400
 build it and get it in place.

00:57:04.400 --> 00:57:05.400
 That's correct.

00:57:05.400 --> 00:57:08.320
 So it would be a scramble mode at that point, kind of.

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

00:57:14.080 --> 00:57:21.640
 with it, unless something just completely unexpected happens, we anticipate that the

00:57:21.640 --> 00:57:26.560
 testing will be done and we'll be able to apply for the permit.

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

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

00:57:37.560 --> 00:57:40.480
 up this concept.

00:57:40.480 --> 00:57:48.300
 But all that being said, yeah, the fallback position is to just do standard increase,

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

00:57:57.160 --> 00:57:59.840
 level of plant capacity.

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

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

00:58:13.120 --> 00:58:18.520
 a fallback contingency of just standard construction, which is what we were intending to do until

00:58:18.520 --> 00:58:20.760
 we hit on this new technology.

00:58:20.760 --> 00:58:21.760
 Okay.

00:58:21.760 --> 00:58:22.760
 Thank you.

00:58:22.760 --> 00:58:23.760
 Sure.

00:58:23.760 --> 00:58:24.760
 All right.

00:58:24.760 --> 00:58:28.480
 Keep moving forward here.

00:58:28.480 --> 00:58:30.680
 This is the revenue detail for the wastewater fund.

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

00:58:35.440 --> 00:58:39.580
 bringing impact fee revenue in and applying it directly to debt service.

00:58:39.580 --> 00:58:43.920
 Moving forward, we were breaking it up into two components, applying about $3.7 million

00:58:43.920 --> 00:58:51.480
 towards debt service and about $500,000 towards revenue-funded eligible projects upfront cost.

00:58:51.480 --> 00:58:53.640
 This is the expense detail for the wastewater department.

00:58:53.640 --> 00:58:56.760
 You can see expenses by department within wastewater.

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

00:59:01.480 --> 00:59:05.600
 in revenue to cash fund those projects, and you can see the supplemental packages that

00:59:05.600 --> 00:59:09.840
 Dr. Banks explained a few slides ago.

00:59:09.840 --> 00:59:13.240
 This is a five-year capital plan.

00:59:13.240 --> 00:59:18.920
 In the five-year window, there are a total of $69.8 million in projects.

00:59:18.920 --> 00:59:22.880
 In 2020, the proposed budget, there's 23.1.

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

00:59:28.040 --> 00:59:33.940
 be revenue-funded, and then the $500,000 for impact fee revenue-funded projects.

00:59:33.940 --> 00:59:38.640
 This is the FTE summary for the wastewater department.

00:59:38.640 --> 00:59:41.160
 So currently, there's 113.5 positions.

00:59:41.160 --> 00:59:50.700
 If the four supplementals are approved, you can see those here, we get a 117.5.

00:59:50.700 --> 00:59:52.860
 That concludes this presentation.

00:59:52.860 --> 00:59:54.960
 Drainage is a separate presentation.

00:59:54.960 --> 00:59:58.240
 Daniel Kramer will come up here in just a second to do drainage.

00:59:58.240 --> 01:00:02.320
 If anybody has any more questions about wastewater, we'd be happy to address them.

01:00:02.320 --> 01:00:05.320
 Thank you, Nick.

01:00:05.320 --> 01:00:11.880
 Good morning, Chair, PUP members.

01:00:11.880 --> 01:00:18.640
 Apologize, I'm a little stuffed up.

01:00:18.640 --> 01:00:23.200
 Apparently, I caught something for my kids this weekend.

01:00:23.200 --> 01:00:27.360
 So I'm the Deputy Director of Operations, Streets and Drainage, Department's report

01:00:27.360 --> 01:00:29.040
 to me.

01:00:29.040 --> 01:00:32.800
 So some of the goals and accomplishments that we've gone through with drainage this year,

01:00:32.800 --> 01:00:37.040
 Rockwood Lane and Mistywood, we installed a neighborhood storm drain system to help with

01:00:37.040 --> 01:00:38.400
 some of the localized flood in the area.

01:00:38.400 --> 01:00:41.320
 It's about 1,300 linear feet of storm drain.

01:00:41.320 --> 01:00:46.080
 Currently, right now, we're working on the McKinney Street widening project in conjunction

01:00:46.080 --> 01:00:47.080
 with engineering.

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

01:00:50.880 --> 01:00:53.840
 over the top of that, coming up with that.

01:00:53.840 --> 01:00:54.840
 Excuse me.

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

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.

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.

01:01:10.920 --> 01:01:14.640
 Both of those are currently in design right now, going through our internal engineering

01:01:14.640 --> 01:01:17.520
 department to get ready for construction.

