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HomeMy WebLinkAboutMinutes_GUS_09.11.2015Minutes of the Meeting of the Georgetown Utility Systems Advisory Board and the Governing Body of the City of Georgetown, Texas September 1.1, 2015 at 2:44PM at Georgetown Municipal Complex, 300-1 Industrial Avenue, Georgetown, TX The City of Georgetown is committed to compliance with the Americans with Disabilities Act (ADA). If you require assistance in participation at a public meeting due to a disability, as defined under the ADA, reasonable assistance, adaptations, or accommodations will be provided upon request. Please contact the City at least four (4) days prior to the scheduled meeting date, at (512)930-3652 or City Hall at 113 East 8th Street for additional information: TTY users route through Relay Texas at 711. Board Members Present: Bill Stump — Chair, Ed Pastor — Vice Chair, Mike Cunningham — Secretary, Robert Kostka, Steve Fought, Joyce Mapes Board Members Absent: Ty Gibson Staff Present: Mike Babin, Glenn Dishong, Paul Elkins, Jimmy Sikes, Michael Hallmark, David Thornison, David Munk, Chelsea Soloman, Leticia Zavala, Chris Foster, Trina Bickford, Mike Stasny, Casey Lane, Bridget Chapman, Sheila Mitchell Others Present: Neil McAndrews (joined at 2:07PM) Regular Session (This Regular Session may, at any time, be recessed to convene an Executive Session for any purpose authorized by the Open Meetings Act, Texas Government Code 551.) A. Call to Order --Called to order by Chair at 2:OOPM. Chair noted Item Lis being pulled ftom the agenda. The Board may, at any time, recess the Regular Session to convene an Executive Session at the request of the Chair, a Board Member, the City Manager, Assistant City Manager, General Manager of Utilities, 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. B. Introduction of Visitors — none Employee Recognition -- Paul Elkins — Stump announced Elkins resignation from the City to begin work for M&S Engineering. Stump noted some of Elkins accomplishments and projects worked on while employed with City and thanked him for his service. -- Casey Lane -- Dishong introduced Lane as Utility Safety and Training Coordinator. Lane was recognized as being the first responder and providing critical aid to a citizen involved in a serious auto/motorcycle accident near the Recreation Center. We would like to thank Casey for immediately stopping to assist with the accident until emergency personnel could arrive. Dishong also noted Lane is the current manager of the Lineman Training Program, which Elkins helped to establish. --Management changes: Mike Stasny, Jimmy Sikes Dishong stated some management changes were taking place as a result of Elkins departure and part of some reorganization of the departments. Sikes will be taking over Elkins' position as Electric Engineering Manager and Sikes' current position is to be filled in near future. With some of the restructure, some groups will now fall under Technical Services, which will be managed by Stasny. Dishong introduced Stasny stating he will attend board meetings as needed. C. Discussion regarding the Project Progress Report, timelines including projects and Council Actions. — Michael Hallmark, Project Manager Discussion: Hallmark stated updated reports included in packets. Kostka asked for update on EARZ project that was out for bid. Hallmark stated bids came in, evaluations are being done on lowest bidder and update should come to GUS Board next month. No further discussion. D. Industry Updates Discussion: Babin updated on CTSUD CCN hearing. Lawyers for both sides have filed their briefs, summaries and responses. Judge's ruling expected in October; PUC final ruling in December. Wind update: LCRA seeking to exit a large wind deal they had on the coast, mostly due to pricing; seeking a ruling to limit their damages of liability on early exit. Update on our wind turbines — they are construction complete, operational and delivering power to ERCOT. We are waiting to receive commercial delivery and daily scheduling from them. We are within a couple of weeks of receiving delivery of power officially from our wind farm. There are 97 turbines. Stump asked and Foster responded regarding pricing and stability of pricing. Further discussion continued on efficiency and demand. Babin spoke on increased customer growth rate, home sizes and efficiencies. Stump, Foster and Cunningham spoke on Green Building industry, US rates and usages, and weather patterns vs. what is happening in other countries. No further discussion. Legislative Regular Agenda The Board will individually consider and possibly take action on any or all of the following items: E. Review and possible action to approve the minutes from the Regular GUS Board meeting held on August 14, 2015. — Sheila K. Mitchell, GUS Board Liaison Discussion: None. Motion by Kostka, seconded by Pastor to approve the minutes from the Regular GUS Board meeting held on August 14, 2015. Approved 6-0-1 (Gipson absent) F. Consideration and possible recommendation