1 00:00:00,000 --> 00:00:06,240 Good morning and welcome to the regularly scheduled meeting of the Public Utilities 2 00:00:06,240 --> 00:00:14,440 Board. It is 9 a.m. on December 9th, 2024, and we will open our meeting with any presentations 3 00:00:14,440 --> 00:00:21,960 from the public. I don't think we have any presentations today. Moving on to the consent 4 00:00:21,960 --> 00:00:32,760 agenda, items A, D, E, and F have been pulled for questions, so I'll consider a motion for 5 00:00:32,760 --> 00:00:46,260 items B, C, and G. So moved. We have a motion and a second. All in favor? Aye. Opposed? Motion 6 00:00:46,260 --> 00:00:59,120 passes. Now, item A. Good morning, everyone. Chris Carroll. I'm the Water Utilities Treatment 7 00:00:59,120 --> 00:01:04,560 Division Manager for the City of Denton, and I'm here to talk about the 25% contract amendment 8 00:01:04,560 --> 00:01:28,600 to the chemicals that we procure from vendors. So the purpose of this request, two things. 9 00:01:28,600 --> 00:01:36,600 We've got extreme chemical cost increases from the vendors, and two, we've got significant 10 00:01:36,600 --> 00:01:42,880 demand since 2021 when this contract went into place. Production was approximately six 11 00:01:42,880 --> 00:01:50,560 billion gallons in 2021 total for the year. We are now over eight billion gallons a year. 12 00:01:50,560 --> 00:01:58,760 And as you can see, we've got the current year in blue. It's averaging five to 10 MGD 13 00:01:58,760 --> 00:02:04,680 over the last five-year average, which that's where we come up with that number. Chemical 14 00:02:04,680 --> 00:02:10,000 usage, FARIC is our primary coagulant. Due to the increased demand, you can see now we're 15 00:02:10,000 --> 00:02:14,100 from four million gallons up to almost five million gallons per year, and this is over 16 00:02:14,100 --> 00:02:17,920 a five-year period. I'm sorry, could you slow down? What was that again you were pointing 17 00:02:17,920 --> 00:02:22,720 at? This one right here, this is the FARIC, the usage right here, production chemical 18 00:02:22,720 --> 00:02:28,880 usage. FARIC sulfate. Yes, correct. Okay. Yeah, and that's our primary coagulant. And 19 00:02:28,880 --> 00:02:33,920 then this is over here is where we were talking about the treatment chemical price increases. 20 00:02:33,920 --> 00:02:40,320 Our most significant one was sodium hypochlorite, which is used for disinfection. So we went 21 00:02:40,320 --> 00:02:48,200 from like 12 cents a gallon all the way up to we're almost at $2 a gallon now. Yeah. 22 00:02:48,200 --> 00:02:55,600 Can you tell us what's driving that price increase? It's manufacturing. The supply chain, 23 00:02:55,600 --> 00:02:59,680 I think we're all aware of the issues that they've had. So a lot of these chemicals require 24 00:02:59,680 --> 00:03:04,840 multiple products to create. And that's what we've been told is supply and then the availability 25 00:03:04,840 --> 00:03:09,880 of the chemicals to create them. I mean, that's a very significant increase, much greater 26 00:03:09,880 --> 00:03:15,240 than the rate of inflation. I completely agree with you. Currency exchange. Yes. I'm trying 27 00:03:15,240 --> 00:03:19,320 to wrap my head around that. Yes, I think we all were when we saw this and it definitely 28 00:03:19,320 --> 00:03:26,120 wasn't planned, especially on the sodium hypochlorite. Question? Yes. So it looked like it's not a 29 00:03:26,120 --> 00:03:30,280 gradual thing. Is this like they just fell off the cliff as far as the price is going 30 00:03:30,280 --> 00:03:35,200 up? Is that? Yeah. And what's interesting, it seems to have leveled off. Could you go 31 00:03:35,200 --> 00:03:52,400 back to that? Sure. Let me see. This one right here. A reverse cliff. Yes. A nice hill. And 32 00:03:52,400 --> 00:03:59,800 no indication at all. Like I said, it was the quarter three, 2022. We're all aware of 33 00:03:59,800 --> 00:04:05,340 the supply chain. I know stuff that I've personally purchased, it's three times, four times as 34 00:04:05,340 --> 00:04:10,960 much as it used to pay. And that was the reason that we were given. That's fine. Okay. Yeah, 35 00:04:10,960 --> 00:04:17,760 appreciate it. Yeah. Thank you. Just an idea of what the vendors that are included in this 36 00:04:17,760 --> 00:04:22,960 chemical contract, some of them can supply the same thing. We use that for redundancy. 37 00:04:22,960 --> 00:04:27,720 If one was to run out, I mean, these chemicals are required to treat the water the way we 38 00:04:27,720 --> 00:04:37,520 do. So usage forecasting, this production five year annual total on chemicals, it's 39 00:04:37,520 --> 00:04:41,640 a little deceiving because when we get into 24, we haven't finished that year out. So 40 00:04:41,640 --> 00:04:47,920 the graph's a little skewed, but it's, it's leveled off at least for now. We anticipate 41 00:04:47,920 --> 00:04:53,340 though, that it's, it's going to continue that rise just because of the demand in the 42 00:04:53,340 --> 00:05:01,600 system. I was going to ask a question about that, increase demand. It seems like the demand 43 00:05:01,600 --> 00:05:07,520 has outstripped the growth in population or am I missing something? Has the, has the population 44 00:05:07,520 --> 00:05:12,760 increased that, that many fold in just this few years? Well, from what I understand Denton 45 00:05:12,760 --> 00:05:19,120 is on an 8% growth. I'm not sure about the industry that's here. Industrial usage can 46 00:05:19,120 --> 00:05:24,800 increase that as well. I know there's several large developments, so I would anticipate 47 00:05:24,800 --> 00:05:29,280 that we're going to see that gradual increase as we move through the year. And we've got 48 00:05:29,280 --> 00:05:34,760 the expansions at Ray Roberts planned to take it all the way up to 50 MGD. We have the expansion 49 00:05:34,760 --> 00:05:39,480 at Pecan Creek, which is going to take us to 26 and eventually 30, and then some projects 50 00:05:39,480 --> 00:05:43,920 in Clear Creek and Hickory Creek as well. And so those chemicals, we're going to need 51 00:05:43,920 --> 00:05:48,480 those chemicals at those sites too. So staff will be looking at that and what that's going 52 00:05:48,480 --> 00:05:56,120 to take to budget for that. Okay. But again, it does seem that the demand has outstripped 53 00:05:56,120 --> 00:06:01,120 the growth in population. So has something changed in the way we're treating the water? 54 00:06:01,120 --> 00:06:06,720 Are we required to use more chemicals or achieve a higher level of quality or something along 55 00:06:06,720 --> 00:06:12,320 those lines? Well, we do. We, right now we are, we participate in the total optimization 56 00:06:12,320 --> 00:06:18,280 program from TCEQ. That requires us to meet certain turbidity standards. And we also have 57 00:06:18,280 --> 00:06:23,520 achieved the Director's Award for the partnership, AWWA Partnership for Safe Drinking Water, 58 00:06:23,520 --> 00:06:29,480 which requires we have better raw water treatment all the way through the filters and then out 59 00:06:29,480 --> 00:06:34,160 to the system as well. So we do strive to have the best water, which I think we all 60 00:06:34,160 --> 00:06:41,060 know that we're second best, at least last year. So we do strive to have a better quality 61 00:06:41,060 --> 00:06:43,880 water than what's demanded by regular water quality standards. 