01:01:17.520 --> 01:01:22.540
 We're also going to complete our mapping system for the storm drainage master plan.

01:01:22.540 --> 01:01:27.080
 Currently, right now, we're missing a few sections here and there as we go through.

01:01:27.080 --> 01:01:30.120
 Most of it's different inlets, different pipe sizes.

01:01:30.120 --> 01:01:32.200
 We may have the locations, but we're missing the full depth.

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

01:01:35.080 --> 01:01:39.160
 that we can make a full storm water plan for the whole city.

01:01:39.160 --> 01:01:43.600
 Also, our goal is to increase the storm drain inspections.

01:01:43.600 --> 01:01:48.640
 Currently, right now, we're somewhere around 5% is what we're able to inspect.

01:01:48.640 --> 01:01:53.040
 Most of those are some of the troubled areas we know and calls that come in.

01:01:53.040 --> 01:02:03.880
 Our goal is to start moving more towards maintenance to be proactive instead of reactive.

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

01:02:08.200 --> 01:02:09.200
 plan.

01:02:09.200 --> 01:02:12.480
 We're working very closely with engineering on that so we can get all the information

01:02:12.480 --> 01:02:16.400
 to do our full mapping systems on those.

01:02:16.400 --> 01:02:24.240
 Upgrade, our systems for the current FEMA flood maps, they did put out some new maps

01:02:24.240 --> 01:02:25.360
 here recently.

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

01:02:29.840 --> 01:02:31.360
 the extra two points.

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

01:02:34.200 --> 01:02:37.680
 points past that to help our citizens.

01:02:37.680 --> 01:02:41.880
 Also, to maintain our existing system, reduce the amount of trash and sediment in our waterways

01:02:41.880 --> 01:02:46.040
 and do more maintenance.

01:02:46.040 --> 01:02:51.720
 Some of our inefficiencies that we worked on for our -- we talked last year about street

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.

01:02:55.160 --> 01:02:57.360
 Currently right now, we don't see one.

01:02:57.360 --> 01:03:00.320
 Next probably three to five years, we probably will need another sweeper.

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,

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

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.

01:03:19.160 --> 01:03:22.160
 We've upped that to about 870 with the new development and looking at more efficient

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

01:03:26.880 --> 01:03:31.720
 able to add with very minimal on there.

01:03:31.720 --> 01:03:34.700
 We're also working on our 24-hour response time.

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

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

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.

01:03:47.880 --> 01:03:52.760
 A couple different ones, we do a lot of mowing of our channels.

01:03:52.760 --> 01:03:56.220
 We are better situated for the big mowing of the channels.

01:03:56.220 --> 01:03:58.640
 We have a couple small areas that we take care of.

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

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

01:04:06.360 --> 01:04:09.840
 more efficiently work on some of the bigger ones.

01:04:09.840 --> 01:04:14.160
 We've also been working on our inlet inspections.

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

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

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

01:04:26.760 --> 01:04:30.180
 so we know all the information of every inlet we have.

01:04:30.180 --> 01:04:33.920
 Last year we did ask for a half a person increase.

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

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

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

01:04:47.280 --> 01:04:55.120
 so we can track it more efficiently.

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

01:05:00.480 --> 01:05:02.680
 orders and everything we go across the board.

01:05:02.680 --> 01:05:08.680
 We use internally for street strainage and traffic, we use a system called Cartograph.

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

01:05:11.200 --> 01:05:16.680
 our work going ahead so that we can actually see it and everything in there.

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

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

01:05:25.580 --> 01:05:26.580
 system.

01:05:26.580 --> 01:05:33.360
 For future use, we're working right now on use of an aerial impervious surface mapping.

01:05:33.360 --> 01:05:36.880
 Currently right now when any of these new businesses come up, we take the plats, we

01:05:36.880 --> 01:05:40.400
 see how much they have so we can estimate their drainage fee.

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

01:05:44.480 --> 01:05:45.480
 a report.

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,

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

01:05:54.080 --> 01:05:58.340
 it's worth doing it across the whole city on that.

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

01:06:02.080 --> 01:06:06.480
 slide, so we're looking at 100% inspection of our channels and ditches.

01:06:06.480 --> 01:06:12.000
 Currently we're only at about 20% and also bringing our current inlet inspection up from

01:06:12.000 --> 01:06:16.500
 20% which we are currently 5%.

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.

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

01:06:27.440 --> 01:06:28.440
 inspection crews.

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

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.

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.

01:06:42.200 --> 01:06:51.520
 So right now we have 154, almost 155 miles of drainage ditch right now.

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

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

01:07:00.520 --> 01:07:04.000
 all the time, that's what we hit on a yearly basis.

