HomeMy WebLinkAboutMinutes_GUS_09.13.2013Minutes of the Meeting of the
Georgetown Utility System Advisory Board
and the Governing Body of the
City of Georgetown, Texas
Friday, September 13, 2013
The Georgetown Utility System Advisory Board of the City of Georgetown, Texas, met on Friday,
September 13, 2013.
Board Members Present:
Arthur Yaeger, Jr. - Vice Chair, Robert Kostka - Secretary, John Hesser, Bill Stump, Eason (joined at
2:4bpm)
Board Members Absent:
Robert Young, Brian Lindsey
Staff Present:
Jim Briggs, Glenn Dishong, Wesley Wright, Jimmy Sikes, Paul Elkins, David Munk, Michael Hallmark,
Chris Foster, Leticia Zavala, Trina Bickford, Jeff Rowe, Bridget Chapman (joined at 2:02pm), David
Thomison (joined at 2:03pm), Susan Morgan (joined at 2:10pm)
OTHERS PRESENT: Allen Woelke/CDM Smith, Trae Sutton/KPA Engineers, Michael Newman/KPA
Engineers, Neil McAndrews/Neil McAndrews & Associates
Minutes 1-1
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 order by Vice -Chair Arthur Yaeger, Jr. at 2:01PM
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 -- Allen Woelke/CDM Smith
B. Project Progress Reports -- all in packet for review
-- Council Actions -- Briggs updated regarding solar projects and stated Board will meet
in Executive Session to further discuss.
-- Drought Status -- Dishong provided update on current status noting the areas to
northeast, east and southeast which are getting worse. BRA is anticipating issuing a
stage 2 drought alert in early October, which will determine when we need to implement
our drought contingency plan. Dishong updated on pumps being tested to determine
repair needs and be able to bring back in service. Briggs provided further updates
regarding surrounding area drought situations.
C. Industry Updates -- none
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 August 9, 2013. -- Sheila Mitchell
Discussion: Kostka noted typo on spelling of 'dually' in item E; request to correct
spelling. Mitchell will verify spelling. Motion by Kostka, seconded by Hesser to
approve the minutes from the regular GUS Board meeting held on August 9, 2013.
Approved: 4-0-3 (Young, Lindsey, Eason absent)
NOTE: Spelling verified after board meeting; used in correct context for this application.
E. Consideration and possible recommendation to renew annual contracts 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
Discussion: Sikes noted National Tree has been performing the service and doing a good
job for the City. Yaeger asked and Sikes noted services are within the budget. No further
discussion. Motion by Hesser, seconded by Kostka to renew annual contracts 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: 4-0-3 (Young,
Lindsey, Eason absent)
Susan Morgan joined meeting here at 2:10PM
F. Consideration and possible recommendation to renew annual contracts for the Electric System
Underground Construction & Maintenance and the Electric System Trenching & Conduit
Installation Labor to Pedro S.S. Services, Inc. of Austin, Texas, in the estimated amount of
$1,950,000.00. -- Paul Elkins
Discussion: Elkins noted fourth renewal of contract. Pedro has been doing a great job on
work; maintenance projects with bulk of work being developer projects; this coming year
will be a lot of CIP Underground rehabilitation. Yaeger asked how compared to last year
and Elkins noted a little bit higher. Yaeger asked and Elkins confirmed contract will have
one more year for renewal and then City will go back out to bid. Motion by Kostka,
seconded by Hesser to renew annual contracts for the Electric System Underground
Construction & Maintenance and the Electric System Trenching & Conduit Installation
Labor to Pedro S.S. Services, Inc. of Austin, Texas, in the estimated amount of
$1,950,000.00. Approved: 4-0-3 (Young, Lindsey, Eason absent)
G. Consideration and possible recommendation to renew the annual agreement for Material
Acquisition for the purchase of electric distribution, fiber and substation materials for the
FY 2013-2014 from Techline Ltd. under their contract with the Lower Colorado River Authority
("LCRA") Electric Material Acquisition Program in the estimated amount of $ 2,800,000.00.