62 00:06:43,880 --> 00:06:48,640 Okay. So we have an increase in population and an increase in quality of our water. 63 00:06:48,640 --> 00:06:51,960 That's correct. Okay. Those are good things to know. Thank you. 64 00:06:51,960 --> 00:06:57,120 Yes. So the adjustment that we're asking for is a little over, I think it's 3.3 million. 65 00:06:57,120 --> 00:07:04,720 We're going from a not to exceed from 13 to 42 to 16.5. That will get us through the end 66 00:07:04,720 --> 00:07:10,020 of this fiscal year. Just checked with staff, we're at probably 99% of the contract spend 67 00:07:10,020 --> 00:07:16,160 so far. The anticipation is after the first of the year, we're going to initiate drafting 68 00:07:16,160 --> 00:07:21,080 a new contract with these forecasting methods put into place so we're not having to come 69 00:07:21,080 --> 00:07:30,160 back and do these amendments. So in conclusion, staff's evaluated the usage, 70 00:07:30,160 --> 00:07:36,400 the demand, the costs, and we're looking for a request for approval for this amendment 71 00:07:36,400 --> 00:07:45,840 to the contract. Any questions? When we go to renegotiate, so we're going 72 00:07:45,840 --> 00:07:51,080 to renegotiate the whole contract come the first year and are we going to just redo it 73 00:07:51,080 --> 00:07:56,840 as five on top of the 2026 maturity or do we do it five from next year because the last 74 00:07:56,840 --> 00:08:02,760 one was five years? Yeah. I'd have to talk to Lori about the contract. 75 00:08:02,760 --> 00:08:06,560 Was it five year with two extensions or was it three with two? 76 00:08:06,560 --> 00:08:09,680 Three with two. Okay. So it's three with two. That's something 77 00:08:09,680 --> 00:08:16,600 we'll need to look at. I'm assuming we're pricing for multiple vendors 78 00:08:16,600 --> 00:08:20,960 or the contract restricts us to just one vendor? No. There's multiple vendors that can bid 79 00:08:20,960 --> 00:08:24,720 on those contract items. Okay. And the pricing is consistent across multiple 80 00:08:24,720 --> 00:08:29,000 vendors? What I've seen, Lori, do you have any information 81 00:08:29,000 --> 00:08:34,080 on that? The idea is to use the best value if we can and if that's not available, then 82 00:08:34,080 --> 00:08:37,660 why do we use that? Yeah. When we re-solicit it, we'll probably 83 00:08:37,660 --> 00:08:42,600 do a request for proposal. So we'll split it into sections like we did this last time 84 00:08:42,600 --> 00:08:48,160 and we award per section to multiple vendors just so we always have someone that can supply 85 00:08:48,160 --> 00:08:53,000 it. So price will be a part of it. Normally it's about 40%, sometimes up to 60%, depending 86 00:08:53,000 --> 00:08:58,040 on what other evaluations we want to look at, like performance and service and stuff 87 00:08:58,040 --> 00:09:03,920 like that. Sometimes it's low price, but sometimes it's overall best value for the city, but 88 00:09:03,920 --> 00:09:08,960 we will award by section. So this contract, I think, had 10 different vendors, some in 89 00:09:08,960 --> 00:09:12,520 primary positions, some in secondary positions, and we'll probably assume to do the same thing 90 00:09:12,520 --> 00:09:14,720 next time. Thank you. 91 00:09:14,720 --> 00:09:18,880 Yeah. Any further questions? 92 00:09:18,880 --> 00:09:20,560 One final question. Sure. 93 00:09:20,560 --> 00:09:26,200 The hypochlorite, that tremendous increase in cost, have y'all evaluated doing onsite 94 00:09:26,200 --> 00:09:31,420 generation instead of purchasing it? We have not. It's something that we can look 95 00:09:31,420 --> 00:09:37,280 into. Right now, at Ray Roberts, we were using chlorine gas, and the intent was to go away 96 00:09:37,280 --> 00:09:43,560 from the gas production of that, and we've got a temporary bleach tank in there right 97 00:09:43,560 --> 00:09:49,520 now. The Lake Lewisville had converted several years ago to liquid ammonium sulfate and sodium 98 00:09:49,520 --> 00:09:55,960 hypochlorite, much safer for staff. So we will see an increase in cost just because 99 00:09:55,960 --> 00:10:01,240 the liquid form is more expensive than the gas, for some reason now that it's shot up 100 00:10:01,240 --> 00:10:06,880 to $2, almost $2 a gallon. But that's something we can look into, but definitely be evaluated. 101 00:10:06,880 --> 00:10:12,200 Yeah. I know other groups throughout North Texas have moved to that because it's not 102 00:10:12,200 --> 00:10:16,800 a hazardous material until you make the hazardous material onsite, so you don't need hazardous 103 00:10:16,800 --> 00:10:21,800 shipping. You aren't calling a bunch of water. You're only, you know, you're delivering just 104 00:10:21,800 --> 00:10:22,800 your salt. Correct. 105 00:10:22,800 --> 00:10:25,520 Your machine turns, you know, adds the water and turns it into- 106 00:10:25,520 --> 00:10:29,840 Yeah, I'd like to look at how safe it is for our staff onsite, because I know there are 107 00:10:29,840 --> 00:10:33,780 some hazards associated with onsite generation as well. 108 00:10:33,780 --> 00:10:37,400 Thank you. That is an excellent point, sir. Thank you. 109 00:10:37,400 --> 00:10:46,400 I'd like to move approval of the item. Do we have a motion? Do we have a second? 110 00:10:46,400 --> 00:10:55,760 All in favor say aye. All opposed? Same sign. A passes. Now on to D. Do we have a single 111 00:10:55,760 --> 00:11:00,460 presentation for D, E, and F? That's correct. And Brandon Hamby is coming 112 00:11:00,460 --> 00:11:06,840 up from DME. So we'll introduce items D, E, and F for the 113 00:11:06,840 --> 00:11:09,600 presentation. Good morning. My name is Brandon Hamby. I'm 114 00:11:09,600 --> 00:11:18,160 the leader and division manager for DME. Let me get this up. 115 00:11:18,160 --> 00:11:35,800 And then, all right. That's not a keyboard. All right. 116 00:11:35,800 --> 00:11:39,740 For today, we're going over the invitation for bid. 117 00:11:39,740 --> 00:11:45,480 It's a renewal of the previous bid that we had, because the previous bid, we've run out 118 00:11:45,480 --> 00:11:52,240 of money on a couple of vendors, kind of like they were talking about on the previous presentation. 119 00:11:52,240 --> 00:11:57,120 Our bids are broken up into sections. And so we have the meter bid broken up into 120 00:11:57,120 --> 00:12:02,880 several sections. And of those sections, two of our vendors have run out of allowable spend. 121 00:12:02,880 --> 00:12:10,360 And so after consulting with our procurement department, it was decided to go ahead and 122 00:12:10,360 --> 00:12:16,360 do a renewal of the whole bid because of two vendors being out of that spend. 123 00:12:16,360 --> 00:12:23,200 So what we did is we went out and we did a new meter bid for the whole meter blanket. 124 00:12:23,200 --> 00:12:28,360 So and that's kind of what we talked about here. Previous spend for section A, because 125 00:12:28,360 --> 00:12:33,800 I think that's why Mr. Ryback had pulled this, was the questions about section A of the metering 126 00:12:33,800 --> 00:12:37,880 section. So far, we had spent $4.9 million with that 127 00:12:37,880 --> 00:12:43,760 section. But the total allowable spend for that section was $8 million. 