1 00:00:00,000 --> 00:00:05,440 It's nine o'clock, good morning and welcome to the Public Utility Board meeting of the 2 00:00:05,440 --> 00:00:12,120 City of Ditten of Monday, April 14th, 2025 and we will call that meeting to order. 3 00:00:12,120 --> 00:00:15,320 Are there any presentation from members of the public? 4 00:00:15,320 --> 00:00:19,680 Nope, we have our last member here. 5 00:00:19,680 --> 00:00:23,560 All right, we're gonna move on to the consent agenda. 6 00:00:23,560 --> 00:00:28,720 Are there any items that any of the board members would like to pull from the consent 7 00:00:28,720 --> 00:00:29,720 agenda? 8 00:00:29,720 --> 00:00:30,720 Item B? 9 00:00:30,720 --> 00:00:39,400 Item B, I'll pull D as in dog, so items B and D have been pulled. 10 00:00:39,400 --> 00:00:48,640 Then we will entertain a motion on items A, C and E on the consent agenda. 11 00:00:48,640 --> 00:00:49,640 We have a motion. 12 00:00:49,640 --> 00:00:50,640 Second. 13 00:00:50,640 --> 00:00:52,440 We have a second from Mr. Taylor. 14 00:00:52,440 --> 00:00:54,800 All those in favor, please say aye. 15 00:00:54,800 --> 00:00:55,800 Aye. 16 00:00:55,800 --> 00:00:59,400 Any opposed, sign the same, passes unanimously. 17 00:00:59,400 --> 00:01:03,680 Item B is in boy. 18 00:01:03,680 --> 00:01:10,880 All right, good morning board members, Seth Garcia, Interim Director of Capital Projects. 19 00:01:10,880 --> 00:01:15,400 We did create a little brief presentation to run through really quickly and then I would 20 00:01:15,400 --> 00:01:18,720 be happy to answer any questions that you may have. 21 00:01:18,720 --> 00:01:24,700 All right, so the change order before you today is for Bonnie Bray phase three. 22 00:01:24,700 --> 00:01:29,240 So just a little reminder, Bonnie Bray phase three is the widening, the third phase of 23 00:01:29,240 --> 00:01:34,920 Bonnie Bray, from Rose Lawn all the way to Interstate 35 Service Road, very closely to 24 00:01:34,920 --> 00:01:36,400 the merge. 25 00:01:36,400 --> 00:01:39,640 We are going from a two-lane rural section to a four-lane section. 26 00:01:39,640 --> 00:01:48,320 We're adding in sidewalks, utility upgrades, as well as street lighting. 27 00:01:48,320 --> 00:01:53,520 So for our project schedule, we awarded this contract in August of 2023. 28 00:01:53,520 --> 00:01:58,360 We did hold off on issuing the NTP as long as we can, so there was two critical factors 29 00:01:58,360 --> 00:02:00,560 that were kind of driving this project. 30 00:02:00,560 --> 00:02:04,700 One was the merge project for TxDOT at I-35. 31 00:02:04,700 --> 00:02:09,640 There was a sewer line that we were forced to relocate and provide a connection tie-in 32 00:02:09,640 --> 00:02:14,800 point that was going to be in conflict with some TxDOT drill piers for the new crossing 33 00:02:14,800 --> 00:02:16,520 underneath 35. 34 00:02:16,520 --> 00:02:21,600 So TxDOT gave us a timeline for when we had to get that completed on the north end of 35 00:02:21,600 --> 00:02:23,200 the job. 36 00:02:23,200 --> 00:02:27,920 What brought us here today is the NLINK gas line conflict that was on the south end of 37 00:02:27,920 --> 00:02:30,000 the job, or the Rose Lawn side. 38 00:02:30,000 --> 00:02:35,760 So once council approved the construction contract, we were able to get a contract with 39 00:02:35,760 --> 00:02:40,020 NLINK approved on December 12th. 40 00:02:40,020 --> 00:02:44,100 Through communications with NLINK, we were looking at approximately 90 days for them 41 00:02:44,100 --> 00:02:47,720 to acquire easements to be able to begin their work. 42 00:02:47,720 --> 00:02:53,640 It took them about nine months to ultimately acquire all the easements needed. 43 00:02:53,640 --> 00:02:57,880 Once they were able to acquire the easements needed, they were able to perform their relocations 44 00:02:57,880 --> 00:03:01,640 and cleared those relocations in October of 2024. 45 00:03:01,640 --> 00:03:05,320 During that time, of course, we were working on the north end of the project to meet the 46 00:03:05,320 --> 00:03:14,160 TxDOT timeline for tying in FM 15, 15, and 35, and ultimately relocating that sewer line. 47 00:03:14,160 --> 00:03:19,500 Right now, our goal is to have substantial completion in September of 2026 and final 48 00:03:19,500 --> 00:03:25,600 completion in November of 2026. 49 00:03:25,600 --> 00:03:30,080 So for previous change orders, we've processed two contingency requests. 50 00:03:30,080 --> 00:03:35,360 Both are related to some of the wastewater work that's been done with the project. 51 00:03:35,360 --> 00:03:39,960 That first one was for $44,000 to correct some quantities that were vetted through the 52 00:03:39,960 --> 00:03:41,820 submittal process. 53 00:03:41,820 --> 00:03:49,560 The second one was for a water line work, again, that was done at I-35, and some field 54 00:03:49,560 --> 00:03:55,700 changes for some bore conflicts at the railroad, at the KCS Railroad. 55 00:03:55,700 --> 00:03:58,180 So again, we had to make some slight modifications. 56 00:03:58,180 --> 00:04:01,080 That one was roughly $365,000. 57 00:04:01,080 --> 00:04:07,840 And then today, the change order for really increased escalation costs and the 210 days 58 00:04:07,840 --> 00:04:12,920 to keep the contractor out there for additional work is just over the $3.3 million. 59 00:04:12,920 --> 00:04:15,320 Again, we've worked with the contractor. 60 00:04:15,320 --> 00:04:19,560 The original cost that came through on the first submittal was over $4 million. 61 00:04:19,560 --> 00:04:24,240 So we were able to negotiate over $700,000 of that down. 62 00:04:24,240 --> 00:04:26,760 This is a NTE for this change order. 63 00:04:26,760 --> 00:04:31,560 So we're going to be verifying these quantities and additional costs as we come through. 64 00:04:31,560 --> 00:04:36,020 If the contractor does finish early, they've committed to providing some of that funding 65 00:04:36,020 --> 00:04:40,320 back to the city, so we're not going to pay for costs that are actually not incurred. 66 00:04:40,320 --> 00:04:47,780 Again, this is a 4.66% increase over the original not to exceed amount. 67 00:04:47,780 --> 00:04:52,240 And so with that, we're recommending approval of this change order in the total amount of 68 00:04:52,240 --> 00:04:53,840 just over $2.3 million. 69 00:04:53,840 --> 00:04:59,040 Again, the total change order is just over $3.3 million, utilizing the existing contingency 70 00:04:59,040 --> 00:05:02,040 first and then requesting an additional $2.3 million. 71 00:05:02,040 --> 00:05:03,040 Yes, sir? 72 00:05:03,040 --> 00:05:07,840 I have a question, could you go back one slide? 73 00:05:07,840 --> 00:05:13,440 So you said your increase over the not to exceed amount was a little over 4.5%? 74 00:05:13,440 --> 00:05:14,440 Correct. 75 00:05:14,440 --> 00:05:22,240 But on the far right-hand side, it says authorized and authorized NTE, I only see a few hundred 76 00:05:22,240 --> 00:05:26,400 thousand dollars difference on $42 million. 77 00:05:26,400 --> 00:05:30,560 Am I missing something about that 4.6% or do I have my math wrong? 78 00:05:30,560 --> 00:05:32,520 No, that's a great question. 