Water Resources Board

MINUTES MURFREESBORO WATER RESOURCES BOARD October 22, 2019 The Murfreesboro Water Resources Board met on Tuesday, October 22, 2019 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, Ms. Sandra Trail, and Ms. Madelyn Scales-Harris. Also present were Darren Gore, Valerie Smith, Doug Swann, Michele Pinkston, Adam Tucker, Roman Hankins, Anita Heck, Steve Tate, Jimmy Stacey, Matt Powers, Alan Cranford, Joe Russell, John Strickland, Josh LeMay, Jay Bradley, Mike Bernard, Ronnie Martin, Randy McCullough, Adam Todd, Andy McCrary, and Travis Wilson along with other members of the public. The Consent Agenda was presented for the following considerations: A. Consider SRWTP Commercial Structures & Facilities Painting Change Order No. 1 – In December 2018, staff brought the bids for repainting of the Stones River Water Treatment Plant and Auxiliary Intake Building over the next four years. The approved bidder was Commercial Painting, Inc. They started their painting in FY19 and are preparing to conduct the painting for FY20. The FY20 Commercial Structures and Facilities Painting was budgeted at $350,000. There are some issues with the flooring coatings and preparation in the Membrane Room and Post Treatment Room that had to be corrected. To correct these issues will increase the cost of the coating and preparation of the floors by $27,123. The current cost of the FY20 project is $342,790. There is $350,000 in the FY20 capital budget for painting. The $27,123 increase in the coating and preparation would bring the FY20 project to $369,913. Funding for the additional $19,913 is requested to come from reserves. Staff recommended that the Board recommend to the City Council accepting Change Order No. 1 from Commercial Painting, Inc. B. Consider John Bouchard & Sons Task Order 19-08, WRRF Installation of Six Variable Frequency Drives – Maintenance staff, with advice from the manufacturer, have determined that the six original Variable Frequency Drives (VFD’s) at the WRRF’s old oxidation ditches are at the ends of their lifecycles. To ensure adequate treatment capacity, they need to be replaced. The Oxidation Ditches at the WRRF are a key unit of the treatment process. The system relies on Variable Frequency Drives controlling the nine 200 HP Aerators which mechanically introduce oxygen into the mixed liquid. The six original VFD’s were commissioned in 2009. Page 77 Water Resources Board Minutes October 22, 2019 Page 2 Staff recommended the Board recommend to City Council approving Task Order 19-08 for the installation of the VFD’s in the amount of $58,153. This request is for the installation of the equipment only. The purchase of the VFD’s was previously approved by the Board and the Council. A motion was made by Brian Kidd to accept the Consent Agenda as presented and it was seconded by Dr. Carter. The Board voted unanimously to approve. The September 24, 2019 Board Minutes were unanimously accepted as presented. The Board considered Fiscal Year 2019 (FY19) Cost of Service and Rate Study. Staff is recommending the Board recommend approval of a Water Resources Cost of Service (COS) and Rate Study with Jackson Thornton for year ending June 30, 2019 in the amount of $41,300. The COSS determines the minimum user fees to cover the Department’s fixed costs and the commodity rates to cover the production of potable water and treatment of sanitary sewer between the several customer classes the Department serves. Approval of the COS and rate study is consistent with the Department’s prior Financial Management Policies adopted in December 2017. Section E. Rates, Fees, and Charges Policies, Item E.6. states: “The Department shall consider using the services of a qualified independent consultant to conduct a comprehensive cost of service and rate study at approximately two (2) year intervals.” The last COSS was conducted for the Department in FY2017. The proposal includes determining Cost of Service (COS) and Rate Studies for MWRD’s water, sewer and repurified (reclaimed) water system. A new cost of service study will help position the Department appropriately to develop our 5-yr rate design and determine where we are in comparison to the previous 5-yr pro forma calculations developed in the FY17 study. The previous study gave a Pro Forma through FY22 and the proposed study will develop a Pro Forma through FY24. Staff recommended the Board recommend to City Council approving the proposal from Jackson Thornton to conduct a Cost of Service Study (COSS) and Rate Study for MWRD for FY2019, year ending June 30, 2019. Sandra Trail made a motion to approve. Madelyn Scales-Harris seconded. The motion unanimously passed. The Board considered terms for selling drinking water to Marshall County during construction of a new drinking water plant. Marshall County desires to purchase 200,000 gallons per day of drinking water from Murfreesboro Water Resources for a minimum period of 5-years while they construct a new drinking water plant. Marshall County currently has a moratorium on building in their water system due to lack of capacity and inability to serve new development. Marshall County anticipates constructing a new drinking water plant but would like to purchase water for an interim period prior to completing this project. Marshall Page 78 Water Resources Board Minutes October 22, 2019 Page 3 County is connected to CUD’s water systems and had originally approached CUD about purchasing 200,000 gpd of drinking water from them. CUD’s Board is reluctant to sell water to them due to the outstanding, unexecuted Water Supply contract with the Corps of Engineers on J. Percy Priest reservoir. Staff has discussed our ability to supply an additional 200,000 gpd into CUD’s system and there are no challenges that we can foresee. 