128 00:12:43,760 --> 00:12:50,340 So we hadn't spent that whole section of that one, but we have that there for just in case, 129 00:12:50,340 --> 00:12:54,960 because we have, like I said, 8% growth. We've been adding about 3,000 electrometers 130 00:12:54,960 --> 00:12:58,840 per year. And we also have a maintenance program where we have to change out all the meters 131 00:12:58,840 --> 00:13:03,280 that need to be changed out because of our aging meter population from when we first 132 00:13:03,280 --> 00:13:08,520 did our AMI system back in 2010. So we have some meters that are older and the electronics 133 00:13:08,520 --> 00:13:13,480 are getting older and we're having to exchange some of those meters as well. 134 00:13:13,480 --> 00:13:19,440 Overall our system overall, as of when I did this PowerPoint, we had 67,000 electric meters 135 00:13:19,440 --> 00:13:24,800 in the city. Most of those are residential, about 63,000 of those. And on the AMI system, 136 00:13:24,800 --> 00:13:29,840 we have 13 customers that have chosen the opt-out and do not do the AMI, which means 137 00:13:29,840 --> 00:13:39,760 we have to manually read those every month. And then we have about 4,700 commercial meters. 138 00:13:39,760 --> 00:13:45,460 The beta was broken up into five sections. And Techline was awarded section A for the 139 00:13:45,460 --> 00:13:52,520 electric meters. Texas Electric Co-ops for sections B, C, and D for electric meter sockets. 140 00:13:52,520 --> 00:13:56,080 Primary Instrument Rated Transformers and Primary Instrument Rated Transformers. And 141 00:13:56,080 --> 00:14:01,160 then section E was Tray Networks Inc. for our AMI equipment. 142 00:14:01,160 --> 00:14:18,680 I'm curious if you would go back. Where's the previous? Secure Mesh. Could you tell 143 00:14:18,680 --> 00:14:25,560 us what that is? Yes, sir. There's different technologies for automated metering infrastructure. 144 00:14:25,560 --> 00:14:28,600 And there's point to point. And then there's what they call Secure Mesh. And then they 145 00:14:28,600 --> 00:14:36,680 have Powerline Carrier, PLC. Secure Mesh is radio. It's basically in the, it's going 146 00:14:36,680 --> 00:14:43,880 to, all the meters are going to communicate via radio from the meter point to the extender 147 00:14:43,880 --> 00:14:49,640 bridge, the collector we have, and then from the collector back to the gateway. And so, 148 00:14:49,640 --> 00:14:57,000 and all the, all the passing of that information is encrypted. It's got 128 bit encryption 149 00:14:57,000 --> 00:15:01,160 on it. And so that's why it's called Secure Mesh. So if anybody was to try to intercept 150 00:15:01,160 --> 00:15:04,960 and try to get any of those transmissions, they would need our encryption key to get 151 00:15:04,960 --> 00:15:12,960 the information inside. Okay. So we have 72,000, 73,000 total meters. 152 00:15:12,960 --> 00:15:17,360 How many extender bridges do we have? We have 78 extender bridges in two games. 153 00:15:17,360 --> 00:15:18,360 78? Yes, sir. 154 00:15:18,360 --> 00:15:20,360 That's all? Yes, sir. 155 00:15:20,360 --> 00:15:25,600 Wow. That's impressive. I would have thought it had been many hundreds. 156 00:15:25,600 --> 00:15:29,240 We have 78. It is growing though, because the city is growing. So we will be looking 157 00:15:29,240 --> 00:15:35,720 to add some more. But we generally try to keep about 2000 meters per extender bridge. 158 00:15:35,720 --> 00:15:39,760 So that we have failover. All the extender bridges are set strategically. So if one was 159 00:15:39,760 --> 00:15:45,040 to go down, the others in that area could pick up those meters. A total, an extender 160 00:15:45,040 --> 00:15:49,400 bridge can run about 5,000 meters total on it. But we try to keep them around 2,000 so 161 00:15:49,400 --> 00:15:55,840 that we have that failover. Just in case, like I said, whatever happens, we've had poles 162 00:15:55,840 --> 00:16:00,920 crashed into or stuff happen where we've lost extender bridges, lightning. Lightning happens 163 00:16:00,920 --> 00:16:05,520 a lot sometimes where we lose one. So if we lose one, in the meantime, the others can pull 164 00:16:05,520 --> 00:16:10,680 in all those reeds and keep our system up and robust and going with that failover. 165 00:16:10,680 --> 00:16:17,820 So what radio band are they working at? So the meters themselves are 2.4 gigahertz band. 166 00:16:17,820 --> 00:16:26,440 And then the extender bridges run 5.8 gigahertz. And they're in the open band, where it's unlicensed. 167 00:16:26,440 --> 00:16:30,280 Some AMI systems have licensed bands. And then you have to pay for that license. And 168 00:16:30,280 --> 00:16:35,780 that's an ongoing fee to pay for that license. Ours is the unlicensed band. And that's the 169 00:16:35,780 --> 00:16:46,880 encryption. Unlicensed, but encrypted? Yes. OK. Yes, sir. All right. So that's kind of 170 00:16:46,880 --> 00:16:52,440 what comes to questions, which those are very good questions. And any other questions that 171 00:16:52,440 --> 00:17:11,040 we have? Yes, sir. To this one or back? Just got it. Go towards the ending. OK, thank you. 172 00:17:11,040 --> 00:17:18,060 There, breathe. OK. So you're asking then for an additional what? This is not additional. 173 00:17:18,060 --> 00:17:25,400 This is to take the place of our current bid. OK. Our current bid, sections B, C, and D, 174 00:17:25,400 --> 00:17:30,960 that vendor TEC, and then section E, the trend, those were out of spend. And so when they're 175 00:17:30,960 --> 00:17:36,120 out of spend, the recommendation was to bring the whole bid back to have the whole thing 176 00:17:36,120 --> 00:17:42,040 rebid again instead of just certain sections of it. And so we came-- we've come back about 177 00:17:42,040 --> 00:17:46,320 a year earlier than what we were expecting to come back, just because we ran out of spend. 178 00:17:46,320 --> 00:17:50,400 And part of that is just because the costs of prices keep going up. Every time that we 179 00:17:50,400 --> 00:17:55,360 do an order, we'd end up having to do an amendment for pricing, because we go out for pricing, 180 00:17:55,360 --> 00:17:59,400 which I do the order in the same app. Pricing has changed again. You all need to do an amendment. 