Water Resources Board

MINUTES MURFREESBORO WATER RESOURCES BOARD December 11, 2018 The Murfreesboro Water Resources Board met on Tuesday, December 11, 2018 in the conference room at the Operations and Maintenance Building, 1725 S. Church Street. Present at the meeting were Board members: Mr. John Sant Amour, Dr. Al Carter, Mr. Ron Crabtree, Mr. Brian Kidd, Ms. Kathy Nobles, Mr. Kirt Wade, and Ms. Madelyn Scales-Harris. Also present were Darren Gore, Doug Swann, Valerie Smith, Michele Pinkston, Anita Heck, Adam Tucker, Steve Tate, Matt Powers, Jimmy Stacey, Donald Hughes, Alan Cranford, Joe Russell, John Strickland, Sharon Seibert, Carolyn Davidson, Jay Bradley, Mike Bernard, Lynda Sullivan, Travis Wilson, Jimmy Jobe, and Drew Nickerson, along with other members of the public. Mr. Sant Amour administered the Oath of Office to Mr. Kirt Wade as the newest member of the Water Resources Board. Item D was removed from the Consent Agenda. Items A, B, C, and E of the Consent Agenda were presented for the following considerations: A. Consider Barker & Burton St. Waterline Replacement Bid – MWRD Operations & Maintenance requested sealed bids for the materials necessary for the water line replacement on Barker and Burton St. The table below shows the bid results. Project: Barker & Burton St (Water Line, Pipe, Valves, Fittings) Company Total Fortiline Waterworks $51,726.95 G&C Supply $52,269.75 Southern Pipe & Supply $52,966.69 Hayes Pipe $53,147.00 Core & Main $54,465.40 Consolidated Pipe $54,520.00 Staff recommended the Board recommend to City Council approval of purchasing all materials for the project from the lowest bidder, Fortiline Waterworks. Funds are available in the capital budget expenditures in the 2018-2019 (FY19) budget. B. Consider O&M Vehicle Purchase – Operations & Maintenance requested to replace unit #6 used by the New Construction Division and unit #82 used by the Sewer Rehab Division. Staff located the desired vehicles on the State of Tennessee Vehicle Contract with Ford of Murfreesboro. Page 2 Water Resources Board Minutes December 11, 2018 Page 2 VEHICLE DETAILS Qty Description Cost Budgeted 1 2019 Ford F-350 Crew Cab 4x4 (New Const) $59,960 $60,000 1 2019 Ford F-150 Super Cab 4x4 (Sewer Rehab) $26,131 $35,000 Staff recommended the Board recommend City Council to approve the purchase of these vehicles with funding coming from the FY 2018-2019 budgeted capital account. C. Consider a Proposal from Wiser Consultants for Engineering Design Services for Rucker Lane Widening project – The City is moving forward with the design to reconstruct and widen Rucker Lane. Typically, the Department’s policy is to replace and possibly upgrade the existing water and sewer mains with new roadway reconstruction projects to avoid having old lines within a new road. This roadway is within Consolidated Utility District’s water service area, so the Department will not have any water main replacements. Our sewer mains do not run the length of the roadway so there will not be old sewer mains to replace. There are only three points where the sewer mains have been extended, by development, to Rucker Lane from the Interceptor sewers to the west and east. The City is under contract with Wiser Consultants to design the roadway improvements and as matter of standard practice, staff has requested a proposal from Wiser to design the sewer main extensions to cross the roadway as it is being widened. Wiser has provided their proposal of an amount not to exceed $4,669. An estimate on the extension of the sewer mains is $30,000. Staff recommended the Board recommend City Council to approve the proposal for engineering design services. This project is proposed to be funded from working capital reserves. E. Consider SRWTP Improvements Change Item No. 10 – Staff submitted Change Item No. 10 for a 30-day time extension to the Stones River Water Treatment Plant Improvements for repairing the sink holes in Sludge Lagoon No. 2. Blakely Construction is the contractor performing the SRWTP Improvements. The option of concrete injection was approved by the Board at the October meeting for Change Item No. 7, at an estimated $34,000 to repair two sinkholes. The existing sinkholes are preventing the lagoons from retaining all its contents and require attention to put the lagoon back into service. The change includes site prep from the contractor, Blakely Construction, as well as the repairs to be done by the geotechnical subcontractor GeoFirma. Prior to Blakely being able to start construction, staff and SSR worked with Tuscaloosa Testing Laboratory (TTL who specializes in geotechnical engineering, analytical laboratory testing and construction materials testing) to