[00:00:07] MORNING. WELCOME TO THE REGULARLY SCHEDULED MEETING OF THE PUBLIC UTILITIES BOARD ON MONDAY, APRIL 27TH. OPENING OUR REGULAR MEETING. ARE THERE ANY PRESENTATIONS FROM THE PUBLIC? [2. CONSENT AGENDA] VERY WELL. OUR NEXT ITEM OF BUSINESS IS THE CONSENT AGENDA. DOES ANY MEMBER WISH TO REMOVE AN ITEM FROM THE CONSENT AGENDA FOR INDIVIDUAL CONSIDERATION? >> IS MY PHONE. WHY? OKAY. >> FEW TECHNICAL DIFFICULTIES THIS MORNING. ALRIGHTY. SO. THERE WERE NO PRESENTATIONS. THE CONSENT AGENDA. DOES ANY MEMBER WISH TO PULL AN ITEM FOR INDIVIDUAL CONSIDERATION? >> I'LL MOVE APPROVAL. >> I SECOND. >> ALL THOSE IN FAVOR. AYE. ALL RIGHT. MOVING ON TO ITEMS FOR INDIVIDUAL CONSIDERATION. WOULD LIKE TO CONSIDER APPROVAL OF [A. PUB26-070 Consider approval of the April 13, 2026 minutes.] THE MINUTES FROM THE MEETING ON MARCH 9TH. >> EITHER APRIL 13TH. >> OH, THE ONE SITTING IN FRONT OF ME SAYS MARCH THE 9TH. YOU'RE CORRECT. THANK YOU. I DON'T NEED THAT FOR. >> APPROVAL OF MINUTES. >> YES, I'M LOOKING FOR A MOTION TO APPROVE THE MINUTES. HAVE A MOTION. DO WE HAVE A SECOND? SECOND. ALL THOSE IN FAVOR SAY AYE, I ALL RIGHT. MOTIONS APPROVED UNANIMOUSLY. OUR FIRST ITEM FOR INDIVIDUAL [B. PUB26-030 Consider recommending adoption of an ordinance the City of Denton, Texas directing the publication of Notice of Intention to issue $82,000,000 in principal amount of Certificates of Obligation of the City of Denton for General Government and Solid Waste projects; and providing an effective date.] [C. PUB26-031 Consider recommending adoption of an ordinance of the City of Denton, Texas directing the publication of Notice of Intention to issue $243,000,000 in principal amount of Certificates of Obligation of the City of Denton for Waterworks and Wastewater System and Electric System projects; and providing an effective date.] CONSIDERATION IS RECOMMENDATION OF ADOPTION OF AN ORDINANCE. CITY OF TEXAS. DENTON DIRECTING PUBLICATION NOTICE OF INTENTION TO ISSUE $82 MILLION IN PRINCIPAL AMOUNT CERTIFICATES OF OBLIGATION FOR THE CITY OF DENTON, FOR GENERAL GOVERNMENT AND SOLID WASTE PROJECTS. >> AND CHAIR, IF YOU WOULD ALSO CALL THE NEXT ITEM. THERE'S JUST ONE PRESENTATION FOR BOTH. BOTH ITEMS. >> YES, SIR. I DID SEE THAT. I WAS A LITTLE CONFUSED ABOUT THAT. SO WOULD THE MEMBERS WANT TO SEE BOTH PRESENTATIONS OR BOTH SECTIONS AT ONCE, OR DO YOU WANT TO SEE THEM INDIVIDUALLY? >> I BELIEVE WE NEED TO CALL THEM TOGETHER. >> DO YOU WANT TO SEE THEM TOGETHER? VERY WELL. PLEASE PROCEED AND PLEASE MOVE THE MICROPHONE INTO A BETTER SPOT. >> ITEM C. >> SO ITEM B AND ITEM C TOGETHER. YES, YES. >> SO CALL ITEM C SO YOU'VE CALLED ITEM B. SO NOW YOU JUST NEED TO READ ITEM C. >> OH THANK YOU. I DID NOT READ ITEM C. MY APOLOGIES. MY FIRST DAY ON THE JOB. ITEM C IS CONSIDERED RECOMMENDING ADOPTION OF AN ORDINANCE. CITY OF DENTON, DIRECTING THE PUBLICATION NOTICE OF INTENTION TO ISSUE $243 MILLION IN PRINCIPAL AMOUNT OF CERTIFICATES OF OBLIGATION OF THE CITY OF DENTON FOR WATERWORKS AND WASTEWATER SYSTEM AND ELECTRICAL SYSTEM PROJECTS, AND PROVIDING AN EFFECTIVE DATE. I'M SORRY SIR. PLEASE PROCEED. >> MISTER CHAIR. >> YES. >> ARE WE GOING TO HAVE A SINGLE VOTE FOR BOTH OF THESE AT THE SAME TIME? WE'LL DO THESE INDIVIDUALLY. >> ITEMS FOR INDIVIDUAL CONSIDERATION. I ASSUME WE HAVE TO DO THEM INDIVIDUALLY. YEAH. THANK YOU SIR. I'M SORRY. PLEASE PROCEED. >> YEAH. CHAIR MEMBERS OF THE P B MATT HAMILTON, CHIEF FINANCIAL OFFICER HERE THIS MORNING, TO PRESENT THE NOTICE OF INTENT FOR THE PUBLIC UTILITIES. SO JUST TO PROVIDE A LITTLE BIT OF BACKGROUND, THE PROJECTS AND AMOUNTS THAT WE'RE BRINGING FORWARD WERE DEVELOPED IN THE BUDGET PROCESS LAST FISCAL YEAR AND INCLUDED IN THE BUDGET THAT WAS ADOPTED IN SEPTEMBER FOR THE CURRENT FISCAL YEAR IN OCTOBER, STAFF BROUGHT FORWARD A REIMBURSEMENT ORDINANCE TO THE PUB THAT WAS ADOPTED BY THE CITY COUNCIL. AND WHAT THE REIMBURSEMENT ORDINANCE DOES IS IT ALLOWS THE CITY TO START THE PROJECTS PRIOR TO THE PLANNED BOND SALE LATER IN THE YEAR. SO AS WE APPROACH THE PLANNED BOND SALE, ONE OF THE STEPS IS TO PUBLISH WHAT'S CALLED A NOTICE OF INTENT IN THE LOCAL NEWSPAPER. AND SO STATE LAW REQUIRES THE PUBLICATION OF THIS NOTICE OF INTENT IN ORDER TO ISSUE CERTIFICATES OF OBLIGATION. THE NOTICE MUST BE PUBLISHED IN A [00:05:07] NEWSPAPER OF GENERAL CIRCULATION WITHIN THE CITY, AND WE CURRENTLY USE THE DENTON RECORD CHRONICLE AS WELL AS ON THE CITY'S WEBSITE. PUBLICATION MUST BE ONCE, ONCE A WEEK FOR TWO CONSECUTIVE WEEKS, AND THEN PASSAGE OF THE BOND ORDINANCE AUTHORIZING THE SALE OF THE CEOS MUST BE AT LEAST 46 DAYS AFTER THE DATE OF THE FIRST PUBLICATION. SO TODAY, WHAT WE'RE ASKING IS A RECOMMENDATION FOR THE PUBLICATION OF THE NOTICE. STAFF WILL COME BACK AT THE JUNE MEETING WITH THE BOND ORDINANCE, WHICH IS THE AUTHORIZATION TO ACTUALLY SELL THE BONDS AT THAT AT THAT TIME. SO JUST TO RECAP, WHAT'S INCLUDED IN THE NOTICE OF NOTICE OF INTENT. AND SOMETHING THAT I'LL POINT OUT HERE IS THAT FROM THE TIME THAT THE BUDGET IS ADOPTED AND THE REIMBURSEMENT ORDINANCE IS ADOPTED, STAFF SPENDS QUITE A BIT OF TIME WORKING THROUGH THE PROJECTS AND DETERMINING, YOU KNOW, AT THIS POINT, WHAT IS READY TO MOVE FORWARD, REEVALUATING CASH FLOWS. AND SO WHAT YOU'LL SEE IS THE NOTICE OF INTENT MAY DIFFER A LITTLE BIT FROM THE REIMBURSEMENT ORDINANCE. AND TYPICALLY WHAT HAPPENS IS THAT AMOUNT IS REDUCED IN THE NOTICE OF INTENT SIMPLY BECAUSE SOME PROJECT SCHEDULES GET PUSHED OUT, OR WE HAVE SOME FUNDING THAT'S AVAILABLE