WEBVTT 00:00:00.000 --> 00:00:08.000 Good morning and welcome to the dually posted public utilities board meeting for February 00:00:08.000 --> 00:00:09.000 10th. 00:00:09.000 --> 00:00:11.400 It is 9 a.m. 00:00:11.400 --> 00:00:14.520 Our first item of business is presentations from the public. 00:00:14.520 --> 00:00:18.440 Do we have any presentations? 00:00:18.440 --> 00:00:23.400 Moving on to our consent agenda, I've had a request to pull item A. Are there any other 00:00:23.400 --> 00:00:30.080 items that need further discussion? 00:00:30.080 --> 00:00:34.440 Chair would entertain a motion for items B through B. 00:00:34.440 --> 00:00:38.240 I move we accept items B through B. 00:00:38.240 --> 00:00:39.240 I'll second. 00:00:39.240 --> 00:00:41.360 Lee moves and Robert seconds. 00:00:41.360 --> 00:00:42.360 All in favor? 00:00:42.360 --> 00:00:43.360 Aye. 00:00:43.360 --> 00:00:45.800 Motion carries unanimously. 00:00:45.800 --> 00:00:46.800 Item A. 00:00:46.800 --> 00:00:58.480 My name is Paul Opine. 00:00:58.480 --> 00:01:03.240 I'm with DME engineering. 00:01:03.240 --> 00:01:04.240 Thank you for coming. 00:01:04.240 --> 00:01:08.560 I had a question when I was looking at this the other day. 00:01:08.560 --> 00:01:15.240 The aerial showing where the line is going through, are we, do we have customers in that 00:01:15.240 --> 00:01:21.080 area that use Denton electric or do we have a, I guess we have a co-op or some kind of 00:01:21.080 --> 00:01:25.360 agreement with Corinth? 00:01:25.360 --> 00:01:27.280 Can you help me with that? 00:01:27.280 --> 00:01:28.280 For sure. 00:01:28.280 --> 00:01:29.680 We have no customers there. 00:01:29.680 --> 00:01:33.400 That's not in our service territory and that power line just goes down to the pumps at 00:01:33.400 --> 00:01:34.680 Lake Lewisville. 00:01:34.680 --> 00:01:36.560 And so that's, oh, thank you. 00:01:36.560 --> 00:01:42.920 So that's, the line, that improvement going underground, but that's for the pumps, no 00:01:42.920 --> 00:01:43.920 one else. 00:01:43.920 --> 00:01:44.920 Is that what I understand? 00:01:44.920 --> 00:01:45.920 Yes, sir. 00:01:45.920 --> 00:01:46.920 Okay. 00:01:46.920 --> 00:01:55.640 And so would it be exclusively used for that without any other hookups later on in? 00:01:55.640 --> 00:01:56.640 That's my understanding. 00:01:56.640 --> 00:01:57.640 Yes. 00:01:57.640 --> 00:01:58.640 Okay. 00:01:58.640 --> 00:01:59.640 That's what I know. 00:01:59.640 --> 00:02:00.640 Thank you very much. 00:02:00.640 --> 00:02:01.640 Appreciate. 00:02:01.640 --> 00:02:02.640 No problem. 00:02:02.640 --> 00:02:03.640 Quick question. 00:02:03.640 --> 00:02:04.640 So it appeared from this, the city of Corinth is paying for this. 00:02:04.640 --> 00:02:05.640 Yes, sir. 00:02:05.640 --> 00:02:06.640 Reversing the city. 00:02:06.640 --> 00:02:09.960 Thank you. 00:02:09.960 --> 00:02:10.960 Any further questions? 00:02:10.960 --> 00:02:15.840 Would anybody like to make a motion? 00:02:15.840 --> 00:02:17.080 I move that we approve. 00:02:17.080 --> 00:02:18.080 Thank you. 00:02:18.080 --> 00:02:19.080 Item A, PUB25006. 00:02:19.080 --> 00:02:20.080 Second. 00:02:20.080 --> 00:02:21.080 Susan seconds. 00:02:21.080 --> 00:02:22.080 All in favor, please say, "I." 00:02:22.080 --> 00:02:23.080 I. 00:02:23.080 --> 00:02:24.080 Motion carries unanimously. 00:02:24.080 --> 00:02:25.080 Thank you. 00:02:25.080 --> 00:02:26.080 Thank you. 00:02:26.080 --> 00:02:38.080 Moving on to items for individual consideration. 00:02:38.080 --> 00:02:47.280 After approval of the January 27th meeting minutes, anybody like to make a motion? 00:02:47.280 --> 00:02:48.280 Lee? 00:02:48.280 --> 00:02:49.280 I'll move. 00:02:49.280 --> 00:02:50.280 I'll second. 00:02:50.280 --> 00:02:51.280 Thank you, Susan. 00:02:51.280 --> 00:02:52.280 All in favor, say, "I." 00:02:52.280 --> 00:02:53.280 I. 00:02:53.280 --> 00:02:54.280 I. 00:02:54.280 --> 00:03:02.440 And now on to, let's see, items for individual consideration. 00:03:02.440 --> 00:03:08.640 Item B, PUB24226. 00:03:08.640 --> 00:03:15.720 Consider authorizing the ... I'm sorry, I'm on the wrong page. 00:03:15.720 --> 00:03:19.160 Consider authorizing the submission of an application through the United States Environmental 00:03:19.160 --> 00:03:25.240 Protection Agency's WIFA loan program for financial assistance for long-term loans in 00:03:25.240 --> 00:03:36.840 a total amount not to exceed $770,970,583.07 to fund up to 49% of the project cost for water 00:03:36.840 --> 00:03:42.800 and wastewater plant and transmission projects, including transmission increases, system expansions, 00:03:42.800 --> 00:03:48.640 and system improvements for water and wastewater capital improvements program, and authorizing 00:03:48.640 --> 00:03:54.560 the payment of a $100,000 application fee. 00:03:54.560 --> 00:03:55.920 Good morning, members of PUB. 00:03:55.920 --> 00:03:56.920 I'm Stephen Gay. 00:03:56.920 --> 00:04:00.240 I'm the general manager for water utilities and street operations. 00:04:00.240 --> 00:04:06.800 If you bear with me for a moment while I pull this up ... There we go. 00:04:06.800 --> 00:04:09.520 All right. 00:04:09.520 --> 00:04:12.200 Technology is your friend. 00:04:12.200 --> 00:04:18.640 This morning, we're going to discuss our opportunity to submit our application for the U.S. Environmental 00:04:18.640 --> 00:04:24.200 Protection Agency's WIFA program, so that's the Water Infrastructure Finance and Innovation 00:04:24.200 --> 00:04:27.020 Act. 00:04:27.020 --> 00:04:29.760 The project overview, water utilities is planning. 00:04:29.760 --> 00:04:51.280 Our planning and engineering division is seeking $770,970,583.07 to fund our five-year capital 00:04:51.280 --> 00:04:52.280 plan. 00:04:52.280 --> 00:04:56.680 That was a 49% match with the US EPA. 00:04:56.680 --> 00:05:00.800 Some of the projects ... We're going to do this in two phases. 00:05:00.800 --> 00:05:07.200 Phase one, this includes all our capital improvement projects for both water and wastewater. 00:05:07.200 --> 00:05:10.080 Phase one is the water and wastewater treatment facilities. 00:05:10.080 --> 00:05:15.920 That's capacity upgrades, Apikon Creek Water Reclamation Facility, our Clear Creek Water 00:05:15.920 --> 00:05:23.540 Reclamation Facility, and our Ray Roberts Water Treatment Facility with major ... Phase 00:05:23.540 --> 00:05:28.040 one will also include major improvements to our distribution and our collection system 00:05:28.040 --> 00:05:30.120 to expand capacity. 00:05:30.120 --> 00:05:34.160 Phase two is going to include improvements on our lift stations, our sewer collection 00:05:34.160 --> 00:05:39.260 mains, and our water distribution mains and mains and replacements. 00:05:39.260 --> 00:05:46.400 The City of Denton is pursuing this loan as a master agreement with EPA instead of individual 00:05:46.400 --> 00:05:51.400 loans, and it gives us a lot of flexibility with the way that we're financing this over 00:05:51.400 --> 00:05:56.720 the term of the loan, and Jessica, who's our Chief Financial Officer, is here to speak 00:05:56.720 --> 00:05:58.840 a little bit more about that. 00:05:58.840 --> 00:06:03.800 The total project does include about a 20% contingency, and this is the advice of the 00:06:03.800 --> 00:06:09.280 EPA, that they wanted us to put in as much as we could foresee needing so we don't have 00:06:09.280 --> 00:06:10.920 to come back to them. 00:06:10.920 --> 00:06:16.120 Now, an important characteristic about ... We don't have to take all the money, right? 00:06:16.120 --> 00:06:21.520 So basically, we're applying for a line of credit with EPA, and as we need those funds, 00:06:21.520 --> 00:06:25.320 we get to draw down those funds, and again, Jessica will get into that piece in a little 00:06:25.320 --> 00:06:26.320 bit. 00:06:26.320 --> 00:06:32.160 However, in order to apply, we have to do an application fee, and that's a $100,000 00:06:32.160 --> 00:06:36.400 application fee to cover all of the services and processing of the loan. 00:06:36.400 --> 00:06:39.280 So with that, I'm going to go ahead and I'm going to turn it over to Jessica and have 00:06:39.280 --> 00:06:48.000 her run through basically all the ins and outs of the loan, thank you. 00:06:48.000 --> 00:06:51.600 Good morning, members of PUB, Jessica Williams, Chief Financial Officer. 