try and determine the extent of the sinkholes in the Sludge Lagoon No. 2. Staff requested TTL to perform noninvasive testing to check for the presence or absence of karst features Page 3 Water Resources Board Minutes December 11, 2018 Page 3 in the lagoon so that identified features will be repaired prior to determining the more permanent repair. TTL plans are to make between eight and ten traverses in each lagoon, with each traverse performed on approximately 50-foot centers in an east-west direction. The depth that subsurface data is gathered is a function of the geophone spacing. The method that they are using is Seismic Refraction. The data that TTL obtains will be used to estimate the depth to bedrock, check for indications of weathering in the bedrock, and possibly locate any large subsurface voids that may be present beneath the traverses. Once the evaluation is complete for the Sludge Lagoon No. 2, a report will be provided. Blakely has already begun the necessary site prep for the geotechnical subcontractor GeoFirma, but further work cannot be conducted until the report from TTL is completed. This has delayed Blakely from beginning in November and therefore they are asking for an additional 30-day time extension. Staff and SSR believe this is reasonable as the delay is out of their control. Change Item No. 10 will not result in any increase of the total contract amount; however, the substantial completion date would be changed to within 240 days from the Notice to Proceed and no later than December 27, 2018 and the final completion would be changed to be completed within 260 days of the Notice to Proceed or no later than January 16, 2019. Staff recommended the Board recommend to the City Council approving proposed Change Item No. 10 with the 30-days extension of time. A motion was made by Brian Kidd to accept Items A, B, C, and E of the Consent Agenda as presented and it was seconded by Kathy Nobles. The Board voted unanimously to approve. Item D removed from the Consent Agenda was discussed and voted on as an individual item. D. Consider SRWTP Commercial Structures & Facilities Painting Bid – The Commercial Structures and Facilities Painting bid was to allow for repainting of the Stones River Water Treatment Plant and Auxiliary Intake Building over the next four years. There were three contractors that provided a bid. They were HP Ventures dba CertaPro Painters of Nashville North-Bowling Green, Commercial Painting, Inc. and Charlie Irwin Painting, Inc. Staff reviewed the bids and determined that CertaPro Painters did not meet the requirements for this project. They did not have the proper bond limit and they are not licensed for sandblasting which is a part of this project. The bid tabulation is below. Contractor Name 2018-19 2019-20 2020-21 2021-22 Grand Total CertaPro Painters of Nashville North- Bowling Green $444,857 $467,646 $142,563 $69,244 $1,124,310 Commercial Painting, Inc. $341,265 $500,425 $123,200 $161,350 $1,126,240 Charlie Irwin Painting, Inc. $436,082 $746,494 $164,208 $109,334 $1,456,118 Preferred Sandblasting & Painting No bid No bid No bid No bid No bid McKinney Painting, Inc. No bid No bid No bid No bid No bid Leland Corporation No bid No bid No bid No bid No bid The Pressure King No bid No bid No bid No bid No bid Page 4 Water Resources Board Minutes December 11, 2018 Page 4 Staff therefore recommended accepting the lowest responsive and responsible bid from Commercial Painting, Inc. Commercial Painting, Inc. painted the facility when under construction and has done additional painting onsite since the 2010 expansion. Their work meets all specifications in the ITB. The FY 2018-19 capital budget has $225,000 budgeted for facility painting. In accordance with the ITB and speaking with the contractor, there will be some adjustments to which areas are painted in the FY 2018-19 to stay within budget. This will not change the overall grand total amount. Contractor Name 2018-19 2019-20 2020-21 2021-22 Grand Total Commercial Painting, Inc. $224,900 $320,465 $419,525 $161,350 $1,126,240 The cost of the 2018-2019 project, after adjustment, is $224,900. The amount in the FY 2018-2019 capital is $225,000. This will bring the project $100 under budget for FY 2018-2019. Staff recommended that the Board recommend to the City Council accepting the bid from Commercial Painting, Inc. in accordance with their bid. A motion was made by Dr. Carter to accept Item D of the Consent Agenda as presented and it was seconded by Madelyn Scales-Harris. The Board voted unanimously to approve. Staff and the Board congratulated Ms. Carolyn Davidson on her upcoming retirement and expressed appreciation for her 40 years of service