to renew the annual agreement for Material Acquisition to purchase electric distribution, fiber and substation materials for the FY 2015-2016 from Techline Ltd. under their contract with the Lower Colorado River Authority ("LCRA") Electric Material Acquisition Program in the estimated amount of $4,000,000.00. — Paul Elkins, Electric Engineering Manager and Wesley Wright, P.E., Systems Engineering Director Discussion: Elkins explained program. We pay a small usage fee and pay a percentage over their cost. Elkins provided update on amount spent this last year. Stated purchases are on an as needed basis, based on project load. Stump stated this is repeat of contract we approve each year and Elkins noted LCRA last bid out in 2003. This allows the City to purchase under their contract and not have to bid each item out. Kostka stated the nominal fee charged by LCRA to utilize their contract was well worth the expense. Motion by Cunningham, seconded by Kostka to approval the renewal of the annual agreement for Material Acquisition to purchase electric distribution, fiber and substation materials for the FY 2015-2016 from Techline Ltd. under their contract with the Lower Colorado River Authority ("LCRA") Electric Material Acquisition Program in the estimated amount of $4,000,000.00. Approved 6-0-1 (Gipson absent) G. Consideration and possible recommendation to renew the contract for the Electric System Underground Construction & Maintenance with Pedro S.S. Services, Inc. of Austin, Texas, in the estimated amount of $3,050,000.00. -- Paul Elkins, Electric Engineering Manager and Wesley Wright, P.E., Engineering Director Discussion: Elkins explained underground contractor assistance for labor only; approximately $450,000 less than requested last year. This is a renewable bid and this is first year renewal of the bid. Work is paid on a job by job basis on unit cost. They have performed well the last several years. Kostka asked and Elkins noted the 5% escalation is reasonable however doesn't always cover the increase of labor however they are held to that rate per agreement. Further questions about last year's bid, how determined, project work to be done; Elkins responded to all questions. Contractor is responsible for their own insurance including workman's compensation. Elkins noted they have done exceptional work when working in customer's property, leaving no trace of recent work performed. Motion by Cunningham, seconded by Mapes to approve the renewal of the contract for the Electric System Underground Construction & Maintenance with Pedro S.S. Services, Inc. of Austin, Texas, in the estimated amount of $3,050,000.00. Approved 6-0-1 (Gipson absent) H. Consideration and possible recommendation to approve annual task orders: Task Order MEI -16-001 for Electric System & Planned Capital Improvement Projects in the amount of $750,000.00, Task Order MEI -16-002 for Electric System Engineering Planning and Engineering Assistance in the amount of $400,000.00 and Task Order MEI -16-003 for New Development Engineering and Design Assistance in the amount of $550,000.00 with McCord Engineering, Inc., of College Station, Texas, for professional engineering services. -- Paul Elkins, Electric Engineering Manager and Wesley Wright, P.E., Engineering Director Discussion: Elkins stated item covers three Task Orders. McCord has a Master Service agreement with City. Each Task Order covers different services/scope of work. Some costs are captured through developer reimbursements. They have been performing engineering assistance for the City for numerous years and provide excellent service. Estimates are slightly increased from last year; approx. $4,000.00. Total amount spent is projected based on previous year's work. Further discussion continued regarding fee schedule and anticipated hours. Board requested such information be brought back for consideration and approval of Task Orders to October meeting. Motion by Cunningham, seconded by Kostka to approve continuance of the existing task orders for the existing rates, for an additional month, with any work done under current Task Orders to be approved or trued up if needed if new Task Orders are approved; with information on requested fees and anticipated hours to be presented at the next board meeting, for consideration and approval of new Task Orders presented. Approved 6-0-1 (Gipson absent) Elkins departed meeting at 2:36PM 1. Consideration and possible recommendation to renew the annual contract for Tree Trimming and Vegetation Management Bid to National Tree Expert Company, Inc., of Burnet, Texas, in the estimated amount of $310,000.00. —Jimmy Sikes, T&D Services Manager Discussion: Sikes presented item stating this was a renewal for fifth year of contract. Sikes stated they have done a very good job and are very customer oriented. Stump stated and Sikes noted same contract as before with renewal this year; this is last renewal. Cunningham asked and Sikes confirmed rates are reflected in their purchase order. Motion by Mapes, seconded