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

01:07:09.720 --> 01:07:10.720
 bar ditches.

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

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

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.

01:07:22.320 --> 01:07:27.960
 As for our curb inlet inspection, currently we have 7,800 inlets, we're roughly doing

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

01:07:33.520 --> 01:07:34.520
 Street.

01:07:34.520 --> 01:07:38.000
 If you know, we had to take that street down and replace the culvert underneath.

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

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

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.

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

01:07:52.120 --> 01:07:57.320
 whole system and actually know what we need to do and make better plans going forward.

01:07:57.320 --> 01:08:03.600
 So, any questions on that before I hand it over to Nick?

01:08:03.600 --> 01:08:05.640
 Questions?

01:08:05.640 --> 01:08:09.320
 Thank you.

01:08:09.320 --> 01:08:10.320
 Thank you.

01:08:10.320 --> 01:08:14.000
 Good morning Chair, PB members, my name is Nick Vinson, the City's Budget Manager.

01:08:14.000 --> 01:08:19.320
 I'll be reviewing with you the financial portion of the proposed 19-20 drainage budget.

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

01:08:21.840 --> 01:08:23.280
 to address them.

01:08:23.280 --> 01:08:27.960
 The proposed budget does maintain existing drainage fees or rates.

01:08:27.960 --> 01:08:33.480
 The drainage fee is calculated based off the square feet of impermeable surface and then

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

01:08:37.720 --> 01:08:40.120
 and I'll show that to you here shortly.

01:08:40.120 --> 01:08:43.640
 And ultimately the drainage budget does include watershed department.

01:08:43.640 --> 01:08:47.080
 Both of those departments ultimately roll up into the wastewater fund so we are presented

01:08:47.080 --> 01:08:52.280
 to you separate today but ultimately it's part of the wastewater department.

01:08:52.280 --> 01:08:53.540
 This is the five-year forecast.

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

01:08:58.040 --> 01:08:59.040
 revenues.

01:08:59.040 --> 01:09:01.640
 Same thing in expenses, they had a balanced budget.

01:09:01.640 --> 01:09:07.000
 In the proposed column we have revenues increased to $5.2 million based on new development.

01:09:07.000 --> 01:09:10.000
 Expenses are $5.2 million also.

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

01:09:14.000 --> 01:09:18.440
 the five-year forecast and the drainage reserve is maintained in a million dollars in each

01:09:18.440 --> 01:09:21.440
 of the years.

01:09:21.440 --> 01:09:26.120
 This is the revenue detail for the drainage department.

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

01:09:29.640 --> 01:09:32.080
 in about $340,000 from the general fund.

01:09:32.080 --> 01:09:36.760
 We have about $4.8 million in drainage fees, these are residential and non-residential

01:09:36.760 --> 01:09:37.760
 fees.

01:09:37.760 --> 01:09:45.840
 And a little bit of auction proceeds for a total of $5.2 million.

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.

01:09:50.280 --> 01:09:52.320
 This is the expense detail for the drainage department.

01:09:52.320 --> 01:09:56.200
 You can see the proposed 20-20 budget column to the far right.

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

01:09:59.920 --> 01:10:02.320
 on is included in the proposed budget.

01:10:02.320 --> 01:10:03.560
 It's $300,000.

01:10:03.560 --> 01:10:05.880
 You can see that amount listed here.

01:10:05.880 --> 01:10:08.680
 So total expenses of $5.2 million.

01:10:08.680 --> 01:10:14.080
 They do have a balanced budget this year.

01:10:14.080 --> 01:10:16.200
 This is the drainage five-year capital plan.

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

01:10:20.680 --> 01:10:22.920
 excuse me that's 20-24 is a million.

01:10:22.920 --> 01:10:29.400
 In 2020 the proposed budget column is about $630,000 in projects planned, $385,000 goes

01:10:29.400 --> 01:10:34.640
 to our channels rehab, $100,000 towards Choctaw drainage and a little bit of vehicle replacement

01:10:34.640 --> 01:10:40.920
 money in there.

01:10:40.920 --> 01:10:44.080
 This is the FT summary for the drainage department.

01:10:44.080 --> 01:10:47.200
 Currently there is 24 positions, you can see the number out here.

01:10:47.200 --> 01:10:52.720
 If the supplementals are approved, the four people, it would take the total to 28 positions.

01:10:52.720 --> 01:10:58.520
 That wraps up the drainage presentation.

01:10:58.520 --> 01:11:02.520
 Questions?

01:11:02.520 --> 01:11:05.520
 Thank you.

01:11:05.520 --> 01:11:08.400
 All right.