79 00:05:32,520 --> 00:05:38,760 So as part of this, and it is in the backup information, I don't know that it's on this 80 00:05:38,760 --> 00:05:44,960 slide, we are requesting roughly $500,000 more than what this change order was. 81 00:05:44,960 --> 00:05:49,820 Again, that will backfill our contingency bank to allow us to continue to approve changes 82 00:05:49,820 --> 00:05:54,520 and work through things as we go through the remainder of construction. 83 00:05:54,520 --> 00:06:01,240 And so the total contract is the, excuse me, the total change order is $3.3 million. 84 00:06:01,240 --> 00:06:07,360 That is providing roughly $500,000 in remaining additional contingency after approval of this 85 00:06:07,360 --> 00:06:11,000 change order for us to work through construction issues as we go forward. 86 00:06:11,000 --> 00:06:12,000 Okay. 87 00:06:12,000 --> 00:06:14,640 And that's the difference that you're seeing in the 197 and 707. 88 00:06:14,640 --> 00:06:18,080 So that's a small difference compared to the 4.5% difference. 89 00:06:18,080 --> 00:06:19,080 Correct. 90 00:06:19,080 --> 00:06:24,960 But that total is still included in the 42.7 million. 91 00:06:24,960 --> 00:06:33,320 That's a good question. 92 00:06:33,320 --> 00:06:36,320 Next, anybody else? 93 00:06:36,320 --> 00:06:37,320 Okay. 94 00:06:37,320 --> 00:06:51,200 So really the 3.389, 89, 100, the original subcontract was 38, correct? 95 00:06:51,200 --> 00:06:55,720 Yes, sir, 38, 398. 96 00:06:55,720 --> 00:06:59,000 So total change over almost 9% is what we're... 97 00:06:59,000 --> 00:07:00,000 Correct. 98 00:07:00,000 --> 00:07:02,520 Total change over original bid is 9%. 99 00:07:02,520 --> 00:07:07,220 Again, we carry a 5% contingency in the original NTE. 100 00:07:07,220 --> 00:07:10,000 So we've used that above that original NTE. 101 00:07:10,000 --> 00:07:11,000 Well, they've used that. 102 00:07:11,000 --> 00:07:16,000 I don't think you're going to use it anymore, but... 103 00:07:16,000 --> 00:07:17,000 Correct. 104 00:07:17,000 --> 00:07:22,160 So their original submittal was $700,000 higher than what you approved, correct? 105 00:07:22,160 --> 00:07:23,160 Correct. 106 00:07:23,160 --> 00:07:24,160 Okay. 107 00:07:24,160 --> 00:07:25,480 And that was... 108 00:07:25,480 --> 00:07:31,120 So at what point did we find out that this was going to affect the project after the 109 00:07:31,120 --> 00:07:32,940 contract was awarded? 110 00:07:32,940 --> 00:07:34,600 Was it after the contract was awarded? 111 00:07:34,600 --> 00:07:35,600 Yeah. 112 00:07:35,600 --> 00:07:40,480 So again, once we executed the contract through council, we delayed that NTP for two months 113 00:07:40,480 --> 00:07:46,440 to try and allow as much time as we could for NLINK to process their agreement and start 114 00:07:46,440 --> 00:07:48,160 acquiring those easements. 115 00:07:48,160 --> 00:07:52,200 Again, we were working on the assumption that they had been communicating with property 116 00:07:52,200 --> 00:07:57,080 owners and they were going to be able to execute easement agreements within 90 days. 117 00:07:57,080 --> 00:08:00,720 Had we met that timeline, we don't feel there would have been an impact to the project. 118 00:08:00,720 --> 00:08:06,720 So at that point, Sunt moved 10 trailers out there and 30 guys? 119 00:08:06,720 --> 00:08:11,960 So they moved one trailer, but began all the utility work on the north end of the job, 120 00:08:11,960 --> 00:08:19,080 again, to clear that wastewater line, as well as meet the tie in for FM 1515 and the 35 121 00:08:19,080 --> 00:08:21,600 merge, which is happening this month. 122 00:08:21,600 --> 00:08:25,040 So we kind of had two independent timelines that we were tracking, one with the gas line 123 00:08:25,040 --> 00:08:30,560 on the south end, one with the textile relocation and tie in on the north end. 124 00:08:30,560 --> 00:08:35,920 So again, a lot of the labor is coming from the additional 210 days. 125 00:08:35,920 --> 00:08:41,200 Ultimately, the best process would have been stop the job and let's wait until we can clear 126 00:08:41,200 --> 00:08:42,200 that in. 127 00:08:42,200 --> 00:08:46,720 Unfortunately, that was not a possibility with the timeline we were meeting on the textile 128 00:08:46,720 --> 00:08:47,720 side. 129 00:08:47,720 --> 00:08:51,480 And so we essentially extended out the project 210 days. 130 00:08:51,480 --> 00:09:01,240 So basically, that's $14,585 per day paying for their overhead fee, correct? 131 00:09:01,240 --> 00:09:04,560 Did you look at that? 132 00:09:04,560 --> 00:09:10,920 So the total labor and general conditions portion of this specific change order is $2 133 00:09:10,920 --> 00:09:11,920 million. 134 00:09:11,920 --> 00:09:16,440 What's the $3.3 million? 135 00:09:16,440 --> 00:09:18,240 So $3.3 million is the total. 136 00:09:18,240 --> 00:09:26,320 That is all general conditions, labor, equipment escalations, materials, subcontractor costs, 137 00:09:26,320 --> 00:09:27,640 and then bonds and insurance. 138 00:09:27,640 --> 00:09:30,000 So are those separated items at $2.3 million? 139 00:09:30,000 --> 00:09:35,840 I thought that was based on funding, on where you're getting your funding, right? 140 00:09:35,840 --> 00:09:37,920 What part is the overhead? 141 00:09:37,920 --> 00:09:42,080 So I've got that in the separate breakout that came with the change order. 142 00:09:42,080 --> 00:09:50,160 So the overhead general conditions cost total for labor, equipment, overhead, and facilities 143 00:09:50,160 --> 00:09:54,840 is roughly $2.2 million. 144 00:09:54,840 --> 00:09:55,840 That's what they're calling it? 145 00:09:55,840 --> 00:09:59,280 I mean, that's not including the general conditions. 146 00:09:59,280 --> 00:10:00,280 That is the general conditions. 147 00:10:00,280 --> 00:10:09,720 So labor and equipment, if labor and equipment is part of general conditions, how are you 148 00:10:09,720 --> 00:10:11,480 defining general conditions? 149 00:10:11,480 --> 00:10:13,560 So labor is tied to it. 150 00:10:13,560 --> 00:10:19,240 There is equipment that's tied to general requirements of the contract for general conditions. 151 00:10:19,240 --> 00:10:24,400 So that would be like sweeping, site cleanup, things that are required by the contract. 152 00:10:24,400 --> 00:10:29,720 All other labor and equipment charges are broken into their individual work categories. 153 00:10:29,720 --> 00:10:33,680 That's making up the difference between the $2.2 million and the $3.38 million. 154 00:10:33,680 --> 00:10:41,000 And get the escalation part of the not being able to tear loose on the project, and get 155 00:10:41,000 --> 00:10:45,960 the general conditions, they just seem pretty high. 156 00:10:45,960 --> 00:10:55,000 I mean, did y'all, is there, remind me, what specs are you using on this project? 157 00:10:55,000 --> 00:10:56,440 They're the City of Denton specifications. 158 00:10:56,440 --> 00:10:59,280 I believe they're the 2021 revisions. 159 00:10:59,280 --> 00:11:06,320 So it would include some points you tie to TxDOT, other points you tie to COGS? 160 00:11:06,320 --> 00:11:08,480 We got rid of a lot of the COG references. 161 00:11:08,480 --> 00:11:12,720 We do have some TxDOT references because we're tying into TxDOT facilities. 