00:06:51.600 --> 00:06:56.080 I believe this is the second time that we're coming to you to talk about WIFIA, so what 00:06:56.080 --> 00:07:01.800 we're asking for right now, as Stephen mentioned, is the $100,000 for the application fee. 00:07:01.800 --> 00:07:08.480 We are looking at WIFIA as a tool in our toolbox to finance the water and wastewater CIP. 00:07:08.480 --> 00:07:13.600 We know that we have needs that we will need to finance outside of what we have cash available 00:07:13.600 --> 00:07:14.820 for. 00:07:14.820 --> 00:07:18.960 So in that discussion, when Stephen and I started that last year, we started looking 00:07:18.960 --> 00:07:25.480 at what are our options for us, who can help us to do this in the most financially responsible 00:07:25.480 --> 00:07:26.480 way. 00:07:26.480 --> 00:07:31.680 We started meeting with EPA, with the WIFIA team, and learned about the opportunity to 00:07:31.680 --> 00:07:33.680 apply for WIFIA loan funding. 00:07:33.680 --> 00:07:38.560 So the WIFIA loan funding can cover up to 49% of what our total costs will be. 00:07:38.560 --> 00:07:43.960 The 51% that the city is responsible for may be covered from multiple sources. 00:07:43.960 --> 00:07:48.840 So as you all recall, we went to the Texas Water Development Board and received $195,000 00:07:48.840 --> 00:07:52.560 from them for part of one of our projects. 00:07:52.560 --> 00:07:57.800 That funding counts as part of our 51% match, as far as the EPA is concerned. 00:07:57.800 --> 00:08:03.120 So while we'll be working with Texas Water Development Board to receive those funds, 00:08:03.120 --> 00:08:04.120 we don't have to spend that money twice. 00:08:04.120 --> 00:08:11.080 We only spend it once, and EPA says, okay, that 195,000, that counts towards your match. 00:08:11.080 --> 00:08:17.280 The additional benefits of WIFIA is that it's going to allow us to work hard to ensure equity 00:08:17.280 --> 00:08:19.580 as far as our rate payers. 00:08:19.580 --> 00:08:25.640 We want the rate payer who benefits from the project to be the individual who pays for the project, right? 00:08:25.640 --> 00:08:27.000 That just makes sense. 00:08:27.000 --> 00:08:35.560 We don't want to overburden the entire system for projects that are going to be occurring in places like Hunter Cole before we have those developments completed. 00:08:35.560 --> 00:08:42.880 WIFIA gives us significant flexibility in when we go back into repayment and what that looks like. 00:08:42.880 --> 00:08:46.200 As Steven mentioned, we're only going to draw down what we need. 00:08:46.200 --> 00:08:49.840 So if we have used the funds, we will draw the funds down. 00:08:49.840 --> 00:08:57.440 If we have not, if things change, if things constrict in the economy, we are not committed to drawing all of this down. 00:08:57.440 --> 00:09:04.680 Conversely, had we gone just to the marketplace and sold debt, we would be committed to making those payments irregardless of what else happened. 00:09:04.680 --> 00:09:07.040 So this gives us significant flexibility. 00:09:07.040 --> 00:09:12.840 In preparing for this, my team has completed a retail rate study for the water and wastewater utility. 00:09:12.840 --> 00:09:16.300 We have a wholesale rate study that will be completed next week. 00:09:16.300 --> 00:09:23.720 So we're looking at what this looks like over the long term and how we can then smooth rates and increases as we go over time. 00:09:23.720 --> 00:09:31.000 So I won't read all of this here, but that gives you kind of an overview of why we are doing what we are proposing to do. 00:09:31.000 --> 00:09:33.320 >> Do we have a question on that slide? 00:09:33.320 --> 00:09:33.960 >> Yeah, we do. 00:09:33.960 --> 00:09:34.760 >> Yeah, let me go ahead. 00:09:34.760 --> 00:09:35.260 >> Thanks. 00:09:35.260 --> 00:09:41.640 Is this a straight reimbursement where our funds go in first and then they reimburse us for this? 00:09:41.640 --> 00:09:43.320 Are their funds going first, how's it work? 00:09:43.320 --> 00:09:47.800 >> So what we would do is we would look at this on a reimbursement basis. 00:09:47.800 --> 00:09:52.400 But when we get to the end, that's when we look at the 49 to 51. 00:09:52.400 --> 00:09:56.680 So if we've made changes to impact fees, for example, over this time and 00:09:56.680 --> 00:09:59.960 we've collected, say, $400 million in impact fees. 00:09:59.960 --> 00:10:04.440 When we get to the end and we're totaling up the year 49 to my 51, 00:10:04.440 --> 00:10:10.880 I have some additional resources that I will be setting aside to make that match happen. 00:10:10.880 --> 00:10:14.640 So we'll do that at the end of the term with WIFIA. 00:10:14.640 --> 00:10:21.480 >> And on the rate reset, is that permissible rate reset before any funds are drawn or before all the funds are drawn out? 00:10:21.480 --> 00:10:23.240 >> Before any funds are drawn. 00:10:23.240 --> 00:10:28.920 So if we start this application process now, we're looking at things, things change on the federal level. 00:10:28.920 --> 00:10:34.660 All of a sudden, rates drop significantly from the time that we start the conversation to when we lock in. 00:10:34.660 --> 00:10:38.160 >> Okay, thanks. 00:10:38.160 --> 00:10:46.000 To dovetail this, so it's $770 million in change. 00:10:46.000 --> 00:10:47.600 >> And seven cents, yes. 00:10:47.600 --> 00:10:51.720 >> And so, am I correct, that is the entire amount? 00:10:51.720 --> 00:10:53.640 >> No, that is the 49%. 00:10:53.640 --> 00:10:55.160 >> That's the 49%? 00:10:55.160 --> 00:10:57.720 >> Correct. >> Oh, then this number is? 00:10:57.720 --> 00:11:00.680 >> Yes. >> Line through that, that's not going to work. 00:11:00.680 --> 00:11:02.080 I'll have more later, but thank you, good. 00:11:02.080 --> 00:11:02.680 >> Okay. 00:11:02.680 --> 00:11:06.000 >> So following up on Mr. Newquist's question, 00:11:06.000 --> 00:11:11.240 when are these capital projects expected to start in relation to each other? 00:11:11.240 --> 00:11:18.320 I guess how many years until we kind of spend everything we expect to spend out of this? 00:11:18.320 --> 00:11:22.520 >> Stephen Gay, general manager of our utilities, a great question. 00:11:22.520 --> 00:11:26.600 A lot of these projects are underway right now, they're either in design phase or so 00:11:26.600 --> 00:11:34.400 like the Ray Roberts expansion is we have a contractor on site and we're working forward on that project currently. 00:11:34.400 --> 00:11:40.160 They're doing, that's capacity improvement, we also have CMAR selected for 00:11:40.160 --> 00:11:47.000 the expansion and we're, I want to say about 40% in design, 40 to 50% in our design. 00:11:47.000 --> 00:11:53.320 So we're moving forward, so all these projects are going to occur within that five year window. 00:11:53.320 --> 00:11:58.000 >> Okay, so there's probably Ray Roberts, sounds like Ray Roberts might be first. 00:11:58.000 --> 00:11:59.000 >> Yes, sir. >> And then- 00:11:59.000 --> 00:12:02.920 >> And we also have the Pecan Creek, which is our wastewater treatment facility. 00:12:02.920 --> 00:12:09.160 We're further ahead in design on that, that's about 60 to 70% on design. 00:12:09.160 --> 00:12:13.360 So we're moving at the speed of, whatever. 00:12:13.360 --> 00:12:19.600 >> Okay, so all of these will be, so probably like in less than a year, you will have begun spending this money. 00:12:19.600 --> 00:12:23.680 >> If we need it, if we need it, and that's the whole, the beauty of the program, right? 00:12:23.680 --> 00:12:28.000 It just creates this opportunity for us to diversify our financial portfolio. 00:12:28.000 --> 00:12:32.320 And where we need to take advantage of the federal government's AAA bond rating. 00:12:32.320 --> 00:12:38.480 And borrow that money, we can leverage that for ourselves. 00:12:38.480 --> 00:12:44.160 But if we have cash, and as Jessica alluded to, we're moving forward with our impact fee study. 