Water Resources Board

MINUTES MURFREESBORO WATER RESOURCES BOARD December 10, 2019 The Murfreesboro Water Resources Board met on Tuesday, December 10, 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, Mr. Kirt Wade, and Ms. Madelyn Scales-Harris. Also present were Darren Gore, Valerie Smith, Doug Swann, Michele Pinkston, Roman Hankins, Anita Heck, Steve Tate, Donald Hughes, Jimmy Stacey, Matt Powers, Alan Cranford, John Strickland, Mike Bernard, Brent Fowler, Ronnie Martin, Randy McCullough, Adam Todd, Andy McCrary, and Travis Wilson along with other members of the public. The Board considered Water Resources Fund Financial Audit for FY19. There are no findings in this year’s audit. The table below summarizes the Department’s financial position for the water and sewer fund: June 30, 2019 June 30, 2018 Current Assets $ 110,983,291 $ 101,122,393 Capital Assets 422,661,821 417,131,278 Non-Current Other Assets 63,269 86,799 Deferred Outflows 2,514,322 2,616,525 Total Assets and Deferred Outflows $ 536,222,703 $ 520,956,995 Current Liabilities $ 15,428,129 $ 16,573,301 Non-current Liabilities 112,100,223 122,557,631 Deferred Inflows 1,843,409 870,391 Total Liabilities and Deferred Inflows $ 129,371,761 $ 140,001,323 Net investment in capital assets $ 324,313,502 $ 307,032,011 Restricted 63,269 86,799 Unrestricted 82,474,171 73,836,862 Total Net Position $ 406,850,942 $ 380,955,672 Total Liabilities, Deferred Inflows and Net Position $ 536,222,703 $ 520,956,995 Staff requested approval of the June 30, 2019 audit of the Murfreesboro Water Resources Department. Kirt Wade made a motion to approve. Madelyn Scales-Harris seconded. The motion unanimously passed. Page 14 Water Resources Board Minutes December 10, 2019 Page 2 The Board considered Stormwater Fund Financial Audit for FY19. There are no findings in this year’s audit. Summary information regarding Stormwater Fund's financial position is as follows: June 30, 2019 June 30, 2018 Cash $ 5,964,987 $ 5,856,604 Utility Plant 6,449,249 6,296,594 Deferred Outflows 121,636 91,689 Prepaid Expenses and Other Assets 9,281 45,263 Total Assets and Deferred Outflows of Resources $ 12,545,153 $ 12,290,150 Trade Accounts Payable $ 35,565 $ 39,178 Other Liabilities 48,042 75,848 Deferred Inflows 132,980 52,352 Due to Other Funds 1,054,368 1,252,823 Long-Term Liabilities 1,220,183 1,157,414 Total Liabilities and Deferred Inflows of Resources $ 2,491,138 $ 2,577,615 Net Position Net Investment in Capital Assets 6,449,249 6,296,594 Unrestricted 3,604,766 3,415,941 Total Net Position 10,054,015 9,712,535 Total Liabilities, Deferred Inflows and Net Position $ 12,545,153 $ 12,290,150 Staff requested approval of the June 30, 2019 audit of the Murfreesboro Stormwater Fund. Dr. Carter made a motion to approve. Madelyn Scales-Harris seconded. The motion unanimously passed. The Consent Agenda was presented for the following considerations: A. Consider Five Vehicle Purchases for AMI, O&M, WRRF & Engineering – In MWRD’s approved Distribution Capital Budget FY20, there were five vehicles for various divisions; Advanced Metering Infrastructure (AMI), Operations and Maintenance, Water Resource Recovery Facility (WRRF) biosolids, and Engineering inspection. Due to the high mileage and high cost of maintenance, Jack Hyatt, manager of Fleet Services, approved the replacement of these vehicles. The desired vehicles are included on the State of Tennessee Vehicle Contract with Wilson County Motor Co. The table below identifies the vehicle being replaced under each division: VEHICLE DETAILS Division Description Unit Replaced Cost Budgeted O&M 2020 GMC Sierra 1500 (4WD) #4 $28,369 $35,000 O&M 2020 GMC Sierra 1500 (4WD) #12 $28,369 $35,000 WRRF 2020 Chevy Silverado 1500 Crew (4WD) #64 $30,899.10 $35,000 AMI 2020 GMC Sierra 1500 (4WD) #49 $28,554.30 $35,000 ENG 2020 GMC Sierra 1500 (V6 & 4WD) #132 $26,788.80 $31,000 TOTAL $142,980.20 $175,000 Page 15 Water Resources Board Minutes December 10, 2019 Page 3 Staff recommended the Board recommend City Council approve the purchase of these vehicles. B. Consider O&M Compact Excavator Purchase – MWRD’s FY20 Collection Capital Budget contains an approved line item to purchase a compact excavator for Operations & Maintenance. This piece of equipment will be utilized in the rehabilitation of sewer lines and can outperform our existing excavator in performance, digging depth and reach. The existing excavator will be kept in our fleet and will be used for smaller jobs. Staff located the desired excavator on the Sourcewell Contract with Meade Equipment. Description Cost Budgeted 2020 John Deere 60G Compact Excavator $67,560.90 $90,000 Staff recommended the Board recommend City Council approve the purchase of this equipment. C. Consider O&M Backhoe Loader