162 00:11:12,720 --> 00:11:16,080 But for the majority, it is City of Denton specific specifications. 163 00:11:16,080 --> 00:11:22,080 So your standby time, which is basically what they're saying it was, right? 164 00:11:22,080 --> 00:11:27,760 So not technically, again, because we were continuing to progress work on the north end 165 00:11:27,760 --> 00:11:28,920 to meet the TxDOT. 166 00:11:28,920 --> 00:11:34,520 So we're looking at full general conditions, not just kind of a skeleton standby time. 167 00:11:34,520 --> 00:11:38,680 That would be typical if we shut the project down and cleared the inlink gas line. 168 00:11:38,680 --> 00:11:43,280 So we still had project management staff, project engineering staff. 169 00:11:43,280 --> 00:11:44,560 One trailer though. 170 00:11:44,560 --> 00:11:45,560 One trailer. 171 00:11:45,560 --> 00:11:46,560 Yeah. 172 00:11:46,560 --> 00:11:52,040 So the facility charges for the additional 210 days, that includes the trailer, water 173 00:11:52,040 --> 00:11:57,000 services, all the components that go into the general condition side of the facility 174 00:11:57,000 --> 00:11:59,440 is $73,800. 175 00:11:59,440 --> 00:12:03,160 Oh, okay. 176 00:12:03,160 --> 00:12:04,520 That's all that was. 177 00:12:04,520 --> 00:12:05,520 Correct. 178 00:12:05,520 --> 00:12:06,520 So that's under $100,000. 179 00:12:06,520 --> 00:12:07,520 That's a little... 180 00:12:07,520 --> 00:12:08,520 Go ahead. 181 00:12:08,520 --> 00:12:12,680 For the project engineers, project managers, superintendents that are going to be on site 182 00:12:12,680 --> 00:12:17,120 for the additional 210 days, that's where we're incurring a lot of the general conditions 183 00:12:17,120 --> 00:12:21,780 costs for folks that are not tied to specific packages of work, or that would be built into 184 00:12:21,780 --> 00:12:23,160 a unit price cost. 185 00:12:23,160 --> 00:12:27,720 But they were... 186 00:12:27,720 --> 00:12:28,720 What were they charging? 187 00:12:28,720 --> 00:12:30,840 Two-home office or...? 188 00:12:30,840 --> 00:12:35,400 They were still on the job site monitoring all the utility work and the paving work on 189 00:12:35,400 --> 00:12:36,680 the north end of the job. 190 00:12:36,680 --> 00:12:38,040 Sorry for these questions, but... 191 00:12:38,040 --> 00:12:39,040 No, you're fine. 192 00:12:39,040 --> 00:12:40,040 From where? 193 00:12:40,040 --> 00:12:42,440 Where were these guys sitting? 194 00:12:42,440 --> 00:12:44,400 In the trailer at the job site. 195 00:12:44,400 --> 00:12:47,120 How many guys were in that trailer? 196 00:12:47,120 --> 00:12:50,520 So I believe there's four plus the survey crew. 197 00:12:50,520 --> 00:12:51,520 Okay. 198 00:12:51,520 --> 00:12:52,520 That's two points. 199 00:12:52,520 --> 00:12:58,560 So we have a full-time project manager, two project engineers, one full-time superintendent 200 00:12:58,560 --> 00:13:03,280 that's not tied to a portion of the work, and then a two-and-a-half man, I believe, 201 00:13:03,280 --> 00:13:04,280 survey crew. 202 00:13:04,280 --> 00:13:06,920 And that was $2.3 million for that. 203 00:13:06,920 --> 00:13:07,920 Correct. 204 00:13:07,920 --> 00:13:12,320 Plus the escalations for all the labor for the folks that were supposed to be there a 205 00:13:12,320 --> 00:13:13,320 year prior. 206 00:13:13,320 --> 00:13:14,320 Yeah. 207 00:13:14,320 --> 00:13:16,320 2.3 and then one point something for that. 208 00:13:16,320 --> 00:13:18,680 Is that right? 209 00:13:18,680 --> 00:13:19,680 Total labor was 1.8. 210 00:13:19,680 --> 00:13:20,680 Yeah. 211 00:13:20,680 --> 00:13:21,680 Okay. 212 00:13:21,680 --> 00:13:22,680 Okay. 213 00:13:22,680 --> 00:13:23,680 Wow. 214 00:13:23,680 --> 00:13:25,880 Yes, sir. 215 00:13:25,880 --> 00:13:30,640 So again, and hopefully we are able to finish the project a little bit early and we'll see 216 00:13:30,640 --> 00:13:32,840 a realized savings on some of this come back. 217 00:13:32,840 --> 00:13:35,960 Yeah, that'd be great. 218 00:13:35,960 --> 00:13:41,160 So Sun has been really phenomenal work with, again, they are wanting to be fair with the 219 00:13:41,160 --> 00:13:46,240 city and a separate project, Neighborhood 2 and 6, we're just wrapping up GMP 1. 220 00:13:46,240 --> 00:13:51,040 They're giving back almost $700,000 worth of contingency that went unused. 221 00:13:51,040 --> 00:13:56,640 So again, I do feel that there are $700,000 that you guys got cut out of there. 222 00:13:56,640 --> 00:14:01,160 I'm going to do cost validation and all that comparison is that when you do those cost 223 00:14:01,160 --> 00:14:04,800 validations, do you do them or do you hire them out to the engineer? 224 00:14:04,800 --> 00:14:05,800 So both. 225 00:14:05,800 --> 00:14:07,800 We look at it as a total project team. 226 00:14:07,800 --> 00:14:13,440 So it would be CIP staff, engineering staff, and then anybody else that from development 227 00:14:13,440 --> 00:14:15,680 services engineering or anybody else that we bring in. 228 00:14:15,680 --> 00:14:16,680 Okay. 229 00:14:16,680 --> 00:14:17,680 Yes, sir. 230 00:14:17,680 --> 00:14:24,720 All right, but 9% is really what we're paying 8.67 or whatever the number is. 231 00:14:24,720 --> 00:14:25,720 Yes, sir. 232 00:14:25,720 --> 00:14:26,720 So total it is 9.89. 233 00:14:26,720 --> 00:14:27,720 Okay. 234 00:14:27,720 --> 00:14:28,720 All right. 235 00:14:28,720 --> 00:14:37,960 Well, that sucks, but let's move on, I guess. 236 00:14:37,960 --> 00:14:48,600 Anybody want to make a motion to approve this? 237 00:14:48,600 --> 00:14:50,600 I'll move approval. 238 00:14:50,600 --> 00:14:51,600 Second. 239 00:14:51,600 --> 00:14:54,960 We have a motion and a second. 240 00:14:54,960 --> 00:14:57,600 All those in favor, please say aye. 241 00:14:57,600 --> 00:14:58,600 Aye. 242 00:14:58,600 --> 00:14:59,600 Any opposed? 243 00:14:59,600 --> 00:15:00,600 Sign the same. 244 00:15:00,600 --> 00:15:01,600 Aye. 245 00:15:01,600 --> 00:15:02,600 All right. 246 00:15:02,600 --> 00:15:03,600 All right. 247 00:15:03,600 --> 00:15:04,600 Moving forward. 248 00:15:04,600 --> 00:15:07,640 It passes almost unanimously. 249 00:15:07,640 --> 00:15:09,400 Item number D is in dog. 250 00:15:09,400 --> 00:15:14,960 That is the PUB 25-051. 251 00:15:14,960 --> 00:15:18,440 Consider recommending adoption of organs to the city of Denton at Texas Home Rule Municipal 252 00:15:18,440 --> 00:15:19,800 Corporation. 253 00:15:19,800 --> 00:15:23,840 This is the Robin Wood Reconstruction Project. 254 00:15:23,840 --> 00:15:25,240 Good morning, everybody. 255 00:15:25,240 --> 00:15:26,720 Sheldon Gittwit, Capital Projects. 256 00:15:26,720 --> 00:15:33,360 I have a slideshow presentation if you guys want to see it as well. 257 00:15:33,360 --> 00:15:49,280 All right. 258 00:15:49,280 --> 00:15:53,600 Thank you guys for having me today for the Robin Wood Reconstruction change order number 259 00:15:53,600 --> 00:15:55,760 one. 260 00:15:55,760 --> 00:15:57,560 So just a quick project overview. 