HomeMy WebLinkAboutMinutes_GUS_01.14.2011
Minutes of the Meeting of the
Georgetown Utility System Advisory Board
and the Governing Body of the
City of Georgetown, Texas
Friday, January 14, 2011
The Georgetown Utility System Advisory Board of the City of Georgetown, Texas, met on Friday ,
January 14, 2011.
Board Members Present:
John Nett - Chair, Richard Lenning - Secretary, Fred Beach, Patty Eason, Stephen Quinn, Robert Young
Board Members Absent:
Bill Sattler
Staff Present:
Jim Briggs, Glenn Dishong, Tom Benz, Paul Elkins, Jimmy Sikes, David Thomison, Mark Sokolow,
Micki Rundell, Ken Arnold, Chris Foster, Sheila Mitchell
OTHERS PRESENT: Mark Zion/Texas Public Power Association (TPPA)
Minutes
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.
CALL TO ORDER Called to order 2:07pm
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 -- Mark Zion, Executive Director/TPPA, Austin, TX
MOVED TO ITEM I HERE
B. Project Progress Reports
Discussion: Benz noted all projects are updated in reports provided. He also updated
the Board on their request for updated budget information to be included in project
reports, as well as Council final determination on items that were forwarded from the
Board on to Council for approval. Lenning asked and Benz stated on 2006 Annexations
there is only one outstanding easement and one change to a property to finalize details.
Lenning asked and Dishong answered we now have 6.75 million gallons of storage
capacity at the LWTP Clearwell location. Young asked and Benz responded the LWTP
Expansion Phase III is out for bid with notification to 10-12 firms; with a mid-February
deadline for submitting documents.
MOVED TO ITEM D HERE
C. Industry Updates
Discussion: Briggs noted some additional legislative issues with ground water
conservation districts and their ability to manage resources in those districts. This may
impact Brazos River Authority's future water supply development. Nodal market began
during the Christmas holiday period and so far there has not been any major issues or
discussion. Briggs discussed wind farms and their distribution. Dishong discussed water
items -- during Sunset review of PUC, there could be a possible change to PUC for rate
making authority from TCEQ and possible CCN authority from PUC to ano ther agency.
In addition TCEQ may receive authority on mandating what utilities have to do with
drought plans, instead of the utility managing their own plan. Nett asked and Dishong
responded regarding the significant increase in permit fees from last legislative session,
which greatly effected municipalities.
MOVED TO ITEM F HERE
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 December 10, 2010. -- Sheila Mitchell
Discussion: None
Action: Motion by Young, seconded by Beach to approve the minutes from the regular
GUS Board meeting held on December 10, 2010.
Approved: 6-0-1 (Sattler absent)
E. Consideration and possible recommendation concerning the purchase of an electric line
easement along SH 195 from Austin White Lime Company in the amount of $81,135.00,
plus closing costs not to exceed $2,500.00, in connection with the Overhead Feeders to
Somerset Project. -- Terri Calhoun/Paul Elkins
Discussion: Benz noted easement on SH 195 needed for expansion of feeder lines,
which will expedite construction of lines by having easement in advance. Quinn
asked and Elkins responded line starts at Glasscock substation and runs out to
SH 195, which will provide access for the Utility to access service requirements to
the Somerset Project. Quinn asked and Elkins responded regarding cost of easement
and location/layout of easement which also involves other utilities both wet & dry.
Quinn asked and Elkins noted lines will be OH. Nett asked and Elkins/Benz responded
this easement is exclusive to Georgetown Utility System. Costs are similar to
annexation of water lines. Quinn asked and Benz responded costs are calculated by
an independent appraiser for fair market value; this purchase is being done in
conjunction with TXDOT purchase of a right-of-way. Quinn asked and Elkins
responded other utilities are using the same appraiser to negotiate all the easements
so values are all consistent. Quinn asked and Benz responded costs of purchasing
this easement is less expensive than running lines up Williams Drive.
Action: Motion by Young, seconded by Beach to approve the purchase of an electric
line easement along SH 195 from Austin White Lime Company in the amount of
$81,135.00, plus closing costs not to exceed $2,500.00, in connection with the
Overhead Feeders to Somerset Project.
Approved: 6-0-1 (Sattler absent)
RETURN TO ITEM C HERE
F. Consideration and possible recommendation to approve the contract for the 2010
Rivery Substation Upgrade to J. M. Davidson, Ltd., of Aransas Pass, TX, in the amount
of $318,972.00. -- Tom Benz
Discussion: Benz reviewed project building infrastructure to accept the new
transformer ordered last year. Young asked and Benz stated we had 8 firms pick
up plans and only 1 bid received. Most contractors did not have current resources
available during required time frame to complete project. Quinn expressed concern
that vendor is not local; Benz responded vendor may use local contractors to perform
the work, if they choose. Briggs noted project was publically advertised.
Action: Motion by Young, seconded by Quinn to approve the contract for the 2010
Rivery Substation Upgrade to J. M. Davidson, Ltd., of Aransas Pass, TX, in the amount
of $318,972.00.