01:11:08.400 --> 01:11:11.160
 Next is the consent agenda.

01:11:11.160 --> 01:11:16.920
 Does any board member wish to pull an item off of the consent agenda?

01:11:16.920 --> 01:11:21.040
 Pull item B as in boy.

01:11:21.040 --> 01:11:23.520
 Any others?

01:11:23.520 --> 01:11:28.680
 Do we have a motion to approve items A, C and D?

01:11:28.680 --> 01:11:29.680
 Second.

01:11:29.680 --> 01:11:33.080
 All in favor say aye.

01:11:33.080 --> 01:11:34.080
 Aye.

01:11:34.080 --> 01:11:35.080
 Opposed?

01:11:35.080 --> 01:11:36.080
 Okay.

01:11:36.080 --> 01:11:37.080
 Item B.

01:11:37.080 --> 01:12:00.560
 I don't really need any additional details.

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

01:12:04.280 --> 01:12:07.360
 had to pull it so that's why we did that.

01:12:07.360 --> 01:12:08.360
 Yes sir.

01:12:08.360 --> 01:12:09.360
 Thank you.

01:12:09.360 --> 01:12:13.480
 Anyway, if that's it, that's it.

01:12:13.480 --> 01:12:14.480
 That's it.

01:12:14.480 --> 01:12:15.480
 That is it.

01:12:15.480 --> 01:12:16.720
 Do we have a motion to approve item B?

01:12:16.720 --> 01:12:18.360
 Move to approve item B.

01:12:18.360 --> 01:12:19.360
 Second.

01:12:19.360 --> 01:12:21.240
 All in favor say aye.

01:12:21.240 --> 01:12:22.240
 Aye.

01:12:22.240 --> 01:12:23.240
 Opposed?

01:12:23.240 --> 01:12:24.240
 Motion carries.

01:12:24.240 --> 01:12:25.680
 Will you tell her she can come back in?

01:12:25.680 --> 01:12:28.680
 Tell her she can come back in.

01:12:28.680 --> 01:12:29.680
 Oh yeah.

01:12:29.680 --> 01:12:30.680
 Oh yeah.

01:12:30.680 --> 01:12:31.680
 That's right.

01:12:31.680 --> 01:12:32.680
 You have to leave now.

01:12:32.680 --> 01:12:33.680
 Okay.

01:12:33.680 --> 01:12:34.680
 Okay.

01:12:34.680 --> 01:12:47.040
 Do we'll recluse q zeroes today, I can't say that word.

01:12:47.040 --> 01:12:48.040
 All right.

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

01:12:53.960 --> 01:12:58.320
 of public utility board meetings of April 22, 2019.

01:12:58.320 --> 01:13:02.040
 Were there any changes or corrections?

01:13:02.040 --> 01:13:04.800
 And they'll stand approved as presented.

01:13:04.800 --> 01:13:09.960
 And now item B, consider recommending the adoption of an ordinance for the city of Denton,

01:13:09.960 --> 01:13:16.240
 a Texas home rule municipal corporation, authorizing the city manager to execute a contract with,

01:13:16.240 --> 01:13:22.240
 I can never say that, JAGO, public company Inc. for the construction of PEC for drainage

01:13:22.240 --> 01:13:27.320
 improvements phase one and two and Elm and Locust street water improvements phase one

01:13:27.320 --> 01:13:33.040
 for the city of Denton.

01:13:33.040 --> 01:13:34.040
 Good morning.

01:13:34.040 --> 01:13:35.040
 Good morning.

01:13:35.040 --> 01:13:36.600
 Board chair and board members.

01:13:36.600 --> 01:13:37.760
 My name is Jim Jenks.

01:13:37.760 --> 01:13:40.280
 I'm with the city's engineering department.

01:13:40.280 --> 01:13:43.800
 I'm the project manager on this particular project.

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

01:13:51.040 --> 01:13:59.080
 and running here.

01:13:59.080 --> 01:14:07.160
 Is it not there?

01:14:07.160 --> 01:14:14.240
 Is it hiding underneath the little menu there?

01:14:14.240 --> 01:14:17.520
 I think it's in the corner.

01:14:17.520 --> 01:14:29.200
 Click there so we can get rid of the box.

01:14:29.200 --> 01:14:38.560
 And there it is in the corner.

01:14:38.560 --> 01:14:39.560
 Thank you.

01:14:39.560 --> 01:14:40.560
 Sorry about that.

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.

01:14:46.240 --> 01:14:52.920
 But basically, this is again the PEC for phase one and two drainage improvements project

01:14:52.920 --> 01:15:03.120
 that includes the Elm and Locust water and sewer improvements from Hickory to Eagle.