FROM A PROJECT THAT WAS JUST COMPLETED THAT WE CAN APPLY TO, TO THE PROJECT IN THE CURRENT YEAR, WHICH REDUCES OUR NEED. SO JUST TAKING A LOOK AT THE SOLID WASTE PROJECTS, THE REIMBURSEMENT ORDINANCE AND BUDGET THAT WAS ADOPTED WAS 18.2 MILLION. THE NOTICE OF INTENT IS 17.4 MILLION, WHICH INCLUDES THE ORGANICS PROGRAM INFRASTRUCTURE, AS WELL AS VEHICLE REPLACEMENTS AND ADDITIONS. I DO JUST WANT TO NOTE BEFORE I MOVE FORWARD, THE NOTICE OF INTENT REALLY SETS THE CEILING. AND SO THIS IS THE MAXIMUM THAT THE CITY IS ABLE TO ISSUE. NOW, WHEN THE BOND ORDINANCE COMES FORWARD TO THE PB IN JUNE AND THEN ULTIMATELY TO COUNCIL IN JULY, THE AMOUNTS MAY EVEN BE FURTHER REDUCED AS STAFF CONTINUES TO EVALUATE THESE PROJECTS AND AND THE CASH NEEDS ASSOCIATED WITH THEM. YES. >> I AM CURIOUS. THE LINE ITEM ON VEHICLE REPLACEMENTS. IS SLIGHTLY LESS THAN THE ORIGINAL REIMBURSEMENT ORDINANCE. >> RIGHT? FROM FROM. >> YES. SO THE THE DEPARTMENT DID TAKE A LOOK AT THEIR VEHICLE REPLACEMENTS AND WERE ABLE TO CASH FUND SOME OF THESE VEHICLES THAT THEY HAD ORIGINALLY INTENDED TO DEBT FUND. >> THANK YOU. >> SO TAKING A LOOK AT WATER, 55.6 MILLION WAS INCLUDED IN THE ORIGINAL REIMBURSEMENT ORDINANCE AND 44.9 MILLION IN THE NOTICE OF INTENT. FOR WASTEWATER, 141 MILLION INCLUDED IN THE REIMBURSEMENT ORDINANCE AND 113 INCLUDED IN THE NOTICE OF INTENT. AND FOR ELECTRIC NO CHANGE, 58 MILLION INCLUDED IN THE REIMBURSEMENT ORDINANCE AND 58 MILLION INCLUDED IN THE NOTICE OF INTENT. SO THE TOTAL. >> COULD YOU GO BACK A SLIDE? >> YES. >> I NOTICED THE DISTRIBUTION TRANSFORMERS WENT UP PRETTY SIGNIFICANTLY. IS THAT DUE TO PRICE INCREASES? >> YEAH, I BELIEVE IT'S JUST DUE TO INCREASED DEMAND DUE TO SOME DEVELOPMENT. BUT. I'LL ASK TONY TO APOLOGIZE. >> CAN YOU REPEAT THE QUESTION AGAIN? I WAS. >> NO NO PROBLEM. DISTRIBUTION TRANSFORMERS. THAT PRICE IS THE AMOUNT THEY DESIRE FOR THIS BOND HAS GONE UP SIGNIFICANTLY. AND I WAS WONDERING WHAT THAT MIGHT BE ATTRIBUTED TO. >> YEAH, I THINK I THINK A COUPLE OF THINGS HAVE HAPPENED. ONE, WE'VE WE'VE HAD FAR MORE DELIVERIES THAN WE HAD ORIGINALLY ANTICIPATED. I THINK PART OF THAT HAS TO DO WITH SOME OF THE SOFTENING ON THE SUPPLY CHAIN ISSUES THAT THAT WE HAD PREVIOUSLY. YOU KNOW, WE'VE ALSO LOOKED AT A COUPLE OF DIFFERENT VENDORS AS WELL. I THINK THAT HAS THAT HAVE ACTUALLY DELIVERED TRANSFORMERS FASTER THAN WE HAD ANTICIPATED. AND SO THAT'S REALLY THE ANCHORS, BUT IT'S STILL THE SAME AMOUNT OF TRANSFORMERS THAT WE'VE THAT WE'VE HAD ON ORDER. WE'VE JUST GOTTEN THEM A LOT FASTER. SO WE NEED, WE NEED THOSE DOLLARS TO BE ABLE TO PAY FOR THOSE. >> OF COURSE, THAT WAS MY QUESTION. THANK YOU. >> YES, SIR. >> SO IN TOTAL. 243 MILLION, WHICH INCLUDES THE TOTALS FOR SOLID WASTE WATER, WASTEWATER [00:10:03] AND ELECTRIC, AS WELL AS TWO ADDITIONAL COMPONENTS. ONE IS CAPITALIZED INTEREST, WHICH WE ARE LOOKING AT POTENTIALLY FOR THE WATER AND WASTEWATER PLANTS. THIS IS REALLY A PLACEHOLDER AS WE DETERMINE THE BEST FINANCING METHOD. AND SO THE CAPITALIZED INTEREST, ESSENTIALLY WHAT IT WOULD DO IS RELIEVE SOME PRESSURE ON RATES IN THE SHORT TERM. AND SO WHAT WE'RE LOOKING AT IS, YOU KNOW, WILL THAT BE TO TO THE BEST BENEFIT OF THE CITY OR NOT TO MOVE FORWARD WITH THE CAPITALIZED INTEREST AND JUST PROCEED WITH A, A REGULAR CO SALE? SO WE'RE STILL EVALUATING THAT IT IT MAY BE LIKELY THAT THAT DROPS OFF BY THE TIME THAT WE GET TO THE BOND ORDINANCE. AND THEN ADDITIONALLY, 2.6 MILLION IS INCLUDED JUST FOR ISSUANCE COST AND PRICING FLEXIBILITY. SO WHAT THIS IS REALLY HERE FOR IS, YOU KNOW, DEPENDING ON WHAT THE MARKET LOOKS LIKE TWO, THREE MONTHS FROM NOW WHEN WE ACTUALLY GO TO ISSUE BONDS, THIS JUST GIVES US THE FLEXIBILITY TO ADJUST TO THAT MARKET PRICING. >> AND JUST GIVE ME A QUICK SECOND, MATT, MISTER CHAIR AND PB, IF WE'RE GOING TO GO BACK TO MANAGING YOUR MIX AS NORMAL. AND SO IF YOU DO INTEND TO SPEAK, IF YOU COULD MAKE SURE YOUR MIC IS GREEN. SO I JUST WANT TO CLARIFY THAT. SORRY, MATT. GO AHEAD. >> OKAY. >> THANKS. >> THANK YOU. >> SO LOOKING AT NEXT STEPS ON MAY 5TH, COUNCIL WILL CONSIDER THE APPROVAL OF THE NOI ORDINANCES. JUNE 22ND STAFF WILL COME BACK TO THE PUB FOR YOUR CONSIDERATION OF THE BOND ORDINANCE AUTHORIZING THE SALE OF THE CERTIFICATES OF OBLIGATION ON JULY 14TH. STAFF WILL BRING FORWARD THOSE ORDINANCE TO COUNCIL FOR THEIR AUTHORIZATION OF THE SALE OF GENERAL OBLIGATION AND CERTIFICATES OF OBLIGATION BONDS. JULY 22ND IS OUR PRELIMINARY DATE OF THE SALE, AND AUGUST 20TH IS THE PRELIMINARY DATE WHEN WE WOULD CLOSE AND RECEIVE THE PROCEEDS OF THAT SALE. AND I'LL STAND FOR ANY QUESTIONS. YEAH. >> YES. THE ITEMS THAT WERE ASKED TO RISK MAY I ASSUME THAT BY THE TIME YOU MOVE TO NOTICE OF INTENT, THOSE WILL BE FINALIZED. >> I'M SORRY. CAN YOU. >> REPEAT THOSE ITEMS THAT WERE THE CAPITALIZED INTEREST ON THE OTHER ITEM THAT WERE HAD THE ASTERISKS ON THEM, INSURANCE COST, PRICING FLEXIBILITY. CAN I ASSUME THOSE WILL BE FULLY UNDERSTOOD AND FIXED BY THE TIME WE GO TO NOTICE OF ORDINANCE? >> YES. SO THE CAPITALIZED INTEREST WE'RE INCLUDING JUST TO GIVE US THAT OPTIONALITY AND FLEXIBILITY. YOU KNOW, OVER THE NEXT TWO MONTHS AS WE DETERMINE WHETHER OR NOT IT MAKES FINANCIAL SENSE TO MOVE FORWARD. BUT YES, AS THE WHEN THE BOND ORDINANCES COME FORWARD TO PB IN JUNE, THAT WILL BE DETERMINED. >> VERY GOOD. THANK YOU. >> MR. CHAIR. AND THE SAME SLIDE. THANK YOU. ON THE ISSUANCE COSTS. SO THAT'S MORE OR LESS IN CASE MARKET GETS WACKY OR WHATEVER. THAT'S WHAT THAT COVERAGE. IF IT GOES BEYOND