261 00:15:57,560 --> 00:16:02,400 The project consists of full depth rope reconstruction of the street segments, Robin Wood, Clover, 262 00:16:02,400 --> 00:16:09,280 Drive Oak, Shady Wood, Misty Wood, and along with some asphalt paving, concrete curb and 263 00:16:09,280 --> 00:16:15,360 gutters, storm water inlets, pipes, and driveway replacements needed. 264 00:16:15,360 --> 00:16:19,640 In the documentation for this change order, it was a swap out of lime stabilization with 265 00:16:19,640 --> 00:16:25,160 the original contract to a cement stabilization along with the additional work on the asphalt 266 00:16:25,160 --> 00:16:27,760 work for the first section. 267 00:16:27,760 --> 00:16:33,000 So we have the items being swapped out, lime stabilization and lime material for stabilization 268 00:16:33,000 --> 00:16:39,300 with cement material stabilization and cement stabilization manipulation. 269 00:16:39,300 --> 00:16:44,840 And again, for that first phase, we're going to have removal of that two inch lift that 270 00:16:44,840 --> 00:16:52,120 we put, an additional two inch lift being placed back on that first phase. 271 00:16:52,120 --> 00:16:58,880 Another reason for this, the background, back in January 28th, 2025, Texas bit informed 272 00:16:58,880 --> 00:17:03,380 staff of a sandy type subgrade, which you see right there in the picture. 273 00:17:03,380 --> 00:17:07,440 And then on February 3rd, direction was given from leadership to call Robert Kissner back 274 00:17:07,440 --> 00:17:14,020 to proceed with testing for a more internal discussion as far as the subgrade rework. 275 00:17:14,020 --> 00:17:19,040 And then we got our test results February 17th from Robert, which recommended cement 276 00:17:19,040 --> 00:17:25,460 series, and then on March 6th, change our order for approval for the change board. 277 00:17:25,460 --> 00:17:33,540 So the reason for us going with a cement stabilization, we took the geotechnical reports from 2023 278 00:17:33,540 --> 00:17:39,880 whenever utilities had their Robinwood clover project, which recommended a lime series to 279 00:17:39,880 --> 00:17:42,560 be for stabilization. 280 00:17:42,560 --> 00:17:47,520 But once contractors did open up the road, they found the material to be a lot more sandy 281 00:17:47,520 --> 00:17:49,080 and more of the area. 282 00:17:49,080 --> 00:17:57,640 So recommendations for that was just submit series throughout the whole entire project. 283 00:17:57,640 --> 00:18:02,920 And recommendation for this is the approval of this change board with an amount of 434. 284 00:18:02,920 --> 00:18:09,160 And again, this is going to be eating up the contracts contingency of 133 while additionally 285 00:18:09,160 --> 00:18:15,280 requesting 200,000 additional contingency. 286 00:18:15,280 --> 00:18:19,520 You guys have any questions? 287 00:18:19,520 --> 00:18:30,040 So the thank you for the presentation that explains the change with me fine, except for 288 00:18:30,040 --> 00:18:40,220 we put is it not, are we not required to put the contingency in a presentation at all? 289 00:18:40,220 --> 00:18:45,240 The change order here on the item says $300,000. 290 00:18:45,240 --> 00:18:49,400 So that's the amount just over what you were allowed for the contingency, correct? 291 00:18:49,400 --> 00:18:50,400 Correct. 292 00:18:50,400 --> 00:18:51,400 All right. 293 00:18:51,400 --> 00:18:57,360 So in other words, any change orders within the contingency don't have to come out of 294 00:18:57,360 --> 00:18:58,360 engineering, correct? 295 00:18:58,360 --> 00:18:59,360 Correct. 296 00:18:59,360 --> 00:19:00,360 Okay. 297 00:19:00,360 --> 00:19:01,360 All right. 298 00:19:01,360 --> 00:19:02,360 Just wanted to verify that. 299 00:19:02,360 --> 00:19:05,480 Anybody else got any more questions? 300 00:19:05,480 --> 00:19:12,640 So I'm just just to understand the not very familiar with road construction, the total. 301 00:19:12,640 --> 00:19:17,460 So that's about a half a mile of Robinwood and then several other blocks there. 302 00:19:17,460 --> 00:19:22,720 Do you have a total like lane miles or linear feet of the project? 303 00:19:22,720 --> 00:19:28,280 I do have linear feet again, not on top of my head right now, but I can get that to you 304 00:19:28,280 --> 00:19:29,280 after this meeting. 305 00:19:29,280 --> 00:19:30,280 Okay. 306 00:19:30,280 --> 00:19:31,280 Yeah. 307 00:19:31,280 --> 00:19:36,580 So I guess it's the lime stabilization, so Denton basically has two soil types with kind 308 00:19:36,580 --> 00:19:39,100 of expansive clay and then the sand. 309 00:19:39,100 --> 00:19:44,200 And so I guess is the lime stabilization commonly used in like the more expansive clay? 310 00:19:44,200 --> 00:19:45,200 Correct. 311 00:19:45,200 --> 00:19:46,200 Okay. 312 00:19:46,200 --> 00:19:49,800 And so if it had been, it just, they happen to have that sand, that band of sandy soil 313 00:19:49,800 --> 00:19:50,800 over there. 314 00:19:50,800 --> 00:19:51,800 Yeah. 315 00:19:51,800 --> 00:19:55,720 It was just kind of one of those things where we looked at our first report from Rob Kessner 316 00:19:55,720 --> 00:20:00,760 back in 2023 where he did recommend the sand as far as the core locations. 317 00:20:00,760 --> 00:20:05,840 They were on the outer parts of the street, so, and we noticed on site, once you get to 318 00:20:05,840 --> 00:20:10,200 that curb line, it becomes a little bit more clay, but once we were in that middle section 319 00:20:10,200 --> 00:20:14,760 of the road, that's a lot more sandy, like a wet beach sand type. 320 00:20:14,760 --> 00:20:18,560 So it's kind of one of those things where, all right, we should have really got course 321 00:20:18,560 --> 00:20:19,960 from this middle as well. 322 00:20:19,960 --> 00:20:26,040 And then that's the cement stabilization, is that like, that's not like concrete, that's 323 00:20:26,040 --> 00:20:34,520 like a cement containing grout kind of material or is that, how do you describe it, I guess? 324 00:20:34,520 --> 00:20:39,640 It's like a, it's almost like a hydrated lime, but it's just a cement version, of course, 325 00:20:39,640 --> 00:20:47,160 it's like a, almost like grout and cement mixture in between, it's kind of like a slurry 326 00:20:47,160 --> 00:20:48,160 almost really. 327 00:20:48,160 --> 00:20:49,160 Okay. 328 00:20:49,160 --> 00:20:52,800 So not like concrete, but like a lower grade, lower concrete, the cement content. 329 00:20:52,800 --> 00:20:53,800 Okay. 330 00:20:53,800 --> 00:20:54,800 Thank you. 331 00:20:54,800 --> 00:21:01,200 Well, that begs the question, so do they, will they be turning it in and mixing it therefore 332 00:21:01,200 --> 00:21:02,200 with us? 333 00:21:02,200 --> 00:21:04,480 They'll be mixing it into the subgrade 12 inches. 334 00:21:04,480 --> 00:21:05,480 How deep do they go? 335 00:21:05,480 --> 00:21:06,480 12 inches. 336 00:21:06,480 --> 00:21:07,480 Just one foot? 337 00:21:07,480 --> 00:21:08,480 Yes, sir. 338 00:21:08,480 --> 00:21:09,480 Oh, interesting. 339 00:21:09,480 --> 00:21:10,480 Thank you. 340 00:21:10,480 --> 00:21:13,240 So what is your timeline now? 341 00:21:13,240 --> 00:21:15,480 I may have missed it if you already brought it up. 342 00:21:15,480 --> 00:21:19,760 Well, actually, since we're changing to a cement, it will be a lot faster because the 343 00:21:19,760 --> 00:21:26,080 cure time will be cut down significantly and they already actually just submitted and stabilized 344 00:21:26,080 --> 00:21:29,200 all of Robinwood and we're about to put the first lift on right now. 345 00:21:29,200 --> 00:21:33,080 So the side streets, we're going to tackle within the next couple of weeks. 