WATER COMMITTEE MEETING July 25, 2019 Agenda AGENDA Opening - - PowerPoint PPT Presentation

Regional Service Through Unity… Meeting our Region’s Needs Today and Tomorrow

WATER COMMITTEE MEETING

July 25, 2019

Agenda

AGENDA

Opening Remarks

• A. Chairman/Executive

Director/Committee Champion Status Report concerning legislation and regulatory matters, budgets, current projects and ongoing programs of the District including the Regional Water System, Watershed Protection, and Water Conservation

2

Agenda

AGENDA

Action Items

A. Consider approval of Water Committee meeting minutes – June 27, 2019 Recommend approval of Water Committee meeting minutes Executive Session

3

Action Items B. Additional Funding for Bois d’Arc Lake Land Acquisition Program – Administrative Memorandum No. 5438 Consider recommendation on adoption of Resolution No. 19-35 authorizing additional funding in the amount of $25,500,000 to acquire all remaining properties required for the construction, operation, and maintenance of Bois d’Arc Lake and associated facilities, Project No. 101-0120-07 C. Additional Funding for Leonard Water Treatment Plant Land Acquisition Program – Administrative Memorandum No. 5440 Consider recommendation on adoption of Resolution No. 19-37 authorizing additional funding in the amount of $500,000 to acquire remaining property needed for the Leonard Water Treatment Plant, Project No. 101-0154-09

D.

Conveyance of Surplus Property for Bois d’Arc Lake – Administrative Memorandum No. 5439 Consider recommendation on adoption of Resolution No. 19-36 authorizing the Executive Director to convey certain surplus tracts of land with no public access to adjoining landowners and provide access easements to certain other tracts of land with no access due to the District’s acquisition of properties for Bois d’Arc Lake, Project No. 101-0120-07

AGENDA

4

• Authorizes a government body to consult with its attorney in an

Executive Session to seek advice on legal matters regarding pending

• r contemplated litigation or a settlement offer.
• A government body may not invoke this Section to convene a closed

session and then discuss matters outside of that provision.

• General discussion of policy, unrelated to legal matters, is not

permitted under the language merely because an attorney is present.

• Items discussed during consultation with the District’s attorney are

privileged and should remain confidential

EXECUTIVE SESSION Section 551.071, Consultation with Attorney

RECOMMENDATION

6

Scope: Land acquisition and support services necessary to facilitate the construction, operation and maintenance of the Bois d’Arc Lake Project. Project:

• No. 101-0120-07, Bois d’Arc Lake

Amount: $25,500,000

Administrative Memorandum No. 5438

Adjourn Executive Session

RECOMMENDATION

7

Scope: Land acquisition and necessary support services to facilitate the purchase of one remaining property required for the Leonard WTP and associated facilities. Project:

• No. 101-0154-09, Leonard Water Treatment Plant

Amount: $500,000 Administrative Memorandum No. 5440

RECOMMENDATION

8

Scope: Provide for disposition of certain land locked tracts of land surplus to the needs of the District which have no public access and to provide access to certain other tracts with no access due to the acquisition of properties for the Lake, as reflected in Exhibit “A.” Project:

• No. 101-0120-07, Bois d’Arc Lake

Amount: N/A

Administrative Memorandum No. 5439

Action Items

E. Amendment No. 11 to Construction Manager At-Risk Agreement on Bois d’Arc Lake Raw Water Pump Station and Leonard Water Treatment Plant High Service Pump Station – Administrative Memorandum No. 5435 Consider recommendation authorizing Amendment No. 11 to Construction Manager At-Risk Agreement with Garney Companies, Inc., in the amount

• f $4,387,942.02 for 90% to 100% electrical design progression for the

Bois d’Arc Lake Raw Water Pump Station, Project No. 101-0358-14, and in the amount of $15,276,465.60 for concrete structure construction and discharge pipe installation for the Leonard Water Treatment Plant High Service Pump Station, Project No. 101-0428-16

AGENDA

9

BDL CMAR 3 AMENDMENT NO. 11 – RAW WATER PS AND HIGH SERVICE PS

Background:

• Raw Water Pump Station
• Initial pumping capacity of 90 MGD – ultimate 236 MGD
• Pumps, electrical switchgear, access road, transformers, structure for

ultimate capacity, liquid oxygen system, and discharge piping

• High Service Pump Station
• Initial pumping capacity of 90 MGD – ultimate 330 MGD
• Pumps, access road, complete structure (one of the two pump stations

required to support expansion to ultimate capacity), an electrical room, generator, and effluent flow meter vault

10

BDL CMAR 3 Amendment No. 11 – Raw Water PS and High Service PS

HSPS at Leonard WTP RWPS at BDL

11

BDL CMAR 3 AMENDMENT NO. 11 – RAW WATER PS AND HIGH SERVICE PS

Scope of Work:

• Raw Water Pump Station – Design Progression
• Time saving measure implemented by CMAR and project team to allow

critical work to proceed—schedule driven.

• Bids received on 90% plans
• CMAR prices changes from 90% to 100% plans
• Either receive a credit or require additional funds
• High Service Pump Station
• Construction package for structural concrete and discharge pipe installation
• CMAR to contract with Kiewit
• Option to use an additional concrete batch plant

12

BDL CMAR 3 AMENDMENT NO. 11 – RAW WATER PS AND HIGH SERVICE PS

CMAR 3 Amendment No. 11 Partial GMP No. 5 PRICE

Construction Cost

RWPS - $4,018,998.00 HSPS - $13,992,000.00

$18,010,998.00

General Conditions (6% of construction cost)

$1,080,659.88

Construction Services Fee (2% of cost of work)

$381,833.16

Contingency (1% of cost of work)

$190,916.58

Total Board Approval - Ad Memo

$19,664,407.62

13

RECOMMENDATION

14

CMAR: Garney Companies, Inc. Scope: Construction services for the Raw Water Pump Station electrical system and High Service Pump Station structure and discharge pipe Project:

• No. 101-0358-14, Bois d’Arc Lake Raw Water Pump Station, and
• No. 101-0428-16 Leonard Water Treatment Plant High Service

Pump Station Amount: $4,387,942.02 (RWPS) and $15,276,465.60 (HSPS) Total Amount Requested: $19,664,407.62

Action Items

F. Amendment No. 7 to Construction Manager At-Risk Agreement on Treated Water Pipeline from Leonard Water Treatment Plant to McKinney No. 4 – Administrative Memorandum No. 5434 Consider recommendation authorizing Amendment No. 7 to the Construction Manager At-Risk Agreement with Garney Companies, Inc., in the amount of $42,299,445.92 for treated water pipe material purchase, Project No. 101-0425-16, Treated Water Pipeline from Leonard Water Treatment Plant to McKinney No. 4

AGENDA

15

BDL CMAR 5 AMENDMENT NO. 7 – TREATED WATER PIPELINE FROM LWTP

Background:

• Provide treated water transmission from the Leonard Water Treatment

Plant (WTP) site to McKinney No. 4 site by September 2021

• Project consists of approximately 122,500 LF (23 miles) of

84-inch diameter pipe and is divided into two segments (Segments D and E).

Scope of Work:

• Purchase

84-inch pipe material, isolation valves, and associated appurtenances

16

BDL CMAR 5 AMENDMENT NO. 7 – TREATED WATER PIPELINE FROM LWTP FROM FROM LWTP

17

BDL CMAR 5 AMENDMENT NO. 7 – TREATED WATER PIPELINE FROM LWTP

Procurement:

• Opened two bids
• Northwest Pipe
• American Spiralweld
• One bidder was late in submitting bid – Thompson Pipe
• Best value and lowest bid is Northwest pipe for both sections

18

BDL CMAR 5 AMENDMENT NO. 7 – TREATED WATER PIPELINE FROM LWTP

CMAR 5 Amendment No. 7 Partial GMP No. 4 PRICE

Construction Cost Pipe purchase - $36,897,954.39 Design Progression allowance - $2,213,877.26

$39,111,831.65

General Conditions (5% of construction cost)