THAT, WHAT IS THE PROCEDURE THAT WE FOLLOW. >> YEAH WE WE HAVEN'T EXCEEDED IT TO MY KNOWLEDGE PREVIOUSLY. I MEAN, THERE HASN'T BEEN THAT BIG OF A SHIFT IN THE MARKET. WE FEEL COMFORTABLE THAT THE 2.66 MILLION WOULD COVER, YOU KNOW, ANY MARKET VOLATILITY. BUT. IF IT WERE TO I MEAN, THAT'S SOMETHING THAT WE WOULD HAVE TO EVALUATE AND POTENTIALLY BRING BACK. >> COME BACK TO US. OKAY. THANK YOU. THANK YOU, MR. CHAIRMAN. YEAH. >> ANY OTHER QUESTIONS? WELL VERY GOOD. I WOULD LIKE TO SEE IF THERE IS A MOTION TO PROCEED WITH ITEM B ON OUR AGENDA TODAY. >> I'LL MOVE APPROVAL 82 MILLION. >> IS THERE A SECOND? >> SECOND. >> ALL THOSE IN FAVOR, PLEASE SAY AYE. AYE. MOVING FORWARD WITH ITEM C ON OUR AGENDA, LOOK FOR A MOTION TO APPROVE. >> I'LL MOVE APPROVAL OF ITEM C SECOND. >> SECOND. >> IS THERE A SECOND? >> SECOND. >> OH SORRY. THANK YOU. ALL THOSE IN FAVOR, PLEASE SAY AYE. VERY GOOD. MOVING ON TO [D. PUB26-069 Management Reports 1. PUB26-041 Inquiry 2. Future Agenda Items 3. New Business Action Items] MANAGEMENT REPORTS. >> MR. CHAIR. MEMBERS OF THE PB. SO WE HAVE A FEW ITEMS FOR YOU THIS MORNING. SO WE HAVE A MEMO THAT THE WATER DEPARTMENT PROVIDED AFTER THEIR PRESENTATION AT THE LAST MEETING ON AM I KYLE IS HERE. ANY OTHER STAFF? IF YOU HAVE ANY FURTHER QUESTIONS OR ANY QUESTIONS ON THAT MEMO. OKAY. >> WELL, SINCE THIS WAS MEMBER [00:15:01] TAYLOR'S ITEM, I DON'T KNOW IF ANY OF US CAN SPEAK FOR HIM IF THERE ARE ANY QUESTIONS ON THAT POINT. SO PLEASE PROCEED. >> AND HE DIDN'T SUBMIT ANY QUESTIONS TO ME IN ADVANCE. SO THE NEXT ITEM IS ON FUTURE AGENDA ITEMS. AGAIN, BUDGET BUDGET BUDGET. RIGHT. I KEEP SAYING THAT EVERY MEETING, I DO WANT THE BOARD TO KNOW THAT AS OF TODAY, WE HAVE NO ITEMS ON ON Q FOR MAY 4TH. AND SO WE ARE GOING TO ISSUE A NOTICE OF CANCELLATION FOR THE MAY 4TH MEETING. SO I WANTED TO KIND OF GIVE YOU THAT THAT NOTICE IN ADVANCE. >> I WON'T BE ABSENT THEN. OH. >> THERE YOU GO. THERE YOU GO. AND AND THEN THE NEXT ITEM IS NEW BUSINESS ACTION ITEMS. WE DO HAVE, YOU KNOW, JUST SOME ONGOING ITEMS THAT WE HAVE ON HERE THAT WE'LL BE BRINGING BACK TO YOU IN SHORT ORDER. AND THEN THE FINAL ITEM THAT I HAVE, I DO WANT TO RECOGNIZE GINA REDFERN THERE IN THE WHITE. IT WILL BE REPLACING CASSEY BLACKBURN AS OUR ADMIN MANAGER, AND SHE'LL BE THE ADMIN LIAISON FOR FOR THE BOARD. AND SO YOU'LL BE GETTING EMAILS FROM HER AND YOU'LL BE INITIALLY CONTACTING HER WHEN YOU WHEN YOU'RE ABSENT AND HAVE OTHER THINGS THAT COME UP. SO AGAIN, WE'RE REALLY EXCITED TO HAVE GINA. MONICA SALCIDO IS ALSO ONE OF OUR ADMINS AND YOU'LL SEE HER AS WELL FROM TIME TO TIME HERE ON THE BOARD. AND AS YOU GO, AS YOU KNOW, YOU KNOW, CASSEY WAS PROMOTED TO A DIFFERENT POSITION. AND SO SHE'S NOW HANDED THE REINS OFF TO THE GINA. WE'RE EXCITED TO HAVE HER. SO, SO WITH THAT, IF THERE'S ANY OTHER QUESTIONS THAT YOU HAVE, I KNOW WE HAVE A CONCLUDING ITEM LATER, BUT. YES, SIR. >> WELL, WE ALSO HAVE A PRESENTATION. >> YES, SIR. >> I WOULD LIKE TO HAVE THE PRESENTATION BEFORE THE CONCLUDING ITEM TODAY, BUT I HAVE A REQUEST OF OUR NEW LIAISON. WOULD YOU BE KIND ENOUGH TO SEND US ALL AN EMAIL? JUST SAYING HELLO. AND OUR MEETING ON MAY THE 4TH IS CANCELED. THAT WAY WE'LL HAVE YOUR CONTACT INFORMATION. VERY GOOD. ALL RIGHT. WELL, I'M GOING TO PASS THE CONCLUDING ITEMS AND MOVE ON TO THE WORK [A. PUB26-071 Receive a report and hold a discussion regarding the quarterly project update from the Water Utilities Planning and Engineering division.] SESSION AND THEN GO BACK TO THAT. SO LOOKING FORWARD TO TODAY'S PRESENTATION. >> SO GOOD MORNING. I'M KYLE PEDIGO, PLANNING AND ENGINEERING DIVISION MANAGER FOR WATER UTILITIES. I'M HERE TODAY WITH ONE OF OUR PROJECT MANAGERS, KATIE KOCH, TO PRESENT UPDATES ON OUR ONGOING PROJECTS. THE FOCUS OF TODAY'S WORK. >> COULD YOU MOVE YOUR MICROPHONE UP JUST A WEE BIT SO WE CAN HEAR YOU BETTER? THANK YOU. >> OKAY, SO WE'LL PRESENT UPDATES ON OUR ONGOING PROJECTS. THE FOCUS OF TODAY'S WORK SESSION WILL BE WATER PROJECTS, AND WILL FOLLOW UP WITH A SECOND WORK SESSION TO COVER OUR WASTEWATER PROJECTS. SINCE KATIE IS THE PM ASSIGNED TO THESE PROJECTS, SHE WILL DELIVER THE UPDATES ON EACH ONE. ONCE SHE'S FINISHED, I'M GOING TO COME BACK UP AND PRESENT UPDATES ON OUR UPCOMING INITIATIVES IN ACCORDANCE WITH OUR WATER MASTER PLAN AND CAPITAL IMPROVEMENT PLAN. KATIE. >> HOW DO I SOUND? GOOD. OKAY. GOOD MORNING. I'M KATIE KOCH. I AM THE PROJECT MANAGER FOR WATER UTILITIES. I HAVE FOUR PROJECTS TO UPDATE YOU ABOUT TODAY, THREE OF WHICH ARE THE WATER TREATMENT PLANT. THE FIRST ONE WE'RE GOING TO COVER IS THE CAPACITY AND PERFORMANCE UPGRADE PROJECT. WE STARTED THIS PROJECT IN SEPTEMBER OF 2024 AND WE ARE VERY, VERY NEAR THE END. WE'RE WRAPPING UP ABOUT ONE YEAR EARLY. I ANTICIPATE WE'LL BE OUT OF THERE AROUND JUNE OR JULY OF THIS YEAR. THE SCOPE OF THE PROJECT WAS TO BASICALLY REPLACE EVERY VALVE AND ACTUATOR ON THE ENTIRE PLANT. IT WAS INSTALLED IN 2002 AND HAS HAD VERY LITTLE DONE TO IT SINCE THEN. SO IT WAS TIME FOR A MAJOR REHAB. SO WE UPDATED ALL OF THE VALVES AND ACTUATORS. WE UPGRADED THE FILTERS SO THEY RUN ON A MORE COMPLEX SYSTEM BASED OFF FLOW INSTEAD OF JUST ON A WEIR GATE AND OUR TPS, BUT WE ADDED A BACKWASH STORAGE TANK SO WE CAN NOW BACKWASH TWO OR MORE FILTERS AT ONCE. SO WE HAVE INCREASED OPERATIONAL FLEXIBILITY. WE CHANGED OUT ALL THE FILTER MEDIA AND ALL FILTERS. WE WERE MISSING ALMOST ALL OF THE SAND IN THEM, SO WE REPLACED THE SAND, UPGRADED THE MATERIAL, AND WE HAD 2000 HORSEPOWER PUMPS AT