346 00:21:33,080 --> 00:21:36,080 So it's going to reduce the timeline for the project. 347 00:21:36,080 --> 00:21:39,520 So I can get the schedule to you today. 348 00:21:39,520 --> 00:21:42,760 I know my contractor is supposed to be submitting it to me. 349 00:21:42,760 --> 00:21:43,760 Just pick a year. 350 00:21:43,760 --> 00:21:44,760 2025. 351 00:21:44,760 --> 00:21:45,760 Thank you. 352 00:21:45,760 --> 00:21:46,760 Yes. 353 00:21:46,760 --> 00:21:50,120 All right. 354 00:21:50,120 --> 00:21:54,360 Is that everybody? 355 00:21:54,360 --> 00:21:55,360 All right. 356 00:21:55,360 --> 00:21:56,360 Any motion? 357 00:21:56,360 --> 00:21:57,360 I'll move. 358 00:21:57,360 --> 00:21:58,360 Do we approve? 359 00:21:58,360 --> 00:21:59,360 We have a motion? 360 00:21:59,360 --> 00:22:00,360 Second. 361 00:22:00,360 --> 00:22:01,360 Second. 362 00:22:01,360 --> 00:22:02,360 All those in favor, please say aye. 363 00:22:02,360 --> 00:22:03,360 Aye. 364 00:22:03,360 --> 00:22:04,360 Any opposed? 365 00:22:04,360 --> 00:22:05,360 Sign the same. 366 00:22:05,360 --> 00:22:06,360 This is unanimously. 367 00:22:06,360 --> 00:22:09,360 That is the consent agenda. 368 00:22:09,360 --> 00:22:10,360 All right. 369 00:22:10,360 --> 00:22:15,480 Now we are moving on to item three, items for individual consideration with the first item 370 00:22:15,480 --> 00:22:19,680 A, PUB 25-058, the minutes from March 24th. 371 00:22:19,680 --> 00:22:24,120 Anybody got any changes, comments, adjustments? 372 00:22:24,120 --> 00:22:25,120 No. 373 00:22:25,120 --> 00:22:29,840 I guess we need to entertain a motion for that as well. 374 00:22:29,840 --> 00:22:30,840 To approve. 375 00:22:30,840 --> 00:22:31,840 Move approval. 376 00:22:31,840 --> 00:22:32,840 We have a motion. 377 00:22:32,840 --> 00:22:33,840 Oh, I said move. 378 00:22:33,840 --> 00:22:34,840 We have a motion. 379 00:22:34,840 --> 00:22:35,840 Oh, okay. 380 00:22:35,840 --> 00:22:36,840 I'm sorry. 381 00:22:36,840 --> 00:22:37,840 I was thinking of a motion. 382 00:22:37,840 --> 00:22:38,840 Second. 383 00:22:38,840 --> 00:22:39,840 Any second? 384 00:22:39,840 --> 00:22:40,840 All those in favor, please say aye. 385 00:22:40,840 --> 00:22:41,840 Aye. 386 00:22:41,840 --> 00:22:42,840 Any opposed? 387 00:22:42,840 --> 00:22:43,840 Sign the same. 388 00:22:43,840 --> 00:22:44,840 Second. 389 00:22:44,840 --> 00:22:47,640 All those in favor, please sign the same. 390 00:22:47,640 --> 00:22:53,240 Item three B, consider recommending approval of a resolution of the City Council of the 391 00:22:53,240 --> 00:22:57,720 City of Denton, approving the sale of certain transmission system assets by the TMPA. 392 00:22:57,720 --> 00:23:03,920 Mr. Chair, members of the board, Tony Puente, the ME General Manager, appreciate the time 393 00:23:03,920 --> 00:23:04,920 today. 394 00:23:04,920 --> 00:23:07,760 Going to go through just a little bit of background of what TMPA is. 395 00:23:07,760 --> 00:23:13,840 For those of you that might not be familiar with this agency, so TMPA is a joint powers 396 00:23:13,840 --> 00:23:20,400 agency that's owned by Denton, Bryan, Greenville, Garland. 397 00:23:20,400 --> 00:23:24,720 The chair, Mr. Cheek, is one of our appointed members. 398 00:23:24,720 --> 00:23:25,720 The other member is ... 399 00:23:25,720 --> 00:23:26,720 Jesse Davis. 400 00:23:26,720 --> 00:23:27,720 Jesse Davis. 401 00:23:27,720 --> 00:23:31,680 I'll have to do a blank on that. 402 00:23:31,680 --> 00:23:34,240 So TMPA was created back in 1975. 403 00:23:34,240 --> 00:23:41,200 The purpose was generation and sale or exchange of electric energy or the provision of wholesale 404 00:23:41,200 --> 00:23:43,600 transmission service. 405 00:23:43,600 --> 00:23:49,280 All the generation assets, previously known as Gibbons Creek steam electric station, were 406 00:23:49,280 --> 00:23:57,160 sold back in January of 2021, so TMPA no longer is a generation agency. 407 00:23:57,160 --> 00:24:02,880 By law, they can still be a generation agency, but currently they don't own anything. 408 00:24:02,880 --> 00:24:09,640 Still own a little bit of mine property, about 723 acres remain of the original 11,000 acres, 409 00:24:09,640 --> 00:24:12,240 and that is currently being marketed for sale. 410 00:24:12,240 --> 00:24:17,000 A lot of slow movement on that, but we're hoping that that'll be sold sometime this 411 00:24:17,000 --> 00:24:18,000 year. 412 00:24:18,000 --> 00:24:23,000 And then transmission assets is really what remains and what's the value that's there. 413 00:24:23,000 --> 00:24:27,980 There is a joint operating agreement that does call for the potential unbundling of 414 00:24:27,980 --> 00:24:29,520 those assets. 415 00:24:29,520 --> 00:24:32,080 As of now, that still hasn't been done. 416 00:24:32,080 --> 00:24:37,180 We continue to kind of work through that process, a lot of different factors on why we may or 417 00:24:37,180 --> 00:24:41,240 may not want to move forward with that, but just wanted to give you some background on 418 00:24:41,240 --> 00:24:44,400 the agency itself. 419 00:24:44,400 --> 00:24:48,480 So a little bit of background here on this transmission asset sale. 420 00:24:48,480 --> 00:24:54,140 So Brian and TMPA engaged in some conversations about some assets where there was some commingling 421 00:24:54,140 --> 00:25:01,200 of ownership, made the operational maintenance and regulatory compliance of those assets 422 00:25:01,200 --> 00:25:05,760 quite difficult when you think about a substation or a transmission line, who handles what, 423 00:25:05,760 --> 00:25:07,280 when is it done. 424 00:25:07,280 --> 00:25:14,200 So really that really was the impetus of trying to get these assets kind of broken out. 425 00:25:14,200 --> 00:25:18,320 And so the recommendation here that the board considered and that you will consider obviously 426 00:25:18,320 --> 00:25:24,720 the council as well, is that Brian would take over and own assets that have a net book value 427 00:25:24,720 --> 00:25:28,380 about $3.2 million in exchange for that. 428 00:25:28,380 --> 00:25:33,160 And that is the only item that's coming to you today that will go to the council. 429 00:25:33,160 --> 00:25:39,480 The other side of this transaction is that TMPA would then take over from Brian assets 430 00:25:39,480 --> 00:25:41,200 that total $7 million. 431 00:25:41,200 --> 00:25:47,680 So I think at the end of the day it's a good deal for TMPA, I think it's a good deal for 432 00:25:47,680 --> 00:25:56,640 the city of Denton, and that now we're gonna own 21.3% of far more assets than we did previously. 433 00:25:56,640 --> 00:26:03,980 So per the joint operating agreement that was effective January 1st, 2016, any sale 434 00:26:03,980 --> 00:26:10,840 of assets in excess of $500,000 of book value, net book value on a fiscal year have to come 435 00:26:10,840 --> 00:26:13,800 back to the member cities for approval. 