181 00:17:59,400 --> 00:18:04,320 And so we have these ongoing price raises happening over the last couple of years on 182 00:18:04,320 --> 00:18:09,480 all this equipment. Thank you. And Mr. Rybeck, this is the annual amount. What you're considering 183 00:18:09,480 --> 00:18:13,520 today is a five-year amount. So you get to multiply this times five, each of these times 184 00:18:13,520 --> 00:18:18,000 five, to get to the contract amount. So take those numbers times five, you're saying-- 185 00:18:18,000 --> 00:18:21,960 Yeah, correct. If you look at the agenda, it's a five-year award. He's just showing 186 00:18:21,960 --> 00:18:30,480 this on an annual basis. Thank you. Right. So we're looking at $10, $11, $12 million 187 00:18:30,480 --> 00:18:36,000 roughly for the whole package? That'd be correct. OK. Over the five-year period? Over a five-year 188 00:18:36,000 --> 00:18:40,360 period. And we try to build in some contingency there, because we've looked at historical 189 00:18:40,360 --> 00:18:44,920 rising cost of prices and what the vendors have been coming back with because of manufacturers 190 00:18:44,920 --> 00:18:51,520 gone up on prices. When we first started our bid that we are currently in back in 2021, 191 00:18:51,520 --> 00:18:56,000 we look at the prices there to the prices now. And there's many products that have doubled 192 00:18:56,000 --> 00:19:01,120 in price that are twice as much as what they were. And we're still-- So what are you projecting 193 00:19:01,120 --> 00:19:07,040 here over the five-year period for pricing? We built a 5% increase per year. I thought 194 00:19:07,040 --> 00:19:14,000 that that was modest, but we needed to account for something. Well, I guess in some cases, 195 00:19:14,000 --> 00:19:18,960 they've already doubled, so how much more can they go up? I would hope not much more, 196 00:19:18,960 --> 00:19:27,040 but we've yet to see them level out. Oh, really? Every time that we've gone back in every order, 197 00:19:27,040 --> 00:19:33,320 even in this last year, prices have continued to rise. So we're hoping that levels out. 198 00:19:33,320 --> 00:19:40,280 We've not seen this before the pandemic, 2020, of how this dramatic a price increases. I've 199 00:19:40,280 --> 00:19:45,120 been here 24 years. I've never seen prices increases like this, but it certainly ran 200 00:19:45,120 --> 00:19:52,360 our contracts out of money quickly. OK, so it's potentially going to be required for 201 00:19:52,360 --> 00:19:58,000 you to come back and ask for additional increases on this contract, pending additional price 202 00:19:58,000 --> 00:20:03,520 increases in equipment and material. We've tried to build a contingency in there for 203 00:20:03,520 --> 00:20:07,600 that, and we hope that that can cover that. But if it doesn't, then, yes, we would be 204 00:20:07,600 --> 00:20:13,120 back for that. Yeah, Mr. Rybak, unlike what you heard the Water Department say, we continue 205 00:20:13,120 --> 00:20:18,640 to see prices across the electric industry continue to escalate. And so we've not seen 206 00:20:18,640 --> 00:20:23,880 any kind of flattening. It just continues to just build up across the entire equipment 207 00:20:23,880 --> 00:20:28,200 system that we have. Well, I can appreciate that. Our food bills 208 00:20:28,200 --> 00:20:34,240 up about 50 percent over two years ago. I looked at the national average between 2020 209 00:20:34,240 --> 00:20:42,440 and 2024 just on inflation, and it's 20 percent in the last several years. Just on that, I 210 00:20:42,440 --> 00:20:48,840 think 2021 was 4 point something, 2022 is 8 percent something, and then 2023 was 8. 211 00:20:48,840 --> 00:20:55,680 And then this year is 2.6 or something like that. So we're not over that. The last quarter, 212 00:20:55,680 --> 00:21:01,680 it was at 2.6 on inflation. So national inflation, we've gone up about 20 percent since our previous 213 00:21:01,680 --> 00:21:07,960 contract till now. Unfortunate, but true. Thank you. 214 00:21:07,960 --> 00:21:13,560 Yes, sir. Historically, and there were a number of 215 00:21:13,560 --> 00:21:17,640 debt and bids in this, are debt and firms able to even compete on this stuff? Have we 216 00:21:17,640 --> 00:21:22,280 been able to engage with them? In this case, we didn't get any in this one, but just for 217 00:21:22,280 --> 00:21:27,320 my background knowledge. I talk about competing for the products. 218 00:21:27,320 --> 00:21:32,280 With electric metering, there's usually only a handful of, say, meter manufacturers. There's 219 00:21:32,280 --> 00:21:36,600 only about five in the whole United States. And then to find the ones that actually work 220 00:21:36,600 --> 00:21:42,080 with our AMI system module, we're down to two out of those five. As far as other equipment 221 00:21:42,080 --> 00:21:48,160 like the current transformers, potential transformers, there's also a limited number of manufacturers 222 00:21:48,160 --> 00:21:54,120 to those in the United States. So a lot of this equipment, there's just a handful of 223 00:21:54,120 --> 00:21:58,960 manufacturers that kind of hold the whole industry, and you're kind of limited to working 224 00:21:58,960 --> 00:22:05,120 with those manufacturers and the distributors for those manufacturers. 225 00:22:05,120 --> 00:22:10,100 But we would welcome more competition if someone was to bring it, because that would certainly 226 00:22:10,100 --> 00:22:14,400 help with the pricing, if they had some more competition than what they have. 227 00:22:14,400 --> 00:22:25,920 Mr. Chairman. So you've had a 5% increase, hoping that that would cover it. It looks 228 00:22:25,920 --> 00:22:32,000 like it's not going to. Is it your thought that next year, when we start this again, 229 00:22:32,000 --> 00:22:38,040 you feel comfortable with the 5% knowing that you'd possibly be coming back to us with more 230 00:22:38,040 --> 00:22:45,520 alterations, or are you thinking about going to a higher number than the 5% for protection? 231 00:22:45,520 --> 00:22:49,880 I think in the current contract that we're in, we didn't have that, the current meter 232 00:22:49,880 --> 00:22:53,840 bid that we ran out of money. And so we tried to build that into this one so that we would 233 00:22:53,840 --> 00:23:01,240 have that and in the hopes that it would be enough to cover that. And like I said, all 234 00:23:01,240 --> 00:23:07,440 we can do is project and go off of our best projection without looking to the future. 235 00:23:07,440 --> 00:23:13,120 It's unknown, but we just look at our historicals and try to go off of what we've seen in the 236 00:23:13,120 --> 00:23:17,800 last couple of years. But also knowing the last couple of years is a departure from what 237 00:23:17,800 --> 00:23:23,200 everything was before those years as far as pricing and hoping that we will level out 238 00:23:23,200 --> 00:23:29,600 at some point. That's the hope that these prices don't continue, hoping there's going 239 00:23:29,600 --> 00:23:34,120 to be a leveling. And if it will level out in price and kind of hold a closer price, 240 00:23:34,120 --> 00:23:36,960 then yes, this money will be enough. 241 00:23:36,960 --> 00:23:41,760 So you feel comfortable with going with this procedure and then possibly seeing us more 242 00:23:41,760 --> 00:23:46,160 often than we've seen you before just because of the market? 243 00:23:46,160 --> 00:23:48,400 That could be possible. I'd be comfortable coming back and talking to you. 244 00:23:48,400 --> 00:23:52,040 Well, I'm just saying, right back and made that come in. I have no problem with it. It's 245 00:23:52,040 --> 00:23:53,040 good to see you. Just curious. 246 00:23:53,040 --> 00:23:57,560 Well, Mr. Rainer, that's one of the reasons why we do an initial three-year contract. 247 00:23:57,560 --> 00:24:02,000 If we see prices escalate too much, if we see more demand than we anticipated that we 248 00:24:02,000 --> 00:24:06,200 think might be worthwhile, us going out for rebid, we can do that after the additional 249 00:24:06,200 --> 00:24:08,600 term of three years. Yes, sir. 250 00:24:08,600 --> 00:24:09,600 Commissioner Ruddick. 251 00:24:09,600 --> 00:24:14,280 Yes. I was wondering, so we're committed to this Trillion Network, obviously, for this 252 00:24:14,280 --> 00:24:21,880 data gathering. So really don't have much leverage over them in terms of seeking another 253 00:24:21,880 --> 00:24:22,880 vendor or competition for that. 254 00:24:22,880 --> 00:24:28,520 Right. They kind of have a monopoly on their equipment and then the modules that go in 255 00:24:28,520 --> 00:24:31,240 the meters for that equipment. 