01:15:03.120 --> 01:15:08.960
 Basically the scope of the project is illustrated in this map here.

01:15:08.960 --> 01:15:14.400
 The major portion of the drainage is what's shown in red.

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.

01:15:22.480 --> 01:15:29.920
 There are also some drainage pipes that extend northward along Elm and Locust streets also.

01:15:29.920 --> 01:15:36.360
 And what's shown in blue here is the public water and wastewater improvement projects

01:15:36.360 --> 01:15:45.080
 or portions of this project going along Elm and Locust from Eagle up to Hickory.

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

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

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

01:16:10.960 --> 01:16:15.520
 sewer ranging from 8 inch to 24 inch.

01:16:15.520 --> 01:16:24.600
 It's with the scope of the project and the sequencing issues involved, the contract construction

01:16:24.600 --> 01:16:32.780
 timeframe is 730 calendar days.

01:16:32.780 --> 01:16:39.200
 This project was bid and this was actually the re-bid following the initial bid last

01:16:39.200 --> 01:16:47.520
 fall which was ultimately rejected due to the price from the one bid being higher than

01:16:47.520 --> 01:16:51.520
 staff thought it should be for this project.

01:16:51.520 --> 01:17:01.040
 We went back, valued engineered, added some options in design and bidding, pardon me,

01:17:01.040 --> 01:17:05.760
 and here are the results that came from the re-bid.

01:17:05.760 --> 01:17:11.680
 You'll see there was three bidders, the lowest being Jago Public Company.

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

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

01:17:32.880 --> 01:17:38.120
 amount under what was funded for this project.

01:17:38.120 --> 01:17:44.240
 We found that we would need to delete the fiber optic and traffic items.

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

01:17:51.360 --> 01:18:00.740
 Locust, kind of similar to what is shown in blue here as far as extents.

01:18:00.740 --> 01:18:07.040
 Those were to facilitate the future installation of fiber optic lines there.

01:18:07.040 --> 01:18:12.920
 Division of those items, we consulted with purchasing, make sure it was okay to do that.

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

01:18:16.600 --> 01:18:17.600
 fine.

01:18:17.600 --> 01:18:18.600
 That was going to be my question.

01:18:18.600 --> 01:18:21.600
 You took it out of all of them.

01:18:21.600 --> 01:18:22.600
 Right.

01:18:22.600 --> 01:18:29.720
 The amounts that you see here reflect that deletion.

01:18:29.720 --> 01:18:39.840
 Basically the low bid amount with Jago Public is about 10.96 million.

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

01:18:52.440 --> 01:19:01.000
 background section, there was a funding gap still, although the re-bidding process knocked

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.

01:19:05.300 --> 01:19:13.200
 So we worked with the drainage department to identify funds that could be transferred

01:19:13.200 --> 01:19:18.060
 and so that's what I'm speaking to in that part of the AIS.

01:19:18.060 --> 01:19:23.440
 There was funds transferred from the oak tree project, from the Choctaw project, and from

01:19:23.440 --> 01:19:27.240
 the channel rehab account.

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

01:19:33.600 --> 01:19:38.040
 to complete design.

01:19:38.040 --> 01:19:42.960
 The last slide I have here is just the formal recommendation.

01:19:42.960 --> 01:19:49.000
 RF is recommending that the city approve an ordinance to execute the construction contract

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

01:20:00.160 --> 01:20:04.520
 phase 1 and 2 drainage improvements and elm and locust water and sewer improvements from

01:20:04.520 --> 01:20:06.120
 Hickory to Eagle.

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

01:20:10.220 --> 01:20:13.200
 the fiber optic and traffic improvements.

01:20:13.200 --> 01:20:15.440
 And that is the extent of my presentation.

01:20:15.440 --> 01:20:17.360
 I'd be happy to stand for any questions.

01:20:17.360 --> 01:20:18.360
 Questions?

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.

01:20:25.960 --> 01:20:31.760
 There was, in the 2014 bond, there was $2.4 million for PEK-4.

01:20:31.760 --> 01:20:37.000
 Is that being folded into this $10 million or has that already been spent for design

01:20:37.000 --> 01:20:41.880
 or what happened with the bond money that was going towards this?

01:20:41.880 --> 01:20:44.680
 Do we have any idea?

01:20:44.680 --> 01:20:45.680
 Yeah, here it comes.

01:20:45.680 --> 01:20:51.880
 I have the breakdown of the accounts that maybe what she's referring to perhaps.

01:20:51.880 --> 01:20:52.880
 Hi.

01:20:52.880 --> 01:20:53.880
 Hi.

01:20:53.880 --> 01:20:54.880
 Lee Perry, Assistant City Engineer.