436 00:26:13,800 --> 00:26:20,320 And then staff recommends that you approve today's resolution to go to council in next 437 00:26:20,320 --> 00:26:21,320 couple of weeks. 438 00:26:21,320 --> 00:26:26,920 So with that, happy to answer any questions. 439 00:26:26,920 --> 00:26:34,520 >> This one comment, this was a somewhat of a really nice agreement between the cities. 440 00:26:34,520 --> 00:26:36,800 It's not always been that way. 441 00:26:36,800 --> 00:26:42,680 If you'd asked me six months ago would this have happened, I would have said, maybe not. 442 00:26:42,680 --> 00:26:44,960 Anyway, the cities are getting along pretty well. 443 00:26:44,960 --> 00:26:52,400 I'm not saying anything I need to go into executive session for. 444 00:26:52,400 --> 00:26:58,600 >> All right, that's all I got. 445 00:26:58,600 --> 00:26:59,600 >> I had a question. 446 00:26:59,600 --> 00:27:06,400 >> So not directly related to this asset sale, but for TMPA and city of Denton, so as you 447 00:27:06,400 --> 00:27:13,160 said, TMPA will have $7 million more assets, or I guess the net $5 million, whatever that 448 00:27:13,160 --> 00:27:24,280 net total increase is, which they receive transmission cost of service revenue from. 449 00:27:24,280 --> 00:27:34,000 Does the TMPA T cost, does TMPA receive that and then kind of pay dividends out to the 450 00:27:34,000 --> 00:27:38,880 four cities, or does Denton get direct credit for some amount of T costs? 451 00:27:38,880 --> 00:27:40,720 >> No, so everything flows through TMPA. 452 00:27:40,720 --> 00:27:48,160 TMPA has a rate of return that's a little bit over 12%, just for your memory, our current 453 00:27:48,160 --> 00:27:53,600 rate of return is 6.21%, so certainly a little bit better percent. 454 00:27:53,600 --> 00:28:00,740 And then whatever net revenues after they deduct the, primarily the debt that's issued 455 00:28:00,740 --> 00:28:07,280 on transmission, but also some personnel costs, we get 21%, 21.3% of the remaining net revenues. 456 00:28:07,280 --> 00:28:13,240 And we get that on an annual basis, amounts to about $2 million a year in revenue that 457 00:28:13,240 --> 00:28:14,240 we get. 458 00:28:14,240 --> 00:28:15,240 >> Okay, thank you. 459 00:28:15,240 --> 00:28:16,240 >> Yeah. 460 00:28:16,240 --> 00:28:25,740 >> So does having access to this additional transmission help us stabilize our load management 461 00:28:25,740 --> 00:28:26,740 within DME? 462 00:28:26,740 --> 00:28:34,000 >> Yeah, so certainly the largest asset that comes through the city of Denton and the only 463 00:28:34,000 --> 00:28:40,040 one this size is a 345 KV line from Roanoke that comes through the, I think, the northwest 464 00:28:40,040 --> 00:28:42,120 side of town. 465 00:28:42,120 --> 00:28:46,960 So that is the only, or the largest line that we have, so certainly, yeah, I'm not gonna 466 00:28:46,960 --> 00:28:52,320 describe it as a lifeline, but certainly a very large asset for us that does provide 467 00:28:52,320 --> 00:28:55,080 a lot of power to the city of Denton. 468 00:28:55,080 --> 00:28:59,080 >> So we would not like TMPA to go away? 469 00:28:59,080 --> 00:29:01,000 >> Only if we get to own that 345 line. 470 00:29:01,000 --> 00:29:02,000 >> Okay. 471 00:29:02,000 --> 00:29:03,000 Thank you. 472 00:29:03,000 --> 00:29:04,000 Susan? 473 00:29:04,000 --> 00:29:05,000 >> No. 474 00:29:05,000 --> 00:29:06,000 >> Oh, okay. 475 00:29:06,000 --> 00:29:07,000 All right. 476 00:29:07,000 --> 00:29:11,240 >> No, I don't believe there's, is there action? 477 00:29:11,240 --> 00:29:16,720 >> Yeah, we need to get out of there. 478 00:29:16,720 --> 00:29:17,720 >> All right. 479 00:29:17,720 --> 00:29:21,360 >> I move we recommend adoption of this ordinance to city council. 480 00:29:21,360 --> 00:29:22,360 >> We have a motion. 481 00:29:22,360 --> 00:29:23,360 >> Aye. 482 00:29:23,360 --> 00:29:25,160 >> We have a second for Mr. Rayner. 483 00:29:25,160 --> 00:29:27,120 All those in favor, please say aye. 484 00:29:27,120 --> 00:29:28,120 >> Aye. 485 00:29:28,120 --> 00:29:30,160 >> Any opposed, sign the sign. 486 00:29:30,160 --> 00:29:32,160 Passes unanimously. 487 00:29:32,160 --> 00:29:34,440 Item 3C. 488 00:29:34,440 --> 00:29:43,480 This is a contract with Mountain Cascade of Texas for wastewater and water utilities, 489 00:29:43,480 --> 00:29:45,680 support of 35 and 1173. 490 00:29:45,680 --> 00:29:50,720 >> Good morning, Sean Messick with Capital Projects. 491 00:29:50,720 --> 00:29:56,600 So I have a construction contract for Milan Creek Grabby Sewer and Lift Station. 492 00:29:56,600 --> 00:30:06,000 All right, so the scope is water line, wastewater relocation and abandonment, new lift station 493 00:30:06,000 --> 00:30:07,680 and abandonment. 494 00:30:07,680 --> 00:30:11,400 This is in support of the TxDOT I-35 widening. 495 00:30:11,400 --> 00:30:15,480 It is partially TxDOT reimbursable. 496 00:30:15,480 --> 00:30:21,280 There's a small bit, a water line that has to be relocated and abandoned as well. 497 00:30:21,280 --> 00:30:29,000 All right, so this is an IFB under the pre-qualified list, Mountain Cascade and SJ Lewis were the 498 00:30:29,000 --> 00:30:31,320 two that bid on this. 499 00:30:31,320 --> 00:30:34,560 Low bid is 15 point, almost 15.3 million. 500 00:30:34,560 --> 00:30:37,880 So Mountain Cascade is the selectee. 501 00:30:37,880 --> 00:30:42,000 Design, so the design was completed in December. 502 00:30:42,000 --> 00:30:46,360 A lot of this has been delayed because of the easements acquiring those. 503 00:30:46,360 --> 00:30:52,320 Notice per seed will be quarter two of this year and construction completion quarter four 504 00:30:52,320 --> 00:30:55,800 of 26. 505 00:30:55,800 --> 00:31:02,000 So staff recommends approval to Mountain Cascade for 15.2 and some change with a contingency 506 00:31:02,000 --> 00:31:08,680 of 763,000, some change for an NTE of 16 million. 507 00:31:08,680 --> 00:31:14,760 Any questions? 508 00:31:14,760 --> 00:31:19,120 So does this, so a few questions. 509 00:31:19,120 --> 00:31:23,800 The map shows like Fort Worth Drive area, but this is all way up off 288, north of 288. 510 00:31:23,800 --> 00:31:26,640 Correct, this is from 288 up to Ganser Road, correct. 511 00:31:26,640 --> 00:31:32,000 That was not updated until after it already got approved in Legistar. 512 00:31:32,000 --> 00:31:36,680 Okay, and then all of the work on that 700 feet of abandonment and all that, all that 513 00:31:36,680 --> 00:31:38,640 is up north of 288? 514 00:31:38,640 --> 00:31:41,080 It's at the 77, most of it is at 77. 515 00:31:41,080 --> 00:31:44,680 We have a small portion that goes from 77 to 288, but everything is north of 77 up to 516 00:31:44,680 --> 00:31:45,680 Ganser Road. 517 00:31:45,680 --> 00:31:51,280 Okay, and this is the extension, we've approved other projects building the line along 77, 518 00:31:51,280 --> 00:31:52,280 I believe, right? 519 00:31:52,280 --> 00:31:53,280 Correct. 520 00:31:53,280 --> 00:31:54,920 To handle the future growth out there. 521 00:31:54,920 --> 00:31:59,600 Is the lift station included in TxDOT reimbursement or is this just in preparation for the lift 522 00:31:59,600 --> 00:32:01,040 station that we will put in? 523 00:32:01,040 --> 00:32:02,280 It's a portion. 