OUR HIGH SERVICE PUMP STATION THAT HAD LITTLE TO NO HOURS ON THEM FROM 2002. SO WE REHABBED THEIR MOTORS AND THEN CHANGED THEM TO VFDS. SO NOW WE CAN OPERATE THEM, FLUCTUATING BETWEEN SEVEN MGD AND 20 MGD INSTEAD OF JUST A HARD 20, WHICH IS WHAT THE FACILITY IS RATED FOR. [00:20:01] >> IT'S JUST HAVE A QUICK QUESTION. SO YOU HAD TO CONSTRUCT A NEW BUILDING TO SUPPORT THESE. SO PIECES OF EQUIPMENT. >> YES. SO THE VFDS THE VARIABILITY FREQUENCY DRIVES, THEY ARE SYSTEMS THAT CONTROL THE MOTORS. AND WE DID NOT HAVE SPACE FOR THOSE INSIDE THE EXISTING BUILDING. SO WE BUILT A BUILDING THAT WILL SOON BE EXPANDED IN THE EXPANSION TO HOUSE MORE VFD HARDWARE. BUT WE BUILT THE INITIAL BUILDING SO THAT WE CAN GET THESE TWO PUMPS ON VFDS, AND WE HAVE SUCCESSFULLY TESTED BOTH OF THEM AS OF LAST WEEK, AND EVERYTHING IS WORKING GREAT WITH THEM. WE ARE ON OUR FINAL. WE'VE DONE OUR PUNCH LIST. WE ARE WRAPPING UP THIS PROJECT. WE HAVE SOME MINOR UPGRADES TO THE GENERATORS THAT ARE GOING TO HAPPEN THIS SUMMER, AND THEN THE FACILITY WILL BE RERATED WITH T, C, Q, AND WE'RE ANTICIPATING TO GET AN EXTRA SIX MGD OUT OF THAT PLANT, BUT TBD, BASED OFF OUR REWRITE PROCESS. SO WE'RE WRAPPING UP ON THIS ONE, WHICH LEADS US SOME CONSTRUCTION PHOTOS. >> MOVE ON. >> EXCUSE ME. YES, SIR. >> SO THE CONSTRUCTION CONTRACT WAS 43,000,994. YES, SIR. CONSTRUCTION SPEND 39. IS THAT DO YOU EXPECT TO GET TO THE FULL CONTRACT. >> SO THAT 43 MILLION. >> IS WITH THE COMMISSION? >> WE ONLY HAVE ABOUT $250,000 LEFT ON OUR ACTUAL CONTRACT. THAT 43 MILLION INCLUDES CONTINGENCY. THERE'S ABOUT 4 MILLION. >> WHAT WAS THE ORIGINAL CONTRACT? >> 39,000,043. SOMETHING JUST UNDER 40 MILLION. >> SO YOU WILL SPEND THE 43,000,994. OKAY. YOU'LL JUST SPEND 250,000 IS WHAT. >> JUST ABOUT. >> OKAY. WHERE WAS THE SAVINGS? WELL, I SAY NOT REALLY SAVINGS. YOU ACTUALLY OVER THE ORIGINAL CONTRACT, BUT. >> WE'VE USED ABOUT 14% OF OUR CONTINGENCY. SOME OF THE THINGS WE INCLUDED IN THAT WERE SOME UPGRADES THAT WE NEEDED TO MAKE THE FILTERS WORK. ALL THE SAND THAT CAME FROM THE FILTERS ACTUALLY ENDED UP IN OUR TRANSFER PUMP STATION, CAKED IN CAUSTIC ONTO THE WALLS THAT NEEDED TO BE CHIPPED OUT. THAT WAS KIND OF PRICEY, JUST LITTLE MINOR UPGRADES THROUGHOUT THESE TWO YEARS THAT WE'VE ADDED TO THE SCOPE. LIKE I SAID, WE'VE USED 14% OF OUR CONTINGENCY, WHICH ON THE SCALE OF THE PROJECT, I THINK IS PRETTY GOOD. >> THANK YOU. >> SO THIS IS A NEW 60 INCH VALVE OR PIPING THAT WE INSTALLED. THIS IS GOING TO HOUSE A NEW CHEMICAL INJECTION POINT, WHICH I'LL GET TO IN THE CHEMICAL IMPROVEMENTS PROJECT, AS WELL AS ADD CAPABILITIES FOR ADDING ANOTHER CLEAR WELL WITH THE EXPANSION PROJECT. AND THEN WE ENDED UP DRAINING AND CLEANING OUT THE CLEAR WALL FOR THE FIRST TIME IN A VERY LONG TIME. SO JUST SOME THINGS. >> YES. COULD YOU GO BACK TO THAT SLIDE SO YOU DRAINED IT. SO WHAT OTHER IMPROVEMENTS WERE MADE WITHIN THE CLEAR. >> WELL WE HAVE NOT REALLY TOUCHED THE CLEAR WELL MUCH ITSELF. THERE WERE SOME BRICK FASCIA THAT HAD FALLEN OFF THAT WE REPAIRED. BUT DURING THE COURSE OF CONSTRUCTION THE CLEAR WELL VALVE WHICH IS THE PLANTS TO OPERATE, IT NEEDED SOME REPAIRS. SO WE HAD TO DRAIN THE CLEAR WELL TO CHANGE THE VALVE. THE PLANT DID THAT THEMSELVES, BUT WHILE IT WAS DRAINED, THEY. >> CLEAR ITSELF IS STILL IN PRETTY GOOD SHAPE. >> YES, YES. THANK YOU. YEAH. IT'S IN GOOD SHAPE. THE NEXT PROJECT I, RAY ROBERTS, IS THE CHEMICAL IMPROVEMENTS PROJECT. WHEN THE PLANT WAS BUILT IN 2002, IT USED GASEOUS CHLORINE AND ANHYDROUS AMMONIA, WHICH ARE BOTH GASEOUS MATERIALS TO DISINFECT OUR WATER. THEY ARE PRIMARILY DANGEROUS JUST IN TRANSPORTATION. BUT THERE ARE SOME HAZARDS ASSOCIATED WITH GASEOUS MATERIALS. SO WE'RE TRANSFERRING CONVERTING THEM TO A LIQUID WHICH IS MUCH MORE STABLE AND EASY TO TRANSPORT AND HAS LESS IMPACTS IF THERE'S A SPILL. WE HAD ORIGINALLY SOLICITED THIS PROJECT LAST YEAR AND WE ONLY GOT. >> SORRY, COULD YOU GO BACK ONE? >> YES. >> SINCE THEY'RE CONVERTING TO SODIUM HYPOCHLORITE FROM CHLORINE GAS AND AMMONIUM. ANHYDROUS SULFATE REPLACING THE ANHYDROUS AMMONIUM, IS THAT GOING TO REDUCE THE OPERATING COSTS AT THE WATER TREATMENT PLANT? >> I HONESTLY REALLY COULD NOT ANSWER THAT QUESTION. I DON'T HAVE THE OPERATIONAL COST IMPACT TO THAT. BUT WE ARE IT IS JUST MAKING IT SAFER FOR EVERYONE THROUGHOUT THE WHOLE PROCESS. >> RIGHT. I UNDERSTAND THAT. I WAS JUST CURIOUS IF THERE WAS A SAVINGS. I KNOW IN LARGE POOL COMPLEXES WHERE THEY'VE MADE THE CONVERSION TO THE SODIUM HYPOCHLORITE A TREMENDOUS SAVINGS IN THE AMOUNT OF PRODUCT THEY HAD TO USE TO KEEP THE POOL CLEAN. SO I WAS JUST [00:25:06] CURIOUS IF THERE WAS AN ANALOGY THERE. >> YEAH, I COULDN'T TELL YOU THE AMOUNT OF CHEMICALS THAT ARE NEEDED. I DO KNOW THAT THERE'S A LOT LESS ASSOCIATED INFRASTRUCTURE WHEN YOU'RE USING LIQUID THAN GAS. SO A LOT OF THE SCOPE OF THIS PROJECT IS GOING TO BE DEMOING AND REMOVING SOME OF THE OLD INFRASTRUCTURE THAT WE NEEDED FOR THE GAS THAT WE JUST WON'T NEED ANYMORE. YOU'RE WELCOME. SO LIKE I SAID, WE SOLICITED THIS LAST YEAR, WE ONLY GOT ONE BID BACK AND IT WAS VERY HIGH, SO WE ENDED UP REJECTING IT. WE'VE BEEN HOLDING IT WHILE WE PLAN. WE'RE JUST STRATEGICALLY PLACED THIS PROJECT AND WE'RE RIGHT NOW WE'RE WORKING ON A DESIGN AMENDMENT TO INCREASE THE SCOPE A TINY AMOUNT. WE'RE ADDING AN ADDITIONAL CAUSTIC TANK THAT NEEDS TO BE DESIGNED. SO YOU'LL SEE THAT AMENDMENT COMING THROUGH PRETTY SOON. AND THEN I ANTICIPATE THAT WILL RE-ADVERTISE THIS IN THE FALL. THIS IS GOING TO BE THE NEW