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HomeMy WebLinkAboutAgenda_GWUAB_09.10.2020Notice of Meeting for the Georgetown Water Utility B oard of the City of Georgetown September 10, 2020 at 2:00 P M at Virtual T he C ity of G eorgetown is committed to compliance with the Americans with Disabilities Act (ADA). If you require as s is tance in partic ipating at a public meeting due to a disability, as defined under the ADA, reas onable as s is tance, adaptations , or ac commodations will be provided upon request. P leas e c ontact the C ity S ec retary's O ffic e, at leas t three (3) days prior to the sc heduled meeting date, at (512) 930-3652 or C ity Hall at 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626 for additional information; T T Y users route through R elay Texas at 711. “C onsistent with Gove rnor Gre g Abbott’s suspe nsion of various pr ovisions of the O pen M ee tings A ct, e ffec tive A ugust 1, 2020 and until further notice , to re duce the chanc e of C O V I D -19 transmission, all C ity of Ge orge town Advisor y B oar d mee tings will be held vir tually. P ublic c omment will be allowe d via te le confe re nc e; no one will be allowe d to appe ar in per son. To parti ci pate , please copy and paste the foll owi ng weblink i nto your br owser : J oin fr om a P C, M ac , i P ad, i P hone or A ndroid devic e: P lease c lick this U R L to join. https://ge orge towntx.zoom.us/j/95378640667? pwd=L 01zb0du N F F hR j R xd Dg5bG9 Wc 1 J pU T09 Webinar I D: 953 7864 0667 P assc ode : 918006 De sc ription: M e eting will start at 2:00 p.m. A ttende es can join beginning at 1:30 p.m. O r join by phone toll fre e: (833)548-0282, (877)853-5257, (888)475-4499, or 833 548 0276 Webinar I D: 953 7864 0667 P assc ode : 918006 Citizen comme nts are acc epted in thr ee differ ent for mats: 1. Submit wr itte n comme nts to tina.davis@geor getown.or g by 10:00 A M on the date of the me e ti ng and the R ec ording S e c r e tar y wi ll r ead your c omments into the r ec ording during the item that is being discussed. 2. L og onto the me eti ng at the li nk above and “r aise your hand” dur ing the item 3. Use your home /mobile phone to call the toll-fre e numbe r Page 1 of 40 To joi n a Zoom mee ting, c li ck on the l ink pr ovi de d and join as an atte ndee . You will be aske d to e nte r your name and email addr ess (this is so we c an identify you when you are c all ed upon). To spe ak on an ite m, c lick on the “Raise your H and” option at the bottom of the Zoom mee ting we bpage onc e that ite m has opened. Whe n you ar e c alled upon by the Re cor ding S ec re tary, your devic e will be re mote ly un-muted by the A dmi ni str ator and you may spe ak for thr ee minutes. P l ease state your name cl ear ly, and whe n your ti me i s over, your de vi ce wil l be mute d again. Use of profani ty, thr eate ning l anguage , sl ander ous r emarks or thre ats of harm ar e not all owe d and will r esult i n you be ing i mme diate ly r emove d from the me eting.” Regular Session (T his R egular S es s ion may, at any time, be rec es s ed to c onvene an Exec utive S es s ion for any purpose authorized by the O pen Meetings Act, Texas G overnment C ode 551.) A C all to O rder. T he Board may, at any time, recess the R egular S es s ion to convene in Executive S ession at the request of the C hair, a Board Member, the C ity Manager, As s is tant C ity Manager, Direc tor of Water Utilities , C ity C ounc il Member, or legal counsel for any purpose authorized by the O pen Meetings Act, Texas G overnment C ode C hapter 551, and are subject to ac tion in the R egular S ession that follows . B Disc ussion on how