00:12:44.160 --> 00:12:48.840 If we're generating those impact fees, we can use those to offset the need. 00:12:48.840 --> 00:12:52.000 So this is, in our opinion, is our worst case scenario. 00:12:52.000 --> 00:12:56.280 This is what we believe that we could absolutely leverage. 00:12:56.280 --> 00:12:59.960 But we're not going to stop working on the other side. 00:12:59.960 --> 00:13:03.040 Stop me if I'm jumping ahead, but I didn't notice it here. 00:13:03.040 --> 00:13:07.240 What is the competitiveness of the actual rate? 00:13:07.240 --> 00:13:09.840 I know you're talking about the competitiveness of the flexibility. 00:13:09.840 --> 00:13:15.040 >> Yeah, Jessica's much better, she's more equipped to talk about that. 00:13:15.040 --> 00:13:17.800 >> Yes, so the rate follows the treasury rate, right? 00:13:17.800 --> 00:13:21.200 So that's where this reset comes into effect. 00:13:21.200 --> 00:13:28.400 That could be very beneficial for us, depending on by the time that we get to closing the loans, where that rate is sitting. 00:13:28.400 --> 00:13:35.200 So for us, as well as having the ability to operate on the AAA rate of the US government, 00:13:35.200 --> 00:13:40.220 which the city does not have a AAA rating or AA, so there's savings there as well. 00:13:40.220 --> 00:13:44.920 We've seen these projects save communities between $19 million and $71 million. 00:13:44.920 --> 00:13:50.160 We will have those numbers back to you once we work through this application process a little bit further. 00:13:50.160 --> 00:13:54.640 And have some more concrete dates as to when we would be looking at loan closing. 00:13:54.640 --> 00:13:55.140 >> Thank you. 00:13:57.760 --> 00:14:01.640 So the project will be done in five years, roughly. 00:14:01.640 --> 00:14:05.960 So what would our normal repayment term be in a standard bond setting? 00:14:05.960 --> 00:14:10.720 >> So if we were to go out and just issue bonds today, we would start repaying on those bonds next year. 00:14:10.720 --> 00:14:15.720 So we would start repayment before the project was completed. 00:14:15.720 --> 00:14:21.000 In this instance, we have up to five years after substantial completion to start repayment. 00:14:21.000 --> 00:14:24.640 So that's where a significant amount of savings comes for us, is that we have- 00:14:24.640 --> 00:14:32.400 >> That's only 49% of the project costs, so the other 51% is coming from, I'm assuming, our regular bond program. 00:14:32.400 --> 00:14:34.920 >> It is coming from a combination of factors. 00:14:34.920 --> 00:14:41.040 As I mentioned, Texas Water Development Board, so that 195 million counts as part of that 51%. 00:14:41.040 --> 00:14:46.520 Then we will have impact fees, which as Stephen mentioned, he'll be coming back to talk to you all about. 00:14:46.520 --> 00:14:51.880 And then there will be a piece that comes from a revenue bond issuance. 00:14:51.880 --> 00:14:55.480 So this gives us flexibility to look at when we need to do that. 00:14:55.480 --> 00:15:00.680 >> So the revenue bond issuance would begin after the projects were completed, is that the general idea? 00:15:00.680 --> 00:15:06.600 >> That's the general idea of right now, yes, is that we don't have to do this until the projects are completed. 00:15:06.600 --> 00:15:11.800 The benefit to that is that development is going to occur either way, right? 00:15:11.800 --> 00:15:15.720 The homes are going to be built, we're going to have to put this infrastructure in the ground. 00:15:15.720 --> 00:15:20.680 None of these projects are projects that we didn't anticipate in our CIP. 00:15:20.680 --> 00:15:23.740 This is all work we knew was going to come. 00:15:23.740 --> 00:15:31.360 So the benefit here is that we can get to a place where the homes are built, the water taps have been established. 00:15:31.360 --> 00:15:38.280 We have rate paying customers added to our revenue streams, which will reduce the burden overall. 00:15:38.280 --> 00:15:41.320 There will still be a burden, there would be either way. 00:15:41.320 --> 00:15:46.840 But this will allow us to get closer to when we actually start to see revenue from development. 00:15:46.840 --> 00:15:53.880 Generally, we build a home, and that's great, and then someone buys it, and then a year later, it hits the tax rolls. 00:15:53.880 --> 00:15:56.800 And sometime in that year, it might hit the utilities. 00:15:56.800 --> 00:16:03.640 So it gives us the time and space to truly get to full revenue realization after the project is completed. 00:16:03.640 --> 00:16:10.360 >> So you're asking for approval for the application fee, so what are our chances of being approved for the program? 00:16:10.360 --> 00:16:13.640 >> I believe that our chances are very good for approval for the program. 00:16:13.640 --> 00:16:17.280 So the city of Denton took a little bit of a different approach to this. 00:16:17.280 --> 00:16:21.680 We went and met directly with the WIFIA team in person last year. 00:16:21.680 --> 00:16:27.680 And then we've worked very, very closely with Amelia and her team in DC as we built this program up. 00:16:27.680 --> 00:16:31.240 They have been tremendously helpful to us. 00:16:31.240 --> 00:16:39.800 Amelia herself spent a weekend just helping us put together these loans as programs rather than as specific projects. 00:16:39.800 --> 00:16:46.320 Allowing us to have one environmental for a total area rather than having to do multiple. 00:16:46.320 --> 00:16:52.480 They've really been very cost conscientious with us, and they have a lot of flexibility in the way that the WIFIA program works. 00:16:52.480 --> 00:16:54.200 So they've been fantastic. 00:16:54.200 --> 00:16:55.120 They've been great partners. 00:16:55.120 --> 00:17:01.320 >> The times they are are changing. 00:17:01.320 --> 00:17:05.480 You've been working on this for a year. 00:17:05.480 --> 00:17:06.600 >> Mm-hm. 00:17:06.600 --> 00:17:10.120 >> This program, how old is it? 00:17:10.120 --> 00:17:14.640 >> I believe that the WIFIA program has been in existence for about 40 years. 00:17:14.640 --> 00:17:19.520 >> And your relationship with the connection in Washington. 00:17:19.520 --> 00:17:24.440 My concern is, I wouldn't be surprised in a month, we don't have an EPA. 00:17:24.440 --> 00:17:30.680 And so I'm concerned about these programs surviving. 00:17:30.680 --> 00:17:36.600 And I'm hoping that we will get a lot of input from your connections so that as we go through this. 00:17:36.600 --> 00:17:42.080 We just have a heads up because it is so volatile right now. 00:17:42.080 --> 00:17:46.360 Am I just the little chicken or what's going on? 00:17:46.360 --> 00:17:48.520 >> I don't disagree. 00:17:48.520 --> 00:17:49.040 >> Okay, thank you. 00:17:49.040 --> 00:17:57.560 >> I will say that the programs themselves, both WIFIA and TIFIA, are long standing revolving loan type programs. 00:17:57.560 --> 00:18:01.800 The programs, I don't see any reason why the programs themselves would not survive. 00:18:01.800 --> 00:18:05.240 These were congressionally administered programs. 00:18:05.240 --> 00:18:11.600 Irregardless of what the agency may look like or what the agency's name may be when we get to that point. 00:18:11.600 --> 00:18:14.360 But yes, I've had those concerns as well. 00:18:14.360 --> 00:18:21.480 Last heard from Amelia last Thursday, and they're fully operational and good to go and. 00:18:21.480 --> 00:18:26.520 >> Well, before half time, we no longer have pennies, so I just, no concern. 00:18:26.520 --> 00:18:29.280 >> Yes, yeah, it's enough to make your head spin. 00:18:29.280 --> 00:18:34.120 >> Okay, I think we can move to the next slide. 00:18:34.120 --> 00:18:43.040 >> Okay, on that, yeah, on that very optimistic note, so this is just an illustration of the process. 00:18:43.040 --> 00:18:49.120 So we had project selection, there was a notice of funding availability that was issued by the EPA. 00:18:49.120 --> 00:18:54.360 We submitted a letter of interest that was evaluated by Amelia and her team. 00:18:54.360 --> 00:19:01.240 And then we were invited to apply, so that gives you a little bit more confidence in the process. 