-- Paul Elkins
Discussion: Elkins noted renewal projects spending for next year's budget materials
purchased through Techline via the acquisition agreement that LCRA has in place. LCRA
recently rebid so this renewal has new pricing. It covers all materials except specialized
items which have to be ordered from specialized vendors. Hesser asked on what basis
were estimates made and Elkins noted they are for projects already under design.
Motion by Kostka, seconded by Hesser to renew the annual agreement for Material
Acquisition for the purchase of electric distribution, fiber and substation materials for the
FY 2013-2014 from Techline Ltd. under their contract with the Lower Colorado River
Authority ("LCRA") Electric Material Acquisition Program in the estimated amount of
$2,800,000.00. Approved: 4-0-3 (Young, Lindsey, Eason absent)
H. Consideration and possible recommendation to approve annual task orders: Task Order
MEI -14-001 for Planned Capital Improvement Projects in the amount of $550,000.00, Task Order
MEI -14-002 for Electric System Engineering Planning and Engineering Assistance in the amount
of $150,000.00 and Task Order MEI -14-003 for New Development Engineering and Design
Assistance for New Development Engineering and Design Assistance in the amount of
$400,000.00 for with McCord Engineering, Inc., of College Station, Texas, for professional
engineering services. -- Wesley Wright
Discussion: Wright explained these are new task orders for electric. This year we have
separated task orders instead of combining; Wright further explained details. The task
order for $550,000 is for Capital Improvement Plan work, which was recently approved
by Council. McCord has been providing service to City for over 20 years. The task order
for $150,000 is for in-house services we need engineering assistance with; hopes to
narrow this expense down over time. The task order for $400,000 is for new development
such as when Bass Pro comes to town and decide they need electric service, etc. Those
aren't things you can pre -plan for. These fees are developer reimbursement. Hesser asked
about using local services. Wright/Briggs noted there are very few in the area that do
electric distribution line work. Stump asked and Wright explained last year we did not
spend the full $450,000 last year, however we did utilize the full $250,000 on developer
projects. Motion by Kostka, seconded by Hesser to approve annual task orders: Task
Order MEI -14-001 for Planned Capital Improvement Projects in the amount of
$550,000.00, Task Order MEI -14-002 for Electric System Engineering Planning and
Engineering Assistance in the amount of $150,000.00 and Task Order MEI -14-003 for
New Development Engineering and Design Assistance for New Development
Engineering and Design Assistance in the amount of $400,000.00 for with McCord
Engineering, Inc., of College Station, Texas, for professional engineering services.
Approved: 4-0-3 (Young, Lindsey, Eason absent)
Elkins departed meeting at 2:20PM
I. Consideration and possible recommendation to award a contract with CH2M HILL for the
operation and maintenance of the City's water and wastewater facilities for the next five (5)
years and amended annually to CH2M HILL for a total combined of approximately $3,217,408.16
for fiscal year 2013/2014. David Thomison
Discussion: Thomison updated on revised contract noting legal has reviewed for
approval. Yaeger asked location of vendor and Thomison/Briggs responded they have
various locations in Texas. OMI is located in Denver, CO and CH2M HILL is a global
company. Yaeger asked if this was renewal and Thomison stated this was new vendor
for water & wastewater combined. Kostka asked and Thomison stated contract ends
September 30th and will go to Council September 24th. Motion by Kostka, seconded
by Hesser to award a contract with CH2M HILL for the operation and maintenance of
the City's water and wastewater facilities for the next five (5) years and amended
annually to CH2M HILL for a total combined of approximately $3,217,408.16 for fiscal
year 2013/2014. Approved: 4-0-3 (Young, Lindsey, Eason absent)
J. Consideration and possible recommendation to approve the purchase of Bioxide from Siemens
Water Technologies of Sarasota, Florida, in an amount not to exceed $70,000.00, for Fiscal Year
2013/2014. -- David Thomison
Discussion: Thomison explained the successful use of Bioxide over the last several years
and customers have been satisfied. Several questions were asked regarding use of and
make up of chemical; Thomison further explained. Motion by Kostka, seconded by
Hesser to approve the purchase of Bioxide from Siemens Water Technologies of
Sarasota, Florida, in an amount not to exceed $70,000.00, for Fiscal Year 2013/2014.
