Water Resources Board

MINUTES MURFREESBORO WATER RESOURCES BOARD April 30, 2019 The Murfreesboro Water Resources Board met on Tuesday, April 30, 2019 in the conference room at the Operations and Maintenance Building, 1725 S. Church Street. Present at the meeting were Board members: Dr. Al Carter, Mr. Ron Crabtree, Mr. Brian Kidd, Ms. Sandra Trail, Ms. Madelyn Scales-Harris, and Mr. Kirt Wade. Also present were Darren Gore, Valerie Smith, Michele Pinkston, Anita Heck, Adam Tucker, Steve Tate, Jimmy Stacey, Matt Powers, Donald Hughes, Alan Cranford, Joe Russell, John Strickland, Jay Bradley, Mike Bernard, Ronnie Martin, Lynda Sullivan, and Travis Wilson along with other members of the public. Item A was removed from the Consent Agenda. Items B, C, and D of the Consent Agenda were presented for the following considerations: B. Consider SRWTP turbidimeter and distribution monitoring panel purchase – Staff is requesting to purchase eight replacement turbidimeters and one distribution monitoring panel due to equipment age. The Stones River Water Treatment Plant uses the turbidimeters during the treatment process to monitor the clarity of the water throughout the treatment process. The process includes monitoring the raw water, settled water, granular activated carbon (GAC) contactors, membranes filtration, finished water and at the storage tanks. The distribution monitoring panels are panels compactly constructed with instrumentation for measuring chlorine residual, turbidity, pH, conductivity, pressure and temperature. These panels are designed to assist in identifying potential problems that pose risks to public health when they occur in a treatment plant or distribution system. The cost to purchase two model TU5300sc turbidimeters for monitoring the raw and settled water is $7,664.40 and the cost for six model TU5400sc turbidimeters for monitoring the GAC contactors and membrane filtration system is $42,217.20. The cost to purchase one distribution monitoring panel for the high service pump station at the Stones River Water Treatment Plant is $16,956.90. This panel is to ensure that the quality is consistent with Department, TDEC and EPA standards and to indicate possible contamination or degradation of the water quality as the water is leaving the plant. Any deviation would allow the plant operator to shut the plant down until the issue was identified and corrected. Staff received a quote from HACH, Inc., the sole source vendor for HACH, Inc. manufactured equipment. The total amount budgeted in the FY19 rate funded capital budget for the turbidimeters is $49,200 and distribution monitoring panel is $17,000 for a total budgeted amount of $66,200 for all equipment Page 26 Water Resources Board Minutes April 30, 2019 Page 2 listed. The total cost for purchasing all the equipment is $66,838.50 plus shipping. The shipping is estimated to be $1,336.77. This is $1,975.27 over budget; however, the entire cost will come from the FY19 rate funded capital budget. Staff recommended that the Board recommend the City Council to approve the purchase of the turbidimeters and distribution monitoring panel in accordance with the quote provided by HACH, Inc. C. Consider O&M used equipment purchase – Staff is requesting to replace the truck bed and crane for Unit #93. This unit is primarily used when installing main line taps, fire hydrants, and handling heavy meter vaults. After exploring current market costs between new and used equipment, it was determined a used crane would be a cost-effective solution. Staff located a used National Crane Model 400B at Utility Equipment Service (UES). The current crane’s lifting capacity is 8,000 lbs. and this crane has a lifting capacity of 20,000 lbs. which is needed to handle meter vaults. UES will provide a 90-day parts and labor warranty and a trade in value of $5,000 for our current crane. Staff recommended the Board to recommend the City Council to approve the purchase of this used equipment with funding coming from the FY2019 budgeted capital account. The cost of the equipment is in the amount of $44,500. D. Consider a Professional Services Contract with ADS, LLC for engineering analysis of permanent and temporary flow monitoring data – Currently the Department is contracted with ADS, LLC to operate and maintain the Department’s 19 permanent flow monitors and seven rain gauges, to analyze data recorded from these monitors and to report on this data annually. These annual reports, report wet and dry weather capacities and rain dependent inflow and infiltration (RDII) for 18 flow monitor areas. They also are contracted to perform temporary flow monitoring, analyze the temporary data recorded and report findings as well as perform field investigations. The current Professional Services Contract is in its third year set to expire June 30, 2019. ADS has the professional expertise, equipment and personnel (both office and field) to continue to provide service to the Department. Staff wishes to continue to contract their professional service as we have in various forms over the last 27 years. This upcoming contract is written identical to the existing contract, which has been reviewed by Legal in the past. There is an option to extend for two additional one-year periods; however, pricing is not set for Years 2 & 3. Years 2 & 3 pricing