00:19:01.240 --> 00:19:06.600 In that, this starts with simply coming forward and saying, this is what we think we want to do. 00:19:06.600 --> 00:19:14.040 Here's our established CIP, here's what our council's already approved, and they said, great, now we're going to invite you to apply. 00:19:14.040 --> 00:19:20.040 So we've worked through the pre-application pieces with the EPA, and they have actually even reviewed, 00:19:20.040 --> 00:19:24.600 work on to the extent of even reviewing all of our documentation that we brought to you today. 00:19:24.600 --> 00:19:28.000 And now we are at the application submission point. 00:19:28.000 --> 00:19:33.920 So when we make the choice to recommend for the $100,000 for the application fee, 00:19:33.920 --> 00:19:37.960 then we'll start working through the application itself. 00:19:37.960 --> 00:19:40.120 We'll go through a negotiation process. 00:19:40.120 --> 00:19:42.760 Our financial advisor, Laura Alexander, is here. 00:19:42.760 --> 00:19:44.200 She's the city's advisor. 00:19:44.200 --> 00:19:48.920 She has been integral in this process, as has our bond council. 00:19:48.920 --> 00:19:54.360 We'll work with EPA's advisors and their bond council as well as we go through the process. 00:19:54.360 --> 00:19:57.160 And then we'll get approval and we'll close the loan. 00:19:57.160 --> 00:19:59.440 And then we'll start the distribution process. 00:19:59.440 --> 00:20:07.320 So as we go through that, my team will be on top of ensuring that we have both sides built at the same time. 00:20:07.320 --> 00:20:13.520 We're not just looking at what we're getting in loan funding, we're looking at where are we going to be able to secure our 51%. 00:20:13.520 --> 00:20:23.720 And how are we going to restructure internally our general ledger to ensure that we have that tracking in the manner that we know that the federal government is going to request. 00:20:23.720 --> 00:20:27.480 So that's our process as we work through. 00:20:27.480 --> 00:20:29.680 And it looks like I have one more, okay. 00:20:29.680 --> 00:20:31.320 So this was our timeline. 00:20:31.320 --> 00:20:35.640 About April 15th of '24, we issued our letter of interest. 00:20:35.640 --> 00:20:38.280 May 10th, we received our invitation to apply. 00:20:38.280 --> 00:20:41.440 We have until May 10th of '25 to apply. 00:20:41.440 --> 00:20:47.080 And then in Q3 of '25, we anticipate loan one approval will be granted by WIFIA. 00:20:47.080 --> 00:20:52.000 And in Q2 of '25, we anticipate loan number two to be applied for. 00:20:52.000 --> 00:20:56.960 And that's all that I have. 00:20:56.960 --> 00:20:59.040 So I will stand for further questions. 00:20:59.040 --> 00:21:02.040 >> Are there any more questions? 00:21:02.040 --> 00:21:05.320 >> You said this is the second time we've gone through with them. 00:21:05.320 --> 00:21:08.920 The disbursement process, can you tell me a little bit, is it timely? 00:21:08.920 --> 00:21:10.440 Does it have hiccups in it? 00:21:10.440 --> 00:21:11.880 What was our experience last time? 00:21:11.880 --> 00:21:16.160 >> So this is the second time that Steven and I are talking to this board about WIFIA. 00:21:16.160 --> 00:21:20.760 We have not had a WIFIA loan in the city of Denton prior to this. 00:21:20.760 --> 00:21:27.760 We anticipate that disbursement will be as quickly as we are on top of getting our requests in. 00:21:27.760 --> 00:21:33.000 So what I have done, I have a team member that I don't know that you all have met yet. 00:21:33.000 --> 00:21:38.160 But we have stood up a grants management and other funding sources division within finance. 00:21:38.160 --> 00:21:42.120 He and his team will be on top of ensuring that we're getting these in timely. 00:21:42.120 --> 00:21:46.160 We'll treat this in a lot of ways like we would any other federal grant. 00:21:46.160 --> 00:21:49.160 The federal grant guidelines will be stricter than WIFIA. 00:21:49.160 --> 00:21:52.840 But if we continue our structure and keep them the same, we will always be ready. 00:21:52.840 --> 00:21:57.960 >> Do we know anybody who's gone through this before? 00:21:57.960 --> 00:22:00.920 >> The city of Pflugerville did this several years ago. 00:22:00.920 --> 00:22:05.000 They started with their entire CIP and they went to WIFIA. 00:22:05.000 --> 00:22:13.000 They were, I believe, the first in the state of Texas, and they said, we're growing, exponentially, help us. 00:22:13.000 --> 00:22:14.640 So they've had good success. 00:22:14.640 --> 00:22:17.040 They actually just went for their second loan. 00:22:17.040 --> 00:22:20.600 I believe Mineral Wells went for a WIFIA loan. 00:22:20.600 --> 00:22:26.840 And we've seen several other larger entities throughout the state now looking at WIFIA. 00:22:26.840 --> 00:22:34.440 In the past, these types of programs weren't as popular in Texas as they're becoming now. 00:22:34.440 --> 00:22:40.280 >> So, right now, the only skin in the game that you're asking for is $100,000. 00:22:40.280 --> 00:22:41.000 >> Yes. 00:22:41.000 --> 00:22:45.840 >> And then we'll look at all the documents and you'll come back later and we'll see what we, moving forward. 00:22:45.840 --> 00:22:48.120 But right now, we're just voting on $100,000. 00:22:48.120 --> 00:22:48.880 >> Yes, that's correct. 00:22:48.880 --> 00:22:52.400 >> Thank you. 00:22:52.400 --> 00:22:54.920 >> Any further questions? 00:22:54.920 --> 00:23:03.240 So I just have one more just to understand the plan, while it's not completely set yet, the long term plan for repayment. 00:23:03.240 --> 00:23:08.780 We look at 770s with a 20% buffer, so that's 616. 00:23:08.780 --> 00:23:11.600 Our 51% match would be 640. 00:23:11.600 --> 00:23:15.760 We've already received about 195 million in Texas Water Development Board. 00:23:15.760 --> 00:23:22.320 So that leaves us about 450 million in kind of local match. 00:23:22.320 --> 00:23:27.600 Would that, then that would be revenue bonds, impact fees, rate increases? 00:23:27.600 --> 00:23:29.200 Are there other funding sources planned? 00:23:29.200 --> 00:23:29.920 >> There could be. 00:23:29.920 --> 00:23:33.880 If we were to receive additional Texas Water Development funding, that would qualify. 00:23:33.880 --> 00:23:38.520 If we receive anything from the Bureau of Reclamation, that also qualifies. 00:23:38.520 --> 00:23:43.840 So any grant funding that we can receive will also decrease that match. 00:23:43.840 --> 00:23:50.120 >> And then in the order of, you mentioned that we can kind of spend the money and then figure out the 51%. 00:23:50.120 --> 00:23:54.400 And then, so does that mean this 770 is kind of a line of credit? 00:23:54.400 --> 00:24:03.680 That we could build the first $200 million treatment plant and then identify $102 million in local match. 00:24:03.680 --> 00:24:08.280 But spend it all with WIFIA money to start with and then find the local match before the second loan? 00:24:08.280 --> 00:24:09.400 >> Yes. 00:24:09.400 --> 00:24:09.900 >> Okay. 00:24:09.900 --> 00:24:13.120 >> And I imagine that's what you intend to do. 00:24:13.120 --> 00:24:15.400 >> That is exactly what we intend to do. 00:24:15.400 --> 00:24:19.760 Yeah, which is why we've done all the studies, the retail rates, the wholesale rates. 00:24:19.760 --> 00:24:25.640 We've worked with Kimley Horne to put together an affordability workbook, looking at what do we need overall? 00:24:25.640 --> 00:24:28.360 If we have to do this this way, what does it look like? 00:24:28.360 --> 00:24:30.240 And I think we'll see significant savings. 00:24:30.240 --> 00:24:34.640 Because again, if I went to the market and issued debt tomorrow, we start paying on it next year. 00:24:34.640 --> 00:24:39.280 >> And impact fee adjustment, when's the next impact fee adjustment planned? 00:24:39.280 --> 00:24:40.400 >> I'll turn that one over. 00:24:40.400 --> 00:24:46.440 >> I believe, and I have Kyle in the room who can keep me honest. 00:24:46.440 --> 00:24:52.800 I want to say next week we have our first meeting with the Capital Improvement Advisory Committee. 00:24:52.800 --> 00:24:57.480 After that, we'll be coming back to Public Utilities Board and City Council with our recommendations. 