HomeMy WebLinkAboutMinutes_GUS_08.09.2013Minutes of the Meeting of the
Georgetown Utility System Advisory Board
and the Governing Body of the
City of Georgetown, Texas
Friday, August 9, 2013
The Georgetown Utility System Advisory Board of the City of Georgetown, Texas, met on Friday,
August 9, 2013.
Board Members Present:
Robert Young - Chair, Arthur Yaeger, Jr. - Vice Chair, Robert Kostka - Secretary, Patty Eason (joined at
2:06PM), John Hesser, Brian Lindsey, Bill Stump
Board Members Absent:
Staff Present:
Jim Briggs, Glenn Dishong, David Thomison, David Munk, Michael Hallmark, Jimmy Sikes, Paul Elkins,
Chris Foster, Trina Bickford, Leticia Zavala, Kathy Ragsdale, Wes Wright, Shae Luther, Bridget
Chapman, Sheila Mitchell, Micki Rundell (joined at 2:35PM)
OTHERS PRESENT: Allen Woelke/CDM Smith, Gene Chisum/CH2M Hill, John Hofmann/Brazos River
Authority (BRA), Jay Middleton/BRA
__._.._. __ .._.. ---- _.----- ..
Regular Meeting
Board may, at any time, recess the Regular Session to convene in Executive Session at the request of the
Chair, a Board Member, the City Manager, Assistant City Manager, City Council Member, or legal
counsel for any purpose authorized by the Open Meetings Act, Texas Government Code Chapter 551, and
are subject to action in the Regular Session that follows.
Called to Order at 2:OOPM
Thomison stepped out of meeting at 2:02PM
I. STAFF BOARD COMMENTS/QUESTIONS:
(This is a short informational time regarding items where specific actions are not requested or needed)
A. Introduction of Visitors -- John Hofmann and Jay Middleton/BRA, Gene Chisum/CH2M Hill,
Allen Woelke/CDM Smith
B. Project Progress Reports -- available in packets. No discussion.
-- Council Actions -- All items passed with the exception of Item R (Westside Service
Center contract with PGAL), which was pulled by staff to complete contract language;
to be placed on the next Council agenda.
C. Industry Updates -- No discussion.
II. LEGISLATIVE REGULAR AGENDA:
(This is for specific action items considered by the Board —greater than $50,000 in value)
D. Review and possible action to approve the minutes from the regular GUS Board meeting held
on July 12, 2013. -- Sheila Mitchell
Discussion: None. Motion by Yaeger, seconded by Kostka to approve the minutes from
the regular GUS Board meeting held on July 12, 2013. Approved 6-0-1 (Eason Absent)
E. Discussion and possible recommendation to approve an Agreement between the City of
Georgetown and Highlands at Mayfield Ranch MUD for the operation and maintenance of its
wastewater collection system. -- David Thomison/Glenn Dishong
Discussion: Dishong stated Highlands at Mayfield is a MUD district located on our
southwestern border in our water CCN but outside our ETJ (is in RR ETJ) is a companion
MUD to Parkside. We service and own water infrastructure in both MUDs, however
wastewater goes into Cedar Park system. We've been providing retail sewer service to
Parkside, collecting their bills and forwarding payment for their treatment portion of
their service. This agreement is the same as Parkside; identical service for retail sewer
service, service calls, system maintenance, which we will bill them for.
Eason joined meeting at 2:06PM. Thomison returned to meeting at 2:08PM.
Young asked and Dishong explained we've been providing service to Parkside and
Highlands is a new subdivision by same developer. Stump asked if City will have to hire
extra staff and Dishong stated no additional staff needed and all our employees are
dually certified and licensed. Briggs commented on our plumbing inspectors, noting we
charge for that service. Hesser asked if revenue is monthly/annually and Dishong
explained connections should come in the next 3-4 months. Yaeger asked if we have
cost associated and Dishong explained City has minimal costs and profits from service
provided. Motion by Yaeger, seconded by Hesser to approve an Agreement between
the City of Georgetown and Highlands at Mayfield Ranch MUD for the operation and
maintenance of its wastewater collection system. Approved 7-0-0
F. Consideration and possible recommendation to negotiate a contract with CH2M HILL for
the operation of the City's water and wastewater plants for the next five (5) years.