Approved: 4-0-3 (Young, Lindsey, Eason absent)
K. Consideration and possible recommendation to approve Task Order CDM -13-006 with CDM
Smith, Inc. of Austin, Texas, for professional services related to the Sequoia EST (Elevated Storage
Tank), Pumping and Water System Improvements Project in the amount of $825,900.00.
-- Michael Hallmark/Wesley Wright
Discussion: Wright explained the area to be served by Sequoia EST and stated it will
help to meet TCEQ requirements. Yaeger asked and Wright/Dishong explained current
location of tank to be removed and replaced with new tank. Wright explained. CDM
Smith proposal is approximately half is design and half is bidding and construction
services. Hesser asked and Hallmark explained a breakdown on fees is included in
packet. Hesser asked and Wright noted additional costs are associated for construction
approximately $5.5 -million. Hesser asked for requirement for elevated storage tanks
and Wright noted required by TCEQ; stated systems have to have ESTs in -case of
power loss, we have to be able to maintain pressure. Woelke/Thomison/Briggs further
commented. Briggs also noted there are some requirements from the insurance
industry for fire flow, etc. We are at an ISO rating of 2. Motion by Kostka, seconded
by Hesser to approve Task Order CDM -13-006 with CDM Smith, Inc. of Austin, Texas,
for professional services related to the Sequoia EST (Elevated Storage Tank), Pumping
and Water System Improvements Project in the amount of $825,900.00.
Approved: 4-0-3 (Young, Lindsey, Eason absent)
L. Consideration and possible recommendation to award a contract with Classic Protective
Coatings, Inc., of Menomonie, WI, for the rehabilitation of James Street EST (Elevated Storage
Tank) in the amount of $355,750.00. -- Michael Hallmark/Wesley Wright
Discussion: Wright explained location of James Street Elevated Storage Tank near
Southwestern University. We are working with Southwestern to put their logo on the
tank and they will reimburse the City for the logo. We will sandblast the tank, repair
any needed welds and paint inside and out. Yaeger asked and Hallmark/Briggs stated
the age of the tank construction is around 1975 or 1976. There were nine bidders for
the rehabilitation project. Hesser asked about difference in bids and Briggs noted the
consultant, Dunham, is very familiar with the vendors who do this type of work;
a lot of them are from out of state. Kostka asked if we have to take lowest bid and
Briggs confirmed lowest qualified bid. Stump asked if vendor will shroud the tank
and Wright stated it is required and further explained. Briggs noted process is handled
very well by vendor. Stump asked and Hallmark/Dishong stated there is about a 15-20
year life on paint job. This is first in sequence of tanks we are starting to rehab; all will
be done except for one being torn down. Hesser asked and Briggs noted life of composite
is same as steel. Hesser asked about salvaging materials from tank to be torn down
(regarding Sequoia tank). Wright noted we will find out what scrap is estimated worth,
as part of the bid process. Motion by Kostka, seconded by Hesser to award a contract
with Classic Protective Coatings, Inc., of Menomonie, WI, for the rehabilitation of James
Street EST (Elevated Storage Tank) in the amount of $355,750.00.
Approved: 4-0-3 (Young, Lindsey, Eason absent)
M. Consideration and possible recommendation to approve the contract for construction of the
North Georgetown Addition Water Line Improvements to Royal Vista Inc., of Liberty Hill, Texas
for the amount of $697,250.00. -- Michael Hallmark/Wesley Wright
Discussion: Wright noted North Georgetown Addition is east of intersection of Williams
Drive and Austin Avenue. Entails approximately one mile of existing line. A very
competitive bid with ten bidders. Costs came in below estimate. Funding will be in next
FY budget. Stump asked and Wright noted Royal Vista Inc. has been in business for 15
years. Motion by Hesser, seconded by Kostka to approve the contract for construction
of the North Georgetown Addition Water Line Improvements to Royal Vista Inc., of
Liberty Hill, Texas for the amount of $697,250.00.