will be negotiated based on the CPI for the Southern Region. Staff recommended that the Board recommend to the City Council to accept entering into a one- year professional services contract with ADS with the option to renew for two additional one-year periods. A motion was made by Sandra Trail to accept Items B, C, and D of the Consent Agenda as presented and it was seconded by Kirt Wade. The Board voted unanimously to approve. Page 27 Water Resources Board Minutes April 30, 2019 Page 3 Item A removed from the Consent Agenda was discussed and voted on as an individual item. A. Consider SSR Task Order 18-41-021.0 for Engineering Consulting Services for the Mill Street, Tiger Hill, and Halls Hill Storage Tank Repair and Recoating project – Staff monitors the status of all five of the drinking water storage tanks for service condition including cleanliness and coating status. There are three tanks that need recoating (repainting). The Mill Street tank is a two million-gallon steel elevated storage tank constructed in 1973, the Tiger Hill tank is a three million-gallon steel ground storage tank constructed in 1983 and the Halls Hill tank is a three million- gallon concrete ground storage tank constructed in 1972. The Mill Street and Tiger Hill tanks were last painted (recoated) in 2007. The last coating application on the Mill Street tank is experiencing a coating failure and there are several repairs and improvements that are needed at that location. The Tiger Hill tank needs recoating, however, its existing coating is in a condition that allows recoating over the existing paint. The Halls Hill tank was last recoated with concrete repairs in 2012, however it is experiencing spalling on the exterior and needs more extensive repair along with recoating. Staff has requested SSR to provide engineering services in conjunction with recoating these three tanks due to the complexity of this project. The scope of SSR’s engineering services will include preparation of specifications suitable for both bidding and construction of the recoating project as well as permitting with local and state agencies. Fees, as required for reviews and permits, will be billed as a direct pass through reimbursable at SSR’s costs. SSR proposes to provide the design and bidding services for an hourly not-to-exceed fee of $28,135. This fee ceiling will not be exceeded without prior written approval. SSR proposes to provide Construction Administration and Resident Project Representative Services on the project. In addition, SSR will commission a NACE Certified Coatings Inspector to observe all Critical Phase work. SSR estimates the NACE Inspector will require 18 trips to the site for each tank at a rate of $985 per trip. Inspection services will also be included in this fee and will be billed as a direct pass through reimbursable at our costs with a maximum not-to-exceed fee of $53,190, or 54 trips. SSR estimates that construction will be fully complete in approximately 255 days from issued Notice to Proceed date with consideration to weekend and weather days. SSR proposes an hourly not-to-exceed fee of $141,460 for Construction Administration and Resident Project Representative Services. SSR proposes a total hourly not-to-exceed fee of $169,595 for the design, bidding, and construction phase services for the recoating of the Mill Street, Tiger Hill and Halls Hill tanks. The estimate for the cost of all tank work is $2,370,000. The total estimate for the entire project is $2,539,595. Funding to come from the FY20 CapEx. Staff recommended the Board recommend to the City Council approving the proposed engineering services from SSR in the not-to-exceed amount of $169,595. Page 28 Water Resources Board Minutes April 30, 2019 Page 4 A motion was made by Sandra Trail to accept Item A of the Consent Agenda as presented and it was seconded by Brian Kidd. The Board voted unanimously to approve. The April 2, 2019 Board Minutes were unanimously accepted as written. The Board considered Department participation in replacing and upsizing a section of sewer main associated with the Mainstay Suites project. Staff received construction plans for the Mainstay Suites for detailed review of the project. During our review of the project staff discovered that we have somewhat of a unique situation with the existing sewer mains in this area. It has been researched and verified that there is an existing 10” sewer main onsite extending from John Rice Blvd to the east and under I-24 for a total of two sections of 10” sewer. What is unique about this is that there is a 12” sewer main upstream, west of John Rice Blvd, feeding into this 10” main as well as an 8” sewer main from the south. It is not a typical occurrence to find this situation, with a larger line feeding into a smaller line. Staff studied the area served by this 10” sewer main and has determined that it would be in the Department’s best interest to upsize the section of 10” sewer through the Mainstay Suites. The upsizing of this line is best to serve this area collectively due to the area being developed at a higher density than originally planned and not because of the Mainstay Suites project. The Mainstay Suites project does not affect the size of this section of 10” main simply because they are connecting to an existing manhole at the rear of