CHEMICAL BUILDING. THOSE TWO TANKS OUT FRONT ARE IS ONE IS GOING TO BE FOR THE AMMONIUM SULFATE. AND THEN THE. SODIUM HYPOCHLORITE. AND THEN INSIDE THE BUILDING IS ALL THE ASSOCIATED PIPING AND INFRASTRUCTURE. >> SO PRESUMING WE GET THROUGH THE DESIGN PROCESS, I SAW YOU HAD A DESIGN ADS UPCOMING. WHEN DID WE ANTICIPATE CONSTRUCTION STARTING AND WHAT'S THE TIME FRAME FOR COMPLETION? >> I ANTICIPATE WE'LL BE READY TO BID THIS PROJECT OUT BY THE END OF THE YEAR. I THINK IT'S ABOUT TWO YEARS OF CONSTRUCTION DAYS TO WHEN. >> THIS IS FINALLY. >> COMPLETE. >> END OF THE YEAR. SO WE'RE LOOKING ABOUT TWO AND A HALF TO THREE YEARS OUT TOTAL. YES. >> SOMETIME AT THE END OF 2028, I BELIEVE WILL BE DONE. THE NEXT PROJECT, THE BIG ONE, WE ARE EXPANDING THE WATER TREATMENT PLANTS. WE GOT OUR ENGINEER ON BOARD IN OCTOBER OF 2024, AND WE GOT OUR SEEMA ON BOARD LAST SEPTEMBER, SO WE'VE BEEN WORKING THROUGH THE SCOPE OF THE PROJECT WITH THEM AS A WHOLE. BUT LIKE I SAID, WE'RE BASICALLY BUILDING A WHOLE ENTIRE NEW PLANT OUT OF RAY ROBERTS. WE ARE GOING TO EXPAND THE RAW WATER PUMP STATION AND THE HIGH SERVICE PUMP STATION, BUT EVERYTHING IN BETWEEN WILL BE A BRAND NEW PLANT WITH BRAND NEW PROCESSES. SO THE EXISTING PLANT USES FILTERS AND OZONE TO DISINFECT THE WATER. AND THE NEW PLANT IS GOING TO USE A LOW PRESSURE MEMBRANE SYSTEM. IT IS A FORM OF ULTRAFILTRATION. SO WE WILL GET ADDITIONAL DISINFECTION CREDITS THROUGH THAT. BUT WE ARE ADDING ANOTHER RAW WATER PIPELINE. WE ARE REPLACING THE OZONE SYSTEMS. WE ARE ADDING AN ADDITIONAL CLEAR WELL, WE ARE DOING NEW FLOCK SET BASINS, NEW FLOW SEPARATORS, EVERYTHING. WE'RE GETTING A BRAND NEW PLANT OUT THERE. >> QUESTION. YES. SO WERE THE IS THE FOOTPRINT GOING TO STAY THE SAME AS IT IS NOW. >> IN TWO SLIDES, I'LL SHOW YOU THE FULL BUILD OUT FOOTPRINT. RIGHT NOW RAY ROBERTS IS AT 20 MGD. IT'S ULTIMATE BUILD OUT IS ABOUT 110. SO WE'RE ADDING 20 WITH THIS EXPANSION. SO WE'LL BE UP TO 40 OR 46 BASED OFF WHAT OUR FACILITIES REITERATED TO THE SUMMER. SO FAR, THE PROGRESS WE'VE MADE. I KNOW YOU'VE SEEN US UP HERE SEVERAL TIMES AS WE WORK THROUGH THE SWIFT LOAN PROCESS. WE ARE TWO AND A HALF YEARS INTO THAT. WE'VE GOT TWO LOANS ADMINISTERED THROUGH THAT, AND AT THE END OF THE YEAR, YOU'LL SEE US FOR OUR THIRD YEAR OF FUNDING. THROUGH SWIFT, WE HAVE 30% PLANS THAT WE RECEIVE FROM OUR ENGINEERS, AND WE'RE WORKING WITH OUR CMR TO FINALIZE OUR 30% COST MODEL. WE SHOULD BE PUTTING OUT OUR FIRST GMP ALSO, PROBABLY AT THE END OF THIS YEAR, LATE FALL. I'M ANTICIPATING WE'LL BE READY TO START ADVERTISING FOR THAT. WE HAVE STARTED THE PILOT STUDY FOR THE PROJECT. SO MEMBRANES AND THE INCLINED PLATE SETTLERS THAT WE'RE USING FOR OUR FLOCCULATION BASINS ARE CONSIDERED INNOVATIVE TECHNOLOGIES FROM T, C, Q, SO THEY ARE NOT NEW. THERE ARE 20 PLUS YEARS OLD, BUT TCQ REQUIRES A PILOT STUDY TO SHOW HOW EFFECTIVE THEY ARE AT TREATING THE INDIVIDUAL RAW WATER SOURCE. SO WE HAVE GOT THE PILOT SKIDS FOR THE INCLINED PLATE SETTLERS, AND THEY'RE GETTING PRIMED. AND AT NEXT WEEK THE MEMBRANES KID IS GOING TO SHOW UP AND WE WILL HOOK THEM ALL UP. AND WE WILL DO ABOUT A SIX MONTH PILOT STUDY TO. >> I WAS JUST GOING TO ASK HOW LONG THAT RUNS. SO SIX MONTHS. >> THANK YOU. YEAH, IT'LL BE WRAPPING UP AT THE END OF THE YEAR. BUT WE ARE BASICALLY SEEING HOW MUCH CHEMICALS WE NEED TO TREAT TO EFFECTIVELY GET OUR WATER THROUGH THE MEMBRANE SYSTEM, BECAUSE THEY ARE CURRENT FLOCCULANTS THAT WE USE FOR THE TRADITIONAL OR CONVENTIONAL PLANT DON'T WORK [00:30:06] WITH MEMBRANES, THEY GET CAUGHT UP. SO WE NEED A NEW CHEMICAL. SO WE'RE TESTING THAT. >> IS THIS THAT'S THE DESIGN FOR THE THE THE BUDGETED TOTAL BUDGET AMOUNT. THAT'S THE 100 AND 40. >> WE CLOSED ON A LOAN FOR 196 MILLION THROUGH SWIFT. YEAH. THAT'S WHAT WE HAVE SO FAR. >> AND THAT IS HIGHER THAN THE ORIGINAL PROJECTION OF WAS IT 140 MILLION? IS THAT CORRECT? >> SO ORIGINAL PROJECTIONS OF CONSTRUCTION WERE ABOUT 140, 196 WAS ALL IN WITH ENGINEERING FEES. AND, YOU KNOW, OUR ACCOUNTING. SO THAT WAS AN ALL IN PROJECT NUMBER. YOU'LL SEE FOR THE 30% COST MODEL AS WE'RE WORKING THROUGH IT AS WE'RE PRESENTING GMP. >> IS THAT THE SEE MORE CONTRACT? IS THAT THE IS THAT. >> WE HAVE ARCHER WESTERN. >> ARCH WESTERN. THAT WAS THE OTHER ONE. OKAY. YEAH. SO IT HAD THE ONE AT THE CONCRETE FACILITY. >> OKAY. YES, SIR. YEP. >> THANKS. >> YOU'RE WELCOME. AND LIKE I SAID, THIS IS THE FULL FOOTPRINT OF RAY ROBERTS. WHEN IT'S BUILT OUT, EVERYTHING IN GREEN WILL BE ADDED IN THIS EXPANSION. SO WE'RE TRYING TO PLAN FOR THE FUTURE AS WE'RE USING THE SPACE NOW. BUT EVERYTHING GREEN IS BEING ADDED IN THIS PROJECT. OKAY. ALL RIGHT. THE NEXT PROJECT IS ACTUALLY AT THE LAKE LEWISVILLE WATER TREATMENT PLANT. WE HAVE A DEWATERING IMPROVEMENTS PHASE TWO PROJECT. WE HAVE CAROLLO ENGINEERS ON BOARD. WE'RE ABOUT 60% DESIGN. WE SHOULD BE VERY NEAR 90% IN EARLY MAY. SO THAT PROJECT IS BEING FINALIZED. WE HAVE VERY WET SLUDGE AT LAKE LEWISVILLE, SO WE ARE IMPROVING THEIR DEWATERING PROCESS. AND THROUGH THIS IT WILL ALLOW US TO NO LONGER USE THE POND THAT WE PURCHASED A COUPLE YEARS AGO, SO WE CAN USE THAT LAND FOR SOMETHING ELSE IN THE FUTURE. BUT WE ARE ADDING AN ADDITIONAL SOLIDS HOLDING TANK AND ADDITIONAL GRAVITY THICKENER ON THIS PROJECT, AND PUMPING OUR SLUDGE IN A WAY THAT WE DON'T NOW. SO WE'RE BUILDING A BIG SLUDGE PUMPING STATION. >> BUT BEFORE YOU MOVE ON. IF I'M READING THIS CORRECTLY, DESIGN BEGAN IN THE FOURTH QUARTER OF 24, BUT IT'S NOT EXPECTED TO BE COMPLETED. IS