00:24:57.480 --> 00:25:01.760 And we're also meeting with the development community, is that this week? 00:25:01.760 --> 00:25:06.280 With this week in the town hall, just to discuss where we're at. 00:25:06.280 --> 00:25:12.160 Nothing has really changed from the presentations that we've done in the past with the values in our approach. 00:25:12.160 --> 00:25:17.360 We're still looking at some significant increases to the water and wastewater impact fees. 00:25:17.360 --> 00:25:20.640 And we're looking at breaking it up into, in the wastewater side, 00:25:20.640 --> 00:25:24.960 the three basins and maintaining the three service areas on the water side. 00:25:24.960 --> 00:25:30.120 >> Are there any further questions on this item? 00:25:30.120 --> 00:25:34.800 >> I'll move approval. 00:25:34.800 --> 00:25:35.400 >> Thank you, Susan. 00:25:35.400 --> 00:25:36.640 >> [INAUDIBLE] 00:25:36.640 --> 00:25:37.680 >> Mr. Newquist seconds. 00:25:37.680 --> 00:25:38.960 All in favor? 00:25:38.960 --> 00:25:39.920 >> Aye. 00:25:39.920 --> 00:25:41.360 >> Any opposed? 00:25:41.360 --> 00:25:42.720 Carries unanimously. 00:25:42.720 --> 00:25:43.400 >> Thank you. 00:25:43.400 --> 00:25:47.000 >> So our agenda is management reports. 00:25:47.000 --> 00:25:49.360 Do we need to do it in that way? 00:25:49.360 --> 00:25:52.800 >> Do you want to do management reports now or do you want to do it? 00:25:52.800 --> 00:25:56.160 >> Okay, so we have one more item for individual consideration. 00:25:56.160 --> 00:25:57.600 We'll just follow the order of the agenda though. 00:25:57.600 --> 00:26:01.120 So next item is management reports. 00:26:01.120 --> 00:26:08.760 >> So Mr. Chair, members of the PAB, I do have a couple of dates that kind of came in after 00:26:08.760 --> 00:26:14.480 we sent you the agenda for future agenda items, so I just wanted to give you these dates. 00:26:14.480 --> 00:26:20.000 So June 23rd, finance is planning a financial update for you. 00:26:20.000 --> 00:26:24.520 And then July 14th, they're planning a budget workshop. 00:26:24.520 --> 00:26:29.800 I know some of you guys have asked me about that in the past, and so that's something they're planning to do. 00:26:29.800 --> 00:26:32.760 July 14th is a budget workshop. 00:26:32.760 --> 00:26:41.960 And then July 28th would be when the PAB would consider recommending to the council the utility rates and also the budgets. 00:26:41.960 --> 00:26:45.360 And so those are the three dates that are being planned. 00:26:45.360 --> 00:26:52.160 I think there is a date between the 14th and 20th, I believe, where we could come back if need be. 00:26:52.160 --> 00:26:56.040 But those are the dates that we have for you for now. 00:26:56.040 --> 00:27:04.520 And then going to the new business action items, we do have a question from the last meeting on the impact of federal tariffs. 00:27:04.520 --> 00:27:09.080 We are working on that memo and plan to get it to you at your next meeting. 00:27:09.080 --> 00:27:10.640 So with that, that is the management update. 00:27:10.640 --> 00:27:13.960 >> Thank you. 00:27:13.960 --> 00:27:19.200 Moving on to item 4A, PUB 25020. 00:27:19.200 --> 00:27:29.960 We consider recommending adoption of an ordinance to the city of Denton determining public use, need, and necessity for the acquisition of various permanent drainage easements and temporary construction easements. 00:27:29.960 --> 00:27:35.720 Generally located along Bernard, West Sycamore, West Mulberry, and Stroud Street between Carroll and Elm. 00:27:48.240 --> 00:27:50.320 >> Good morning, PAB board members. 00:27:50.320 --> 00:27:55.800 I'm Angel Delorey, senior real estate specialist with development services real estate department. 00:27:55.800 --> 00:28:00.040 Along with me today we have project manager Sheldon Gatewood. 00:28:00.040 --> 00:28:05.200 He can answer any questions you might have about design, alignment, or construction of this project. 00:28:05.200 --> 00:28:08.840 We are bringing this project to you this morning. 00:28:08.840 --> 00:28:11.720 It's a Pecan Creek phase three and four. 00:28:11.720 --> 00:28:17.760 This has a drainage improvement project and includes a large sanitary sewer line. 00:28:17.760 --> 00:28:21.160 We're looking for easements to purchase easements for this project. 00:28:21.160 --> 00:28:33.400 So this project will include 2,700 linear feet of reinforced concrete box for drainage. 00:28:33.400 --> 00:28:37.320 2,300 linear feet of water line relocation and lowering. 00:28:37.320 --> 00:28:42.760 1,700 linear feet of sanitary sewer line relocation and adjustments. 00:28:42.760 --> 00:28:46.080 And they will be repaving, reconstructing various roads. 00:28:48.720 --> 00:28:55.560 Those roads include Bernard, West Mulberry, West Sycamore, and Stroud Street. 00:28:55.560 --> 00:29:07.640 City plans to start construction quarter three of 2025 and be done by quarter four, 2027. 00:29:11.920 --> 00:29:18.080 It's 49 parcels we are taking to council next week to seek property interest rights in. 00:29:18.080 --> 00:29:25.520 What questions can I answer for you at this time? 00:29:25.520 --> 00:29:33.600 >> I am curious, we're asking for eminent domain authority. 00:29:33.600 --> 00:29:36.160 It seems you've identified all the pieces of property. 00:29:36.160 --> 00:29:39.720 Has there been an issue with purchasing those properties? 00:29:41.040 --> 00:29:43.280 >> No, not at all, not yet. 00:29:43.280 --> 00:29:47.280 These properties are in the appraisal approval process. 00:29:47.280 --> 00:29:49.720 We have surveys for them, we're ordering appraisals. 00:29:49.720 --> 00:29:55.440 So we will work with the property owners, make offers to them first, 00:29:55.440 --> 00:29:59.440 obviously, before eminent domain is discussed. 00:29:59.440 --> 00:30:01.000 So no issues with any of them. 00:30:01.000 --> 00:30:05.400 We reached out to all the property owners already, but no issues with anybody yet. 00:30:06.440 --> 00:30:14.520 >> Okay, so just curious, so why do we need eminent domain if we haven't gone through the procurement process, if you will? 00:30:14.520 --> 00:30:15.720 >> That's a very good question. 00:30:15.720 --> 00:30:20.720 So in the eminent domain process, as you may know, it takes a long time. 00:30:20.720 --> 00:30:25.960 It can be, so we're taking it to council to get eminent domain permission. 00:30:25.960 --> 00:30:31.280 In the event we can't come to agreement with property owners, we move right into the eminent domain process. 00:30:31.280 --> 00:30:35.040 And it keeps the project on time moving, so to speak. 00:30:35.040 --> 00:30:36.760 >> So it's more preemptive then? 00:30:36.760 --> 00:30:37.360 >> It is, ma'am. 00:30:37.360 --> 00:30:37.860 >> Okay. >> Yes. 00:30:37.860 --> 00:30:42.680 >> Could you go to the aerial, please? 00:30:42.680 --> 00:30:49.880 Thank you. 00:30:49.880 --> 00:30:53.000 So on the, excuse me, on the phase one and two, almost completed. 00:30:53.000 --> 00:30:58.880 On Warren, I like to call it Warren Street, could be Warren Court. 00:30:58.880 --> 00:31:03.320 Is that, that's been a new improvement. 00:31:03.320 --> 00:31:08.200 Is that, is that different from the, I'll call it the Creek Channel there on East Highlands? 00:31:08.200 --> 00:31:11.560 >> So are you talking about- >> Yes. 00:31:11.560 --> 00:31:12.200 >> Right here? 00:31:12.200 --> 00:31:13.480 >> Good, good, good, Mike. 00:31:13.480 --> 00:31:15.160 >> [INAUDIBLE] 00:31:15.160 --> 00:31:16.280 >> But you're correct. 00:31:16.280 --> 00:31:17.840 >> Okay. 00:31:17.840 --> 00:31:22.000 >> That phase right there actually happened with PEC four, phase one and two. 00:31:22.000 --> 00:31:24.880 So everything that you see right there is already underground. 00:31:24.880 --> 00:31:32.760 >> So there is, so then share with me the open creek area that's on East Highland, 00:31:32.760 --> 00:31:34.920 which is just south of Warren, the next street. 00:31:34.920 --> 00:31:37.560 Is that going to be closed, or what is that going to be used for then? 00:31:37.560 --> 00:31:40.760 >> No, that's not going to be closed within this project. 