the site. But staff would like to contract with the Developer to upsize this section of sewer, using our participation policy and development contract, so it can be constructed/upsized during their construction of the hotel and on their schedule by their contractor. Staff doesn’t feel that the Mainstay Suites development should have to pay for the associated engineering, construction or inspection & video costs for this upsize because they are not affecting the size of this section. The Mainstay Suites developer has agreed to upsize this section of sewer main. He has received engineering and construction costs associated with the upsize of the sewer main. The total cost is $45,300. If rock is not encountered during the replacement, then this amount will be reduced by $5,000. Staff recommended the Board recommend to City Council approval of the funding for the replacement and upsize in the amount of $45,300. This amount is requested to come from the Department’s working capital reserves. Ron Crabtree made a motion to approve. Brian Kidd seconded. The motion unanimously passed. The Board considered SRWTP Cross Connection Control testing charge increase. Staff is requesting to increase the cross-connection control testing charge starting July 1, 2019. MWRD’s cross-connection control testing charge was started in 2009, and the charges have not increased. In 2009, there were 3,845 devices tested and certified by the Department each year. The cross-connection Page 29 Water Resources Board Minutes April 30, 2019 Page 5 program budget was approximately $220,000 per year. The testing charge was anticipated to provide an estimated revenue of $133,000 to offset some of these expenses. In 2017, the Department was testing 4,759 devices annually. This is an increase of 914 devices in 8 years. As a result, in August 2018, the Department hired another Cross-Connection Control Technician to keep up with the required testing annually. In 2019, the Department is testing 4,855 devices annually. The table below shows the current testing charges established in 2009 versus the proposed charges starting July 1, 2019. Current (since 2009) Proposed CCC testing charge CCC testing charge Annual Test $35/device $45/device 1st Retest $0/device $0/device 2nd Retest $50/device $60/device 3rd Retest $100/device $125/device Fire line (if bypass is present) $70/fireline $75/fireline The $10/device increase charge for annual testing alone will provide an additional $48,550/year for the current number of 4,855 devices. Staff recommended that the Board recommend the City Council to approve the increase in cross- connection control testing charges in accordance with staff recommendations. Sandra Trail made a motion to approve. Kirt Wade seconded. The motion unanimously passed. The Board considered WRRF aerator purchase. The Oxidation Ditches at the Water Resource Recovery Facility are a key unit of the treatment process. The system relies on nine 200 HP aerators mechanically introducing oxygen into the mixed liquid. Three of the aerators were commissioned in 2017 as part of the 4D treatment facility expansion. The original six aerators were commissioned in 2000. Maintenance staff, with advice from the manufacturer, have determined that the almost 20 years old original aerators are at the ends of their lifecycles. One aerator was scheduled for replacement in 2018. To ensure adequate treatment capacity, three more aerators need to be replaced. This request is for the purchase of the equipment only. The cost of installing the aerators, through the Department’s standing contract with John Bouchard & Sons, is estimated at $72,000. Task Order 19- 05 will be developed and brought to the Board for approval. Also, new Original Equipment Manufacturer (OEM) parts are only available from a sole source (Ovivo USA, LLC) and the lead time from order to delivery is approximately 10 months. Staff recommended the Board recommend to City Council approving the purchase of three Oxidation Ditch Aerators and associated parts in the amount of $383,022 from Ovivo USA, LLC. Two of the aerators will be funded from the Department’s working capital reserves and one will be funded from the Department’s rate funded capital account. Page 30 Water Resources Board Minutes April 30, 2019 Page 6 Sandra Trail made a motion to approve. Kirt Wade seconded. The motion unanimously passed. The Board considered Water Resources and Stormwater Funds 2020 Draft Budgets. The Water Resources FY20 draft budget is balanced and is not expected to deviate significantly from the overall revenue and expense total of $55,430,000. This amount is $2,852,000 over the FY19 budget and $650,709 under FY19 projected revenues. The $2,852,000 increase in budget can be attributed to sewer and water revenue trends totaling approximately $1,880,000 plus approximately $1,080,000 in interest income and tap revenue. There are $2,382,163 of sinking funds being earmarked to assign the excess revenue for future construction or repair and replacement. The sinking funds identified below have been assigned rate revenue since FY12. The total FY20 earmarked amounts and FY12-19 “banked” amounts are as tabulated below: Table 1: Designated Sinking Funds FY12-19 and FY20 Budget FY12-19 FY20 Budget Sinking Fund Balance Designated Balance General 1,400,000 1,400,000 Lift