THAT THE DESIGN THAT WON'T BE COMPLETED UNTIL 28? >> NO, THAT'S THE ESTIMATED CONSTRUCTION COMPLETION. >> THAT'S DESIGN AND CONSTRUCTION. CORRECT. THANK YOU. >> CORRECT. SO SO FAR, LIKE I SAID, WE'VE GOT 60% PLANS BACK. VERY SOON WE'LL HAVE 90% PLANS. WE ARE GOING TO APPLY FOR A NEW GRANT FOR THIS PROJECT THROUGH WDB. THEY PUT OUT A NOTICE. THEY JUST FINALIZED IT ABOUT A MONTH AGO, BUT THEY HAVE $1 BILLION TO GIVE OUT THIS YEAR. IT'S A ONE TIME GRANT OPPORTUNITY FOR A CITY OF OUR SIZE. WERE ELIGIBLE FOR 35 MILLION, AND THEY WILL FULLY FUND THE PROJECT UP TO THAT 35 MILLION CAP. AND THE CURRENT OPK OF THIS PROJECT IS ABOUT 20 MILLION. SO I'M HOPING TO GET YOU A FREE PROJECT, BUT WE WILL APPLY FOR THAT LOAN IN JULY. IT IS MEANT TO SERVE WATER SUPPLY AND INFRASTRUCTURE IMPROVEMENTS. SO THE STATE OF TEXAS. SO WE WILL KEEP YOU UPDATED AS WE GO THROUGH THAT. >> SO IS IT A LOAN OR IS IT A GRANT? >> THIS IS A GRANT. YEAH. >> OKAY. >> YEAH. LIKE I SAID, I'M HOPING TO GET YOU A FREE PROJECT. THANK YOU. BUT YEAH, SO WE WILL KEEP YOU UPDATED. WE'RE GOING TO COME THROUGH WITH GRANTS MANAGEMENT AND GET PERMISSION TO APPLY. BUT WE'RE WORKING THROUGH THAT RIGHT NOW. SO AND I DON'T THINK WE CAN SOLICIT FOR CONSTRUCTION FOR THAT UNTIL WE ARE OFFICIALLY APPROVED FOR THE LOAN. SO WHICH WILL BE AROUND JULY 12TH, IS NOT THE FASTEST ORGANIZATION, BUT I ANTICIPATE BY FALL WE WILL ALSO HAVE AN ANSWER ON THAT. AND WE'LL BE SOLICITING FOR CONSTRUCTION ON THIS PROJECT. AND THEN THAT'S IT FOR ALL OF OUR ACTIVE WATER PROJECTS. I'LL HAND IT OVER TO KYLE FOR BIG PICTURE STUFF. >> THANK YOU. >> THANK YOU. >> THANK YOU KATIE. SO AS PART OF THE MASTER PLANNING PROCESS, WE TOOK AND ANALYZED THE DEVELOPMENT TRENDS BETWEEN THE PREVIOUS PLAN THAT WAS DEVELOPED IN 2018. AND TODAY, THIS MAP, THIS HEAT MAP REPRESENTS THE DIFFERENCE BETWEEN THE PROJECTED THE PREVIOUSLY PROJECTED GROWTH AMOUNTS AND WHAT WE ACTUALLY OBSERVED WITHIN THAT TIME FRAME WITHIN EACH OF OUR DIFFERENT SERVICE AREAS. SO IT'S COLOR CODED WITH BLUE AT THE BOTTOM [00:35:03] OF THE SCALE, REPRESENTING AREAS THAT HAVE NOT DEVELOPED UP TO THAT PROJECTED RATE. AND THE RED AT THE OTHER END OF THE SCALE, THE TOP REPRESENTING AREAS WHERE THE DEVELOPMENT FAR OUTPACED THE GROWTH PROJECTIONS. SO THERE ARE A FEW KEY TAKEAWAYS FROM THIS MAP AND FROM THIS EXERCISE THAT ARE VERY IMPORTANT IN OUR WATER PLANNING PROCESS. THE FIRST BEING THAT OVERALL GROWTH WAS HIGHER THAN PROJECTED IN THE PREVIOUS STUDY. SO THAT BRINGS OUR WATER TREATMENT CAPACITY PROJECTS UP TO THE FOREFRONT OF IMPORTANCE TO MAKE SURE THAT WE'RE KEEPING UP WITH THE INCREASED GROWTH RATE THAT WE'RE SEEING. AND THE SECOND IS THAT INFILL IS HAPPENING FAR SLOWER THAN WAS ORIGINALLY PROJECTED. WHILE GROWTH IN THE OUTER RINGS IS ACCELERATING. SO THAT BRINGS THE NEED FOR ENHANCED CONVEYANCE WITHIN THAT OUTER RING TO BE ACCELERATED TO MEET THOSE GROWTH TRENDS. SO THESE TRENDS ARE USED ALONG WITH POPULATION ESTIMATES TO CREATE OUR WATER CAPITAL IMPROVEMENT PLAN. HERE'S AN OVERVIEW OF SOME OF THE UPCOMING PROJECTS AND INITIATIVES THAT WE HAVE ON THE CAPITAL IMPROVEMENT PLAN. SO THE FIRST ONE IS OUR ARMY PROGRAM THAT WAS APPROVED BY CITY COUNCIL LAST WEEK. THAT ONE IMPLEMENTATION WILL BEGIN THIS YEAR, AND IT WILL BRING ADVANCED METERING INFRASTRUCTURE THROUGHOUT THE SYSTEM. THE SECOND IS OUR LAKE LEWISVILLE RAW WATER STATION THAT THE RAW WATER STATION NEEDS, ELECTRICAL UPGRADES AND AN OVERALL REHABILITATION. SO DESIGN IS EXPECTED TO BEGIN ON THAT THIS YEAR WITH CONSTRUCTION NEXT YEAR. WE'RE ALSO BEGINNING A PIPELINING PROGRAM NEXT, WITH CONSTRUCTION ANTICIPATED TO START NEXT YEAR, GOING OVER THE NEXT TWO THAT THIS WILL ALLOW US TO LINE PIPES IN AREAS THAT HAVE A STATIC STATIC NEED DEMAND THAT BASICALLY AREAS THAT ARE COMPLETE, THEY'RE DONE WITH THEIR GROWING. THEY HAVE AGING ASSETS IN THE GROUND. THE PIPELINING CAN ADD UP TO 50 YEARS OF LIFESPAN TO AN ASSET, AND IT'S MUCH LESS INVASIVE OR NONINVASIVE, BUT IT'S MUCH LESS OF A DISTURBANCE THAN REPLACING THE EXCAVATING AND REPLACING THE LAND IN KIND. CIP YES, IT'S ALSO IT ALSO IS A COST SAVINGS OVER A FULL LINE REPLACEMENT. >> I HAVE A QUESTION ABOUT THE MAP. YES. ARE ITEMS LINED APPARENTLY IN BLUE AND RED. AND I HAD A LITTLE TROUBLE REFERENCING THOSE TO YOUR LIST. >> YES. SO THIS MAP IS PULLED OFF OF THE OFF OF THE MASTER PLAN. I GUESS I DIDN'T INCLUDE A KEY. THE RED ARE THE PROJECTS IN THE NEXT FIVE YEARS PLANNED FOR THE NEXT FIVE YEARS IN THE MASTER PLAN. IN THE BLUE ARE THE PROJECTS PLANNED WITHIN THE NEXT TEN YEARS. WE HAVE A LITTLE OVERLAP, SO ONCE THE MASTER PLAN WAS APPROVED, WE GO THROUGH AND WE REALLY. AS WE DRILL DOWN INTO THE CIP, WE COMPARE WHERE CURRENT GROWTH IS VERSUS WHAT WE HAD PROJECTED IN THE MASTER PLAN. SO THERE'S A LITTLE BIT OF OVERLAP, BUT THAT THAT MAP SHOWS THE REALLY SHOWS THE AREAS IN RED THAT ARE NEEDED IN THE NEXT FIVE YEARS. SO THE NEXT PROJECT IS. >> I THINK IT MIGHT BE HELPFUL FOR FUTURE REFERENCE IF MAYBE YOU COULD PUT SOME NUMBERS AND ATTACH THEM TO WHERE THEY GO WITH WHAT PART OF THE RED AND BLUE LINES. YES, SIR. JUST TO HELP US FOR REFERENCE. YES. THANK YOU. >> SO THE WATER MASTER PLAN PROJECT NUMBER 30 IS THE SECONDARY TRANSMISSION LINE FROM THE RAY ROBERTS PLANT. SO THIS PROJECT ADDS REDUNDANCY TO THE SYSTEM BY GIVING A SECONDARY TRANSMISSION LINE. BUT IT ALSO SUPPORTS THE GROWTH IN THOSE OUTLYING AREAS TO THE WEST. THAT PROJECT WE PLAN TO START DESIGN THIS YEAR, AND IT WILL LIKELY BE BUILT IN A PHASED CONSTRUCTION AS DIVIDING