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HomeMy WebLinkAboutMinutes_GUS_10.19.2009 Minutes of the Meeting of the Georgetown Utility System Advisory Board and the Governing Body of the City of Georgetown, Texas Special Session Monday, October 19, 2009 The Georgetown Utility System Advisory Board Special Session of the City of Georgetown, Texas, met on Monday , October 19, 2009. Board Members Present: Bill Sattler - Chair, Fred Beach - Vice Chair, John Nett, Stephen Quinn, Temple Page, Patty Eason (Arrived at 2:08 p.m.) Board Members Absent: Richard Lenning - Secretary Staff Present: Jim Briggs, Jana Kern, Tom Benz, Glenn Dishong, Paul Elkins, Ken Arno ld, David Thomison, Peggy Leatherman, Marsha Iwers, Steve Glenn, Chris Foster, Micki Rundell, Jimmy Sikes OTHERS PRESENT: Steve Moffitt - McCord Engineering , Alan Woelke & Chris Leal - CDM, Mike Cunningham Cunningham Constructors & Assoc. Minutes Regular Meeting Mr. Bill Sattler called the Special GUS Board Meeting to order on Monday, October, 19, 2009 at 2:01 p.m. 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. I. Consideration and possible action to approve the minutes from the Regular GUS Board meeting held on September 23, 2009. -- Jana Kern Discussion: None Action: Motion by Nett, seconded by Beach to approve the minutes as presented. Approved 6-0-2 (Patty Eason -absent from this vote only & Richard Lenning absent) II. Discussion and possible action regarding the Project Progress Report and timelines. -- Michael Hallmark, Tom Benz EARZ V, Escalera Elevated Water Storage Tank, Rock Street WW Extension, SG3 -A, SG-P1, River Down/River Ridge Lift Station Decommission, 2006 Annexation, LWTP Clearwell Action None III. Consideration and possible recommendation to renew the contract between the City of Georgetown and National Tree Expert Company, Inc. of Burnet, Texas, to provide electric system right-of-way clearing services in an amount not to exceed $150,000.00 – Paul Elkins Discussion: Elkins explained this item, stated that this is the fifth and final year for renewal. This contract will be re-bid in FY 2010/11. Action: Motion by Quinn, seconded by Nett to renew the contract with National Tree in an amount not to exceed $150,000.00. Approved 6-0-1 (Lenning absent) IV. Consideration and possible recommendation for approval of the contract with Lower Colorado River Authority (LCRA) for the purchase of electric distribution and transmission materials for FY 2009/2010 from vendor award contract for the LCRA Electric Material Acquisition Program in the estimated amount of $500,000.00. – Paul Elkins Discussion: Elkins stated that with the approval of this agreement it will allow the City of Georgetown to periodically purchase electric distribution and transmission material directly from the vendor that was awarded the Electric Material Acquisition Services contract by LCRA. This will also let the City of Georgetown take advantage of the lower prices to do volume purchasing. Action: Motion by Beach, seconded by Quinn to approve the contract with LCRA to purchase Electric transmission and distribution materials for an estimated amount of $500,000.00. Approved 6-0-1 (Lenning absent) V. Consideration and possible recommendation to approve Task Order No. AUE-10-001 with Alexander Utility Engineering, Inc. (AUE), of San Antonio, Texas, for professional services related to the Fiber Optic Network CIP Plan in an amount not to exceed $92,750.00. -- Jimmy Sikes, Tom Benz Discussion: Sikes stated that this is the third of the seven phases outlined in the 2008 Fiber Optic Network Long Range Master Plan. This phase will add another 70,000 feet of fiber. This task order will provide detailed engineering and construction drawings. Action: Motion by Quinn, seconded by Beach to approve Task Order AUE 10 -001 for an amount not to exceed $92,750.00. Approved 6-0-1 (Lenning absent) VI. 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 2009/2010. – David Thomison Discussion: Thomison stated that since July 1999, the City has successfully used Bioxide to control odor problems. In September 2009, the case study was reviewed and determined that it is still considered to be the most effective method to mitigate the Hydrogen Sulfide odor problem. Action: Motion by Nett, seconded by Quinn to approve the purchase of Bioxide from Siemens Water Technologies in an amount not to exceed $70,000.00. Approved 6-0-1 (Lenning absent) VII. Consideration and possible recommendation to award construction contract with Cunningham Constructors & Assoc., Inc. of Georgetown, Texas for the construction of the LWTP 3 MG Clearwell in the amount of $2,622,800.00. – Glenn Dishong, Tom Benz Discussion: Benz explained the item. This contract includes construction of a 3MG ground storage tank to be build at the LWTP. This tank will be the second tank, of this size at this site. The additional storage is needed to provide for better efficiency with the water plant production and will also improve the peak demand performance. This project is in our Master Plan. Action: Motion by Quinn, seconded by Nett to award construction contract with Cunningh am Constructors & Assoc., Inc., for the construction of the LWTP 3 MG Clearwell in the amount of $2,622,800.00. Approved 6-0-1 (Lenning absent) VIII. Consideration and possible recommendation to award a contract to CDM Constructors, Inc. (CCI), of Houston, Texas, for Lake Water Treatment Plant (LWTP) Filter #10 and Sun City Pump No. 4 and 5 for amount not to exceed $2,033,200.00. -- Glenn Dishong Discussion: Dishong explained the item. Stating that this item is a piece of the larger project of expanding the LWTP by 11 MG. The anticipation and time lines of getting this project done, we would not have capacity on the ground until the summer of 2011. Because of our current situation during this last summer, an emergency situation exists affecting the health and safety of the public under