-- David Thomison/Glenn Dishong
Discussion: Dishong stated plant operations have been under contract operations for 20
years; the first 10 year operated both water and wastewater contracts by CH2M HILL
and OMI (now CH2M HILL). Ten years ago when the contract went out for an RFP, we
had a substantial cost savings opportunity by splitting into two contracts and having
BRA operate the wastewater treatment plants and OMI operate the water plants. The
most current contact ends at the end of September. From the recent RFP issued we had
3 proposers; 2 proposals qualified. OMI for water and wastewater; BRA for wastewater
only. After evaluation staff recommends negotiations with OMI (CH2M HILL) to operate
both plants due to substantial cost savings by bringing them under one company. Young
asked if costs are to be determined and Dishong stated they were required to provide a
first year cost and estimates for years 2-5 costs. Further discussion continued. Eason
stated concerns with bid not being apples to apples comparable, however, Dishong
further explained OMI (CH2M HILL) also bid out wastewater only. Eason stated she
would like to review numbers. Bickford stated costs were not yet public as this was a
proposal, not a formal bid, therefore any discussion on costs would need to be conducted
in Executive Session. Motion by Eason, seconded by Hesser to enter into Executive
Session for discussion regarding item. Approved 7-0-0
EXECUTIVE SESSION Called to order at 2:20PM
In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes,
Annotated, the item listed below will be discussed in closed session and is subject to action in the
regular session that follows.
Sec. 551.071 Consultation with Attorney for discussion regarding Item F.
Elkins departed meeting at 2:23PM.
Motion by Hesser, seconded by Eason to return to regular session. Approved 7-0-0
Regular Session called back to order at 2:35PM
Rundell joined meeting at 2:35PM
No further discussion on item F. Motion by Kostka, seconded by Hesser to negotiate a contract
with CH2M HILL for the operation of the City's water and wastewater plants for the next five
(5) years. Approved 7-0-0
Bickford departed meeting at 2:36PM
G. Discussion and update regarding Chisholm Trail Special Utility District (CTSUD)
consolidation -- Jim Briggs
Discussion: Briggs provided update on recent votes by CTSUD Board; 7-0 to move
forward to a contract to bring back to their board for vote. The contract was presented to
the CTSUD board and they voted 3-3 to table the item until August 15th. Briggs stated
CTSUD Board had concerns with any actions the public may be able to take regarding
legal action against them. Stated CTSUD legal counsel Corbett and one CTSUD Board
member resigned at the last meeting and board voted 3-3 against proposed contract.
Yaeger asked if issues were stated for reason of legal counsel resignation & Briggs noted
no specific reasons disclosed. He also stated the board member who resigned has
withdrawn his resignation so will return as a member of the board and be present for
the next vote. CTSUD has secured new legal counsel; Leonard Dougal who served as a
former counsel for them. Dougal has previously worked with both CTSUD board and
the City in regards to the CTSUD consolidation. Further discussion continued.
Eason stepped out of meeting at 2:42PM and returned at 2:44PM
Briggs stated CTSUD still wants to come to a determination at their next meeting on the
15th and may want to put a resolution on the election ballot in November for their
customers to determine. Young asked and Briggs stated it is up to CTSUD to determine
what direction they want to head with the contract. The City hopes for a stronger than
4-3 vote and has expressed concerns to CTSUD that delays are costing money and pull
down fund ratings. Kostka asked and Briggs stated discussion has occurred between
the City and CTSUD since the 3-3 vote occurred. We have been in constant contact with
their committee to try and work on the details. No action required.
H. Consideration and possible recommendation of the proposed amendments to the current
Water Rate Ordinance. -- Glenn Dishong/Jim Briggs
Discussion: Dishong stated Zavala will review both items H & I. Zavala noted review
of rate making methodology, electric rates, water rates and the next steps.
Wright stepped out at 2:51PM and returned at 2:54PM. Thomison stepped out at 2:54PM and returned at
3:03PM
Zavala reviewed presentation and provided handout for Board. Stump asked and Zavala
explained average use per month. Stump asked how this compares to surrounding areas
and Foster discussed rates of PEC (Pedernales Electric), Austin and open market power
(most on Oncor meters) and stated we are right in that range. Foster stated he pulls rates
each December and noted information can be found at www.economy.georgetown.org.