with the Department. The October 23, 2018 Board Minutes were unanimously accepted as presented. The Board considered Stormwater Fund Financial Audit for FY18. There are no findings in this year’s audit. The table below summarizes the Department’s financial position for the stormwater fund: June 30, 2018 June 30, 2017 Cash 5,856,604 10,469,071 Utility Plant $ 6,296,594 $ 6,342,886 Deferred Outflows 91,689 166,627 Prepaid Expenses and Other Assets 45,263 39,018 Total Assets and Deferred Outflows of Resources $ 12,290,150 $ 17,017,602 Trade Accounts Payable $ 39,178 $ 64,703 Other Liabilities 75,848 61,907 Deferred Inflows 52,352 24,428 Due to Other Funds 1,252,823 6,180,545 Long‐Term Liabilities 1,157,414 228,152 Total Liabilities and Deferred Inflows of Resources $ 2,577,615 $ 6,559,735 Net Assets Net Investment in Capital Assets 6,296,594 6,342,886 Unrestricted 3,415,941 4,114,951 Total Net Position 9,712,535 10,457,837 Total Liabilities, Deferred Inflows and Net Position $ 12,290,150 $ 17,017,572 Page 5 Water Resources Board Minutes December 11, 2018 Page 5 Staff recommended approval of the June 30, 2018 audit of the Murfreesboro Stormwater Fund. Dr. Carter made a motion to approve. Madelyn Scales-Harris seconded. The motion unanimously passed. The Board considered the Water Resources Fund Financial Audit for FY18. There are no findings in this year’s audit. The table below summarizes the Department’s financial position for the water resources fund: June 30, 2017 June 30, 2018 as restated Current Assets $ 101,122,393 $ 84,357,612 Capital Assets 417,131,278 416,976,867 Non-Current Other Assets 86,799 123,647 Deferred Outflows 2,616,525 4,034,092 Total Assets and Deferred Outflows $ 520,956,995 $ 505,492,218 Current Liabilities $ 16,573,301 $ 15,514,994 Non-current Liabilities 122,557,631 129,947,706 Deferred Inflows 870,391 392,307 Total Liabilities and Deferred Inflows $ 140,001,323 $ 145,855,007 Net investment in capital assets $ 307,032,011 $ 300,550,306 Restricted 86,799 123,647 Unrestricted 73,836,862 58,963,258 Total Net Position $ 380,955,672 $ 359,637,211 Total Liabilities, Deferred Inflows and Net Position $ 520,956,995 $ 505,492,218 Staff recommended approval of the June 30, 2018 audit of the Murfreesboro Water Resources Department. Madelyn Scales-Harris made a motion to approve. Dr. Carter seconded. The motion unanimously passed. The Board considered purchase of Mission monitors. In 2016, Operations & Maintenance began installing Mission Communication Monitors to the pumping stations. The monitors are configured to generate alarms based on various events including pump run times, wet well levels, station floods, power and pump failures. These alerts are sent via phone, text, and email. At the October Board meeting, O&M received approval to purchase an additional 8 monitors included in the FY19 budget. During this discussion, it was brought to the Board’s attention that an additional 22 monitors were required for all stations to be monitored. The Board requested staff to ask the vendor if they would provide a discount if we purchased the remaining 22 monitors. Staff contacted Mission Communication and they offered 15% off each monitor which equates to a discount of $329.25 per monitor which provides a total savings of $7,243.50. Page 6 Water Resources Board Minutes December 11, 2018 Page 6 Staff recommended the Board recommend to City Council to approve purchase of 22 additional monitors to replace the remaining wireless radio systems at the cost of $2,747.15 each for a total of $60,437.30. This cost also includes 1 year of cell service, hosting, and security. This amount was not included in MWRD’s FY19 Capital Budget and funding is requested to come from working capital reserves. Brian Kidd made a motion to approve. Madelyn Scales-Harris seconded. The motion unanimously passed. The Board considered S&ME Task Order 20181130, 2019 Sanitary Sewer Rehab project design. S&ME has been advising the Department regarding our sewer CCTV (closed-circuit TV) databases and our sewer rehabilitation under a Master Services Agreement since 2012. Over the last several years, S&ME has demonstrated their expertise in all aspects, from their method of project design of plans and specifications, detail of inspections and quality control measures as well as as-built information that will easily merge into our GIS system. Staff believes that having S&ME to design, bid, provide construction administration and resident project inspection has enhanced our program. Staff has delivered defective sewer main, sewer lateral and manhole information to S&ME and we have requested a Task Order for the design, construction administration and resident