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Home My WebLink AboutMinutes_GUS_12.08.2011 Minutes of the Meeting of the Georgetown Utility System Advisory Board and the Governing Body of the City of Georgetown, Texas Thursday, December 8, 2011 The Georgetown Utility System Advisory Board of the City of Georgetown, Texas, met on Thursday , December 8, 2011. Board Members Present: Robert Young - Vice Chair, Fred Beach - Secretary, Brian Lindsey, Arthur Yaeger, Patty Eason (joined at 2:02pm) Board Members Absent: John Nett - Chair, Bill Sattler Staff Present: Jim Briggs, Glenn Dishong, Jimmy Sikes, Terri Calhoun, Michael Hallmark, Trina Bickford, Susan Morgan, David Munk, Chris Foster, Bridget Chapman, Sheila Mitchell 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 by Vice Chair Bob Young at 2:00PM 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 - none B. Project Progress Reports Discussion: Hallmark noted all up to date in packets. No discussion. -- Council Actions -- all items passed C. Industry Updates -- Briggs noted ERCOT has indicated we will have a generation shortage based on demand over the next few years. Load additions have been significant especially in oil producing areas. Statewide energy supply market is pretty tight; gas market continues to be low, which is the primary fuel for generation. Yaeger asked about mixed messages on coal plants being shut down and Briggs responded with update on EPA ruling. Yaeger asked and Briggs discussed number of megawatts coming off the grid. Beach commented further on regulated vs. deregulated markets; pricing, etc. Briggs further discussed and mentioned possible involvement of General Land Office and possibly the State to get involved. Beach commented the price will have to go up and Briggs agreed. Briggs commented on how we do our contracts vs. people who are just going onto the market, which price is directly related to the price of natural gas. 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 November 11, 2011. -- Sheila Mitchell Discussion: None Action: Motion by Beach, seconded by Yaeger to approve the minutes from the regular GUS Board meeting held on November 11, 2011. Approved: 5-0-2 (Nett, Sattler absent) AFTER DISCUSSION/VOTE OF ITEM E, Board returned to ITEM D, due to a request to revise the November minutes under Item B Discussion: -- regarding Beach's request for explanation of Council's vote of 4-3 against TDS contract. Eason clarified the three Council members in favor of the contract did not feel it should go out to bid; they were in total opposition to the four who voted against the contract. After further discussion, Beach asked for clarification of the minutes, by striking the "however" statement made in the November minutes. Action: Revised motion by Beach, seconded by Yaeger to revise minutes to reflect the last sentence of the discussion to read, "Eason elaborated Council was split on the decision." Mitchell will revise November minutes to reflect correction. Approved: 5-0-2 (Nett, Sattler absent) MOVED TO ITEM F E. Consideration and possible action to authorize the purchase of a 20' permanent water line easement (Parcel A8, Parts 1, 2 and 3) and a 25' temporary construction easement adjacent thereto from Phillip L. Lloyd and wife, Carrie J. Lloyd in the amount of $63,394.00, plus closing costs, in connection with the 2006 Annexation Utility Improvements Project. – Terri Glasby Calhoun Discussion: Calhoun presented item stating this should be the last easement we need to finish out the project, which related to a line connected to Chisholm Trail Special Utility District lines. Calhoun noted land owner would not come off their price due to land they sold to TXDOT, which is within our percentage; difference was what TXDOT paid price per sq ft. Young asked and Calhoun confirmed pricing. Action: Motion by Beach, second by Lindsay to authorize the purchase of a 20' permanent water line easement (Parcel A8, Parts 1, 2 and 3) and a 25' temporary construction easement adjacent thereto from Phillip L. Lloyd and wife, Carrie J. Lloyd in the amount of $63,394.00, plus closing costs, in connection with the 2006 Annexation Utility Improvements Project. Approved: 5-0-2 (Nett, Sattler absent) RETURNED TO ITEM D above due to a request for a REVISION of the November minutes. F. Consideration and possible recommendation to approve the contract for the 2011 Glasscock Substation Transformer Addition - Above Grade Construction Bid 201205 to Lambda Construction I, Ltd., of New Braunfels, TX in the amount of $648,200.00. -- Jimmy Sikes/Glenn Dishong Discussion: Sikes presented item as the above grade construction phase of the project. Advertised in November and received 25 requests for plans with 4 competitive bids received. Pike originally was lowest bidder however sections of contract were not agreed upon. Lambda was lowest qualified bidder and agreed to contract terms. Beach asked about work done in Rivery and Sikes explained work was acceptable. Beach asked and Sikes noted most everyone is coming in lower than consultant estimates. Young asked why only 4 out of 25 submitted bids and Sikes stated it is mostly due to short time frame to perform job. Young also asked if a lot of the co ntractors are taking exception to our contract and Sikes stated only 1 other took exception. Beach asked about arrival of transformer in early January and Sikes stated we have received a 2 week push out on schedule. Lambda has agreed to meet time frame of project. Briggs stated he noticed Lambda was only resident Texas bidder. Eason asked if our contract has changed to cause vendors to not want to contract with us. Chapman explained no changes; it usually has to deal with Liability and whether o r not vendors agree with our coverage requirements. Action: Motion by Beach, seconded by Yaeger to approve the contract for the 2011 Glasscock Substation Transformer Addition - Above Grade Construction Bid 201205 to Lambda Construction I, Ltd., of New Braunfels, TX in the amount of $648,200.00. Approved: 5-0-2 (Nett, Sattler absent) Chapman asked Young to please cite Government Code regarding Executive Session item -- Chapter 551.071 Consultation with Attorney. Young cited the Code and opened floor for motion. Motion by Beach, seconded by Eason to enter into Executive Session regarding discussion of item G. Approved 5-0-2 (Nett, Sattler absent) III. RATES EXECUTIVE SESSION Called to order at 2:41PM 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. G. Discussion related to negotiations with Chisholm Trail Special Utility District related to service area changes. -- Jim Briggs/Glenn Dishong Motion by Eason, seconded by Yaeger to return to regular session. Approved 5-0-2 (Nett, Sattler absent) REGULAR SESSION CALLED BACK T O ORDER 4:05PM H. Action from Executive Session NONE IV. STRATEGIC ISSUES: I. Update on water services area boundary changes. -- Jim Briggs/Glenn Dishong Discussion: Briggs provided update on alternatives to be presented to Council on December 13th which will be presented to Chisholm Trail Special Utility Board "CTSUD" on December 15th at the Georgetown Chamber of Commerce Office at 5:30PM. All Board members and public are welcome to attend. A decision is to be made by CTSUD which direction they will proceed. Briggs invited all GUS Board members to Council Executive Session on December 13th at 3:00PM; with water discussion around 4pm. Chapman stated Board members are welcome to attend as item is being reviewed and recommended by GUS Board. Motion by Lindsay, seconded by Yaeger to adjourn. Meeting adjourned at 4:09PM. ADJOURN Adjournment The meeting was adjourned at 04:09 PM. Approved : Attest: _______________________ ________________________ Robert Young - Vice Chair Fred Beach - Secretary