this virtual c onference will be c onducted, to inc lude options for public c omments and how the public may addres s the C ommis s ion - G lenn Dishong, Director of Water Utilities C P ublic Wis hing to Address the Board. -- T homas G lab, Board C hair O n a subject not posted on the agenda: P ers ons may add an item to a future R egular sc heduled Board agenda by filing a written reques t with the S taff Liaison no later than one week prior to the Board meeting. T he request mus t inc lude the speaker’s name and the spec ific topic to be addres s ed with sufficient information to inform the board and the public. Only those persons who have submitted a timely request will be allowed to speak. P lease contac t the Board Liaison to sign up to s peak at: Tina.Davis @georgetown.org. At the time of posting, no one had s igned up to speak. D R eview and pos s ible ac tion to approve the minutes from the Augus t 2020 Water Board meeting - Board Liaison E Direc tors R eport F P resentation, update, and disc ussion regarding the cost of s ervic e water rate s tudy and propos ed water rates G Disc ussion and possible recommend ation to exercise renewal option #3 of a contract with Hydro P ro S olutions LLC to provid e Mas ter Meter water meters and water meter regis ters fo r the Advanced Metering Infras truc ture sys tem with a not-to-exceed amount of $1,000,000 and to ratify $135,564.88 of previous expenditures for similar purchases from Hydro Pro S olutions on C ontract No.17-0073- Page 2 of 40 G C . Adjournment Ce rtificate of Posting I, R obyn Densmore, C ity S ecretary for the C ity of G eorgetown, Texas, do hereby c ertify that this Notic e of Meeting was posted at C ity Hall, 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626, a plac e readily acc es s ible to the general public as required by law, on the _____ day of _________________, 2020, at __________, and remained s o posted for at leas t 72 c ontinuous hours prec eding the s cheduled time of said meeting. __________________________________ R obyn Dens more, C ity S ec retary Page 3 of 40 City of Georgetown, Texas Water Utility Board September 10, 2020 S UB J E C T: C all to O rder. T he Board may, at any time, rec es s the R egular S ession to c onvene in Exec utive S es s ion at the reques t of the C hair, a Board Member, the C ity Manager, Assistant C ity Manager, Director of Water Utilities, C ity C ouncil Member, or legal c ouns el for any purpos e authorized by the O pen Meetings Ac t, Texas G overnment C ode C hapter 551, and are s ubjec t to action in the R egular S es s ion that follows. IT E M S UMMARY: C all to O rder - T homas G lab, Board C hair F IN AN C IAL IMPAC T: . S UB MIT T E D B Y: T homas G lab, Board C hair Page 4 of 40 City of Georgetown, Texas Water Utility Board September 10, 2020 S UB J E C T: Dis cus s ion on how this virtual conferenc e will be conduc ted, to include options for public comments and how the public may address the C ommission - G lenn Dis hong, Direc tor of Water Utilities IT E M S UMMARY: Dis cus s ion on how this virtual conferenc e will be conduc ted, to include options for public comments and how the public may address the C ommission - G lenn Dis hong, Direc tor of Water Utilities F IN AN C IAL IMPAC T: . S UB MIT T E D B Y: G lenn Dis hong, Direc tor of Water Utilities Page 5 of 40 City of Georgetown, Texas Water Utility Board September 10, 2020 S UB J E C T: R eview and possible action to approve the minutes from the August 2020 Water Board meeting - Board Liais on IT E M S UMMARY: Board to review, revis e and/or approve the minutes from the August 2020 Water Board meeting F IN AN C IAL IMPAC T: . S