00:31:40.760 --> 00:31:45.680 For this project, what you see right there, the orange, green, and blue, 00:31:45.680 --> 00:31:49.920 that's just a phase four project, so everything on the channel 00:31:49.920 --> 00:31:55.520 that's going north will be closed from where we tie into at Pierce. 00:31:55.520 --> 00:32:00.920 >> So are they going to run parallel, or are you going to be running parallel 00:32:00.920 --> 00:32:05.040 to the Warren Court and the East Highland then, is that? 00:32:05.040 --> 00:32:07.840 And then they connect right there at Wainwright? 00:32:07.840 --> 00:32:12.160 >> No, they connect right at Pierce, where you see the orange dotted lines and 00:32:12.160 --> 00:32:16.360 the red, not orange dotted lines, but red dotted lines and the solid orange line. 00:32:16.360 --> 00:32:17.600 They connect right there at that point. 00:32:17.600 --> 00:32:22.000 >> So the project on Warren Street is complete? 00:32:22.000 --> 00:32:24.480 >> Yes. >> And that's how it's going to stay? 00:32:24.480 --> 00:32:27.920 This is moving up the next six blocks? 00:32:27.920 --> 00:32:30.960 I'm just curious, my office is over there and 00:32:30.960 --> 00:32:36.880 I just was wondering, you've got two drainage. 00:32:36.880 --> 00:32:40.680 And I was just curious as to, I was wondering if that was an error and 00:32:40.680 --> 00:32:42.840 it was supposed to be down to East Highland Street. 00:32:42.840 --> 00:32:46.720 That's what I was wondering, why it was open and is it just going to be, 00:32:46.720 --> 00:32:52.520 what's going to happen to that then? 00:32:52.520 --> 00:32:57.200 >> So that portion isn't part of this phase three and four project. 00:32:57.200 --> 00:33:01.320 We'll have to see with the capital improvement team as far as what needs to 00:33:01.320 --> 00:33:02.480 be done over there. 00:33:02.480 --> 00:33:04.800 >> Cuz there's water that still drains through there. 00:33:04.800 --> 00:33:05.520 >> Okay. 00:33:05.520 --> 00:33:11.120 >> So is it being split there at Locus and Warren? 00:33:11.120 --> 00:33:15.680 Or I'm just curious as to, that's just water from around there 00:33:15.680 --> 00:33:19.840 that's going into that open drainage where this other is all being collected up along 00:33:19.840 --> 00:33:23.040 the upper reservoir towards East Prairie. 00:33:23.040 --> 00:33:25.040 Is that what we're talking about then, really? 00:33:25.040 --> 00:33:25.680 >> No, sir. 00:33:25.680 --> 00:33:29.560 >> Okay, well, I'll talk to you later about it then. 00:33:29.560 --> 00:33:30.400 >> Okay. >> Thank you. 00:33:30.400 --> 00:33:31.360 >> That works, thank you. 00:33:31.360 --> 00:33:37.520 >> Further questions? 00:33:37.520 --> 00:33:42.520 So you showed a list of 50 parcels that you expect to be impacted and 00:33:42.520 --> 00:33:48.440 this general map, but there isn't a much detail on 00:33:48.440 --> 00:33:51.120 how large the impacts are going to be on the parcels. 00:33:51.120 --> 00:33:56.160 Or are they, the existing drainage is eight feet wide. 00:33:56.160 --> 00:34:00.160 And kind of the very back of a lot of the lots, kind of backyard channels. 00:34:00.160 --> 00:34:07.640 Do you expect those to be full, like will it stay approximately in the same footprint or 00:34:07.640 --> 00:34:11.240 need another ten feet or will it need like the entire lot? 00:34:11.240 --> 00:34:14.160 >> You want to go into detail? 00:34:14.160 --> 00:34:18.600 >> So the existing drainage right now, like you said, is about eight foot wide. 00:34:18.600 --> 00:34:22.280 The size boxes that we are putting in, especially for that orange section that 00:34:22.280 --> 00:34:25.760 you see there is going to be 16 by eights in their diameter. 00:34:25.760 --> 00:34:29.480 So it's going to be double the size as far as what we're putting in. 00:34:29.480 --> 00:34:33.280 So it will be warranted to, of course, increase our easement and, of course, 00:34:33.280 --> 00:34:36.440 with that easement increase we're going to acquire some TCEs as well. 00:34:36.440 --> 00:34:39.440 That way we can safely put those boxes in. 00:34:39.440 --> 00:34:42.760 So you'll see a lot of increases in easements throughout this project, 00:34:42.760 --> 00:34:45.480 just the sheer size of the box that's going in. 00:34:45.480 --> 00:34:49.160 >> And usually what is a typical surface easement on a six, 00:34:49.160 --> 00:34:54.320 if you have a 16 foot culvert, do you use like 30 feet to get a drive lane 00:34:54.320 --> 00:34:55.640 next to it or something or? 00:34:55.640 --> 00:34:57.920 >> It just depends what's around in that area. 00:34:57.920 --> 00:35:01.480 If it's a blank open field, typically you see around 25, 30 feet. 00:35:01.480 --> 00:35:05.920 But if it's more constricted in the areas as far as I know in this project, 00:35:05.920 --> 00:35:08.200 we'll see it next to a lot of houses. 00:35:08.200 --> 00:35:12.440 So we got to make sure that TCEs of course varying that way doesn't cut off 00:35:12.440 --> 00:35:16.320 property and, of course, property entrances to people. 00:35:16.320 --> 00:35:18.040 So it just varies for a project. 00:35:18.040 --> 00:35:25.600 >> And I wish you had included a flood map, an expected flood map in this presentation. 00:35:25.600 --> 00:35:31.080 I'm familiar that this area is in a floodplain effectively, like this whole, 00:35:31.080 --> 00:35:33.680 all those houses are paying flood insurance. 00:35:33.680 --> 00:35:36.640 There are commercial buildings that are in flood areas. 00:35:39.000 --> 00:35:46.600 So this is valuable to that, but we have to balance the value of hopefully removing 00:35:46.600 --> 00:35:49.320 all of these and maybe some additional properties out of the floodplain. 00:35:49.320 --> 00:35:54.280 But then how much impact will it have on the remaining properties? 00:35:54.280 --> 00:36:00.040 That's a hard thing to tell with just kind of the information in front of us. 00:36:07.080 --> 00:36:10.320 >> Good morning, Board Member Scott Feddick, Senior Project Manager with Capital Projects. 00:36:10.320 --> 00:36:15.160 We can, when we bring this project for construction, we can bring that with you if you'd like. 00:36:15.160 --> 00:36:18.040 Provide the map, what it's going to look like, what it's going to take out of the floodplain, 00:36:18.040 --> 00:36:22.640 the improvements it's going to have when we actually bring the project to construction. 00:36:22.640 --> 00:36:23.160 >> Thank you. 00:36:23.160 --> 00:36:25.520 >> And then kind of back to your question there on East Highland, 00:36:25.520 --> 00:36:27.920 that open drainage along East Highland right there. 00:36:27.920 --> 00:36:31.360 Yeah, it's going to remain that way for foreseeable future. 00:36:31.360 --> 00:36:33.480 It may be something we look at in the future, put it underground, but 00:36:33.480 --> 00:36:35.040 right now it'll remain an open channel. 00:36:35.040 --> 00:36:36.840 >> And where's that water coming from? 00:36:36.840 --> 00:36:38.920 >> Coming from, so it is coming from upstream. 00:36:38.920 --> 00:36:40.040 >> Okay. >> Upstream on this deal. 00:36:40.040 --> 00:36:43.760 So it will still feed through that channel connecting with this. 00:36:43.760 --> 00:36:47.800 >> Not that I'm going to be trout fishing, but I was just curious. 00:36:47.800 --> 00:36:52.400 You got two, looks like you got two drains going right parallel with each other, and that's all. 00:36:52.400 --> 00:36:54.280 >> Yeah, no, it's staying in a single one. 00:36:54.280 --> 00:37:00.360 >> Okay, and that, if I may, on the FEMA, if it takes it out of the floodplain, 00:37:00.360 --> 00:37:06.760 whose responsibility will it be to notify FEMA to get that map revision letter? 00:37:06.760 --> 00:37:09.360 >> So it will fall on our drainage department. 00:37:09.360 --> 00:37:11.240 >> So you all will do that for the owners? 00:37:11.240 --> 00:37:15.040 >> Yes, we'll work hand in hand with our drainage department with any of the FEMA requirements and 00:37:15.040 --> 00:37:16.120 things like that, yeah. 00:37:16.120 --> 00:37:21.000 >> But I mean, you'll do that for the property owners that have that property. 00:37:21.000 --> 00:37:25.680 Will you be assisting them for their letters of map revision? 