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.

01:20:59.520 --> 01:21:03.240
 And that's just been folded in, those bonds have already been sold?

01:21:03.240 --> 01:21:04.240
 Yes.

01:21:04.240 --> 01:21:05.240
 Okay.

01:21:05.240 --> 01:21:07.160
 I wasn't sure how that worked.

01:21:07.160 --> 01:21:08.160
 Other question?

01:21:08.160 --> 01:21:09.160
 Thank you.

01:21:09.160 --> 01:21:11.600
 I have a question about the fiber optic and the traffic improvements.

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

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

01:21:23.160 --> 01:21:24.160
 way or?

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

01:21:27.880 --> 01:21:28.880
 that happen.

01:21:28.880 --> 01:21:29.880
 Okay.

01:21:29.880 --> 01:21:30.880
 All right, great.

01:21:30.880 --> 01:21:31.880
 All right.

01:21:31.880 --> 01:21:32.880
 Just wanted to make sure.

01:21:32.880 --> 01:21:33.880
 And then I have a question.

01:21:33.880 --> 01:21:38.880
 With the bids, there's about a $2 million difference between bidders.

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

01:21:43.880 --> 01:21:47.200
 as a change order or something like that?

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.

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

01:22:01.840 --> 01:22:04.400
 the one bidder.

01:22:04.400 --> 01:22:11.120
 So they have, they're, they've been looking at the project for a while.

01:22:11.120 --> 01:22:12.120
 Sorry.

01:22:12.120 --> 01:22:14.280
 Go ahead.

01:22:14.280 --> 01:22:17.440
 And they're also currently mobilized at the Eagle Drainage Project.

01:22:17.440 --> 01:22:18.440
 Gotcha.

01:22:18.440 --> 01:22:19.440
 That makes a difference.

01:22:19.440 --> 01:22:20.440
 Okay.

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

01:22:24.120 --> 01:22:25.120
 it up.

01:22:25.120 --> 01:22:26.120
 That makes a difference.

01:22:26.120 --> 01:22:27.120
 Thank you.

01:22:27.120 --> 01:22:28.120
 Okay.

01:22:28.120 --> 01:22:34.440
 Do we have a motion to approve?

01:22:34.440 --> 01:22:35.440
 So moved.

01:22:35.440 --> 01:22:36.440
 I second.

01:22:36.440 --> 01:22:37.440
 All in favor say aye.

01:22:37.440 --> 01:22:38.440
 Aye.

01:22:38.440 --> 01:22:39.440
 Opposed?

01:22:39.440 --> 01:22:40.440
 Okay.

01:22:40.440 --> 01:22:41.440
 That carries.

01:22:41.440 --> 01:22:42.440
 Next item.

01:22:42.440 --> 01:22:46.080
 Consider recommending adoption of an ordinance of the City of Denton, Texas, a Texas Home

01:22:46.080 --> 01:22:52.080
 Rule Municipal Corporation, authorizing the city manager to execute a public works contract

01:22:52.080 --> 01:22:56.960
 with Raymar Construction for the construction of Hickory Creek Lift Station for the City

01:22:56.960 --> 01:23:01.560
 of Denton, providing for the expenditure of funds, therefore, and providing an effective

01:23:01.560 --> 01:23:10.720
 date, and the contract is not to exceed $3,418,000.

01:23:10.720 --> 01:23:15.280
 Good morning again.

01:23:15.280 --> 01:23:18.560
 Ken Banks, General Manager of Utilities.

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.

01:23:26.520 --> 01:23:31.320
 The existing Hickory Creek Lift Station pumps all the wastewater flows from the entire Hickory

01:23:31.320 --> 01:23:37.320
 Creek sewer sub-base into the concrete plant, and that station's getting pretty, pretty

01:23:37.320 --> 01:23:39.000
 old.

01:23:39.000 --> 01:23:47.100
 If you recall, there was a failure of this station back in February of 2018.

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

01:23:53.640 --> 01:23:55.920
 failure at the pump station.

01:23:55.920 --> 01:24:00.880
 Essentially, the electronics are getting outdated.

01:24:00.880 --> 01:24:07.360
 The initial design is starting to create a backup in the interceptor itself, and that's

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

01:24:13.440 --> 01:24:16.520
 of a pump station in there.

01:24:16.520 --> 01:24:23.440
 There have been a few service interruptions, as I spoke about, and this was actually authorized

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

01:24:28.600 --> 01:24:31.360
 had this on our radar screen for a little while.

01:24:31.360 --> 01:24:37.200
 Funding for construction was included in the FY19 budget at about $3.7 million.

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

01:24:41.200 --> 01:24:44.400
 where, where we're talking about.