UB MIT T E D B Y: Board Liais on AT TAC H ME N T S: Description Type GWUAB Minutes Augus t 13, 2020 uns igned Backup Material Page 6 of 40 Georgetown Village PID Page 1 of 3 March 11, 2019 City of Georgetown, Texas Georgetown Water Utility Board Meeting Minutes Thursday, August 13, 2020 at 2:00 p.m. VIRTUAL-ZOOM Board Members Present: Thomas Glab, Board Chair, (present but unable to speak due to technical difficulties); Stuart Garner, Scott Macmurdo, Steve Fought, Michael Morrison Board Members Absent: Cara McKinney; Penny Evans, Developer Rep Staff Members Present: David Morgan, City Manager; Laurie Brewer, Assistant City Manager; Glenn Dishong, Director of Water Utilities; Leticia Zavala, Customer Care Director; Wesley Wright, System Engineering Director; Leigh Wallace, Finance Director; Chelsea Solomon, Control Center Manager; Mike Welch, , Treatment and Regulatory Manager; Mayra Cantu, Management Analyst; Karen Frost, Assistant City Secretary; Tina Davis, Board Liaison Others Present: NewGen 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 2:16 PM. B. Discussion on how this virtual conference will be conducted, to include options for public comments and how the public may address the Commission – Dishong explained the participation process for the public (no one signed up to speak) and the Board, everyone must state name before speaking, Chair will do roll call for votes by name) Question asked: will next meeting be virtual? Meetings will virtual until further notice C. Review and possible action to approve the minutes from the July 2020 Water Board meeting – Board Liaison –Motion by Morrison to approve the minutes with correction of published to public, Seconded by 4-0-0 (Glab in attendance, unable to speak due to technical difficulties) D. Directors Report – by Dishong, Utility updates of Customer Care & Billing by Zavala: just shy of 550 new accounts since last month, 77% of meter reads are automatically transmitted, 23 % are drive by reads. Average bill in July approximately $55.14. Base rate for inside City services for residential use is $23.Sewer rate for inside City residential is $32.00. 87% on-time payment ratio for July. Question: Was the reduction in customer water bill in July compared to last year driven by less consumption or pricing? Zavala answered, it was driven by usage. Financial update in September: Operations by Solomon: Current rated capacity for water system is 44 million gallons, peak usage through last month was 41.61 million gallons. Wastewater system rated capacity is 8.5 million gallons per day. Performance Metrics, maintaining above 98% on personnel side, on time completion of preventative maintenance Page 7 of 40 Georgetown Village PID Page 2 of 3 March 11, 2019 is at 92%. Water quality is at 96%. Meeting performance metrics. Engineering by Wright: Working on three different styles of projects, proposed for FY21 Wastewater-expansion of Cimarron Hills WWTP, EARZ, Lift Station Rehab, Proposed FY21 budget, Water Oak 24” Waterline, Hoover Pump Station, Round Rock Supply Pump Station, Lakeway 16” Waterline, South Plant Waterline Easements, Miscellaneous TCEQ/Western District Improvements, Tank Maintenance. In design for Wastewater-EARZ, Berry Creek Interceptor, San Gabriel Interceptor. In design for North Lake Water Treatment Plant expansion, South Lake Water Treatment Plant, Southwest Bypass Waterline, Shell Road Waterline, Hoover Pump Station, EST, & Linework. Question: How close are we to the next water conservation stage? Solomon answered, 90%. Does anyone know about reducing sprinkler system use by 10%. Solomon answered, announcements and videos showing customers how