256 00:24:31,240 --> 00:24:34,480 Have their rate increases been a little more moderate? 257 00:24:34,480 --> 00:24:39,120 Yours has not been all that bad in the pricing. When I looked at theirs, actually their price 258 00:24:39,120 --> 00:24:44,440 increases have been only about 3% per year and stuff like that. And so it hasn't been 259 00:24:44,440 --> 00:24:50,160 as high a jumps as we've seen, particularly with meter basis and current transformers 260 00:24:50,160 --> 00:24:54,200 and potential transformers. That's where we saw the biggest increases where things are 261 00:24:54,200 --> 00:25:00,120 double in price from where our current contract is to the proposal of this one. 262 00:25:00,120 --> 00:25:06,760 Mr. Ruddick, the AMI system is something that DME implemented, what, 10 years ago, 20 years 263 00:25:06,760 --> 00:25:07,760 ago now, I guess. 264 00:25:07,760 --> 00:25:13,600 Starting 2010 is a five-year rollout. We completed it. It had 100% complete in 2015. 265 00:25:13,600 --> 00:25:21,600 So we do have in our CIP out in the out years $40 million to look at a new AMI system. We 266 00:25:21,600 --> 00:25:26,760 continue to push that out because the system is doing what we need it to do. But at some 267 00:25:26,760 --> 00:25:32,280 point, we probably need to look at just refreshing that and maybe looking at another system because 268 00:25:32,280 --> 00:25:36,540 there have been technology improvements. The water department is currently looking and 269 00:25:36,540 --> 00:25:40,600 implementing AMI as well. So there might be some opportunities there for us to leverage 270 00:25:40,600 --> 00:25:45,400 with them. But again, I think right now the cheaper route is to continue to keep the system 271 00:25:45,400 --> 00:25:49,040 that we have. It's doing the work that we need it to do and postpone that $40 million. 272 00:25:49,040 --> 00:25:57,280 As long as their rate increases have been more normal and acceptable. Some of the rate 273 00:25:57,280 --> 00:26:05,560 increases we saw with the chemicals, it was eight times in one year. That's big. Anyway, 274 00:26:05,560 --> 00:26:09,600 I don't have anything else. Thank you. 275 00:26:09,600 --> 00:26:18,480 Any further questions? We'll consider these items individually. I would take a motion 276 00:26:18,480 --> 00:26:29,040 for item D. So moved. Mr. Ryback moves. Second. Anybody? Mr. Plotk seconds. All in favor? 277 00:26:29,040 --> 00:26:40,560 All are. The vote is unanimous for item E. I would consider a motion. Second. Motion 278 00:26:40,560 --> 00:26:52,000 is second. All in favor? Unanimously again. And for item E, a motion? I'm sorry. Item 279 00:26:52,000 --> 00:27:02,400 F. You're right. Who's the motion? I'm sorry. Oh, okay. Commissioner Plotk, second. All 280 00:27:02,400 --> 00:27:11,720 in favor? Also passes unanimously. Moving on to items for individual consideration. Item 281 00:27:11,720 --> 00:27:23,960 A, consider approval of the November 18, 2024 minutes. Is there a motion? Commissioner Newquist 282 00:27:23,960 --> 00:27:33,480 and second by Ryback. All in favor? All are. Passes. And item B, consider adoption of an 283 00:27:33,480 --> 00:27:38,560 ordinance from the city of Denton authorizing city manager to execute a CMAR guaranteed 284 00:27:38,560 --> 00:27:48,000 maximum price contract, price amendment number three to CMAR contract with Sunt Construction 285 00:27:48,000 --> 00:27:53,000 for let's see, construction phase services of the third work package for neighborhood 286 00:27:53,000 --> 00:27:58,600 two and six improvements. Good morning board members. Scott Feddick, senior project manager 287 00:27:58,600 --> 00:28:04,760 with capital projects. As you stated here this morning for consideration for an amendment 288 00:28:04,760 --> 00:28:10,040 to the contract for neighborhood two and six for GMP three or guaranteed maximum price 289 00:28:10,040 --> 00:28:17,800 number three. Neighborhood two and six is part of the 2019 bond program. So a little 290 00:28:17,800 --> 00:28:23,840 bit about two and six project. The area that we're taking place for three you can see on 291 00:28:23,840 --> 00:28:30,200 the map is indicated by the dotted black line. This overall project takes place primarily 292 00:28:30,200 --> 00:28:35,520 in the southwest quadrant of the city of Denton. Some of the major streets with package three 293 00:28:35,520 --> 00:28:43,720 will be Sunset, Cordell, Congress and Scripture. With this project we'll be doing 49 roadway 294 00:28:43,720 --> 00:28:49,280 segments for reconstruction. There's about 11,000 feet of water main replacements, 8,300 295 00:28:49,280 --> 00:28:54,280 feet of wastewater replacement, about 3,000 square yards of sidewalk replacement and then 296 00:28:54,280 --> 00:29:02,120 we'll also be looking at doing some sidewalk lighting and installation. So the GMP three 297 00:29:02,120 --> 00:29:08,100 overall cost, cost of work was just over 21 million. We had the contingencies for owner 298 00:29:08,100 --> 00:29:20,760 and Seymour with allowances. Total contract amount was 28 million, 145, 415 cents. Kind 299 00:29:20,760 --> 00:29:28,920 of a little bit about the... Could you go back please? Yes sir. What is the CMR's contingency? 300 00:29:28,920 --> 00:29:34,820 So that is, that is an allowance that allows them to use money that is for items that come 301 00:29:34,820 --> 00:29:39,800 up within the project that are related to the project. So just for a simple example, 302 00:29:39,800 --> 00:29:45,320 when we're working in the UNT area, we started noticing that students are trying to get into 303 00:29:45,320 --> 00:29:51,280 the construction area. We didn't perceive that so they needed to get some fencing to 304 00:29:51,280 --> 00:29:55,600 put up and UNT requested fencing so we allowed them to use that contingency to go out and 305 00:29:55,600 --> 00:30:00,960 rent some chain link fencing and areas to protect the students in the project area. 306 00:30:00,960 --> 00:30:06,240 So things like that that benefit the project. Okay so are allowances then from previous 307 00:30:06,240 --> 00:30:12,120 risk contingency expenditures? Yeah so allowances, yeah so when we, we look at what the risk 308 00:30:12,120 --> 00:30:18,720 may be so just for example like say mailboxes, a bunch of mailboxes along the side of a street 309 00:30:18,720 --> 00:30:21,400 that we could possibly damage as we go down through there but we don't know that we're 310 00:30:21,400 --> 00:30:26,960 going to for sure. So we put that in an allowance so if that would happen, we have individual 311 00:30:26,960 --> 00:30:31,700 lines that could use that money to fix that mailbox and if we don't use any of it, that 312 00:30:31,700 --> 00:30:36,080 money all reverts back to the city. That allows us to bring that money back versus have a 313 00:30:36,080 --> 00:30:42,040 line item that would get paid out in full for something we may or may not do. Okay so 314 00:30:42,040 --> 00:30:50,920 if you'll excuse me just working through this, so the construction fee is not the same as 315 00:30:50,920 --> 00:30:56,400 the general condition so the general