peak demands created by either the drought conditions or fire fighting and loss of groundwater supply that with the acceleration of this portion of the project could alleviate. Dishong also explained the drivers for the emergency situation. Action: Motion by Page, seconded by Beach that we the Board find that an emergency situation exists and recommends the contract award to CCI for LWTP Filter #10 and Sun City Pump No. 4 and 5 for amount not to exceed $2,033,200.00. Approved 5-1-1 (Sattler opposed, Lenning absent) IX. Discussion and possible recommendation to execute an agreement between the City of Georgetown and Clear Wireless LLC for the lease of antenna and equipment space at the James Street elevated storage tank in the amount of $29,000.00. – Glenn Dishong Discussion: Dishong stated that Clear Wireless is requesting to add antennas to the James Street elevated storage tank. Normally staff would not bring this item to the Board, but City Council requested that staff bring this to the next GUS Board meeting. Staff was also requested to have a third party consultant take a look at the lease to see if it was competitive. In summary the consultant stated that this is a very competitive lease. It is the second highest lease rate paid by Clear Wireless across the nation for a tower lease. It was stated that Clear Wireless has the right to extend the contract for four additional terms of a five years each with the lease price to be escalated by 15% for each succeeding term. The consultant thought Clear Wireless could have given a better escalation. The lessee wanted to know what the comments were, therefore, Dishong told them that the consultant stated that there could have been a better escalation rate. The lessee asked what do you want? Dishong stated 4% per year and they agreed. Dishong also informed the Board that there is an amendment that will state the change to 4% per year and this amendment will go to Council. Action: Motion by Quinn, seconded by Beach execute an agreement between the City of Georgetown and Clear Wireless LLC for the lease of antenna and equipment space at the James Street elevated storage tank in the amount of $29,000.00; and to approve an amendment to the lease that would state that there would be a 4% escalation rate per year for the length of the lease. Approved 6-0-1 (Lenning absent) X. Consideration and possible recommendation to amend the contract with the CH2M HILL OMI (OMI) for the management, operation, and maintenance of the City ’s water treatment plants for the period starting October 1, 2009 through September 30, 2010 with an operating budget of $1,513,514.00.-- Glenn Dishong Discussion: Dishong explained that the current contact is for a 5 year period starting on October 1, 2008 ending on September 30, 2013. The terms of the contract provide for an annual amendment to adjust the total fee based upon standard cost escalators, changes in production volume, etc. The annual cost of service is comprised of base fee, a volumetric fee, a repairs budget and additional items that are not exposed to continue through out the term of the contract. The total change in fee from prior year represents an increase of 1.6%. Action: Motion by Quinn, seconded by Beach to amend the contract with the OMI for the management, operation, and maintenance of the City’s water treatment plants for the period starting October 1, 2009 through September 30, 2010 with an operating budget of $1,513,514.00. Approved 6-0-1 (Lenning absent) XI. Consideration and possible recommendation on the formation and transition of Georgetown Utility Systems into a separately governed Utility Board.. -- Jim Briggs Discussion: Briggs gave a history of this item. He explained the White Paper and there was lengthy discussions on the Legal, Debt and Bond Issues, Board and Management Effectiveness, and possible recommendations on how staff should consider establishing the structure for the future. Action: Motion by Beach, seconded by Nett to forward to Council for their cons ideration the White Paper and its attachments with one change that is at the top of page six (last page of White Paper) "Recommendation: The following are my recommendations on exactly how we should consider establishing our structure for the future" that would change to " This is one possible approach on how to structure a Board and its responsibilities ." Approved 5-1-1 (Page opposed. Lenning absent) 4:37 p.m. recess returned at 4:47 p.m. Motion by Quinn, seconded by Beach, that Item "L" is a competitive matter to be discussed under Executive Session under Chapter 551 of the Texas Government Code of the Energy Services Department as provided under Section 551.086. Approved 5-0-2 (Eason & Lenning absent) EXECUTIVE SESSION Called to order @ 4:47 XII. 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 - Discussion and possible recommendation concerning a MOU with CPS. -- Jim Briggs - Discussion and possible recommendation concerning Panda Energy. -- Jim Briggs RETURN TO REGULAR SESSION Called back to order @ 5:38 XIII. Action from Executive Session. Motion by Quinn, seconded by Beach to recommend that the Utility enter into MOU with CPS as discussed in Executive Session. Friendly amendment made and accepted – Subject to the review with the City of Georgetown Attorney. Approved 6-0-1 (Lenning absent) XIV. Discussion and possible action on choosing a November & December GUS Board Meeting Date. - - Jim Briggs Discussion: There was open discussion on which day to meet for November and December. It was decided that staff would go back and look to see what was coming forward and would get back with the Board as to what date would work best. Motion by Beach, seconded by Quinn to adjourn meeting. Approved 6-0-1 (Lenning absent) Adjournment The meeting was adjourned at 05:50 PM. Approved : Attest: _______________________ ________________________ Bill Sattler - Chair Richard Lenning - Secretary