to reduce water usage, message boards around town asking residents to reduce usage. E. Consideration and possible recommendation to approve a Resolution regarding the refinance of Williamson County Regional Raw Water Line Debt, inclusion of ION Generation project in said debt and re-issuance of the Williamson County Regional Raw Water Line Agreement – Solomon explained agreement with City and Brazos River Authority for the Williamson Count Regional Raw Water Line Debt. Group effort between City of Georgetown, City of Round Rock and Brushy Creek. BRA will have cost savings that will get pushed to all three parties involved if they refinance the debt. BRA wants to include Copper ION regeneration project into debt re-issuance. Copper ION reduces zebra muscles. This re-issuance of the debt will show a $97K savings over the next 10 years. F. Water utility rates, conservation and current rate study – Cantu gave a history of budgetary policy the City follows. Chisholm Trail SUD in 2011 gaining 7600 customers and water coverage. Average seeing 3K per year. Solomon explains how rates are built and gave a water rate breakdown, explained water resource planning and system capacity planning for the future. Showed list of current and future projects. Questions: What have been the last rate change. Zavala answered, last year and in 2013 rates were adjusted. Board would like a copy of the rate changes from 2013. Zavala agreed to send the rate change. Matthew Garrett, NewGen Strategies presents water rate study. Discussion on rate study. Board asked for more time and information to make informative choice on rate study. Dishong agreed to table discussion until September meeting. G. Consideration and possible recommendation to approve renewal no. 4 of contract no. SCON-2000171 with Brenntag Southwest, Inc. for purchase and delivery of various chemicals for Water and Wastewater treatment, not to exceed $379,026.83 – Welch explains we are currently using Brenntag is a single source, local, successful low bidder and staff. Question: Was there a formal bid done for this contract? Dishong explained the competitive bid process was done 4 years ago. (prior to Board being established? Provisions of the contract was to renew up to 5 years. Motion to renew contract SCON-2000171 by Macmurdo, Seconded by Fought 3-0-0 (Michael Morrison had to leave the meeting, Glab unable to speak due to technical difficulties) Page 8 of 40 Georgetown Village PID Page 3 of 3 March 11, 2019 H. Consideration and possible recommendation to approve renewal #2 of contract number 18- 0039-GC with Brenntag Southwest, Inc. for purchase and delivery of sodium hypochlorite for Water and Wastewater treatment, in the amount of 309,931.50 – Welch Motion to approve renewal #2 of contract number 189-0039-GC for purchase and delivery of sodium hypochlorite for Water and Wastewater treatment in the amount of $309K Seconded by Fought. 3-0-0 (Michael Morrison had to leave the meeting, Glab unable to speak due to technical difficulties Adjournment The meeting adjourned at 5:21 p.m. __________________________________ ______________________________ Thomas Glab, Chair Scott Macmurdo, Secretary ___________________________________ Board Liaison Page 9 of 40 City of Georgetown, Texas Water Utility Board September 10, 2020 S UB J E C T: Directors R eport IT E M S UMMARY: Updates F rom Water Utility Directors F IN AN C IAL IMPAC T: . S UB MIT T E D B Y: G lenn Dis hong, Direc tor of Water Utilities Page 10 of 40 City of Georgetown, Texas Water Utility Board September 10, 2020 S UB J E C T: P res entation, update, and dis cus s ion regarding the c os t of service water rate study and