contractor is being paid for their general conditions, 316 00:30:56,400 --> 00:31:02,080 the construction fee goes to the CMR? Yes so it's, yeah it's a figure on the total cost 317 00:31:02,080 --> 00:31:06,120 of the project and then yes and then anything that's not used for that percentage would 318 00:31:06,120 --> 00:31:15,240 also revert back to the city and then the project for the construction fee. Okay thank 319 00:31:15,240 --> 00:31:21,920 you. Mr. Chair, so if I understand on the contingency that would let's say the chain 320 00:31:21,920 --> 00:31:27,520 link fence as you mentioned, but the mailboxes fall under the allowances? Right, right. It 321 00:31:27,520 --> 00:31:33,200 is a risk that we identified, you know the allowances are risks that we identified during 322 00:31:33,200 --> 00:31:38,600 the project design. So as you're aware with the CMR, we bring on the CMR design firm and 323 00:31:38,600 --> 00:31:43,000 we all do it together. So constructability they're looking at, well this is a possibility 324 00:31:43,000 --> 00:31:48,680 we might have to do this or you know sweeping or whatever you know that we may or may not 325 00:31:48,680 --> 00:31:55,560 have to do is added as an allowance versus a solid bid on that line on them. So an event 326 00:31:55,560 --> 00:32:00,800 like the chain link fence just caught everybody by surprise because of the clientele in the 327 00:32:00,800 --> 00:32:04,760 neighborhood? Right that wasn't really expected. Students or students? Right, wasn't really 328 00:32:04,760 --> 00:32:11,480 expected so that is a way allowed to use contingency. Thank you for that. Mr. Chair, concerning 329 00:32:11,480 --> 00:32:17,520 the contingency what you said the word we permit them to access the contingency, is 330 00:32:17,520 --> 00:32:21,200 there a comeback process to us to where they're telling us hey we're going or do they have 331 00:32:21,200 --> 00:32:25,320 some unilateral discretion to go ahead and access it? How does that work? How do we know 332 00:32:25,320 --> 00:32:30,280 when they're tapping that? Yes, so we are required to let us know what they're going 333 00:32:30,280 --> 00:32:35,360 to use it for, vet out, give us cost, they provide the cost estimates and everything 334 00:32:35,360 --> 00:32:46,640 to us and then we say okay yeah we agree this is a valid use of contingency. Good. All right 335 00:32:46,640 --> 00:32:51,400 so a little bit about our project schedule. Like I said this is the third and final GMP 336 00:32:51,400 --> 00:32:59,640 for this project. GMP number one we started construction in November of 23, sorry December 337 00:32:59,640 --> 00:33:07,760 of 23. GMP number two we started construction in May of 24. We are with an approval here 338 00:33:07,760 --> 00:33:14,280 we're going to go to council on the 17th and with that if we get an approval we would start 339 00:33:14,280 --> 00:33:21,000 GMP construction probably sometime in January quarter one of 2025. Overall project we are 340 00:33:21,000 --> 00:33:29,960 expecting a total completion of the project in quarter four of 2026. So will that be the 341 00:33:29,960 --> 00:33:35,400 complete expenditure then of the 2019 bond? Will that complete it? We'll not complete 342 00:33:35,400 --> 00:33:42,760 the bond just this project. Okay and how much more of the bond is left to be executed? So 343 00:33:42,760 --> 00:33:47,720 we do have a few more projects left. There's the neighborhood 5A project, we've got the 344 00:33:47,720 --> 00:33:54,480 neighborhood 5B and also the Oakland drainage is part of that project. There's a still in 345 00:33:54,480 --> 00:33:58,800 in progress the neighborhood four project. We have a few projects that were associated 346 00:33:58,800 --> 00:34:06,920 with it that we have on hold right now with funding and they may get pushed but so majority 347 00:34:06,920 --> 00:34:12,960 of it we're getting there so we're getting the majority of it is under construction or 348 00:34:12,960 --> 00:34:18,640 in design. Okay so that 2019 bond when do we more or less anticipate that those projects 349 00:34:18,640 --> 00:34:26,640 will be completed? I think with the Oakland 5B Seth you may have to help me this is 28 350 00:34:26,640 --> 00:34:38,120 27 I know for sure into 27 28 for that project. I just want to get a general idea. Okay with 351 00:34:38,120 --> 00:34:43,440 that staff recommendation would be an amendment to the contract with Sunt Construction for 352 00:34:43,440 --> 00:34:52,200 the GMP number three total not to exceed amount of $28,145,400.15 that does include the owners 353 00:34:52,200 --> 00:35:03,400 contingency of one million dollars. And any additional questions? Any further questions? 354 00:35:03,400 --> 00:35:20,240 Or a motion? Mr. Ryback moves second. Nucleus seconds. All in favor? Aye. Opposed? None. 355 00:35:20,240 --> 00:35:27,280 Motion B passes. Now we'll move to item C. Consider recommending adoption of an ordinance 356 00:35:27,280 --> 00:35:33,480 to the city of Denton authorizing the city manager to execute a contact with Tiseo Paving 357 00:35:33,480 --> 00:35:40,640 for construction of Bonnie Bray phase six improvement project for a total amount not 358 00:35:40,640 --> 00:36:02,360 to exceed $38,688,093.66. Good morning public utility board members my name is Jesus Perez 359 00:36:02,360 --> 00:36:07,520 I'm a project manager with capital projects and I'll be introducing the Bonnie Bray phase 360 00:36:07,520 --> 00:36:12,800 six improvement project to you and the utilities that we will construct within its project 361 00:36:12,800 --> 00:36:21,280 limits. On Bonnie Bray the scope will be to widen to a four-lane divided roadway from 362 00:36:21,280 --> 00:36:27,800 University Drive all the way to Elm Street and within those project limits there will 363 00:36:27,800 --> 00:36:36,760 be a total of 2,600 linear feet of new water mains and also a total of 11,600 linear feet 364 00:36:36,760 --> 00:36:43,200 of new stormwater mains. On the scope on Rainey Road of course it would be to widen it to 365 00:36:43,200 --> 00:36:49,600 three lane a three lane roadway meaning there will be a turn lane in between from the Bonnie 366 00:36:49,600 --> 00:36:58,600 Bray intersection and Rainey Road to about 120 feet west of the Hardaway Road intersection. 367 00:36:58,600 --> 00:37:03,240 Within those project limits we will install about a thousand linear feet of new water 368 00:37:03,240 --> 00:37:13,400 mains and also a total of 800 feet of stormwater upgrades. The bid opening for this project 369 00:37:13,400 --> 00:37:20,560 was conducted on August 28th 2024. At the time there was only two bids that were received 370 00:37:20,560 --> 00:37:28,960 and opened by procurement. The lowest bidder at the time it was from Tizio Paving Company. 