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

01:24:50.600 --> 01:24:54.920
 referring to that pumps into a force main here, and then gravity feeds onto the concrete

01:24:54.920 --> 01:24:56.280
 plant.

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

01:25:02.480 --> 01:25:06.160
 Hickory Creek, so kind of give you an idea of where this thing is.

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.

01:25:11.840 --> 01:25:17.240
 So it was advertised for bid in November of 2018 after the final plans were completed.

01:25:17.240 --> 01:25:19.160
 We got two bids.

01:25:19.160 --> 01:25:28.480
 The lowest bidder was Raymar Construction, and their experience was evaluated, and they

01:25:28.480 --> 01:25:32.000
 have the qualifications to be able to complete this job.

01:25:32.000 --> 01:25:34.100
 Bid came in at $3.4 million.

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

01:25:40.600 --> 01:25:42.680
 much the extent of the project.

01:25:42.680 --> 01:25:46.880
 Staff is recommending approval of this contract with Raymar so we can progress on the Hickory

01:25:46.880 --> 01:25:47.880
 Creek station.

01:25:47.880 --> 01:25:51.280
 And I'd be glad to answer any questions.

01:25:51.280 --> 01:25:52.280
 Questions?

01:25:52.280 --> 01:25:53.280
 No?

01:25:53.280 --> 01:25:57.720
 Do we have a motion to approve?

01:25:57.720 --> 01:25:58.720
 Motion to approve.

01:25:58.720 --> 01:25:59.720
 Second.

01:25:59.720 --> 01:26:01.320
 All in favor say aye.

01:26:01.320 --> 01:26:02.320
 Aye.

01:26:02.320 --> 01:26:03.320
 Thank you.

01:26:03.320 --> 01:26:04.320
 Motion carries.

01:26:04.320 --> 01:26:05.320
 Let's see.

01:26:05.320 --> 01:26:06.800
 Next item.

01:26:06.800 --> 01:26:10.920
 Consider recommending adoption of an ordinance of the City of Denton authorizing the City

01:26:10.920 --> 01:26:17.040
 Manager or is designated to execute a purchase agreement by and between MD Massoud Rizab

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

01:26:24.140 --> 01:26:28.280
 track more or less situated in the Alexander Hill survey area.

01:26:28.280 --> 01:26:32.440
 I'm going to skip through.

01:26:32.440 --> 01:26:39.000
 For the amount of $2,999,750.

01:26:39.000 --> 01:26:40.000
 Good morning.

01:26:40.000 --> 01:26:43.620
 Paul Williamson, Real Estate Manager.

01:26:43.620 --> 01:26:49.840
 Today before you for your consideration is a purchase agreement for the proposed Eagle

01:26:49.840 --> 01:26:59.600
 Drive substation site, electric substation, location map showing it at the corner of Bernard

01:26:59.600 --> 01:27:08.400
 and Eagle Drive.

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

01:27:13.440 --> 01:27:18.760
 kind of toward the end, the culmination of an actual acquisition.

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

01:27:26.160 --> 01:27:30.800
 for y'all's consideration for a potential recommendation and I stand for any questions

01:27:30.800 --> 01:27:33.440
 y'all might have.

01:27:33.440 --> 01:27:34.440
 Questions?

01:27:34.440 --> 01:27:35.440
 Paul.

01:27:35.440 --> 01:27:36.440
 Good morning.

01:27:36.440 --> 01:27:37.440
 Good morning.

01:27:37.440 --> 01:27:42.040
 Is there any other expenses that are associated with this or relocations or?

01:27:42.040 --> 01:27:47.320
 Yeah, there are relocation entitlements for not only the tenants, any tenants that may

01:27:47.320 --> 01:27:48.920
 be there.

01:27:48.920 --> 01:27:50.120
 It's somewhat vacant now.

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

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

01:28:02.960 --> 01:28:09.160
 the business, the owner of the land himself, he may be entitled to some relocation benefits

01:28:09.160 --> 01:28:10.160
 as well.

01:28:10.160 --> 01:28:11.600
 That's not in this budget.

01:28:11.600 --> 01:28:15.040
 No, they're considered as a separate matter.

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?

01:28:22.560 --> 01:28:23.560
 Motion to approve.

01:28:23.560 --> 01:28:24.560
 I second it.

01:28:24.560 --> 01:28:26.040
 All in favor say aye.

01:28:26.040 --> 01:28:27.040
 Aye.

01:28:27.040 --> 01:28:28.040
 Thank you.

01:28:28.040 --> 01:28:29.040
 Motion carries.

01:28:29.040 --> 01:28:30.040
 ACM update.