proposed water rates IT E M S UMMARY: P res entation, update, and dis cus s ion regarding the c os t of service water rate study and proposed water rates F IN AN C IAL IMPAC T: . S UB MIT T E D B Y: G lenn Dis hong, Water Utilities Direc tor and Matthew G arrett, NewG en S trategies and S olutions AT TAC H ME N T S: Description Type Draft Water and Wastewater Rates Backup Material Page 11 of 40 RESULTS AND RECOMMENDATIONS WATER AND WASTEWATER COST OF SERVICE AND RATE DESIGN STUDY September 10, 2020 Georgetown Water Utility Advisory Board Page 12 of 40 2NEWGEN STRATEGIES AND SOLUTIONS, LLC AGENDA RECAP/COUNCIL FEEDBACK RATE OPTIONS BOARD DIRECTION 2 Page 13 of 40 RECAP/COUNCIL FEEDBACK Page 14 of 40 NEWGEN STRATEGIES AND SOLUTIONS, LLC SUMMARY INTRODUCTION •FY 2020 Study Goals and Objectives: •Fiscal Policy Compliance (including Revenue Sufficiency) •Equitable Cost of Service •Conservation •Presentations on Draft Results and Rate Setting Options •August 13 -Georgetown Water Utility Advisory Board •August 25 -City Council 4 Page 15 of 40 NEWGEN STRATEGIES AND SOLUTIONS, LLC PROJECTED COMBINED UTILITY PERFORMANCE UNDER CURRENT REVENUES •Combined utility estimated to not recover revenue required as early as FY 2021 •Days Cash on Hand reserves drop below 90 Days as early as FY 2023 •Water Monthly Base Charge revenues estimated to not recognize Water Fixed Cost of Service as early as FY 2021 5 FY (Targets)2021 2022 2023 2024 2025 DSC (1.50x)3.82 3.07 2.44 2.27 2.07 Days Cash (90 Days)*187 127 40 -24 -75 Fixed COS (75%)71%68%69%69%68% *Excludes $10M Annual Non-Operating Contingency Page 16 of 40 NEWGEN STRATEGIES AND SOLUTIONS, LLC FY 2021 COST OF SERVICE RECAP •Grouped Inside and Outside Class Usage •Leaving rate differentials the same for FY 2021 •Deeper study into outside versus inside next year •Residential/Builders •Current rates produce revenues $2.34M or 8.3% below cost of service requirement in FY 2021 •Government •Estimated $0.06M or 8.2% below, but rate structure will be reviewed next year with Commercial and Reuse rate design 6 Per Utility Billing Data Extract (Oct 2018 –Sep 2019) Customer Class Peaking Ratio Customers Inside and Outside City Residential (incl Builder)2.08 41,450 Small Commercial 1.39 1,013 Large Commercial 1.26 274 Government 2.06 158 Irrigation 2.11 634 Total System 1.98 43,529 Page 17 of 40 NEWGEN STRATEGIES AND SOLUTIONS, LLC COUNCIL FEEDBACK TO GUIDE RATE RECOMMENDATIONS •Financial Policy Compliance •Current rates for water and wastewater are insufficient and require revision. •Increasing minimum charges $1.50 on 3/4” meters achieves the 75% target. •Equitable Cost of Service •Residential revenues have the greatest shortfall and are the primary focus this year. •Conservation Plan •Current residential volumetric structure is not achieving conservation plan objectives. •Moving the residential top tier down to 25,000 gallons impacts fewer than 10% of customer bills, will improve residential conservation, and is common in the market. 7 Page 18 of 40 RATE OPTIONS Page 19 of 40 NEWGEN STRATEGIES AND SOLUTIONS, LLC RESIDENTIAL VOLUMETRIC RATE DESIGN CURRENT STRUCTURE 9 Conservation signals occur at lower gallonage in comparator group Page 20 of 40 NEWGEN STRATEGIES AND SOLUTIONS, LLC RESIDENTIAL VOLUMETRIC RATE DESIGN CUMULATIVE BILLED USAGE FREQUENCY DISTRIBUTION 10 76% Under 15,000 90% Under 25,000 96% Under 40,000 52% Under 7,000 38% Under 5,000 % o f T o t a l R e s i d e n t i a l C u s t o m e r B i l l s Page 21 of 40 NEWGEN STRATEGIES AND SOLUTIONS, LLC RESIDENTIAL VOLUMETRIC RATE DESIGN 11 Current Tiers Current Rates Scenarios A and B Rates for A Rates for B Scenario C Rates for