371 00:37:28,960 --> 00:37:35,560 All the bids and supporting documentation was collected by procurement and then sent 372 00:37:35,560 --> 00:37:41,880 to the Texas Department of Transportation for their approval. Once we received approval 373 00:37:41,880 --> 00:37:50,920 we had the go ahead to move towards construction. The base bid submitted by Tizio Paving at 374 00:37:50,920 --> 00:38:05,840 that time was for $36,845,803.49. The funding sources for this project are coming from a 375 00:38:05,840 --> 00:38:12,040 couple of different sources. The first one being the 2019 General Obligation Fund. There 376 00:38:12,040 --> 00:38:19,680 is some Federal Highway Administration funding and there is Denton ISD funding that's coming 377 00:38:19,680 --> 00:38:27,640 through an ILA, Interlocal Agreement between the City and the school for the Riney Road 378 00:38:27,640 --> 00:38:36,320 segment. The upcoming schedule for the project of course will be to go before City Council 379 00:38:36,320 --> 00:38:43,880 on December 17th to recommend award to the contractor. Shortly thereafter we will issue 380 00:38:43,880 --> 00:38:50,040 a partial notice to proceed for the contractor to start ordering materials with a lot of 381 00:38:50,040 --> 00:38:56,840 lead time. Once we are in January the City will issue the full notice to proceed to the 382 00:38:56,840 --> 00:39:04,760 contractor so he can begin full mobilization into the areas that we need them to. What 383 00:39:04,760 --> 00:39:11,920 I mean by that is that we have built in milestones into the project manual. There's three key 384 00:39:11,920 --> 00:39:21,720 milestones that he must meet time frame so that time is of the essence. The contractor 385 00:39:21,720 --> 00:39:28,680 asked for the total project, the contractor will have a total of two and a half years 386 00:39:28,680 --> 00:39:38,440 to complete. I have a couple of quick questions. The contractor that we plan to award to Tizio 387 00:39:38,440 --> 00:39:47,000 Paving does the City have any experience working with them? No sir. Asking around with my project 388 00:39:47,000 --> 00:39:53,000 manager team, I have not had any experience with them and neither has my team. The only 389 00:39:53,000 --> 00:40:00,440 person that I met that has had previous experience with Tizio Paving was the public works inspector 390 00:40:00,440 --> 00:40:09,960 supervisor and he's dealt with them so I guess we will all have our first experience 391 00:40:09,960 --> 00:40:15,000 with them. Okay well I'm curious because their bid was significantly lower than the other 392 00:40:15,000 --> 00:40:22,520 bidder. About 30 something percent. It's always a little scary. It's good for the taxpayer 393 00:40:22,520 --> 00:40:26,480 but it could be scary for performance. And the other thing I was wondering, you mentioned 394 00:40:26,480 --> 00:40:32,440 Riley Road. I didn't see that on the map that you showed us. Did I miss it? It's a very 395 00:40:32,440 --> 00:40:40,640 short segment. It's where the drive in theater used to be. I'll have to take your word for 396 00:40:40,640 --> 00:40:52,320 that. That's where I saw Rambo. Oh there it is. Right there. That little, right by the 397 00:40:52,320 --> 00:41:00,960 high school. Well the new elementary school. Like I said earlier the interlocal agreement 398 00:41:00,960 --> 00:41:07,120 is basically the agreement between the City and Denton ISD to construct Rainey Road. So 399 00:41:07,120 --> 00:41:12,840 right in front of the new elementary school frontage it goes actually from three lanes 400 00:41:12,840 --> 00:41:20,060 to four lanes. So the project kind of builds a deceleration lane into their first driveway. 401 00:41:20,060 --> 00:41:26,880 So that's where I talk about that is the little section of Rainey Road that we are constructing. 402 00:41:26,880 --> 00:41:34,920 Okay so it's just that little leg that's why I missed it. Thank you. Mr. Chair a couple 403 00:41:34,920 --> 00:41:45,500 of questions. To dovetail Mr. Rayback on were both of these companies, are they, so one 404 00:41:45,500 --> 00:41:52,120 is not on our LSER approved list per se. This is a brand new venture with him. What about 405 00:41:52,120 --> 00:42:00,040 Ed Bell? Are they in our primary, secondary, are they on the list? Where are they? I've 406 00:42:00,040 --> 00:42:06,100 only been here with the City of Denton for two years and in the Metroplex so I have no 407 00:42:06,100 --> 00:42:12,520 experience with contractors that would submit their bids so I have also no information for 408 00:42:12,520 --> 00:42:19,560 Ed Bell construction but I'll let Seth. Good morning board members. Seth Garcia, Deputy 409 00:42:19,560 --> 00:42:23,960 Director of Cal4Project. So both are very well qualified contractors. They do a lot 410 00:42:23,960 --> 00:42:28,580 of work in the Metroplex. As work shrinking in the Metroplex we're seeing some of them 411 00:42:28,580 --> 00:42:34,200 continue to come north as we're continuing to put out projects. Mr. Rayback to your point 412 00:42:34,200 --> 00:42:41,060 I think Ed Bell's construction number is actually high and what we had the OPC was closer to 413 00:42:41,060 --> 00:42:48,400 Tizio Paving so really we were within I think less than a percent of our engineers estimate 414 00:42:48,400 --> 00:42:54,620 for Tizio's number. Those FHWA funds that we have received for this project put additional 415 00:42:54,620 --> 00:42:59,760 stipulations on the contractors that we think weeded out some of the bids that we would 416 00:42:59,760 --> 00:43:04,580 normally receive from some of our normal players so again getting two on a project this size 417 00:43:04,580 --> 00:43:11,040 and complexity we felt comfortable with these numbers. So if I may ask then on another point 418 00:43:11,040 --> 00:43:22,040 on the Denton ISD and the federal housing funding housing highway pardon me no my occupation 419 00:43:22,040 --> 00:43:30,680 are those costs include are those included in this? Yes sir so part of let me switch 420 00:43:30,680 --> 00:43:35,920 over to his funding. I'm just looking are we getting a little relief from those? Absolutely 421 00:43:35,920 --> 00:43:40,840 so I believe so it's gonna be more than the 36. The contract amount is correct the city 422 00:43:40,840 --> 00:43:45,840 's portion of that contract amount is what is less so from Denton ISD I believe we got 423 00:43:45,840 --> 00:43:51,800 a little over 1.5 million to build their portion of Riney Road again the L.A. calls for a true 424 00:43:51,800 --> 00:43:57,000 up process so once we actually receive bids we'll true up against the number that they 425 00:43:57,000 --> 00:44:01,220 fronted us to make sure they're covering all portions of costs and anything that they go 426 00:44:01,220 --> 00:44:07,200 over for their portion they will reimburse back to the city. The FHWA funds was a little 427 00:44:07,200 --> 00:44:14,360 over 9 million dollars for construction and total we had 11.9 million so add those together 428 00:44:14,360 --> 00:44:19,760 the city's portions roughly 25 million. That helps a lot. Absolutely sorry we didn't break 429 00:44:19,760 --> 00:44:26,440 that down a little bit clearer. Thank you. Question please. Go ahead. When that FHA money 430 00:44:26,440 --> 00:44:31,400 that federal highway when does that come is that on progress are they in first and we're 431 00:44:31,400 --> 00:44:36,980 in last how's that work? Yep so it's reimbursable the 2 million of that came through right away 432 00:44:36,980 --> 00:44:44,320 so again once we procure and issue the funds we show we submit it to our transportation 433 00:44:44,320 --> 00:44:49,980 consultant who provides it to TxDOT the local area office reviews it it goes to Austin for 434 00:44:49,980 --> 00:44:55,720 final approval and then we receive reimbursement back. So essentially we'll use a portion