Station Replacement 876,232 250,000 1,126,232 NE FM & PS 2,891,254 500,000 3,391,254 WRRF Sludge/Biosolids 2,300,000 500,000 2,800,000 Walter Hill Dam Repairs 250,000 125,000 375,000 Sewer Rehab 1,000,000 1,000,000 2,000,000 Future Debt 4,159,380 4,159,380 Future Capital Expense 6,620,969 7,163 6,628,132 TOTALS 19,497,835 2,382,163 21,879,998 The use of sinking funds reduces the need to incur debt thereby alleviating the need for future rate increases. Based on the debt service coming off the rate revenue requirements for sewer and the over-recovery witnessed in FY18 that will cover the next four years of anticipated expenses, staff does not recommend a rate increase for FY20. The water rate is recommended to remain at $3.66 per 1,000 gallons ($0.00366 per gallon) and the sewer rate is recommended to remain at $5.67 per 1,000 gallons ($.00567 per gallon). The average monthly bill for an MWRD customer that uses 5,200 gallons per month for water and 4,800 gallons per month of sewer will remain the same, or $66.70 per month. Staff is not recommending any changes to the system development charges (a.k.a., connection fees) for residential or nonresidential uses. The FY20 total operating expenses, including benefits and payroll, increased $1,979,534 or 8.9% over the FY19 budgeted amount. The amount of $1,031,520 of this total increase is a result of Admin and Page 31 Water Resources Board Minutes April 30, 2019 Page 7 General expenses increasing primarily due to property insurance reimbursed to the City, health insurance expense, retiree health insurance and retirement vacation and sick pay. The FY20 budget includes two new additional staffing requests; a maintenance technician and utility locator at Operations and Maintenance. There are five reclassification requests; three of which are upgraded positions and two of which are downgraded positions. The total net increase anticipated in the personnel budget is $731,164, a 9.6% increase from the FY19 budget. This increase accounts for the FY19 pay plan adjustments affecting the entire department of approximately $350,000 and the two new positions at $80,000. The actual increase accounting for FY20 pay raises and reclassification adjustments is approximately $300,000, representing a 4.0% increase. There are a total of 175 full time and five part time positions budgeted for FY20. Included in the full-time positions are eight positions in the stormwater department. The rate funded capital budget is $6,797,741, which is an increase of $591,401 from the FY19 budget. MWRD’s goal is a minimum of $5 million per year in rate-funded capital purchases. Rate funded capital purchases are budgeted to increase $591,401 and debt service expense to decrease by $437,397 as compared to the FY19 budget. This offset indicates the Department’s strong financial position and ability to pay in cash what would otherwise need to be purchased through debt service. The Stormwater Fund budget is independent of the Department budget. It is funded from revenue based on a user fee of $3.25 per single family equivalent. The fund will be in its eleventh year in FY20. No change is recommended to the fee. The net revenue generated by the stormwater fee is budgeted at $3.0M with operation expenses budgeted at $1,942,147 and rate funded capital expenditures at $215,000. The rate funded stormwater capital expenditures include a rubber-tired loader and a new truck for the Streets Department. The anticipated excess funds above operating expenses and rate funded capital expenditures are $592,853. The stormwater fund has developed an extensive 5-year Capital Improvements Plan, currently totaling $5,120,000 from FY19 through FY23. A 5-year pro forma has been developed to demonstrate the banking of excess revenues to pay for these proposed capital improvements without incurring any debt. Financial policies for the stormwater enterprise fund were adopted by the Water Resources Board and City Council on May 21, 2013 and July 11, 2013, respectively. An amendment to these policies was approved in FY18 to allow the minimum working reserve balance to be lowered to no less than three months of operating expenses, or $485,537 for FY20. The stormwater fund has grown by approximately $60,000 each year. That is equal to approximately 1,540 single family unit equivalents annually. The average impervious square footage is equal to 3,470 square feet per single family unit, which equates to the City adding approximately 122 acres of imperviousness annually. These imperviousness areas have been required to meet the City’s permanent stormwater runoff treatment standards since 2008. Page 32 Water Resources Board Minutes April 30, 2019 Page 8 Staff recommended the Board recommend approval of the FY20 Water Resources Draft Budget to City Council. Kirt Wade made a motion to approve. Brian Kidd seconded. The motion unanimously passed. Staff recommended the Board recommend approval of the FY20 Stormwater Draft Budget to City Council. Brian Kidd made a motion to approve. Ron Crabtree seconded. The motion unanimously passed. Staff presented and discussed the Water Resources Dashboard Performance for March 2019. Staff presented the Financial Reports for the year ending March 2019. There being no further business, the meeting was adjourned. Alphonse Carter, Jr, Vice Chairman Page 33