by Cunningham to renew the annual contract for Tree Trimming and Vegetation Management Bid to National Tree Expert Company, Inc., of Burnet, Texas, in the estimated amount of $310,000.00. Approved 6-0-1 (Gipson absent) J. Consideration and possible recommendation to amend the contract with CH2M HILL for the management, operation and maintenance of the City's water and wastewater treatment facilities for the period starting October 1, 2015 through September 30, 2016 for a total combined operating budget of $3,377,222.69. — David Thomison, Water Services Manager Discussion: Thomison provided update on taking plant operations back in-house, which has been in the works for quite some time and evaluations have been done for cost savings. Thomison noted details of staff proposal to contractor for turnover time frame, which contractor is not in agreement with. With Board approval, staff proposes to continue with negotiations to reach a final agreement and present for Council approval. Dishong noted additional negotiations are under way between the City and OMI to reach an agreement. Cunningham asked who initiated contract change and why? Dishong stated City evaluated and had an engineering firm confirm City's evaluation that City could save a substantial sum to bring services in-house. Further discussion continued about timing, cost savings, evaluation and staffing. Stump asked what Board was being asked to approve? Cunningham asked about copy of engineer's report and Dishong will provide information. Stump asked if CH2M was not in favor of current proposed amendment and Dishong confirmed. Cunningham referred to various sections of the agreement noting he would like additional information to be provided to Board before making a determination. Stump asked if not approved today, will there be issues and Dishong stated they would be operating without an amended contract, which is approved each year to spend additional funds; operating at risk. Further discussion continued. Cunningham asked if first visit to GUS and Dishong stated yes; Fought noted it was brought previously in concept but not full detail. Fought felt the Council would prefer to have GUS Board's recommendation prior to approving. Cunningham asked to bring item back to GUS Board in October with review of engineer's report and response to questions regarding the various areas of the agreement in question. Further discussion continued with options to be considered. Babin discussed options for full year amendments to contract and future amendments for consideration later in year. Cunningham asked further questions and asked for information to be brought back to GUS in October for final consideration. Motion by Fought, seconded by Cunningham to postpone consideration and approval of item and return item to GUS Board meeting in October for consideration and approval upon review of additional information requested. Approved 6-0-1 (Gipson absent) K. Consideration and possible recommendation to approve the purchase of Bioxide from Evoqua Water Technologies LLC of Sarasota, Florida, in an amount not to exceed $50,000.00, for Fiscal Year 2015/2016. — David Thomison, Water Services Manager Discussion: Thomison provided information on treatment material and process. Cunningham spoke about his knowledge of facilities. Feels city is being very cost effective at using this process. Stump asked and Thomison explained type of solution. Motion by Cunninghm, seconded by Mapes to approve the purchase of Bioxide from Evoqua Water Technologies LLC of Sarasota, Florida, in an amount not to exceed $50,000.00, for Fiscal Year 2015/2016. Approved 6-0-1 (Gipson absent) L. Consideration and possible recommendation to allow the proposed Ranchito Subdivision, (aka 12.98 acres in the William Roberts Survey, A-524, Williamson County, Texas) the use of an onsite sewer system (septic system) in lieu of a public wastewater system according to Section 13.06.030A.4 of the City's Unified Development Code. -- Jordan Maddox, Acting Planning Director and David Munk, Utility Engineer Discussion: ITEM WAS PULLED FROM AGENDA AT MEETING M. Consideration and possible recommendation to procure consulting services with Neil McAndrews and Associates for Resource Price Risk Management. — Chris Foster, Resource Planning & Integration Manager Discussion: Foster introduced McAndrews and noted that the Board doesn't see McAndrews service contact every year due to work load and industry involvement. He has been working with the City since at least 2000. Most of his work costs have fallen under amount to be approved by the Board. Services will increase this year due to changes in the industry and needs. No discussion. Motion by Kostka, seconded by Pastor to procure consulting services with Neil McAndrews and Associates for Resource Price Risk Management. Approved 6-0-1 (Gipson absent) Adjournment Motion by Cunningham, seconded by Kostka to adjourn the meeting at 3:13PM. Approved 6-0-1 (Gipson absent) c Bill Stump — Board Chair 4eila K. Mit el , GUS Board Liaison