Approved: 6-0-1 (Sattler absent)
G. Consideration and possible recommendation to approve the purchase of a portable
sewer inspection camera system from Aries Industries, Inc., of Waukesha, WI, in the amount
of $51,691.00. -- David Thomison
Discussion: Thomison stated over the last several years there were 8 phases for smoke
testing on the collection system, however, this type of testing is no longer allowed by
TCEQ. We currently have a camera van and to support the van we are seeking a
portable unit to expedite the process and meet the new required 5 year time frame. This
will also allow us access to review the lines on the greenbelts and golf courses, without
causing damage to courses. Quinn asked about cost outsourced vs in-house staff and
purchase of additional equipment. Dishong noted savings from previously outsourcing,
stating we are currently staffed to perform testing. The focus is on continued use of
equipment as requirements are now once every 5 years. Briggs noted costs are in-line
with plan laid out with Council to do in-house and will allow us to continually
perform function and meet TCEQ requirements, and can immediately address any
issues found.
Action: Motion by Beach, seconded by Young to approve the purchase of a portable
sewer inspection camera system from Aries Industries, Inc., of Waukesha, WI, in the
amount of $51,691.00.
Approved: 6-0-1 (Sattler absent)
H. Consideration and possible reco mmendation to award the FM 971 Dual Circuit Project to
Mastec North America, Inc., of Dallas, TX in the estimated amount of $160,000.00. -- Paul Elkins
Discussion: Elkins presented item noting in March/April 2010 contract was awarded to
H&B Construction for general OH work. This current project, with a completion time of
April, needs to be awarded to a second bidder due to H&B not being able to construct the
project by the April time frame. Mastec has agreed to honor their bid prices from last
year. Beach asked and Dishong/Elkins responded contract is non-exclusive and H&B is
not required to complete this specific project and therefore project can be awarded to
next bidder. Quinn asked and Elkins responded performance of current contractor wil l
be reviewed when contract is up for renewal, however, this is not a performance issue;
it is a time constraint issue. Briggs inquired about cost of H&B constructing project vs.
Mastec's cost to construct. Elkins noted possible 5-10% increase, however vendor did not
include a price premium. Briggs noted costs should then be comparable.
Action: Motion by Young, seconded by Lenning to award the FM 971 Dual Circuit
Project to Mastec North America, Inc., of Dallas, TX in the estimated amount of
$160,000.00.
Approved: 6-0-1 (Sattler absent)
MOVED TO SECTION IV., ITEM J HERE
III. STRATEGIC ISSUES:
I. Discussion of the 2011 Texas Legislative Session. -- Jim Briggs
Zion explained service provided by TPPA for publicly owned electric utilities. Zion
provided update on upcoming legislative session: redistricting will be the largest item,
budget deficit, voter identification, immigration reform as well as the Sunset Review of
27 state agencies. Zion discussed ERCOT review under Sunset and some upcoming
challenges pertaining to the NODAL market. Legislation will be introduced regarding
Energy Efficiency. He discussed municipal utility issues such as energy effici ency
especially affecting investor owned utilities, and solar energy, which municipal utilities
are not subject to under current mandates. Possible legislation will be introduced on
Solar and Zion further explained. In addition, Zion discussed expected legislation on
eminent domain and issues surrounding property owners as well as needed utility
infrastructure to be constructed. Transparency is an issue that will be discussed in
legislation re: competitive matters and confidentiality exemptions for municipalities;
possible legislation to either narrow or repeal the confidentiality exemption for
municipal utility competitive matters will be introduced. If legislation is introduced,
TPPA will make a very strong case against it. He discussed Austin's generation plan
and possible proposed legislation; possible legislation regarding outside City rate
payers and their options. Briggs commented on increasing energy efficiency, noting
the City recently adopted a program where $1.00 from customers bill goes into a fund
to assist other customers with energy efficiency needs. Briggs asked and Zion
commented on what other Utility's are doing to assist with these type of programs for
their rate payers. Briggs and the Board thanked Zion for his attendance and providing
the legislative update. Zion spoke on Brigg's continued involvement with TPPA and his
commitment to the utility industry, thanking him and the City for their support of TPPA
and the work they do.
MOVED TO ITEM B HERE
RETURN TO ITEM J HERE
Motion by Beach, seconded by Quinn, to enter into Executive Session and that Item J is a competitive
matter as provided under Section 551.086. Approved 6 -0-1 (Sattler absent)
IV. RATES:
EXECUTIVE SESSION Called to order at 3:34pm
Sec.551.086 Competitive Matters
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
J. Discussion related to City of Georgetown Power Supply bids beyond 2016. -- Jim Briggs
Motion by Quinn, seconded by Eason to return to Regular Session. Approved 6-0-1 (Sattler absent)
RETURN TO REGULAR SESSION Called to order at 4:31
K. Action from Executive Session.
None
Motion by Young, seconded by Quinn to adjourn. Approved 6-0-1 (Sattler absent) Adjourned 4:32p.m.
Adjournment
The meeting was adjourned at 04:32 PM.
Approved : Attest:
_______________________ ________________________
John Nett - Chair Richard Lenning, Secretary