inspection for this work. They have preliminary estimates for their work, based on a construction project size of $4.0M, in an amount not to exceed $432,000 total. Of this total, $121,500 is for design, $7,500 is for surveying only as directed by staff, $98,000 for construction administration, and $205,000 for resident inspection. Staff also intends to have a staff inspector assigned to the project since at times up to 3-4 crews can be working in separate locations at the same time. By the time the project is bid, approved by the Board and Council, contracts are executed, and a pre-construction meeting is held, the next fiscal year funding will be available. Staff recommended that the Board recommend to the City Council approval of Task Order No. 20181130 under the Master Service Agreement with S&ME. Bids for construction will be brought back to the Board for approval at a later date. Funding for the Engineering, Construction Administration, Inspection and Construction is approved from a combination of the remaining 2017/2018 Budget & Working Capital Reserves, as well as 2018/2019 and 2019/2020 Budget & Working Capital Reserves. The Department has $720,246 remaining to spend in the 2017/2018 allotment. Rehab Rate Funded Budget & Working Capital Reserves 2018/2019 + $720,246 (Remaining) Total WO# Project Project Remaining Expenditure 2018/2019 Budget 2019 Sewer Rehab $3,470,246 TBD Construction, Eng. ~$4.0M ($529,754) & Inspect above. Page 7 Water Resources Board Minutes December 11, 2018 Page 7 Rehab Rate Funded Budget & Working Capital Reserves 2019/2020 Total WO# Project Project Remaining Expenditure 2019/2020 Reserves $2,250,000 1,720,246 Ron Crabtree made a motion to approve. Dr. Carter seconded. The motion unanimously passed. The Board considered SSR Task Order 09-47-001.2 Amendment #6, Winter 2018 & Summer 2019 East and West Fork Bioassessment Sampling. AquAeTer has completed its water quality and stream assessments for the West and East Fork Stones River commissioned for 2014, 2015, 2016 and 2017. The bioassessment monitoring results were very encouraging and demonstrate that the West Fork Stones River is healthy and meeting its designated uses. Staff believes the task order is necessary to continue this work through the summer of 2019, as a next installment of developing the protocol that we believe will help create a new permitting framework for the City of Murfreesboro with the Tennessee Department of Environment and Conservation (TDEC). All results demonstrate the West Fork is exceeding the standard for Tennessee Macroinvertebrate Index (TMI) of 32 of Murfreesboro’s ecoregion. Additionally, the assessments demonstrate that the effluent being discharged from the Water Resource Recovery Facility (WRRF) is not impacting stream health. TMI scores assess biological integrity of streams. Macroinvertebrates are used by TDEC as indicator organisms to determine if a stream supports fish and aquatic life. The continued sampling efforts and TMI scores are intended to support the strategy of approaching TDEC to offer alternate permitting potentials to the City of Murfreesboro as we attempt to get ahead of the growth projected in the City’s Murfreesboro 2035 Comprehensive Plan. One of the main overarching goals that the Department has over the next 20 years is to influence the regulatory framework focusing on reclaimed water. Staff recommended the Board approve Amendment #6 to SSR Task Order 09-47-001.2 to allow for continued biological sampling of the West and East Fork Stones River. The extension to sampling and monitoring the West and East Fork Stones River is a net additional fee of $90,500 from previous approved fee ceilings. Staff recommended funding coming from the Department’s working capital reserves. MWRD’s 5-yr CIP earmarked $500,000 for Stones River Water Quality studies (including the Waste Load Allocation modeling) in FY18, of which only approximately $250,000 was expended. Staff has budgeted an additional $150,000 for FY19 through FY23. Brian Kidd made a motion to approve. Kathy Nobles seconded. The motion unanimously passed. The Board considered Overall Creek Pump Station upgrades. In May 2018, a memo was presented to the Board, for information only, outlining proposed upgrades to the Overall Creek Pump Station. Staff proposed new variable frequency drives (VFDs), improvements to the existing pump controls by upgrading the existing control panel with a new Page 8 Water Resources Board Minutes December 11, 2018 Page 8 programmable logic controller (PLC), a new Human Machine Interface (HMI), new local network switch, and new 240 watt, 24 volt DC power supply; a new stand-alone bubbler level system; a new backup