524 00:32:02,280 --> 00:32:08,000 So we do have the TA lift station that is on the opposite side of 35 at 77, so we are 525 00:32:08,000 --> 00:32:09,000 putting a new one in. 526 00:32:09,000 --> 00:32:13,600 So again, so part of the reimbursement portion for this is we're still working with TxDOT 527 00:32:13,600 --> 00:32:16,840 on how much of the lift station is actually going to be reimbursed, but a good portion 528 00:32:16,840 --> 00:32:19,040 of that actually is going to be reimbursed. 529 00:32:19,040 --> 00:32:24,800 Okay, and in the meantime we're upsizing to substantially larger to support planned development 530 00:32:24,800 --> 00:32:25,800 up there. 531 00:32:25,800 --> 00:32:26,800 Yeah. 532 00:32:26,800 --> 00:32:27,800 Yeah. 533 00:32:27,800 --> 00:32:28,800 Thank you. 534 00:32:28,800 --> 00:32:29,800 Okay. 535 00:32:29,800 --> 00:32:30,800 Was that on? 536 00:32:30,800 --> 00:32:31,800 Okay. 537 00:32:31,800 --> 00:32:40,640 Well, and again, we'll entertain a motion for item three C. We have a motion for Mr. 538 00:32:40,640 --> 00:32:41,640 Taylor. 539 00:32:41,640 --> 00:32:42,640 Second. 540 00:32:42,640 --> 00:32:43,640 Okay. 541 00:32:43,640 --> 00:32:44,640 All those in favor, please say aye. 542 00:32:44,640 --> 00:32:45,640 Aye. 543 00:32:45,640 --> 00:32:46,640 Any opposed? 544 00:32:46,640 --> 00:32:47,640 Sign the same. 545 00:32:47,640 --> 00:32:48,640 That says unanimously. 546 00:32:48,640 --> 00:32:49,640 Item three D, PUB 25-052. 547 00:32:49,640 --> 00:32:50,640 What are you buying? 548 00:32:50,640 --> 00:32:51,640 Kirby Smith, buy board cooperative. 549 00:32:51,640 --> 00:32:52,640 Okay. 550 00:32:52,640 --> 00:32:53,640 Purchase, repairs, and rental of construction equipment. 551 00:32:53,640 --> 00:32:54,640 Good morning. 552 00:32:54,640 --> 00:32:57,640 Tom Grammer, director of facilities and fleet. 553 00:32:57,640 --> 00:33:11,960 I'm here to propose a cooperative contract with Kirby Smith for the construction equipment 554 00:33:11,960 --> 00:33:15,040 purchase, repair, and rental for Komatsu branded equipment. 555 00:33:15,040 --> 00:33:22,800 City and fleet services department purchases, repairs, and maintains a various type of equipment, 556 00:33:22,800 --> 00:33:25,800 and it's used by several departments within the city. 557 00:33:25,800 --> 00:33:32,680 This equipment is used for moving bulk materials, street grading, and excavation of job sites. 558 00:33:32,680 --> 00:33:36,240 The proposed contract allows us to purchase and repair this equipment and utilize the 559 00:33:36,240 --> 00:33:43,220 outside contract resources for the specialty diagnostics and repair of this specialty equipment. 560 00:33:43,220 --> 00:33:46,920 All these vehicle acquisitions will be proposed to the city's budgeting process, and we are 561 00:33:46,920 --> 00:33:51,280 not obligated to spend the full NTE on this contract. 562 00:33:51,280 --> 00:33:56,800 Here our contract estimates broke down by fiscal year of anticipated needs plus acquisitions 563 00:33:56,800 --> 00:34:00,960 by department, and then the fund that's supporting these acquisitions. 564 00:34:00,960 --> 00:34:07,760 An asset acquisition example is this 2025 Komatsu articulating dump truck that's utilized 565 00:34:07,760 --> 00:34:09,000 by Solid Waste. 566 00:34:09,000 --> 00:34:17,000 You can see that just one addition would be over a million dollars. 567 00:34:17,000 --> 00:34:20,000 Staff recommends approval of a one-year with four-year additional one-year extensions, 568 00:34:20,000 --> 00:34:29,600 and a total of five years not to exceed the amount with Kirby Smith machinery for $7,749,000. 569 00:34:29,600 --> 00:34:34,260 Any questions? 570 00:34:34,260 --> 00:34:36,400 I'm curious. 571 00:34:36,400 --> 00:34:46,300 So the piece of equipment costs $1.3 million, ballpark, and I thought cars were expensive. 572 00:34:46,300 --> 00:34:50,840 So the total of this contract includes the service to maintain this during the five-year 573 00:34:50,840 --> 00:34:51,840 period? 574 00:34:51,840 --> 00:34:52,840 Yes, sir. 575 00:34:52,840 --> 00:34:53,840 Okay. 576 00:34:53,840 --> 00:35:02,560 So it's costing us, I guess, a million and a quarter a year to operate this thing? 577 00:35:02,560 --> 00:35:06,840 This is for all pieces of Komatsu branded equipment within the city, so this is just 578 00:35:06,840 --> 00:35:07,840 an example of one purchase. 579 00:35:07,840 --> 00:35:08,840 Okay, I'm sorry. 580 00:35:08,840 --> 00:35:11,480 This is the addition, and then there's all the other service for all the rolling stock 581 00:35:11,480 --> 00:35:12,480 you currently have. 582 00:35:12,480 --> 00:35:13,480 Correct. 583 00:35:13,480 --> 00:35:14,480 Okay. 584 00:35:14,480 --> 00:35:17,640 Yes, and we use that example to highlight the cost of the contract. 585 00:35:17,640 --> 00:35:20,440 This year there was proposed two of these replacements that are needed. 586 00:35:20,440 --> 00:35:23,280 Just in that purchase alone would be $2.5 million. 587 00:35:23,280 --> 00:35:28,440 So this is an example of why this contract is a little heavy towards the acquisitions 588 00:35:28,440 --> 00:35:29,440 and replacements. 589 00:35:29,440 --> 00:35:30,440 Thank you. 590 00:35:30,440 --> 00:35:34,240 Cost of the machinery. 591 00:35:34,240 --> 00:35:37,200 Question. 592 00:35:37,200 --> 00:35:42,320 With this equipment, when you're talking about servicing, will it be serviced at the 593 00:35:42,320 --> 00:35:47,260 new expanded machinery shop that we have at the landfill? 594 00:35:47,260 --> 00:35:50,040 Is that where it will be serviced and such? 595 00:35:50,040 --> 00:35:51,040 Yeah, absolutely. 596 00:35:51,040 --> 00:35:53,040 Depending on the repair type, there's three options. 597 00:35:53,040 --> 00:35:55,860 The unit can be brought to the expanded fleet services shop. 598 00:35:55,860 --> 00:35:59,480 It can be worked on in the field, or it can be transported to the manufacturer. 599 00:35:59,480 --> 00:36:02,560 Depending on the degree of the repair needed will determine where the repair will happen. 600 00:36:02,560 --> 00:36:07,440 I know we had quite a bit of conversation as to who would go there machinery-wise and 601 00:36:07,440 --> 00:36:08,440 how often. 602 00:36:08,440 --> 00:36:14,680 I know we'd asked and how quickly it could be done, but that was the forethought of this 603 00:36:14,680 --> 00:36:15,680 by having that expansion? 604 00:36:15,680 --> 00:36:16,680 Yes, sir. 605 00:36:16,680 --> 00:36:17,680 Thank you. 606 00:36:17,680 --> 00:36:28,200 There doesn't appear to be any more questions, and we'll entertain a motion for Item 3D. 607 00:36:28,200 --> 00:36:31,520 Do we have a motion? 608 00:36:31,520 --> 00:36:32,520 Second. 609 00:36:32,520 --> 00:36:33,520 We have a second. 610 00:36:33,520 --> 00:36:36,800 Did you get that, Erin and Thomas? 611 00:36:36,800 --> 00:36:37,800 Okay. 612 00:36:37,800 --> 00:36:39,320 All those in favor, please say aye. 613 00:36:39,320 --> 00:36:40,320 Aye. 614 00:36:40,320 --> 00:36:41,320 Any opposed? 615 00:36:41,320 --> 00:36:42,320 Sign the same. 616 00:36:42,320 --> 00:36:43,320 All right. 617 00:36:43,320 --> 00:36:44,320 Management reports. 