$1,955,591.58

Construction Services Fee (2% of cost of work)

$821,348.46

Contingency (1% of cost of work)

$410,674.23

Total Board Approval - Ad Memo No. 5434

$42,299,445.92

19

RECOMMENDATION

20

CMAR: Garney Companies, Inc. Scope: CMAR construction services for treated water pipe material purchase Project:

• No. 101-0425-16, Treated Water Pipeline from Leonard Water

Treatment Plant to McKinney No. 4 Amount: $42,299,445.92 (Partial Guaranteed Maximum Price)

Action Items

G. Renner Road to Plano Delivery Point No. 2 Pipeline Change Order

• No. 1 – Administrative Memorandum No. 5428

Consider recommendation authorizing Change Order No. 1 with McKee Utility Contractors, Inc., in the credit amount of ($468,000) on Project No. 101-0462-17, Renner Road to Plano Delivery Point No. 2 Pipeline

AGENDA

21

RENNER ROAD TO PLANO DELIVERY POINT NO. 2

22

• Board authorized award of project to McKee Utility Contractors,

Inc., May 30, 2019

• Why construction of parallel pipeline is needed?
• Plano DP No. 1 has been decommissioned
• Capacity demand has shifted to Plano DP No. 2
• New pipeline facilitates water delivery from Shiloh Road Pump

Station

• Scope of Work
• 8,000 LF of 24-inch pipe
• Isolation and air relief
• Cathodic protection

RENNER ROAD TO PLANO DELIVERY POINT NO. 2

23

• Why the need for this change order?
• Approve utilization of alternate bids

– Ductile iron pipe – Concrete block erosion protection system

• Savings of $468K to the District 
• Why was the alternate bid not recommended for approval from

the onset?

• Established process was not followed 
• Internal QA/QC approval process flagged the oversight 
• Changed process to ensure no recurrence in the future 

RECOMMENDATION

24

Contractor: McKee Utility Contractors, Inc. Scope: Construction, Change Order No. 1 Project:

• No. 101-0462-17, Renner Road to Plano Delivery Point No. 2

Pipeline Amount: ($468,000) Credit

Action Items

H. Potable Water Supply Contract with Cash Special Utility District – Administrative Memorandum No. 5424 Consider recommendation authorizing execution of Potable Water Supply Contract with Cash Special Utility District

AGENDA

25

CASH SUD POTABLE WATER CONTRACT

26

• Background:
• Cash Water Supply Corporation (now Special Utility District) entered

into a potable water supply contract with NTMWD on July 26, 1979 with contract term of 40 years

• Contract will expire this year
• Cash and NTMWD desire to renew and enter into a potable water

supply contract Standard Contract Provisions:

• 20 year term
• Conservation measures
• Increased need for adequate water storage facilities by customers
• Rate set by Board of Directors
• Peak delivery flow rate
• Surcharge for exceeding peak delivery flow rate

RECOMMENDATION

27

Contracting Party: Cash Special Utility District Scope: Potable Water Supply Contract Contract Term: 20 years

Action Items

I. Agreed Order and Supplemental Environmental Project with Texas Commission

• n

Environmental Quality – Administrative Memorandum No. 5425 Consider recommendation authorizing execution of Agreed Order with an Administrative Penalty

• f

$7,275 and the

• ption

to perform a Supplemental Environmental Project in lieu of fine with the Texas Commission on Environment Quality regarding the 72-inch North Garland Pipeline at Shiloh Business Park in Richardson, Texas

AGENDA

28

12/4/2018 RELEASE OF POTABLE WATER Proposed Agreed Order: 12/4/2018 Release of Potable Water Briefed at June Water Committee Meeting

• 12/4/2018: Approximately 8 million gallons of potable water released
• Unnamed tributary of Rowlett Creek impacted
• Resulted in approximately 142 fish killed
• Supplemental Environmental Project (SEP) participation: $ 7,275
• Texoma Council of Governments’ Household Hazardous Waste

Collection Events (Cooke, Fannin & Grayson Counties)