C 0 –10,000 gals $1.75 0 –5,000 gals $1.75 $1.80 0 –7,000 gals $1.85 10,001 –20,000 gals 2.40 5,001 –15,000 gals 2.65 2.70 7,001 –15,000 gals 2.75 20,001 –40,000 gals 4.00 15,001 –25,000 gals 3.95 4.75 15,001 –25,000 gals 4.80 40,001 –60,000 gals 6.50 25,001+ gals 5.95 8.30 25,001+ gals 8.40 60,001+ gals 8.50 •Based on historical customer usage characteristics and feedback from the City, the following Residential alternatives were determined: Page 22 of 40 NEWGEN STRATEGIES AND SOLUTIONS, LLC RESIDENTIAL VOLUMETRIC RATE DESIGN REGIONAL VOLUMETRIC RATE COMPARISON 12 Page 23 of 40 NEWGEN STRATEGIES AND SOLUTIONS, LLC RESIDENTIAL VOLUMETRIC RATE DESIGN REGIONAL VOLUMETRIC RATE COMPARISON 13 Page 24 of 40 NEWGEN STRATEGIES AND SOLUTIONS, LLC SCENARIO A: REVISED RESIDENTIAL TIER DESIGN FIRST TIER (0 –5,000 GALLONS); FOURTH TIER (25,000+ GALLONS) 14 FY (Targets)2021 2022 2023 2024 2025 DSC (1.50x)4.25 3.95 3.47 3.25 3.01 Days Cash (90 Days)*214 211 203 216 237 Fixed COS (75%)75%77%83%82%81% Rate Adjustments 2021 2022 2023 2024 2025 Water (Base $ Only)$1.50 $1.50 $1.50 -- Water (Volumetric)Varies ---- Wastewater (All %)8.89%8.89%8.89%-- •Revenue adjustments driven by first debt payment for San Gabriel Interceptor ($32.5M) in FY 2023 •Water Base rate adjustments targeting Fixed COS metric and to mitigate significant Wastewater rate increases •50% Tier Differential between all revised Residential rate tiers *Excludes $10M Annual Non-Operating Contingency Page 25 of 40 NEWGEN STRATEGIES AND SOLUTIONS, LLC SCENARIO B: REVISED RESIDENTIAL TIER DESIGN FIRST TIER (0 –5,000 GALLONS); FOURTH TIER (25,000+ GALLONS) 15 FY (Targets)2021 2022 2023 2024 2025 DSC (1.50x)4.34 4.07 3.56 3.34 3.10 Days Cash (90 Days)*220 224 224 245 274 Fixed COS (75%)75%77%83%82%81% Rate Adjustments 2021 2022 2023 2024 2025 Water (Base $ Only)$1.50 $1.50 $1.50 -- Water (Volumetric)Varies ---- Wastewater (All %)8.89%8.89%8.89%-- •Revenue adjustments driven by first debt payment for San Gabriel Interceptor ($32.5M) in FY 2023 •Water Base rate adjustments targeting Fixed COS metric and to mitigate significant Wastewater rate increases •75% Tier Differential between top two revised Residential rate tiers *Excludes $10M Annual Non-Operating Contingency Page 26 of 40 NEWGEN STRATEGIES AND SOLUTIONS, LLC SCENARIO C: REVISED RESIDENTIAL TIER DESIGN FIRST TIER (0 –7,000 GALLONS); FOURTH TIER (25,000+ GALLONS) 16 FY (Targets)2021 2022 2023 2024 2025 DSC (1.50x)4.34 4.07 3.56 3.34 3.10 Days Cash (90 Days)*220 224 224 245 274 Fixed COS (75%)75%77%83%82%81% Rate Adjustments 2021 2022 2023 2024 2025 Water (Base $ Only)$1.50 $1.50 $1.50 -- Water (Volumetric)Varies ---- Wastewater (All %)8.89%8.89%8.89%-- •Revenue adjustments driven by first debt payment for San Gabriel Interceptor ($32.5M) in FY 2023 •Water Base rate adjustments targeting Fixed COS metric and to mitigate significant Wastewater rate increases •75% Tier Differential between top two revised Residential rate tiers *Excludes $10M Annual Non-Operating Contingency Page 27 of 40 17NEWGEN STRATEGIES AND SOLUTIONS, LLC COMMUNITY RATE COMPARISONS •Comparisons between communities are very common, but may not tell the whole story. •Each system is unique in geography, age of infrastructure, capital maintenance efforts, and typical usage patterns. 17 Page 28 of 40 NEWGEN STRATEGIES AND SOLUTIONS, LLC REGIONAL BILL COMPARISON RESIDENTIAL USER BILL (5,000 GALS –WATER; FLAT SEWER*) 18 *Georgetown currently does not charge a variable rate based on billed Sewer flows. 5,000 gals in Sewer flows assumed for surrounding cities Page 29 of 40 NEWGEN STRATEGIES AND SOLUTIONS, LLC REGIONAL BILL COMPARISON RESIDENTIAL USER BILL (15,000 GALS –WATER; FLAT SEWER*) 19 *Georgetown currently does not charge a variable rate based on billed Sewer flows. 