THE OVERALL CONSTRUCTION INTO PHASES SO THAT WE DON'T GET AHEAD OF THE GROWTH. THE WMP THE WATER MASTER PLAN PROJECTS NUMBER 24, 27 AND 39 ARE ALL TRANSMISSION LINE PROJECTS THAT ARE REQUIRED TO KEEP UP WITH THE GROWTH ON THE WESTERN EDGE. AND AS WE SAW IN THOSE AREAS WHERE WE'RE SEEING ACCELERATED GROWTH COMPARED TO PREVIOUS PROJECTIONS. AND THEN FINALLY, WATER MASTER PLAN PROJECTS, NUMBER NINE AND TEN ARE THE JIM CRYSTAL TRANSMISSION MAIN AND THE JIM CRYSTAL ELEVATED STORAGE TANK. AND THESE ARE REQUIRED TO BRING ELEVATED STORAGE WEST OF I-35 SO THAT WE KEEP UP WITH THE REQUIREMENTS FOR THAT ELEVATED STORAGE NUMBER. ANY QUESTIONS? >> COULD YOU GO BACK SLIDE 15, PLEASE. NO, IT HAD THE MAPPING. THERE WE GO. THAT'S IT. THANK [00:40:01] YOU. SO I WAS LOOKING AT THAT COMPARED TO THE PREVIOUS SHOWING ALL THE PROJECTS. ARE YOU IS IT THE DEVELOPMENTS THAT CREATE THE NEED FOR THE PIPING TO GO OUT FOR YOUR PROJECTIONS? ARE YOU LOOKING AT CURRENT PROJECTS THAT ARE ON THE BOOKS OR THAT THE COUNCIL IS LOOKING AT, OR WHAT DO YOU USE FOR YOUR CRYSTAL BALL? >> IT'S A COMBINATION. SO WHEN WE GO THROUGH THE MASTER PLANNING, WE USE, WE COORDINATE WITH DEVELOPMENT SERVICES. SO WE USE THEIR 2040 COMPREHENSIVE LAND USE PLAN TO OUTLINE REALLY AREAS, GEOGRAPHICAL AREAS AND HOW MUCH THEY'RE EXPECTED TO FILL IN. BUT THEN WE ALSO COORDINATE WITH DEVELOPMENT. SO WE WE TAKE AND AS WE COORDINATE WITH THE DEVELOPMENTS, WE TAKE THEIR PLANNED SCHEDULE AND THEIR SIZE. AND WE ACCOUNT THAT IN TO REALLY FINALIZE THE GROWTH RATES. >> AND COULD YOU GO BACK TO SLIDE. OH, I SEE THE DIFFERENT NUMBERS. I WAS LOOKING AT WHAT WAS ON THERE. THE NEXT SLIDE. THEN I THINK YOU HAD IT AS 16. SO IS IT FAIR TO SAY THAT WE COULD BE CAUGHT WITH A WATER LINE? LET'S SAY THAT MAY JUST GO OUT SOMEWHERE AND JUST STAY THERE FOR A WHILE UNTIL SOME DEVELOPMENT COMES ALONG? WOULD THAT BE NOT AN IDEAL SITUATION BUT COULD HAPPEN? >> THAT IS POSSIBLE. BUT THAT'S FOR EXAMPLE, THE THE W P NUMBER 30 THAT SECONDARY TRANSMISSION LINE. SO WHEN WE LOOK AT THESE THAT'S WHY WITH THE APPROACH TO THAT PROJECT WE'RE PLANNING ON PHASES PHASED CONSTRUCTION SO THAT WE DON'T GET TOO FAR AHEAD. SO MOST OF THESE THE MOST OF THE OTHER TRANSMISSION LINES ON HERE ARE IN DIRECT RESPONSE TO KNOWN DEVELOPMENTS WITH RELATIVELY ESTABLISHED TIMELINES. >> HOW EFFECTIVE IS YOUR VISUALS FOR THE COUNCIL WHEN THEY ARE LOOKING AT POTENTIAL DEVELOPMENTS? >> I'D HAVE TO GET WITH DEVELOPMENT SERVICES ON THAT. WE. WE TEND TO WORK WITH DEVELOPMENT SERVICES AND THE DEVELOPERS ON THOSE PROJECTS AND DEVELOPMENT SERVICES REALLY HANDLES THE COMMUNICATION WITH COUNCIL REGARDING THE DIFFERENT DEVELOPMENTS AND GROWTH. >> I'D LIKE TO KNOW THAT. I'D LIKE TO KNOW THAT. I THINK THAT WOULD BE AN INTERESTING SITUATION AS TO KNOW, KNOWING THE COMMUNICATION THAT'S GOING ON, SO THAT WE'RE NOT AND YOU'RE NOT CAUGHT UP, NOT RED HANDED. THAT'D BE THE WRONG TERM. BUT ANYWAY, I'M JUST CURIOUS AS TO HOW THAT HOW THAT PROCESS PROCEEDS AND COMMUNICATION, BECAUSE IF, IF THE COUNCIL IS GOING TO BE APPROVING THESE THINGS, ARE THEY FORCING THAT WATER UP THERE? THEN WHEN YOU GUYS WEREN'T EVEN PREPARED FOR IT, THERE SHOULD BE SOME CONVERSATION ON THAT BEFORE IT HAPPENS. >> SO THERE IS. I WAS REFERENCING THE COMMUNICATION BETWEEN DEVELOPMENT SERVICES AND COUNCIL FOR THE APPROVAL WE DO WHEN THEY DO THE PRE-APPLICATION CONFERENCES. AND IN ALL OF THE CONSULTATIONS THAT HAPPEN, WATER UTILITIES IS INVOLVED FROM THE BEGINNING TO REALLY OUTLINE THE CAPACITY AND DETAIL WHAT IS NEEDED TO SERVE THAT AREA. >> BECAUSE THEY'LL BE SHARED COSTS AND THINGS ALONG THAT LINE. I'M SURE THAT'S JUST. >> YES. DEPENDING ON THE APPROACH, WE'LL WE'LL EITHER APPROACH IT AS A DEVELOPER DRIVEN PROJECT, AS A, AS AN OFF SITE NEED, OR AN OVERSIZE PARTICIPATION AGREEMENT WHERE WE OVERSIZE THE LINE THAT THE DEVELOPER INSTALLS OR AS A CITY PROJECT. >> AND I'M NOT IMPLYING ANY KIND OF CATCHING WOOL OVER OUR EYES AS SUCH, JUST FOR MY OWN EDIFICATION. AND I APPRECIATE IT THAT YOU'RE TAKING CARE OF THAT. THANK YOU. >> JUST CURIOUS, THE OVERARCHING TOTAL AMOUNT OF DOLLARS FOR THE WORK WE'RE TALKING ABOUT HERE. >> I DON'T HAVE IT IN THE PRESENTATION. I CAN GET AN EXACT NUMBER. >> I'M JUST ASKING FOR A BALLPARK NUMBER. I MEAN, YOU'RE DEALING WITH THESE THINGS ALL THE TIME. >> SO AT THE LAST LAST LOOKING AT IT, I THINK IN THE FIVE YEAR FOR THE CIP, WE WERE LOOKING FOR THE WATER CIP, NOT WASTE WATER. WE WERE LOOKING AT 700 MILLION RIGHT AROUND THAT VALUE. BUT I CAN FOLLOW UP WITH A MORE EXACT NUMBER. >> WELL, MAYBE WHEN YOU DO YOUR NEXT QUARTERLY REPORT, YOU COULD PROVIDE US A LITTLE BIT OF A FINANCIAL FRAMEWORK. AND THEN THE PREVIOUS WORK THAT WE HAD THE PRESENTATIONS ON, WHAT'S THE TOTAL VALUE OF THAT WORK CURRENTLY BALLPARK? >> OH, I COULD I CAN ADD THAT UP. I CAN'T BALLPARK IT. THAT'S WITHIN, THAT'S ALL WITHIN THAT CIP, THE 700 MILLION CERTAIN PROJECTS MIGHT EXTEND BEYOND THE FIVE YEAR WHERE THAT THE COST BEYOND THE FIVE YEAR PLAN, YOU KNOW, HORIZON ISN'T INCLUDED, BUT THAT FALLS WITHIN THE OVERALL CIP. OKAY. >> WELL, ONE OF THE REASONS I ASKED THE QUESTION, AND I'M GOING TO KIND OF PUT THIS QUESTION TO THE BOARD, IS I THOUGHT THAT WE'RE SEEING A LOT OF CHANGE ORDERS AND, YOU KNOW, FOR DESIGN AND CONSTRUCTION OVER A PERIOD OF TIME. AND IT [00:45:01] SEEMED TO ME THE TOTALITY OF THE WORK THAT WERE BEING ASKED TO LOOK AT AND, YOU KNOW, PASS SOME JUDGMENT ON ONE WAY OR ANOTHER IS PROBABLY PRETTY SUBSTANTIAL. >> SO WHEN WE COME BACK, WE CAN INCLUDE THAT MORE