200,000 gpd represents 1% of the Stones River Water Treatment Plant’s production capacity, or 20 MGD. MWRD’s future requirement, under water restrictions during a drought in 2035, is a yield of 15.14 MGD; 200,000 gpd represents 1.3% of that total. MWRD is currently contracted with the Corps for 12.9 MGD during a drought period; 200,000 gpd represents 1.6% of that total. Prior to preparing a contract for selling water to Marshall County, staff requested approval of the basic terms from the Board. The terms would be as follows: • Limit the contract to 5-yrs with one, 2-year renewal options beyond the initial 5-yr term, for a total maximum of 7-yrs. • Limit the flow to a maximum of 216,000 gallons per day, or 150 gallons per minute. • Restrict the flow to coincide with MWRD’s nonessential use reductions goals when a drought is declared by the Mayor. • Sell the water based on MWRD’s wholesale rate as determined by our annual audit plus 10%. • Adjust the sale price annually per the audit to reflect any adjustments to MWRD’s wholesale costs. Staff would expect that CUD will determine their transmission costs to Marshall County’s system and enter into a separate agreement with Marshall County, so MWRD’s contract would possibly be contingent upon Marshall County agreeing to CUD’s terms and conditions for transmission. Staff will work with the Legal Department to construct a draft contract for sale of drinking water with Marshall County and work with them to finalize a contract for review and approval at the next Board meeting. MWRD’s cost of producing water is roughly $1.00 per thousand gallons. Selling 200,000 gallons per day to Marshall County with a 10% adjustment is anticipated to generate roughly $220 per day, or $80,300 per year to MWRD’s water sales revenue. Staff recommended that the Board approve the basic terms of selling water to Marshall County and allow staff to draft a contract for recommendation to City Council. Sandra Trail made a motion to approve. Dr. Carter seconded. The motion unanimously passed. The Board reviewed Mill Street, Tiger Hill & Halls Hill Storage Tank Repair and Recoating project updated cost estimate. At the April 2019 Board meeting, staff brought an estimate for three tanks that need recoating (repainting). The estimate for providing the design, bidding and construction phase services for repair and recoating the Mill Street, Tiger Hill and Halls Hill tanks was $169,595. The estimate for the cost of all tank work was $2,370,000. The total estimate for the entire project was $2,539,595. In preparation for the bid, Page 79 Water Resources Board Minutes October 22, 2019 Page 4 scheduled for November 5, 2019, SSR refined the estimate. The greatest change in the April 2019 estimate was based upon the tank evaluation from Crom Corporation provided in September 2019. In May 2019, a representative from the Crom Corporation inspected the exterior and interior of the three million-gallon concrete storage tank that they built in 1981. During the exterior and interior inspection, it was noted that there are several major issues requiring repair. In the interior of the tank, where the wall meets the floor, the transition will need a considerable amount of work due to age and spalling of the concrete. In this area, the membrane is exposed, and chlorine is damaging it. The estimate for providing the design, bidding and construction phase services for repair and recoating the tanks has not changed and is $169,595. A construction contingency has been added in the amount of $175,000. The updated estimate for the cost of all tank work is $2,421,300. The total estimate for the entire project is $2,765,895. The Board reviewed Overall Creek Pump Station Upgrade cost estimate update and timeline. In December 2018, staff identified the need to upgrade the Overall Creek pumping station and highlighted that need in the Department’s 2019-2023 capital improvements plan as an $8.85 million-dollar potential expenditure from the Department’s working capital reserves. At the March 2019 meeting, the Board approved a task order for Smith Seckman and Reid (SSR) to study the sewer inflows into the station and any hydraulic upgrades that the pumps and associated force mains may need based on the analysis. Staff has prioritized the Overall Creek pumping station upgrades over constructing the new Northeast Regional pumping station. The costs associated with the upgrades have increased significantly based on SSR’s estimate. While these funds are designated to come from the Department’s working capital reserves, staff will investigate funding this project through the TN Municipal League (TML) bond fund. Staff believes this project will take at least a minimum of 12 months to design and another 9 months to acquire temporary construction easements for the force main. Under Other Business, the Board considered SRWTP Pall Membrane SCADA PC Upgrades. The Stones River Water Treatment Plant commissioned the Pall Corporation membranes on December 18, 2008. There are 10 racks with 56 modules each. This is the 0.1 microfiltration system that is used to remove particles, protozoa, colloidal silica and reduces turbidity. This is a critical system that if it fails, no water is produced. The Pall membranes have operated since 2008 with no upgrades to electronics or operating systems. The Pall system is currently operating on multiple software packages that are either no longer supported or the support will end in 2020. FY20 capital budget has $40,000 for Pall equipment and software upgrades to ensure continued operation. Page 80 Water Resources Board Minutes October 22, 2019 Page 5 The Pall Corporation has provided a quote with two options. Staff recommends Option 2 as it is a long-term solution. This option upgrades the existing software to fully supported software. The SCADA PC is currently operating Microsoft Windows XP 32-bit and the quote is to upgrade to Microsoft Windows 10 64-bit. It also upgrades the Rockwell Software RSView32 to FactoryTalk SCADA. There are several other ancillary software pieces that are to be upgraded as part of Option 2 as well. In addition to the software, Pall Engineers must install and perform some programming. All work related to the Pall Membrane system is sole source due to its complexity and support from the manufacturer. The cost for the upgrade is $36, 211.73. Staff recommended the Board recommend to the City Council approving the upgrade of the SCADA PC and related software for the Pall Membrane system in accordance with Pall Corporation’s quote. Brian Kidd made a motion to approve. Kathy Nobles seconded. The motion unanimously passed. Staff presented and discussed the Water Resources Dashboard Performance for September 2019. Staff presented the Financial Reports for the year ending September 30, 2019. Staff proposed to combine the November and December Board meetings into one meeting due to the holidays. Therefore, the November 26th meeting has been cancelled and the December 24th meeting has been rescheduled to Tuesday, December 10th. Staff informed the Board that the Department Christmas lunch will be held on Thursday, December 12 at the Operations and Maintenance building. th There being no further business, the meeting was adjourned. John Sant Amour, Chairman Page 81