10,000 gals in Sewer flows assumed for surrounding cities Page 30 of 40 NEWGEN STRATEGIES AND SOLUTIONS, LLC REGIONAL BILL COMPARISON RESIDENTIAL USER BILL (25,000 GALS –WATER; FLAT SEWER*) 20 *Georgetown currently does not charge a variable rate based on billed Sewer flows. 10,000 gals in Sewer flows assumed for surrounding cities Page 31 of 40 NEWGEN STRATEGIES AND SOLUTIONS, LLC REGIONAL BILL COMPARISON RESIDENTIAL USER BILL (35,000 GALS –WATER; FLAT SEWER*) 21 *Georgetown currently does not charge a variable rate based on billed Sewer flows. 10,000 gals in Sewer flows assumed for surrounding cities Page 32 of 40 BOARD DIRECTION Page 33 of 40 NEWGEN STRATEGIES AND SOLUTIONS, LLC CONCLUSIONS AND BOARD RECOMMENDATION FOR COUNCIL •NewGen recommends either Option B (0-5k) or Option C (0-7k) •Both fully meet the City Council’s requested objectives •Financial Policy Compliance •Equitable Cost of Service •Conservation Plan •Which of these rate options would the Board like to propose for Council adoption? •Is other analysis or discussion needed to inform the Board’s decision? 23 Page 34 of 40 NEWGEN STRATEGIES AND SOLUTIONS, LLC NEXT STEPS 24 Today Receive Water Utility Advisory Board Feedback Tue. 22 Sep. 2020 City Council Workshop for Discussion Tue. 13 Oct. 2020 City Council Regular Agenda for Potential Approval Fri. 1 Jan. 2021 Water and Wastewater Rates Effective Page 35 of 40 THANK YOU! ANY QUESTIONS? MICHAEL SOMMERDORF, SENIOR CONSULTANT (972) 704-1655 MSOMMERDORF@NEWGENSTRATEGIES.NET MATTHEW GARRETT, DIRECTOR (972) 675-7699 MGARRETT@NEWGENSTRATEGIES.NET Page 36 of 40 City of Georgetown, Texas Water Utility Board September 10, 2020 S UB J E C T: Dis cus s ion and p o s s ib le recommendation to exercise renewal option #3 of a contract with Hydro P ro S olutions LLC to provid e Master Meter water meters and water meter regis ters fo r the Advanc ed Metering Infras tructure s ys tem with a not-to-exceed amount of $1,000,000 and to ratify $135,564.88 of previous expenditures for similar purchases from HydroP ro Solutions on C ontract No.17-0073-G C . IT E M S UMMARY: S taff is reques ting approval of the 3rd c o ntract renewal with Hyd ro P ro S olutions L L C to s up p ly water meters and water meter regis ters on an as need ed b as is for the year. Hyd ro P ro S olutions L L C is the sole s ourc e provid er for the s p ecific meters and registers need ed to expand and maintain the C ity’s Advanced Metering Infrastruc ture. S ole S ource procurements are exempt from competitive bidding laws due to patents, c opyrights , s ecret proc es s es , or natural monopolies . In 2019, the C ity s p ent approximately $460,000 water meters and regis ters to sup p o rt new cus tomer growth and $540,000 to maintain and replace inoperable cus tomer meters and registers . T his annual renewal is for a no t-to -exc eed amount o f $1,000,000 and is cons is tent with amounts approved in previo us years. Meters and regis ters are purchas ed as inventory and expens ed (in vario us s pend categories) when removed from the warehouse and installed. S taff recommends approval of this item. F IN AN C IAL IMPAC T: T his 3rd renewal with Hydro P ro S olutions LLC for an amount not-to exc eed $1,000,000. S UB MIT T E D B Y: AT TAC H ME N T S: Description Type 3RD Renewal Agreement Backup Material Page 37 of 40 Page 38 of 40 Page 39 of 40 City of Georgetown, Texas Water Utility Board September 10, 2020 S UB J E C T: IT E M S UMMARY: F IN AN C IAL IMPAC T: . S UB MIT T E D B Y: T homas G lab, Board C hair Page 40 of 40