00:37:25.680 --> 00:37:26.840 >> That, I don't know the answer to. 00:37:26.840 --> 00:37:32.160 I'd have to get with our drainage department and see if they would do that or how that actually works. 00:37:32.160 --> 00:37:35.880 >> Mr. Chairman, I'd like to at least get that information. 00:37:35.880 --> 00:37:40.960 When you come in and you show us the map and all, if you could give us that information, yes or no, it's just the way it is. 00:37:40.960 --> 00:37:42.200 >> For sure. >> That'd be very helpful, thank you. 00:37:42.200 --> 00:37:43.640 >> Yeah, we can include that. 00:37:43.640 --> 00:37:44.160 >> Thank you, sir. 00:37:44.160 --> 00:37:51.600 >> On the under Mulberry Street section on the north side of those homes from Bernard over across Carroll, 00:37:51.600 --> 00:37:54.440 that's an open culvert on the north side of those properties. 00:37:54.440 --> 00:37:59.480 Does that remain if we're putting things under Mulberry, or what's that going to look like? 00:37:59.480 --> 00:38:03.160 >> Yeah, that's going to end up going away, and it'll all be transferred to the underground boxes. 00:38:05.160 --> 00:38:09.640 >> So that blue, portions of that blue line will go away? 00:38:09.640 --> 00:38:10.440 >> Yes. 00:38:10.440 --> 00:38:10.940 >> Okay. 00:38:10.940 --> 00:38:25.160 So I think this is a complicated project in a long built up area. 00:38:25.160 --> 00:38:30.920 You're upgrading 100 year old infrastructure around 100 year old houses and businesses. 00:38:30.920 --> 00:38:35.920 So there are a lot of challenges and concerns here, yeah, what could go wrong. 00:38:35.920 --> 00:38:38.800 But I do feel like there's a lot of benefit. 00:38:38.800 --> 00:38:42.680 This area has been prone to flooding the entire time it's existed. 00:38:42.680 --> 00:38:46.280 So at this point, Chair would entertain a motion. 00:38:46.280 --> 00:38:56.120 >> I move we approve PUB 25020. 00:38:56.120 --> 00:38:58.560 >> Mr. Lieber, motions? 00:38:58.560 --> 00:39:01.840 >> Mr. Neuquist seconds, all in favor? 00:39:01.840 --> 00:39:04.640 Any opposed? 00:39:04.640 --> 00:39:06.440 >> Sorry, do you need to read it? 00:39:06.440 --> 00:39:07.040 >> I'm sorry. 00:39:07.040 --> 00:39:08.320 >> Yeah, you need to read the formal. 00:39:08.320 --> 00:39:11.680 >> So we will restate the motion. 00:39:11.680 --> 00:39:16.400 >> And then do you need to show the properties while he's reading the motion? 00:39:16.400 --> 00:39:19.720 >> I don't want to do that, I hope they're not hard work. 00:39:27.440 --> 00:39:36.720 >> So I move that we approve the PUB 25020 as Exhibit C as recommended motion. 00:39:36.720 --> 00:39:41.200 I move that the city of Denton, after having made the offers required by state law, 00:39:41.200 --> 00:39:48.280 use the power of eminent domain if needed to require various permanent drainage easements and temporary construction easements. 00:39:48.280 --> 00:39:52.720 General located, excuse me, general located along Bernard Street, 00:39:52.720 --> 00:39:58.360 West Sycamore Street, West Mulberry Street, and Stroud Street, and between Carra Boulevard and 00:39:58.360 --> 00:40:04.760 Elm Street, situated in the William Loving Survey abstract number 759, 00:40:04.760 --> 00:40:11.240 the MEP and PRR Company Survey abstract number 925, 00:40:11.240 --> 00:40:16.120 the Eugene Pachowski Survey abstract number 996, and 00:40:16.120 --> 00:40:22.640 the William and Neil Survey abstract 971, all in the city and county of Denton, Texas. 00:40:22.640 --> 00:40:28.160 And more particularly described in the attached Exhibit A to the ordinance now under consideration. 00:40:28.160 --> 00:40:32.280 And on the screen to be displayed to the audience, all of which are for 00:40:32.280 --> 00:40:35.920 a valid public use necessary to relocate, construct, and 00:40:35.920 --> 00:40:41.880 install permanent drainage infrastructure as part of the Pecan Creek 4 phase 3 and 00:40:41.880 --> 00:40:48.080 4 drainage project needed to serve the public and citizens of the city of Denton. 00:40:48.080 --> 00:40:49.920 >> The motion's been restated. 00:40:49.920 --> 00:40:52.800 We still have a second for Mr. Newquist. 00:40:52.800 --> 00:40:54.200 All in favor? 00:40:54.200 --> 00:40:55.480 >> Aye. 00:40:55.480 --> 00:40:56.160 >> Any opposed? 00:40:56.160 --> 00:40:58.520 Motion carries unanimously. 00:40:58.520 --> 00:41:09.200 That is the last item we have for our public meeting and we'll now move into work session. 00:41:09.200 --> 00:41:17.680 >> Good morning, Mr. Chair, members of the committee. 00:41:17.680 --> 00:41:21.120 I'm Brian Berner, I am the Solid Waste Director for City of Fort Worth. 00:41:21.120 --> 00:41:25.280 These two items on work session A and B were erratically posted to work session, 00:41:25.280 --> 00:41:27.200 should have been part of the consent agenda. 00:41:27.200 --> 00:41:31.080 So really all we're looking for, I'll be glad to answer questions, but 00:41:31.080 --> 00:41:34.640 I'm just looking for a vote of approval to move these forward to council so 00:41:34.640 --> 00:41:36.760 we can enter into the agreements. 00:41:36.760 --> 00:41:37.260 Thank you. 00:41:37.260 --> 00:41:44.440 >> Do we have any questions on these items? 00:41:45.720 --> 00:41:51.880 So these are, are these new contracts or are these for the landfill? 00:41:51.880 --> 00:41:54.520 I was looking at the, we are talking about that, aren't we? 00:41:54.520 --> 00:41:55.040 >> Correct. 00:41:55.040 --> 00:42:00.080 >> Okay, and I was looking at the tonnage and I didn't write it down here, I apologize. 00:42:00.080 --> 00:42:07.600 But you have already, because we've talked about the landfill forever. 00:42:07.600 --> 00:42:09.360 >> Ever, yes. 00:42:09.360 --> 00:42:15.400 >> As these come in, what does that do to our life expectancy? 00:42:15.400 --> 00:42:17.340 >> This does not affect our life expectancy. 00:42:17.340 --> 00:42:22.720 That is, this tonnage is figured in as part of the whole life of the landfill. 00:42:22.720 --> 00:42:27.280 See, the city didn't landfill, like all landfills across the nation, 00:42:27.280 --> 00:42:29.320 what we call fixed cost operations. 00:42:29.320 --> 00:42:33.000 So whether we take one ton or whether we take 400,000 ton a year, 00:42:33.000 --> 00:42:35.960 it costs us the same amount to operate. 00:42:35.960 --> 00:42:39.440 Our state permit requires, you know, says you have to have a minimum of this much 00:42:39.440 --> 00:42:42.480 personnel, this much equipment, so on and so forth. 00:42:42.480 --> 00:42:48.080 So what we try to do to ensure that we can have sort of a hedge for 00:42:48.080 --> 00:42:53.360 lack of a better term on the revenue coming in, we carve out part of that tonnage 00:42:53.360 --> 00:42:58.560 that we need to receive to hold the rates as level as possible and 00:42:58.560 --> 00:43:01.360 put them into what's called a put or pay agreement. 00:43:01.360 --> 00:43:05.240 For the last five years, we have had contracts with Wise County and 00:43:05.240 --> 00:43:09.760 Little Elm to contribute a part of that tonnage. 00:43:09.760 --> 00:43:13.920 And what that does, it's about 125,000 ton a year that we bring in. 00:43:13.920 --> 00:43:18.440 It helps stabilize the revenue side of the operation so 00:43:18.440 --> 00:43:23.160 we can ensure that come at the end of the year, we're not short on tonnage and 00:43:23.160 --> 00:43:26.160 revenue to pay for the cost of the operation of the landfill. 00:43:26.160 --> 00:43:32.120 So this tonnage is actually figured into the life of the landfill. 00:43:32.120 --> 00:43:38.200 Total, you know, we take in about 1,200 ton a day of material. 00:43:38.200 --> 00:43:43.880 This is close to 10,000, so it's basically a week's worth of life off the landfill. 00:43:43.880 --> 00:43:51.200 >> And my question was directed more for the footprint and ooze over and all that. 00:43:51.200 --> 00:43:57.320 Now, excuse me, is this regular landfill and what about recycling? 00:43:57.320 --> 00:44:01.560 >> No, recycling, this is only tons disposed. 00:44:01.560 --> 00:44:04.560 And in fact, we have incentives in the contract. 00:44:04.560 --> 00:44:07.200 It's mostly for our big haulers. 