29

RECOMMENDATION

30

Regulating Entity: Texas Commission on Environmental Quality Scope: Agreed Order and Supplemental Environmental Project Affected Facility: 72-inch North Garland Pipeline at Shiloh Business Park, Richardson, TX Amount: $7,275

Action Items

J. Amended and Restated John Bunker Sands Wetland Center Operating Agreement – Administrative Memorandum No. 5423 Consider recommendation authorizing execution

• f

Amended and Restated Operating Agreement for the John Bunker Sands Wetland Center

AGENDA

31

JBS WETLAND CENTER: OPERATING AGREEMENT Purpose: Enter into permanent operating agreement Substantially conforms to Temporary Operating Agreement (October 6, 2017). Ensure continued operation of the JBS Wetland Center:

• O&M Costs ($162,165 for 2019)
• Insurance Requirements & Indemnification
• Accessing Cells
• Governs Research & Birding
• Driving on Wetlands Property
• Alcohol permitted during fundraising events near JBS Wetland Center

with approval

• Firearms

Approved by JBS Board on July 15, 2019

JBS WETLAND CENTER: OPERATING AGREEMENT

RECOMMENDATION

34

Contracting Party: Wetlands Management, LP and John Bunker Sands Wetland Center, Inc. Project John Bunker Sands Wetland Center Amount: $0

Discussion Items

A. FY19 amended and FY20 preliminary budget briefing

AGENDA

35

REGIONAL WATER SYSTEM - BUDGET

36

REGIONAL WATER SYSTEM

Allen, Farmersville, Forney, Frisco, Garland, McKinney, Mesquite, Plano, Princeton, Richardson, Rockwall, Royse City, Wylie and 34 Customers

REGIONAL WATER SYSTEM – FY19 ANNUAL MINIMUMS (PER THOUSAND GALLONS)

37

Members Minimum

Allen 6,011,208 Farmersville 280,467 Forney 1,956,185 Frisco 10,986,490 Garland 13,721,955 McKinney 11,963,029 Mesquite 8,297,666 Plano 26,719,809 Princeton 535,076 Richardson 11,019,311 Rockwall 3,953,622 Royse City 493,325 Wylie 1,877,558

Total Member 97,815,701 Total Customer 20,334,405 Total System 118,150,106

RWS STRATEGIC FINANCIAL PLAN

38

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Current $2.92 $2.99 $3.14 $3.33 $3.50 $3.64 $3.79 $3.94 $4.10 $4.26 $4.43 Curr Incr 2% 5% 6% 5% 4% 4% 4% 4% 4% 4% Prior $2.92 $3.12 $3.31 $3.48 $3.62 $3.76 $3.91 $4.07 $4.23 $4.40 $4.58 Prior Incr 7% 6% 5% 4% 4% 4% 4% 4% 4% 4% $2.50 $3.00 $3.50 $4.00 $4.50 $5.00

NTMWD Regional Water System Member Cost Per 1,000 Gallons

PRELIMINARY

39

PRELIMINARY ANNUAL MINIMUM FY20 PROJECTED RATE FY20 PROPOSED RATE INCREASE/ (DECREASE) MEMBER CITY 3.12 2.99 (0.13) Allen 6,011,208 18,754,969 17,973,512 (781,457) Farmersville 280,467 875,057 838,596 (36,461) Forney 1,956,185 6,103,297 5,848,993 (254,304) Frisco 10,986,490 34,277,849 32,849,605 (1,428,244) Garland 13,721,955 42,812,500 41,028,645 (1,783,855) McKinney 11,963,029 37,324,650 35,769,457 (1,555,193) Mesquite 8,297,666 25,888,718 24,810,021 (1,078,697) Plano 26,719,809 83,365,804 79,892,229 (3,473,575) Princeton 536,305 1,673,272 1,603,552 (69,720) Richardson 11,019,311 34,380,250 32,947,740 (1,432,510) Rockwall 3,953,622 12,335,301 11,821,330 (513,971) Royse City 493,325 1,539,174 1,475,042 (64,132) Wylie 1,877,558 5,857,981 5,613,898 (244,083) Total 97,816,930 305,188,822 292,472,621 (12,716,201)