Briggs/Foster further discussed. Zavala then reviewed water rates. Briggs spoke on rates
inside vs. outside of City. Zavala continued presentation noting items are scheduled for
Council on August 27th, Electric rates will be effective October 1st and Water rates are
effective January 1, 2014. Question on why waiting until January for water rate change;
Zavala noted in conjunction with Conservation/Education program; Briggs noted January
is a low usage month. No further discussion. Young noted discussion covered items H
and I. Motion by Hesser, seconded by Stump to approve both items H & I;
H) Consideration and possible recommendation of the proposed amendments to the
current Water Rate Ordinance and (I) Consideration and possible recommendation of
the proposed amendments to the current Electric Rate Ordinance. Further discussion:
Lindsey asked if we anticipate feedback on rate increases since garbage went up and
Briggs noted yes and Zavala will handle questions/concerns and City will welcome
dialogue with citizens on concerns. Briggs further elaborated on feedback from focus
groups and mentioned conservation; also trying to continue to educate customers.
Foster spoke on behavioral changes for 6-12 months when rates change and then usage
returns to prior levels. Motion stands as stated. Approved 7-0-0
I. Consideration and possible recommendation of the proposed amendments to the current
Electric Rate Ordinance. -- Glenn Dishong/Jim Briggs
Discussion: see notes above. Item approved 7-0-0, with Item H above.
Motion by Yaeger, seconded by Kostka to enter into Executive Session. Approved 7-0-0. Board took 5
minute break.
III. RATES:
EXECUTIVE SESSION Called to order at 3:28PM
In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes,
Annotated, the item listed below will be discussed in closed session and is subject to action in the
regular session that follows.
Sec. 551.071 Consultation with Attorney
J. Presentation and discussion regarding Chisholm Trail Special Utility District CTSUD
consolidation.
The GUS Board will go into Executive Session under Chapter 551 of the Texas Government Code to
discuss matters or take action on a "competitive matter" of the Energy Services Department as provided
under Section 551.086
Sec.551.086 Competitive Matters
K. Consideration and possible recommendation of proposed amendments to the Electric
Rate Ordinance. -- Glenn Dishong/Jim Briggs
L. Consideration and possible recommendation to negotiate a contract with SunPower
Corporation, of San Jose, CA, for the construction of a utility scale ground mounted solar
generation system for the purpose of acquiring low cost renewable energy.-- Kathy
Ragsdale/Glenn Dishong/Jim Briggs
M. Consideration and possible recommendation to negotiate a contract with Borrego Solar
Systems, Inc., of San Diego, CA, for the analysis of local sites, site design and cost of a 5 MW
ground mounted solar generation system to be connected to the City's electric distribution
system. -- Kathy Ragsdale/Glenn Dishong/Jim Briggs
Hesser departed meeting at 4:05PM
N. Update and possible recommendation regarding Power Supply Purchase for June 2014
through May 2015. -- Jimmy Sikes/Jim Briggs
Motion by Eason, seconded by Yaeger to return to regular session. Approved 6-0-1(Hesser absent)
RETURN TO REGULAR SESSION called to order at 4:34PM
O. Action from Executive Session.
J. No action taken
K. No action taken
L & M - Motion by Lindsey, seconded by Yaeger to approve items L & M;
(L) Consideration and possible recommendation to negotiate a contract with SunPower
Corporation, of San Jose, CA, for the construction of a utility scale ground mounted solar
generation system for the purpose of acquiring low cost renewable energy and (M)
Consideration and possible recommendation to negotiate a contract with Borrego Solar
Systems, Inc., of San Diego, CA, for the analysis of local sites, site design and cost of a
5 MW ground mounted solar generation system to be connected to the City's electric
distribution system. Approved 6-0-1(Hesser absent)
N. No action taken
IV. STRATEGIC ISSUES
P. Discussion regarding Water rates. -- Jim Briggs
Discussion: Previously discussed. No new business.
Q. Discussion regarding Electric rates. -- Jim Briggs
Discussion: Previously discussed. No new business.
R. Discussion of the 2013 Texas Legislative Special Session. -- Jim Briggs
Discussion: Briggs noted items covered in Special Session. Two billion dollars was
given in funding for water with 2% below market rates for financing. Depending on
other projects, this may or may not have an impact; goes into effect September 1st.
Stump asked and Briggs responded regarding damming the San Gabriel river, which
is not allowed due to environmental impact, however other options may need to be
evaluated.
V. ADJOURN
Motion by Eason, seconded by Lindsey to adjourn. Adjourned at 4:45PM