DETAILED FINANCIAL INFORMATION PER PROJECT. >> THESE ARE ESTIMATES, ESPECIALLY LOOKING OUT, YOU KNOW, TEN YEARS. SO THAT'S A LONG TIME. BUT IT OCCURRED TO ME THAT WE WERE LOOKING AT A LOT OF ONGOING PROJECT WORK. SO DOES THE THE MEMBERS OF THE BOARD THINK THAT THIS IS A USEFUL. THING FOR US TO BE UPDATED ON A REGULAR BASIS? YEAH. >> OKAY. >> VERY GOOD. >> AND I WILL MENTION THAT ON THE 22ND JUNE 22ND WHEN THEY'RE SCHEDULED TO COME BACK, THERE'S ALSO BE A BUDGET UPDATE AT THAT TIME AS WELL. SO THERE'LL BE A FINANCIAL COMPONENT AT AT THE SAME MEETING. >> OH, EXCELLENT. OKAY. WELL, MAYBE THAT'LL SOLVE THAT PROBLEM. BUT I JUST YOU START LOOKING AT ALL THESE PROJECTS WITH THE WORK IN PROGRESS AND THE WORK THAT'S PLANNED. AND, YOU KNOW, THE THINGS THAT WE HAVE NEED FOR LIKE ADDITIONAL WATER TREATMENT, ADDITIONAL WASTEWATER TREATMENT, WHICH INCLUDES EQUIPMENT AND SYSTEMS AND TRANSMISSION AND ADDITIONAL POWER FROM DME. IT STARTS TO PAINT A PRETTY BIG PICTURE OF GROWTH AND CONSTRUCTION. SO THANK YOU VERY MUCH FOR YOU GUYS FOR PUTTING THIS TOGETHER FOR US. I THINK IT'S USEFUL TO US AS MEMBERS OF THE PUBLIC UTILITY BOARD. SO THANK YOU. THANK YOU. ANY OTHER QUESTIONS? ALL RIGHT. WELL THANK YOU FOR THAT. SO THAT'S OUR PRESENTATION. AND MOVING ON TO [4. CONCLUDING ITEMS] CONCLUDING ITEMS. WE WILL BE LOSING AN ESTEEMED MEMBER OF OUR BOARD, MR. BILLY CHEEKS, AND WE WOULD LIKE TO PRESENT YOU WITH THIS PLAQUE EXPRESSION OF GRATITUDE FOR YOUR MANY YEARS OF SERVICE TO THE PUBLIC UTILITY BOARD AND THE CITY OF DENTON. THANK YOU. >> OH. >> THANK YOU SIR. YEAH. THANK YOU. THANKS. >> APPRECIATE IT. I DID SEND OUT MY RESIGNATION LETTER AND COPIED IT TO EVERYONE, BUT I GUESS IT WAS STOPPED THROUGH THE PROCESSES OF THE CITY. >> YEAH. ONCE WE KNEW YOU WERE GOING, THEY JUST CUT YOU OFF. >> YEAH, WELL, I THINK IT STOPPED IT. THEY STOPPED BECAUSE WE WERE DISCUSSING ITEMS IN THE PAST, I GUESS. AND SO THEY JUST STOPPED OUR DISTRIBUTION. IS THAT RIGHT? SO WHY WOULDN'T YOU LET ME SEND THAT TO THE FELLOW BOARD MEMBERS. >> NO THAT'S CORRECT. SO IF YOU EMAIL ALL THE BOARD MEMBERS CITY RELATED BUSINESS, IF THERE'S A CONCERN THAT IT CREATES AN OPEN MEETING VIOLATION. >> WHY WOULD THAT BE AN OPEN MEETING VIOLATION? MY RESIGNATION. >> BECAUSE IT'S RELATED TO THE BUSINESS OF THE BOARD. >> AND I THINK YOU'RE WRONG. BUT HOW HOW THAT'S KIND OF A FREEDOM OF KIND OF A FREEDOM OF SPEECH THING. THEY'RE INVOLVED. I WASN'T TALKING DISCUSSING ANY ITEMS WHATSOEVER HERE. SO I THINK IT I THINK YOUR OVERREACH IS. IS YOU'VE DONE IT AGAIN, I THINK YOUR OVERREACH WITH LEGAL DEPARTMENT IS A LITTLE OUTRAGEOUS. AND SINCE IT'S MY LAST MEETING, I DON'T GIVE A. SO YEAH, I, I THINK IT'S KIND OF CRAZY. I THINK IF YOU GO BACK AND YOU READ THE CHARTER, WHICH I HAVE BEFORE, SO I'M NOT GOING TO SIT HERE AND QUOTE IT, BUT TO STOP DISCUSSION ON AN ITEM IS ONE THING TO STOP ME SENDING OUT SOMETHING THAT ENDS MY TENURE HERE WAS KIND OF INSULTING, AND YOU COULD HAVE CALLED ME AND GONE, BILLY, BILLY, I DON'T WANT YOU DISTRIBUTING YOUR RESIGNATION. AND HERE'S WHY. >> I DIDN'T RECEIVE IT, I APOLOGIZE, WE CAN DISCUSS OFFLINE. >> WHY WOULD WE DISCUSS OFFLINE? LET'S DO IT ONLINE. >> BECAUSE I GENERALLY TRY TO AVOID DISCUSSING LEGAL OPINIONS IN PUBLIC. >> OKAY, WELL, I THINK YOU'RE WRONG. I THINK IT'S OVERREACH. I THINK IT'S OUTRAGEOUS. IT'S ONE OF THE REASONS WHY I'M LEAVING THE BOARD. THERE'S NO REASON TO. I FEEL LIKE THERE'S NO REASON FOR ME TO BE HERE ANYMORE. I FEEL LIKE THAT. AND IF YOU READ THE THE HISTORY OF WHAT'S GOING ON WITH THE BOARDS AND THE CITY RIGHT NOW, NOBODY WANTS TO BE ON THEM BECAUSE THEY'RE BECAUSE THERE'S NO REASON TO BE HERE. YOU'RE YOU'RE TAKING ITEMS THAT HAVE ALREADY BEEN APPROVED BY THE CITY COUNCIL, BRINGING THEM BACK TO US JUST FOR FUN. SO JUST PUT THEM IN THE PAPER. DON'T TAKE THEM TO A BOARD, DON'T EVEN HAVE A BOARD. SO ANYWAY, I'LL FINISH WITH THAT. >> BILLY, IF YOU WANT, MR. CHAIR, I WANT TO. WE HAVE A COUPLE OF PARTING GIFTS FOR YOU, BILLY. OKAY. WE HOPE YOU. WE HOPE YOU ENJOY THEM. AND CERTAINLY YOU'VE BEEN A HUGE ASSET, NOT JUST TO THIS BOARD, BUT TO THE CITY AND AND TO ME AS WELL, PERSONALLY AND TO DME. I THINK YOUR INVOLVEMENT IN THE BOARD AND ALSO WITH THE TPA BOARD HAS BEEN EXCELLENT. I APPRECIATE YOUR ADVICE AND APPRECIATE YOUR CONTRIBUTIONS TO THE BOARD. I DO I WILL SAY I REMEMBER BEING A YOUNG [00:50:04] FINANCIAL ANALYST AND SEEING YOU ON THE BOARD AND BEING VERY INTIMIDATED BY MR. BILLY CHEEK. YOU KNOW, MY EXPERIENCE BEING ON THE BOARD HAS BEEN GREAT. YOU'VE BEEN YOU'VE BEEN FANTASTIC. YOU'RE THE AMOUNT OF KNOWLEDGE THAT YOU HAVE OF THE CITY. CERTAINLY YOUR FAMILY, YOU KNOW, CAN'T SAY ENOUGH ABOUT YOUR FAMILY'S IMPACT ON THIS COMMUNITY AND, AND CERTAINLY ON THIS ORGANIZATION. SO I WANT TO THANK YOU. AND REALLY, ON BEHALF OF MYSELF AND THE OTHER UTILITIES, WE DO WANT TO PROVIDE YOU THESE THESE GIFTS. SO PLEASE GET WITH ME AND I'LL HELP YOU CARRY THEM TO YOUR TRUCK ON THE WAY OUT. SO, SO THANK YOU VERY MUCH FOR, FOR WHAT YOU'VE DONE. >> AND I TOO, WOULD LIKE TO EXPRESS MY GRATITUDE FOR YOUR SERVICE TO THE BOARD AND MY EDUCATION ABOUT THE PUBLIC UTILITY BOARD. SO THANK YOU FOR THAT, AND I SINCERELY HOPE WE'LL BE ABLE TO CALL ON YOU FROM TIME TO TIME TO TAKE SOME ADVANTAGE OF YOUR EXPERIENCE. AND I'M A LITTLE REGRETFUL TO HEAR ABOUT THE SITUATION UPON YOUR RESIGNATION. SO SORRY ABOUT THAT. BUT IF THERE ARE NO OTHER ITEMS THAT I PLAN TO ADJOURN THE MEETING. * This transcript was compiled from uncorrected Closed Captioning.