Approved: 4-0-3 (Young, Lindsey, Eason absent)
Bickford departed meeting at 2:46PM. Eason joined meeting at 2:46PM
N. Consideration and possible recommendation to approve the contract for the Edwards Aquifer
Recharge Zone (EARZ) — 2012-2013, Wastewater Rehabilitation to IPR South Central, LLC of
Houston, Texas, for the amount of $1,628,050.00. -- Michael Hallmark/Wesley Wright
Discussion: Wright noted EARZ is an ongoing project, noting this work is to repair last
year's sewer analysis. Wright further explained details of project and noted IPR has
previously worked on projects with the City. Yaeger asked and Wright explained bid
estimates are more than when bid out last year due to increase in costs as well as the
additional detail we now see when we video the lines. Once all lines in the City are
videod, prices should decrease with repairs lasting longer than prior process used.
Only two bids were received. Stump stated many years ago line location was an issue;
Wright explained now not an issue as all are on a GIS system. Stump asked additional
questions with answers covered by Wright/Hallmark about age and material details
of current system. Motion by Stump, seconded by Kostka to approve the contract
for the Edwards Aquifer Recharge Zone (EARZ) — 2012-2013, Wastewater
Rehabilitation to IPR South Central, LLC of Houston, Texas, for the amount of
$1,628,050.00. Approved: 5-0-2 (Young, Lindsey absent)
O. Consideration and possible recommendation to approve a contract regarding the
consolidation of Chisholm Trail Special Utility District (CTSUD) with the City of Georgetown
Utility System. -- Glenn Dishong/Jim Briggs
Discussion: Briggs noted agreement approved by both attorneys and CTSUD President
Pat Gower will sign prior to going to Council on September 24th. Briggs covered 'Deal
Point Summary' report distributed at meeting covering highlights of agreement. Once
the contract is approved by both parties then we move to TCEQ for approval. There
may still be some opposition by CTSUD customers. We will manage CTSUD operations
for approximately 6 months until closing has occurred. We will manage their office,
employees, report to their board at the CTSUD Board meetings beginning November
1st. We will use that time to further assess personnel (17 full-time employees), facilities,
etc. Yaeger asked about estimated time of complete take over; Briggs noted probably not
until Spring 2015 during the next legislative session with special legislative action,
however further explained in detail. A final possible close in Summer 2015. CTSUD
would possibly meet periodically to hold a meeting or elections. Hesser asked and
Briggs noted close estimate of May/June 2014. Briggs noted our staff will handle
process with TCEQ and legislature. Briggs stated CTSUD has requested two
representatives from the rural area to sit on GUS Board and this would be something
Council would have to consider. Some discussion about reconstituting the GUS Board
as was previously being considered for separate boards to handle various responsibilities
of the utility. This process was previously started and could be picked back up and
expedited if needed. Dishong further discussed contract language regarding bonds,
assets, etc. Yaeger asked what staff needs from Board regarding movement of the item.
Board would like time to further review contract they received at start of meeting, noting
all details had probably been covered by both legal teams. Discussion was had to allow
Board time during the week to review and submit any questions to Briggs prior to
Council consideration on September 24th. Motion by Hesser, seconded by Kostka to
recommended Council execute a contract for the CTSUD asset transfer to the City, with
time allowed for the Board to post comments or questions to staff for presentation and
review, prior to approval by Council at the September 24'h Council meeting.
Approved: 5-0-2 (Young, Lindsey absent)
Board took a brief break prior to entering into Executive Session.
Motion by Kostka, seconded by Hesser to enter into Exec. Session. Approved 5-0-2 (Young, Lindsey
absent)
McAndrews joined meeting at 3:50PM
III. RATES:
EXECUTIVE SESSION Called to order at 3:50pm
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
P. Discussion and update regarding Power Supply. -- Jim Briggs
Motion by Eason, seconded by Hesser to return to Regular Session. Approved 5-0-2 (Young, Lindsey
absent)
RETURN TO REGULAR SESSION
Q. Action from Executive Session.
Discussion: None. Motion by Stump, seconded by Kostka to approve the
recommendation to Council to proceed forward with the low bid proposal discussed in
Executive Session with regards to Wind Energy.
Approved 5-0-2 (Young, Lindsey absent)
IV. ADJOURN
Motion by Kostka, seconded by Hesser to adjourn at 4:49PM. Meeting adjourned.
Approved:
Adjournment
The meeting was adjourned at 04:49 PM.
Attest:
Arthur Yaeger, Jr. - Board Vice Chair Robert Kostka - Secretary