ultrasonic level system; and a new cellular remote terminal unit (RTU). In June 2018, the Board approved SSR to design these improvements. During the kick-off meeting for the project, it was requested by O&M Maintenance Technicians to add to the scope of work to replace the check valves, that haven’t been working correctly, and to install a by-pass pump connection for emergencies. SSR provided the design drawings and specifications for the initial project as well as the requested additions, and on behalf of the Department, requested pricing from John Bouchard and MR Systems to construct the project utilizing our existing Master Service Agreements approved by the Board in February and March 2018 respectively. Staff recommended the Board recommend to the City Council approval of Task Order 18-06 to include work by John Bouchard and MR Systems for the Upgrade to the Overall Creek Pump Station in the amount of $351,042.06 to be funded from Working Capital Reserves. At the May 2018 meeting, the estimated total project cost was $310,000 consisting of $125,000 for electrical upgrades, $110,000 for instrumentation and controls upgrades, $20,000 for possible HVAC upgrades, $20,000 for possible bypass pumping, and $35,000 for engineering services. With the added scope, the project has gone over this initial estimate by $41,042. Additional upgrades are planned in the future to double the size of the station, which is also factored into the CIP beginning next year. Kathy Nobles made a motion to approve. Madelyn Scales-Harris seconded. The motion unanimously passed. The Board considered changes to the Policies, Procedures, and General Design Requirements. The Policies, Procedures, and General Design Requirements (P&P) was originally approved by the Board on August 25, 2009 and Council on September 17, 2009. There have been two amendments to these P&P that have been approved by the Board and Council in 2010 and 2016. At this time, staff proposes a few changes to the P&P as well as our Standard Development Agreement that will have cost implications to the development community. Staff reached out to the Development Community and held a Stakeholders meeting November 29th at City Hall to discuss the changes. Two developers were present at the meeting and did not have any negative feedback regarding the changes. These potential cost implications can be broken into those that are Contractor increases and those that only affect the Developer. These are: 1. Contractor / Increased Construction costs include: a. Potential bid increase to pre-test the sewer manholes prior to paving and the required MH testing after paving. Page 9 Water Resources Board Minutes December 11, 2018 Page 9 b. Bid increase to provide a 5” Storz Connection on all new fire hydrant installations. This connection is a “quick connect” for the Murfreesboro Fire & Rescue Department’s fire truck hoses. c. The discontinuance of SDR 35 PVC for sewer mains which is a thinner wall pipe and requiring SDR 26 PVC which is thicker. d. Potential increase in large (3” and larger) meter installations since these are to be purchased and installed by the Contractor per the Department’s specifications. May include Contractor mark-up. 2. Developer Increases: a. Potential increase in per lot price to cover the loss of property associated with wider easement widths. b. Increased surety costs to cover the increased minimum surety amounts. c. Hold Harmless Agreements – City not responsible for stormwater quality related fixtures within area encumbered by water/sewer/repurified water easements (specialty pavement, porous concrete, bio-swales, etc). Staff proposes these changes to be incorporated to water, sewer and repurified water construction projects beginning with any approval on and after March 1, 2019, except for the requirement of wider easement widths. Staff feels that it would be unfair for a developer to be required to incorporate wider easement widths into a Master Plan that has already been approved by Planning Commission. Therefore, if a Master Plan or Preliminary Plat have been approved by Planning Commission prior to March 1, 2019, then the easement widths would be under the current requirements. Staff recommended that the Board recommend to the City Council approval of these changes to the Policies, Procedures, and General Design Requirements as well as the Standard Development Agreement. Ron Crabtree made a motion to approve. Kirt Wade seconded. The motion unanimously passed. Staff provided the Board a PowerPoint presentation reviewing the Working Capital Reserve Account in conjunction with FY2019-2023 Capital Improvements Plan (CIP). The Murfreesboro Water Resources Department (MWRD) staff