Special City Council Meeting March 4, 2025 STATE OF TEXAS COUNTY OF MONTAGUE CITY OF BOWIE On this the 4th day ofMarch, 2025, the council convened in a special meeting open to the public as advertised with all Councilors present. Presiding: Mayor Burris Councilors: Ashley, Post, Shaw, Sproles, Truax and Walker City Secretary Page City Manager Cunningham Mayor Burris called the workshop meeting to order at 6:00 p.m. Workshop on Infrastructure needs. Mayor Burris opened the workshop and said she is going to turn it over to Water Superintendent Jerry Sutton, who has been dealing with TCEQ on water issues at the plant. Jerry spoke about our from inspection TCEQ (Texas Commission on Environmental Quality). We were told that we are not in our compliance with raw water pumping capacity, a third pump is needed to meet their requirements. With our connection count our pumping capacity should be 2,724 GPM (Gallons Per Minute) or 3.024 MGD (Million Gallons per Day). We are working with engineers and TCEQ to get a variance which would extend time to get another pump. Engineers said there may be a 60-40 chance of getting a variance. Our plant is nearing 85% capacity at which point it will require upgrades to its filter system. Sutton said it is recommended when a plant reaches 80% the city should start engineering work to make the necessary upgrades. Luckily our present plant was built with space for expansion. The breakdown on this is that TCEQ looks at the worst-case scenario. We do have two raw water pumps that will pump 2100 GPM each or 3.024 MGD. TCEQ takes the largest pump out ofservice. Meaning we only have one pump to service our water system. This does not meet TCEQ rules. We are required to pump 2,724 GPM or 3.923 MGD for our connections count as of today. It will grow as our city grows and so will our water demand. When we add the third pump we will be at 4200 GPM or 6.048 MGD. That meets the TCEQ requirement with the largest pump out of service. This lets the city grow to 7000 connections. On the water plant expansion, the plant is rated for 3.024 MGD. So, with the raw water flow changed to 2,724 GPM or 3.923 MGD, that will make the plant out ofcompliance. This means we are going to have to expand the water plant. With the variance it will buy us some time but we are going to need to start engineering a plan because we will be at 83%. If we do not get a variance we will have to start the expansion now. This shows TCEQ we are getting started on fixing the problems. We would still be out of compliance but hopefully keep them from fining us. The estimated cost for the pump and the water plant upgrade is $900,000 to $1,000,000. Public Works Director Stony Lowrance spoke next on our CCN (Certificate of Convenience and Necessity). We cover over 90 miles of water and sewer lines within the city limits, 6.8 miles of water line on Hwy. 81, approximately 4 miles of line on 1125 to Amon Carter Lake meter, approximately 2.5 miles North on Hwy. 59, and the entire area of Silver Lakes which is approximately 16 miles. Total miles of coverage is 119.3 miles of waterline. Our meter count in January of2021 was 3,051 meters. We currently have a meter count inside city limits of3,239 and outside city limits including Silver Lakes we have 362, giving us a total of: 3,601 countable meters, These calculations put us at 80% ofthe required capacity if variance is approved by TCEQ. The variance does not eliminate the need for pump installation or plant upgrades. Some money estimates are: Water Plant pump $1,000,000, Plant upgrades on filtration system around $10,000,000 and the 8-inch waterline replacement from Fina Mart to Old Bowie Lake, which is roughly 6.8 miles, estimated around $3,500,000 to $4,000,000. These estimates do not include engineering designs. This same 8-inch line begins on Mill and Tarrant Street, crosses 59 to Smythe, runs down Pecan to Matthews then turns up Live Oak and then down Central before running over to Hwy. 81 N. This is roughly 1.2 miles of additional line that would require hundreds of customer service reconnects, fire hydrant replacement and crossing several intersections. Estimated cost to be around $2,500,000 to $3,000,000. Once again this does not include engineering designs. Pillar and Rock Street bridge crossing - This area is critical and will need to be addressed sooner than later. The estimated cost for construction on this project is around $1,200,000. Total estimated cost for all these projects is around $19,000,000. Currently we have planned to replace 2 miles of2-inch lines needing upgraded to 6-inch lines town. This work will be completed by city crews. throughout Special City Council Meeting March 4, 2025 Page 2 Workshop on Infrastructure needs. (continued) Finance Director Pam Woods spoke on water rates and offered a proposal that would raise the rate in the water and not change the meter rate. The finance director along with the city manager, consumption and mayor came up with a plan that would increase the cost per 1,000 gallons $2.50 for residential inside the city limits and $3.00 for those outside the city and for the Amon Carter Water District. The residential customer in town uses 2,000 to 3,000 gallons a month. For intown residential the average cost is $4.73 and it would go up to $7.23. Outside city limits would go from $5.44 to $8.44. This would present increase the average user's bill by about $5.00 - $7.00 a month, The proposed increase could result in $500,000 annually to be allocated to a restricted cash account within the Utility Department that could be used for the projects needed. This would only be used with council approval. It could also be used to help make bond or loan payments. any Councilor Brent Shaw asked ift there would be additional chemicals or staff needed at the plant with these upgrades. Sutton said he anticipated they could continue their bulk chemical program and no more staff would be needed. It was noted that we needed to start with the raw water pump, which can give a bit of time before any plant upgrades. Mayor Burris added the city also cannot take funds from the general fund budget to the utility fund. Some people have mentioned to cut from the other departments, but it is against the law to take money from the general fund into the utility. We need utility to stand on its own. Councilor Shaw then asked if we have any reserves that could help offset these projects. The infrastructure fund where money was restricted for these types of projects has significantly dwindled due to projects. We currently have around $346,000, but anticipate it will be used up over the next few years as we change out some two miles of two-inch water line to the mandated six-inch lines. Councilor Shaw emphasized we need to find a way to replenish this fund. Woods said they talked about different options to use revenue over expenditures, but will need council direction. Councilor Sproles asked what we do when the water revenues go down as people slow their use due to higher rates. Woods anticipates it would level off after the initial period. Closing out the meeting, Mayor Burris told council members they have to make decisions that are fiscally responsible for the city and the citizens. "Ifwe can'tp provide them water we have failed miserably. Iti is our job, all seven of us. IfTCEQ takes over our plant we lose all control, they determine what is replaced, take over billing and all that". No action was taken at this meeting but the rates will be on the next council agenda. Mayor Burris adjourned the workshop at 7:10 p.m. ATTEST: Sardu o X EUbE Sandy Page, Gity Secretay Gaylro Burris, Mayor