• 4.2%

40

Revised RWS FY20 Water Rate FY20 RWS Operating Budget (FY19 SFP w/ $3.12) $ 368,307,510 Rate Incr/(Decr) Support Fund Allocation: $ (2,347,805) $ (0.02) 9% Reduction in Variable Costs: Chemicals (3,097,400) (0.03) Power (1,695,500) (0.02) Water Purchases (332,390)

• Total 9% Reduction in Variable Costs:

(5,125,290) (0.05) Capital Savings: Capital Improvement (11,100,000) (0.11) Debt Service Payment (918,455) (0.01) Capital Savings: (12,018,455) (0.12) Supplemental Request Reductions: Priority 1 (878,115) (0.01) Priority 2 (87,850)

• Priority 3 or Less

(267,100)

• Total Supplemental Request Reductions:

(1,233,065) (0.01) Transmission Department: 7,416,085 0.07 Other: Leonard WTP & BDL Department Increase 412,515

• Revised BOD Budgeted Expenses

$ 355,411,495

• 3.5%

$ (0.13) Adopted Water Rate in FY19 2.92 Revised FY20 Member City Water Rate 2.99 2.38% FY19 Cost of Service Member City Water Rate 3.12 23.32% Difference (0.13)

41

REGIONAL WATER SYSTEM - BUDGET Expenditures by Category

$5 $55 $105 $155 $205 $255

Personnel Operating Capital FY19 Bdgt $51 $87 $222 FY19 Amnd $51 $81 $222 FY20 Bdgt $13 $119 $223

Millions

37% Incr <$15 M> CIP Fund Decr $16 M Debt Incr 75% Decr .5% Incr Estimated $32 M net to account for Support Services Allocation <$40 M > Support Services $1.7 M Personnel 0% 7% Decr 0% <$1 M> Chemical <$6 M> Power <$2 M> Wtr Purchases $2 M PUC $1 M Richardson PL

REGIONAL WATER SYSTEM - FY20 BOND ISSUES

42

10/2019 Regional Water System Revenue Bonds, Series 2019A - $142 M (NON SWIFT)

• System Wide Meter Vault Improvements, expand HSPS 3-1, Wylie WTP II structural and

mechanical improvements, Phases I and II, additional clearwells at Wylie WTP, and other miscellaneous improvements.

11/2019 Regional Water System Revenue Bonds, Series 2019 - $101 M (SWIFT)

• Treated Water Pipeline from Leonard WTP to Highway 5 Pump Station, other costs relating

to the Bois d’Arc Lake program, and Contingency

09/2020 Regional Water System Refunding Bonds 09/2020 Regional Water System Revenue Bonds, Series 2020A - $94 M (NON SWIFT)

• Wylie WTP Construction of Thickening Facilities, Wylie WTP Finished Water Storage, Wylie

WTP II, Structural and Mechanical Improvements Phase II, System wide Meter Vault Improvements - Setpoint Control Phase IV, and other miscellaneous improvements.

REGIONAL WATER SYSTEM - CIP

43

FY20 CIP Contracts to be funded with RWS Capital Improvement Fund:

(Construction / Inspection Contracts unless otherwise noted.)

$19M – Wylie Rockwall Farmersville 36”/48” Pipeline Improvements Phase II $10M – Future Water Supply Project – Permitting and Mitigation $ 9M – Wylie WTP Ammonia System Improvements $ 6M – HSPS 2-2 and 2-3 Control Valve Improvements $ 5M – Transmission System Water Quality Analyzers $ 4M – HSPS 2-1 Electrical Improvement Phase IIB $ 4M – Wylie WTP I Washwater Supply System Improvements $ 3M – Air Valve Improvements – North System Phase II $25M – Other (Construction, Engineering, Property) $85M – Total CIP FY20 Project Costs

AGENDA

Discussion Items

B. Opportunity for Committee members to provide feedback on Water Committee meeting

44

AGENDA

Discussion Items

• C. Opportunity for Committee members to request potential future

agenda items

(No substantive discussion of items will take place at this time)

Adjournment

45