00:44:07.200 --> 00:44:14.000 Like I said, we have about 125,000, 130,000 ton that we've contracted through put or pays. 00:44:14.000 --> 00:44:19.200 The larger companies that bring us waste, there's incentive in there for them to recycle. 00:44:19.200 --> 00:44:23.200 They get an offset, they can bring more tonnage in if they recycle more. 00:44:23.200 --> 00:44:27.240 These two, this is Little Elm and Wise County. 00:44:27.240 --> 00:44:28.880 It is bulk material they're bringing in. 00:44:28.880 --> 00:44:35.960 So it does not consider any sort of diversion or anything else that they are doing as part of this. 00:44:35.960 --> 00:44:39.400 >> And so, it's just the county operation, it isn't any of the municipalities. 00:44:39.400 --> 00:44:40.200 >> Correct, correct. 00:44:40.200 --> 00:44:41.080 >> Nothing else. 00:44:41.080 --> 00:44:45.040 >> Yeah, basically, they have a citizens bulk center. 00:44:45.040 --> 00:44:53.640 Their county residents can bring material and put it in their boxes, and then Wise County hauls it here for disposal. 00:44:53.640 --> 00:44:57.000 >> Do we have any other agreements like this with other communities around? 00:44:57.000 --> 00:44:58.240 >> Not yet. 00:44:58.240 --> 00:44:59.640 >> That's what I was wondering, yet. 00:44:59.640 --> 00:45:00.720 Okay, that's a good answer. 00:45:00.720 --> 00:45:05.920 >> And part of the bigger picture is you bring up a very good point about life in the landfill. 00:45:05.920 --> 00:45:11.760 And ideally, what we want to try to be able to do is to steer waste to us, 00:45:11.760 --> 00:45:17.920 but use that as sort of the carrot to increase diversion for other cities. 00:45:17.920 --> 00:45:23.960 So there's some things moving long term that we're looking at from not so much as a put or pay, 00:45:23.960 --> 00:45:29.160 but maybe guaranteed volume that if you can meet this much recycling, then we'll guarantee the volume. 00:45:29.160 --> 00:45:30.960 So you don't have to pay that to your waste hauler. 00:45:30.960 --> 00:45:35.440 And there's a few other things that we're talking about internally to incentivize that. 00:45:35.440 --> 00:45:39.880 And landfill space in the state of Texas is rapidly shrinking. 00:45:39.880 --> 00:45:44.560 So we're trying to squeeze every single day out of this landfill that we can. 00:45:44.560 --> 00:45:48.560 And you may have heard our commercial diversion article recently passed. 00:45:48.560 --> 00:45:50.400 We were working with local communities. 00:45:50.400 --> 00:45:55.800 Just in the last quarter, through diversionary efforts and us working with our business community, 00:45:55.800 --> 00:46:00.760 we've actually gained 45 days back in the life of the landfill, and that's in a quarter. 00:46:00.760 --> 00:46:04.840 And that's only with 50% of the commercial entities responding. 00:46:04.840 --> 00:46:09.560 So you can see sort of some of that work that we're trying to do that even though we're bringing in waste, 00:46:09.560 --> 00:46:15.480 we're contracting with people, it allows us to operate in a way that we can extend the life of the landfill. 00:46:15.480 --> 00:46:19.800 It's almost, a lot of it's almost inverse. 00:46:19.800 --> 00:46:27.160 If we're taking more waste, how do we extend the life, but it's actually used as an incentive in the long term. 00:46:27.160 --> 00:46:30.800 >> And not to get in trouble with our attorney and me being out of order. 00:46:30.800 --> 00:46:38.320 But I know some years ago, we had talked about maybe even looking for other sites for landfill if this one got too full. 00:46:38.320 --> 00:46:41.160 Is that something that could be considered in the far, far future? 00:46:41.160 --> 00:46:42.000 >> In the far, far future. 00:46:42.000 --> 00:46:46.560 I mean, currently we have 55 years, roughly 50 years left in the life of this landfill. 00:46:46.560 --> 00:46:50.760 But at some point in time, we're going to have to have a space to put waste. 00:46:50.760 --> 00:46:56.160 And it's part of our comprehensive solid waste management strategy. 00:46:56.160 --> 00:47:01.800 Our goals are 30% by 30, 40% by 40, 75% by 75. 00:47:01.800 --> 00:47:08.400 Putting this in place, it may become, instead of 50% or 50 years, it may become 70 years, it may become 100 years. 00:47:08.400 --> 00:47:16.960 And who knows with technology changing and AI and whatever initials of this alphabet soup that technology drives us. 00:47:16.960 --> 00:47:20.640 We may come to a point that this just becomes sort of a circular type thing. 00:47:20.640 --> 00:47:23.680 We bring waste in, we convert it, we push it back out. 00:47:23.680 --> 00:47:27.920 So it ends up, we don't need new property, we're able to do what we need to do. 00:47:27.920 --> 00:47:34.040 But again, that's technology that I don't have, that I'm not considering, that's not available to us right now. 00:47:34.040 --> 00:47:36.560 But 10, 15 years, who knows? 00:47:36.560 --> 00:47:38.960 >> Well, we were talking about that about 10 and 15 years ago. 00:47:38.960 --> 00:47:39.800 >> Exactly. 00:47:39.800 --> 00:47:40.720 >> That's why I was asking. 00:47:40.720 --> 00:47:43.360 Thank you. 00:47:43.360 --> 00:47:45.560 >> Any other questions? 00:47:45.560 --> 00:47:47.000 I just have one. 00:47:47.000 --> 00:47:53.360 The discount disposal rate, is that kind of set for all of these kind of bulk customers? 00:47:53.360 --> 00:47:55.520 Or is it each one negotiated individually? 00:47:55.520 --> 00:47:59.920 >> Each one is negotiated individually, and that's kind of unique when we talk about put or pay. 00:47:59.920 --> 00:48:04.440 Most landfills will say contract with this, we'll give you this set rate. 00:48:04.440 --> 00:48:07.880 We said no, our landfill value is more than that. 00:48:07.880 --> 00:48:13.640 So we've got five contracts with five different rates in them, or each entity has their own rate. 00:48:13.640 --> 00:48:17.440 They bid on the amount, we determined if that bid was appropriate. 00:48:17.440 --> 00:48:20.160 If we wanted to say no, we did a counter offer. 00:48:20.160 --> 00:48:25.760 So we're getting probably the best value that we can get for the waste that's coming in, 00:48:25.760 --> 00:48:30.200 recognizing we need that assured revenue stream. 00:48:30.200 --> 00:48:33.600 >> Okay, thank you. 00:48:33.600 --> 00:48:36.080 So we need a motion approving these two? 00:48:36.080 --> 00:48:40.200 >> A motion approving these two, yes. 00:48:40.200 --> 00:48:41.120 >> Second. 00:48:41.120 --> 00:48:42.960 >> Sorry, we'll need to take them individually. 00:48:42.960 --> 00:48:45.120 >> Okay. 00:48:45.120 --> 00:48:50.560 We'll consider item A, adoption of an ordinance of the City of Denton Home Rule Corporation, 00:48:50.560 --> 00:48:54.720 authorizing city manager to execute an interlocal agreement with Wise County, 00:48:54.720 --> 00:48:59.800 concerning the delivery of specified tonnage to the city's landfill by Wise County. 00:48:59.800 --> 00:49:01.200 >> So moved. 00:49:01.200 --> 00:49:02.800 >> Second. 00:49:02.800 --> 00:49:04.200 >> All in favor? 00:49:04.200 --> 00:49:04.720 >> Aye. 00:49:04.720 --> 00:49:05.320 >> Any opposed? 00:49:05.320 --> 00:49:06.520 Carries unanimously. 00:49:06.520 --> 00:49:13.160 And item B, consider recommending adoption of an ordinance, City of Denton, with the town 00:49:13.160 --> 00:49:17.280 of Little Elm, concerning delivery of specified tonnage to the city's landfill by Little Elm 00:49:17.280 --> 00:49:18.120 at a discount rate. 00:49:18.120 --> 00:49:19.040 >> So moved. 00:49:19.040 --> 00:49:20.280 >> We have a motion. 00:49:20.280 --> 00:49:21.200 And Lee seconds. 00:49:21.200 --> 00:49:22.480 All in favor? 00:49:22.480 --> 00:49:23.200 >> Aye. 00:49:23.200 --> 00:49:24.360 >> Any opposed? 00:49:24.360 --> 00:49:27.200 Motion carries unanimously. 00:49:27.200 --> 00:49:28.200 >> Thank you very much. 00:49:28.200 --> 00:49:29.600 >> Thank you. 00:49:29.600 --> 00:49:34.680 Our last item of business is adjournment. 00:49:34.680 --> 00:49:35.960 Can I call this adjourned? 00:49:35.960 --> 00:49:36.360 >> Yes. 00:49:36.360 --> 00:49:37.000 >> Okay. 00:49:37.000 --> 00:49:38.800 We stand adjourned.