of 435 00:44:55,720 --> 00:45:00,900 the 25 million we have set into the project to front the money and then we'll do reimbursements 436 00:45:00,900 --> 00:45:11,360 on a monthly basis as we go through. Any further questions? Thank you sir. So this project is 437 00:45:11,360 --> 00:45:15,880 adjacent to the Denton High School which has a couple of thousand cars a day entering and 438 00:45:15,880 --> 00:45:20,040 leaving and then it's also next to the new elementary school. Is the new elementary school 439 00:45:20,040 --> 00:45:26,700 being constructed? It's in the same alignment Bronco West of the intersection of Rainey 440 00:45:26,700 --> 00:45:32,240 Road and Bronco Way. You go on Bronco Way to the high school and then if you go east 441 00:45:32,240 --> 00:45:37,200 of the intersection you will be arriving at the new elementary school that is to open 442 00:45:37,200 --> 00:45:44,480 on August 20 August 2025. Okay so there there is a lot of traffic like very heavy daily 443 00:45:44,480 --> 00:45:49,320 traffic to consider here. I'm assuming there's there's a phasing plan that allows all of 444 00:45:49,320 --> 00:45:57,720 that traffic to to flow without creating. Yes and that's what I spoke earlier about 445 00:45:57,720 --> 00:46:03,440 the milestones that were built into the project the project manual. So the intersection of 446 00:46:03,440 --> 00:46:09,460 Rainey Road and Bonnie Bray in essence becomes the most important the most critical intersection. 447 00:46:09,460 --> 00:46:17,680 So there will be a temporary asphalt pavement built on the west side of the intersection. 448 00:46:17,680 --> 00:46:22,920 So as that is being built the traffic that is approaching the intersection will be allowed 449 00:46:22,920 --> 00:46:30,260 to go westbound eastbound and still northbound. They'll still have the same way of the same 450 00:46:30,260 --> 00:46:36,380 pattern as we built this temporary asphalt pavement around it. So once the temporary 451 00:46:36,380 --> 00:46:42,280 asphalt pavement is ready we'll flip the traffic and now the traffic will now be on the temporary 452 00:46:42,280 --> 00:46:47,840 pavement going around the intersection and the contractor will fully close the intersection 453 00:46:47,840 --> 00:46:55,800 and completely tear tear up and start rebuilding the road and into a much wider because Rainey 454 00:46:55,800 --> 00:47:02,160 Road will be a traffic controlled light intersection. I'm glad to hear I was afraid it was going 455 00:47:02,160 --> 00:47:15,360 to be a four-way stop sign. All right thank you. Yes let me so I think this is the slide 456 00:47:15,360 --> 00:47:21,800 that I was in. So the staff recommendation would be to authorize the construction contract 457 00:47:21,800 --> 00:47:28,000 with Tizio Paving both for the base bid and the owner's contingency of five percent. So 458 00:47:28,000 --> 00:47:33,560 the total contract notice not to exceed amount will be thirty eight million six hundred and 459 00:47:33,560 --> 00:47:40,840 eighty eight thousand and ninety three dollars and sixty six cents. And any open up for any 460 00:47:40,840 --> 00:47:47,280 further questions that you might have any further questions. It's one last school related 461 00:47:47,280 --> 00:47:54,920 question are there sidewalks in the plan along Bonnie Bray and Rainey Road. Yes the the whole 462 00:47:54,920 --> 00:48:04,360 length of Bonnie Bray there we have plans to widen to the eight foot walking path. I 463 00:48:04,360 --> 00:48:10,320 on both sides I believe and Rainey Road also on Rainey Road on the south side of running 464 00:48:10,320 --> 00:48:21,520 road going to the intersection also gets a eight foot walking path. Thank you. Yeah can 465 00:48:21,520 --> 00:48:37,160 you go back to the time frame. There are no further questions. Chair would entertain a 466 00:48:37,160 --> 00:48:46,960 motion to move. We have a motion. Second. All in favor. Any opposed. Motion carries 467 00:48:46,960 --> 00:48:54,840 unanimously on to management reports Mr. Chair. We have a couple of items that we've provided 468 00:48:54,840 --> 00:49:01,360 to you as follow ups. There was a memo on customer distribution for DMA. I think Mr. 469 00:49:01,360 --> 00:49:05,960 Taylor had requested that there was also a follow up memo to a question that Mr. Ryback 470 00:49:05,960 --> 00:49:13,740 had and we have staff here. If there's any questions you have on either those memos questions 471 00:49:13,740 --> 00:49:22,260 first. Oh yeah so I appreciate the information and I noticed the categories were residential 472 00:49:22,260 --> 00:49:29,120 commercial industrial. I assume industrial is just the size of peak load or size of demand. 473 00:49:29,120 --> 00:49:37,800 That's correct. Okay. Thank you. Yes I have a question about the memo. I'm sorry go ahead. 474 00:49:37,800 --> 00:49:45,720 What is a miscellaneous account in the pie chart. Let me ask Melissa to get up here and 475 00:49:45,720 --> 00:49:52,240 give you that answer. Good morning members. My name is Melissa with DME. Miscellaneous 476 00:49:52,240 --> 00:49:57,760 is essentially broken up between lighting and then we also have like the temporary service 477 00:49:57,760 --> 00:50:11,560 meters as well. It's just a break up of those. Any other questions on that one. Thank you. 478 00:50:11,560 --> 00:50:17,720 Yes I'm the one who requested the information regarding the filter repairs at Lewisville 479 00:50:17,720 --> 00:50:24,280 plant and I noticed that there was no start date as to when that occurred and was start 480 00:50:24,280 --> 00:50:31,080 date for the water restrictions. Is anybody from the water department here who can. Yeah 481 00:50:31,080 --> 00:50:36,480 I don't see anybody from the water department here. I do apologize for that. But I'll go 482 00:50:36,480 --> 00:50:40,480 ahead and take your question and we'll get get a response back to you on that. The reason 483 00:50:40,480 --> 00:50:45,560 for my asking is when we were first reported to us this failure had occurred and there 484 00:50:45,560 --> 00:50:50,080 was a repair of the contractor who was doing that work was going to be kept on site and 485 00:50:50,080 --> 00:50:54,360 the whole thing would be wrapped up in a couple of weeks. Well it doesn't look like it was 486 00:50:54,360 --> 00:51:00,000 a couple of weeks. So maybe we need to know more about why it took longer to take place. 487 00:51:00,000 --> 00:51:04,640 Yeah we'll get with with Stephen and Chris Carroll to get your response on that. Appreciate 488 00:51:04,640 --> 00:51:16,800 that. Thank you. Yeah so the only other items that we have on here. So today's the final 489 00:51:16,800 --> 00:51:26,560 meeting of 2024. Your next meeting scheduled for January 13th and we'll try to populate 490 00:51:26,560 --> 00:51:32,520 that calendar for you. But shortly after the beginning of the year we begin the budget 491 00:51:32,520 --> 00:51:37,640 process and we'll be back in the whole process for all the utilities and look forward to 492 00:51:37,640 --> 00:51:42,640 having conversations with you about about the next year's budget. So with that happy 493 00:51:42,640 --> 00:51:49,680 answer any other questions you may have. Okay seeing no more questions chair would entertain 494 00:51:49,680 --> 00:51:54,040 a motion to adjourn. We are adjourned.