618 00:36:44,320 --> 00:36:45,320 Thank you. 619 00:36:45,320 --> 00:36:46,320 Thank you. 620 00:36:46,320 --> 00:36:50,160 Mr. Chair, members of the board, we have a few items here for you. 621 00:36:50,160 --> 00:36:52,040 The first one is a memo. 622 00:36:52,040 --> 00:36:57,680 I think Mr. Rabak had a question about a change order sent for us here, so if you have any 623 00:36:57,680 --> 00:37:02,040 follow-up questions on that, he'd be happy to get up here and talk through that. 624 00:37:02,040 --> 00:37:03,720 Mr. Rabak? 625 00:37:03,720 --> 00:37:07,840 I was just curious if there was a little bit more explanation than just dollar amount change 626 00:37:07,840 --> 00:37:08,840 order. 627 00:37:08,840 --> 00:37:09,840 That's all. 628 00:37:09,840 --> 00:37:18,560 Good morning, Scott Fettig, Senior Project Manager with Capital Projects. 629 00:37:18,560 --> 00:37:19,560 Sure. 630 00:37:19,560 --> 00:37:26,440 It was during construction on some of the streets listed, like Sycamore and mostly Austin 631 00:37:26,440 --> 00:37:32,800 and Walnut, we found old sewer lines that were shallow or not identified during design, 632 00:37:32,800 --> 00:37:37,920 and it was determined that those need to be replaced, definitely aging infrastructure. 633 00:37:37,920 --> 00:37:40,080 We didn't want to leave on new roadways. 634 00:37:40,080 --> 00:37:43,120 So you found changed conditions during construction? 635 00:37:43,120 --> 00:37:44,120 Sure. 636 00:37:44,120 --> 00:37:45,120 Correct. 637 00:37:45,120 --> 00:37:48,000 Water lines that we weren't expecting to be there, that were old, need to be replaced, 638 00:37:48,000 --> 00:37:49,000 things like that. 639 00:37:49,000 --> 00:37:53,000 So it was additional infrastructure that we found during construction that needed to be 640 00:37:53,000 --> 00:37:56,000 upgraded and improved. 641 00:37:56,000 --> 00:37:59,520 Did I miss something in the line item and the agenda? 642 00:37:59,520 --> 00:38:04,640 Because it appeared that there was no description of what you've just told us about. 643 00:38:04,640 --> 00:38:08,840 Is there some way to add a brief description of the reason for the change order? 644 00:38:08,840 --> 00:38:09,840 Sure. 645 00:38:09,840 --> 00:38:13,400 Yeah, we can definitely go in more descriptive of a little more detail of what that is. 646 00:38:13,400 --> 00:38:17,440 I think the general idea was not to confuse or overwhelm with information, but definitely 647 00:38:17,440 --> 00:38:19,680 can get a little more detailed with, you know, of why. 648 00:38:19,680 --> 00:38:24,120 I'm not asking for as much detail as we just got in the last presentation, but just some 649 00:38:24,120 --> 00:38:30,080 brief overview of, you know, we need to spend an additional $3.21 million. 650 00:38:30,080 --> 00:38:31,520 There must be a reason for that. 651 00:38:31,520 --> 00:38:32,520 Right. 652 00:38:32,520 --> 00:38:33,520 Found changed conditions. 653 00:38:33,520 --> 00:38:34,520 We had more work to do. 654 00:38:34,520 --> 00:38:35,520 Just some idea. 655 00:38:35,520 --> 00:38:36,520 Sure. 656 00:38:36,520 --> 00:38:37,520 I'll be helpful for the future. 657 00:38:37,520 --> 00:38:38,520 Yep. 658 00:38:38,520 --> 00:38:39,520 Absolutely. 659 00:38:39,520 --> 00:38:40,520 Yep. 660 00:38:40,520 --> 00:38:41,520 Mr. Chair. 661 00:38:41,520 --> 00:38:42,520 So I have a question. 662 00:38:42,520 --> 00:38:43,520 Sure. 663 00:38:43,520 --> 00:38:47,000 When you run into situations like that with the old sewer lines, water lines, you replacing 664 00:38:47,000 --> 00:38:51,800 them, do you keep them in the same level they are or do you share with me how you work 665 00:38:51,800 --> 00:38:52,800 on that? 666 00:38:52,800 --> 00:38:53,800 Sure. 667 00:38:53,800 --> 00:38:54,800 When you run into these old things? 668 00:38:54,800 --> 00:38:55,800 Sure. 669 00:38:55,800 --> 00:38:56,800 Good question. 670 00:38:56,800 --> 00:38:58,840 So specifically, like on Myrtle, it was, like you said, it was, we found it to be very shallow. 671 00:38:58,840 --> 00:39:03,400 I'm going to be, you know, within where we're treating the subgrade that are underneath. 672 00:39:03,400 --> 00:39:08,560 So, with that, yes, we lower them down to get away from any future work that might take 673 00:39:08,560 --> 00:39:12,640 place or within the subgrade, get them out, you know, get them low enough to be out of 674 00:39:12,640 --> 00:39:15,400 the way for any kind of road work or anything like that in the future. 675 00:39:15,400 --> 00:39:16,960 And water lines the same way? 676 00:39:16,960 --> 00:39:17,960 Same way. 677 00:39:17,960 --> 00:39:18,960 Yes. 678 00:39:18,960 --> 00:39:19,960 Size and such. 679 00:39:19,960 --> 00:39:20,960 Yep. 680 00:39:20,960 --> 00:39:22,760 And so that's the reason for the extra cost as well because you're lowering, I mean, obviously, 681 00:39:22,760 --> 00:39:28,160 there's expense for making it more modern as to the rest of your new items. 682 00:39:28,160 --> 00:39:29,160 Sure. 683 00:39:29,160 --> 00:39:30,160 Okay. 684 00:39:30,160 --> 00:39:31,160 Yes, sir. 685 00:39:31,160 --> 00:39:32,160 Thank you. 686 00:39:32,160 --> 00:39:33,160 Yep. 687 00:39:33,160 --> 00:39:34,160 Thank you. 688 00:39:34,160 --> 00:39:41,520 So, on the future, again, item, no changes to the previously made to you, and then on 689 00:39:41,520 --> 00:39:46,080 the new business action item, we did have one item that we added from the last meeting, 690 00:39:46,080 --> 00:39:51,560 which was a request for a contamination map on the information that Solid Waste presented 691 00:39:51,560 --> 00:39:52,560 previously. 692 00:39:52,560 --> 00:39:54,040 So, we have that. 693 00:39:54,040 --> 00:39:56,480 We'll get that to you for the next meeting. 694 00:39:56,480 --> 00:40:00,800 But with that, happy to answer any questions or if there's anything else you'd like to 695 00:40:00,800 --> 00:40:01,800 include. 696 00:40:01,800 --> 00:40:04,800 Ms. Parker. 697 00:40:04,800 --> 00:40:10,800 Mr. Chair, I will be gone all of May and I will submit my absence request. 698 00:40:10,800 --> 00:40:11,800 Okay. 699 00:40:11,800 --> 00:40:13,400 Be back in June, though. 700 00:40:13,400 --> 00:40:14,400 Granted. 701 00:40:14,400 --> 00:40:17,400 Right in front, right in time for budgets. 702 00:40:17,400 --> 00:40:18,400 All right. 703 00:40:18,400 --> 00:40:23,680 Well, it's good you'll be back in June because I'm going to be gone. 704 00:40:23,680 --> 00:40:24,680 All right. 705 00:40:24,680 --> 00:40:25,680 Okay. 706 00:40:25,680 --> 00:40:26,680 All hands on deck. 707 00:40:26,680 --> 00:40:27,680 Okay. 708 00:40:27,680 --> 00:40:28,680 Good man. 709 00:40:28,680 --> 00:40:29,680 All right. 710 00:40:29,680 --> 00:40:31,920 I believe that's all we have. 711 00:40:31,920 --> 00:40:32,920 No work session? 712 00:40:32,920 --> 00:40:33,920 Huh? 713 00:40:33,920 --> 00:40:34,920 I move we adjourn. 714 00:40:34,920 --> 00:40:35,920 Okay. 715 00:40:35,920 --> 00:40:36,920 We have a motion to adjourn. 716 00:40:36,920 --> 00:40:37,920 Give a second. 717 00:40:37,920 --> 00:40:39,920 All those in favor, please say aye. 718 00:40:39,920 --> 00:40:40,920 Aye. 719 00:40:40,920 --> 00:40:41,360 We are adjourned.