01:28:30.040 --> 01:28:31.040
 Thank you.

01:28:31.040 --> 01:28:32.040
 I just have two items.

01:28:32.040 --> 01:28:33.040
 You've got the new business action items.

01:28:33.040 --> 01:28:41.840
 We've got the one pending item to discuss the meeting time.

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

01:28:47.720 --> 01:28:48.720
 meeting here shortly.

01:28:48.720 --> 01:28:55.720
 And then the future public utility board agenda items, predominantly you can see that we're

01:28:55.720 --> 01:29:00.720
 in budget time.

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

01:29:05.640 --> 01:29:06.640
 presentations.

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.

01:29:13.720 --> 01:29:18.520
 We do have a tour scheduled for the water, wastewater and solid waste facilities that

01:29:18.520 --> 01:29:23.720
 is going to occur on May the 17th.

01:29:23.720 --> 01:29:27.080
 It's going to be from 830 till approximately noon.

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.

01:29:35.160 --> 01:29:38.600
 I think you'll enjoy the tour.

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

01:29:43.080 --> 01:29:45.320
 to post if we go above three.

01:29:45.320 --> 01:29:49.880
 So just if you could let us know.

01:29:49.880 --> 01:29:50.880
 That's all I have.

01:29:50.880 --> 01:29:52.440
 All right.

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

01:29:58.120 --> 01:29:59.120
 the future?

01:29:59.120 --> 01:30:08.080
 I don't have an agenda item, but through email we received information about attendance.

01:30:08.080 --> 01:30:09.080
 Yes.

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

01:30:14.320 --> 01:30:18.960
 just a reminder or how come we got sent the attendance policy?

01:30:18.960 --> 01:30:22.840
 Oh, that's been a policy forever.

01:30:22.840 --> 01:30:28.240
 I think we were just not enforcing it maybe.

01:30:28.240 --> 01:30:31.640
 It came up with city council.

01:30:31.640 --> 01:30:32.640
 Say that again.

01:30:32.640 --> 01:30:35.680
 It came up with city council, but this is a trickle down.

01:30:35.680 --> 01:30:41.880
 So no one wants to own up to why we got sent that particular email.

01:30:41.880 --> 01:30:42.880
 Kim sent it.

01:30:42.880 --> 01:30:43.880
 I don't know who told you to send it.

01:30:43.880 --> 01:30:44.880
 You're the messenger.

01:30:44.880 --> 01:30:51.880
 You're not going to tell us who told you?

01:30:51.880 --> 01:30:54.640
 I actually thought it was two, not three.

01:30:54.640 --> 01:30:55.640
 It said three, right?

01:30:55.640 --> 01:30:56.640
 And I thought it was two.

01:30:56.640 --> 01:31:01.320
 I swear my handbook says two, so at any rate.

01:31:01.320 --> 01:31:02.320
 Can I make a suggestion?

01:31:02.320 --> 01:31:03.320
 Sure.

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

01:31:08.720 --> 01:31:10.080
 out to the board.

01:31:10.080 --> 01:31:11.080
 That would be wonderful.

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

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.

01:31:20.760 --> 01:31:21.760
 Hospital 24.

01:31:21.760 --> 01:31:22.760
 What's that?

01:31:22.760 --> 01:31:23.760
 Hospital 24.

01:31:23.760 --> 01:31:24.760
 Indeed.

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

01:31:27.560 --> 01:31:28.560
 they have to.

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

01:31:34.920 --> 01:31:35.920
 it.

01:31:35.920 --> 01:31:36.920
 Okay.

01:31:36.920 --> 01:31:37.920
 All right.

01:31:37.920 --> 01:31:38.920
 Well, it was always the policy.

01:31:38.920 --> 01:31:39.920
 Yeah, yeah, yeah.

01:31:39.920 --> 01:31:40.920
 I understand that.

01:31:40.920 --> 01:31:41.920
 I read the policy.

01:31:41.920 --> 01:31:46.040
 And Kim sent us a reminder of the policy, I guess.

01:31:46.040 --> 01:31:47.040
 Yeah.

01:31:47.040 --> 01:31:48.040
 No problem.

01:31:48.040 --> 01:31:49.040
 Thank you.

01:31:49.040 --> 01:31:50.040
 All right.

01:31:50.040 --> 01:31:52.480
 Any other items?

01:31:52.480 --> 01:31:53.480
 Motion to adjourn?

01:31:53.480 --> 01:31:54.480
 It's a high move.

01:31:54.480 --> 01:31:55.480
 We adjourn.

01:31:55.480 --> 01:31:56.480
 We're adjourned.

01:31:56.480 --> 01:31:56.480
 Without my answer about attendance.