has drafted an updated 5-Year CIP from FY 2019 through 2023. The primary focus of this preliminary draft is the capital improvements projected to be funded by working capital reserves. After receiving the FY17-18 draft estimate of the Department’s working capital reserve amount of $73,836,861 provided by Jobe Hastings, PLLC (JH), staff has been able to “reset” the amount of available funds in the Department’s working capital reserve account and therefore provide a more updated accurate reflection of the Department’s reserve balance. The FY19-23 Capital Improvements Plan highlights three (3) major project classifications: 1. Projects funded through Debt Service 2. Projects/Purchases funded through Rates 3. Projects/Purchases funded through Working Capital Reserves The largest components of the FY19-23 CIP are those projects funded through working capital reserves. They are sub-classified as the following: 1. Water and Sewer Capital Improvement Projects 2. Transportation (Water/Sewer Improvements) Page 10 Water Resources Board Minutes December 11, 2018 Page 10 3. Sewer Rehabilitation 4. Information Technology Projects Based on the available cash (designated and undesignated) minus the outstanding committed projects and sanctioned/pending projects, approximately $44.9M of unassigned cash in reserves is determined available as of November 2018 (2nd quarter of FY19). When applying this to the FY19-23 CIP, and assuming projected additional FY19 reserve fund revenue and expenditures a working capital account balance of available funds is estimated as $53.2M at FY19 year-end. Subsequent year-end available reserve balances have been estimated over the 5-year CIP horizon. When plotting that balance against the Department’s 12 months operating expenses (i.e., the minimum allowable working capital reserve fund balance), current planned expenditures never go below the secured level but get very close in FY23. Operational expenses are assumed to increase at 2% annually over the 5-yr CIP. The 12 months’ worth of O&M expense is considered a secured minimum balance for the working capital reserve account as approved at the December 17, 2013 Board meeting through the adoption of the Water and Sewer Enterprise Fund Financial Management Policies. The City Council also approved these policies at their January 9, 2014 meeting. No debt funding has been programmed into the proposed 5-yr CIP. All projects as currently budgeted could potentially be funded with working capital reserve cash. Funding all major capital projects with cash is not required; several would qualify for State Revolving Fund (SRF) loans. The increase in capital improvement projects jumped from $60.5M to $88.49M, or $27.99M. The projects that created this increase are as follows: Project FY18 FY19 Difference Notes Biosolids Thermal $4,750,000 $16,000,000 $11,250,000 Landfill closure; Funding necessary Drying Processing for full-scale implementation Overall Creek P.S. $0 $8,850,000 $8,850,000 Increased capacity is necessary to Update support growth SR840/Veterans $0 $2,400,000 $2,400,000 Economic Development; Special Interchange Sewer Assessment potential Hwy96 Park Sewer $0 $4,300,000 $4,300,000 Economic Development; Special Assessment Potential Cherry Lane Extension $0 $2,075,000 $2,075,000 Economic Development; Special Sewer 840 to Memorial Assessment Potential Cherry Lane Extension, $0 $2,500,000 $2,500,000 Economic Development; Special I-24 to Florence Assessment Potential Total $4,750,000 $36,125,000 $31,375,000 As is customary in presenting the 5-year Capital Improvements Plan, all debt funded and reserve funded projects are qualified insofar as they must come back before the Board for consideration and recommendation to City Council before expending any funds on them. The CIP is meant to chart out a road-map for the Board to see the Department’s priority projects. Page 11 Water Resources Board Minutes December 11, 2018 Page 11 Staff is providing this to the Board as information only. Subsequent discussion and appropriate recommendations will be provided as projects are requested for design and construction. The 5-yr CIP provides a pro forma for anticipated capital costs and the effect against the Department’s secured minimum reserve amount of 12 months of operating expenses. Staff presented and discussed the Water Resources Dashboard Performance for October 2018. Staff presented the Financial Reports for the year ending October 31, 2018. Staff reminded the Board that the Department Christmas lunch will be held on Thursday, December th 13 at the Operations and Maintenance building. There being no further business, the meeting was adjourned. John Sant Amour, Chairman Page 12