Purchase – O&M requested approval to replace Unit 79, a 2008 Case Backhoe. This backhoe is used daily to load gravel, cold mix, and dirt. With 12 years of service, it has high hours and the performance of the machine is degrading. Jack Hyatt, manager of Fleet Services, recommended this unit be replaced to prevent costly repairs and downtime. Staff researched various backhoe loaders of similar type and decided the John Deere Backhoe Loader 310SL was the best fit for the Department. It is included on the Statewide Contract through Meade Equipment, LLC located in LaVergne, TN. Staff recommended the Board recommend City Council to approve the purchase of the backhoe loader in the amount of $72,274.97. Funding for the purchase of the backhoe loader was approved within the 2019/2020 Rate Funded Capital Budget for $100,000. O&M received a quote of $86,374.97 with a trade-in value of the current backhoe of $14,100 resulting in a total cost of $ 72,274.97. D. Consider Customer Service Video Camera Purchase – The current cameras are not high resolution and only has approximately 7 days of video storage on our servers. This creates issues with viewing current and historical transactions. Plus, parts of Customer Service are not fully visible with the current camera locations. Staff obtained a quote from Twin Technologies for upgraded cameras and video storage. Twin Technologies has an existing contract with the City that affords the Water Resources Department to purchase these cameras via a contract amendment. The cameras are high resolution, and storage capacity for video is being increased to approximately 45 days. Cameras will be placed in more optimal locations in the customer service and cashiering areas. These cameras can be moved as necessary, including if the Water Resources Department relocates in the future. Page 16 Water Resources Board Minutes December 10, 2019 Page 4 Staff recommended the Board recommend City Council approve the quote for cameras and video storage. The total bid cost for the cameras and video storage is $15,429.80. Funding will come from rate- funded capital. E. Consider JBS Task Order 19-13, Electrical Testing & Cleaning @ WTP – Staff submitted Task Order No. 19-13 for the Water/Wastewater Mechanical/Electrical Services Contract to conduct infrared testing on electrical gear, breaker testing and cleaning, testing of spare breakers and the cleaning of switchgear. • Spare Breaker Testing $ 1,985.00 • IR Testing $ 2,612.20 • Eaton Inside Gear Breaker Testing and Cleaning: $ 3,745.20 • GE Gear Breaker Testing and Cleaning: $ 3,745.20 • Eaton Outside Gear Breaker Testing and Cleaning: $ 4,115.90 TOTAL FOR ALL ABOVE $ 16,203.50 Infrared testing/inspection of electrical panels finds hot spots caused by defects in connections and components. Infrared thermography is used to find areas of excess heat (caused by increased resistance) so that problems can be corrected before a component fails, causing damage to the component, creating safety hazards and productivity loss. Switchgear maintenance is very important to maintain key components of the facility. Not only can the malfunction of the equipment be extremely expensive, it is also very hazardous to personnel. The National Fire Protection Association standard suggests testing/inspection every three to six years. The InterNational Electrical Testing Association recommends every two years. The last time the switchgear and electrical components were tested was in early 2015. At that time there were several major issues found and corrected. The schedule that staff would like to have is approximately every five years. The cost for the project is estimated at $16,203.50. Funding will come from the FY20 Operating Budget. Staff recommended the Board recommend to the City Council approving JBS Task Order 19-13 in accordance with the JBS estimate. F. Consider Sewer Easement Abandonment at Northgate Commercial Lot 4 – Huddleston-Steele is requesting the abandonment of an existing 30-foot sanitary sewer easement located on Lot 4. This easement was recorded by plat and was intended for a proposed gravity sewer main to serve the property. During construction it was determined that there was a conflict between the sanitary sewer and the proposed storm drainage. The sanitary sewer was redesigned along a different route, so this Page 17 Water Resources Board Minutes December 10, 2019 Page 5 easement is no longer correct or necessary. The Developer will dedicate a new sewer easement along the new route. The easement document for the dedication is already being prepared by the Legal Department. Staff recommended that the Board recommend to the Planning Commission and City Council approval of abandoning this existing sewer easement. G. Consider JBS Task Order 19-14, WRRF Main PS & UV Generators Renovations – Maintenance staff, with advice from the manufacturer, determined that the WRRF’s Main pump station and UV disinfection system generators need to be renovated. The project also requires the replacement of 7 Automatic Transfer Switches. John Bouchard & Sons will be tasked with performing this work. Staff recommended the Board recommend to City Council approving Task Order 19-14 in the total amount of $350,204; $301,436 for Thompson Power and $48,768 for John Bouchard & Sons Co. The generators at the Main pump station and UV disinfection system were installed at the Water Resource Recovery Facility in 1998 and 1999 respectively. They are required to ensure that the treatment process continues uninterrupted when normal electrical power is lost. New Original Equipment Manufacturer (OEM) parts are only available from a single source, Caterpillar. Their authorized dealer for this area is Thompson Machinery Co./Thompson Power. The renovation of the generators was budgeted in the Department’s rate funded capital account in the total amount of $500,000; $275,000 for the Main pump station and $225,000 for the UV disinfection system. H. Consider Server Backup Support Purchase – Barracuda Backup System support will end January 13, 2020. MWRD currently uses a Barracuda Appliance with cloud storage to create backup copies of department servers and files. The Barracuda System was purchased in January 2015. The support is due annually and includes software updates, replacement of any failed components and the cloud storage. The system is functioning as intended and is a valuable asset to the Department for the assurance that it provides. The pricing is available from a Tennessee NVP Software Contract through CDW-G. Cost for 1- year renewal is $19,549.68. Funding for the support would come from prepaid maintenance accounts. Staff recommended the Board recommend to City Council approving the purchase of 1-year of Barracuda support. I. Consider Engineering Services Proposal from SEC for Salem Hwy, Phase 3 – The Tennessee Department of Transportation (TDOT) is in the design and land acquisition phase for Salem Highway Widening Phase 3. This project extends from Cason Lane to just west of Veterans Blvd. Along this route, the widening of the highway will take the septic fields for three of the properties. There is a convenience store on the corner of Salem Hwy and Armstrong Valley Road and a home and church just to the west of Veterans. Because of this, TDOT has asked the Department to design sewer main Page 18 Water Resources Board Minutes December 10, 2019 Page 6 extensions to serve these three properties, so TDOT doesn’t have to purchase the properties and relocate them. TDOT has agreed to pay for the costs associated with the engineering and the sewer main extensions to these properties; however, per TDOT’s regulations, they are unable to purchase the permanent sewer and temporary construction easements necessary for the extensions. Contractual agreements with TDOT will be forthcoming. Typically, the Department would request proposals from the design engineer for the roadway project, to give a proposal for the design of the sewer main extensions. However, in this case TDOT is designing this section of roadway improvements inhouse. SEC has worked with the Rucker Donnell Foundation which owns three of the seven properties in which the Department/TDOT needs easement and felt they would be a good match for the design of the sewer and easement descriptions. The Department has a Master Services Agreement (MSA) with SEC, Inc. dated July 29, 2009, therefore staff has requested a Task Order from SEC, Inc. for this design work. Staff recommended that the Board recommend to the City Council approval of the work described in Task Order No. 9 through the MSA. Funding for this design is requested to come from Working Capital Reserves in an amount not to exceed $17,100. J. Consider Bids for Southwest Interceptor Bypass Pumping – MWRD has completed two emergency repairs on the Hobas pipe along the Southwest interceptor. To gain a better understanding of the condition of the pipe, the Department contracted a CCTV company to provide an accurate survey so staff can determine if any repair or replacement is needed. The survey was completed this past October; however, a 1,500-foot section of the 36” pipe located upstream and through the 72” tunnel located under Highway 99 was unreachable due to a possible problem with the pipe deflection in the tunnel. O&M’s CCTV crew conducted a search from the downstream side but were unsuccessful due to high flow. It will be necessary to set up a bypass line to divert flows from the blockage area to gain a thorough assessment. Bids were solicited from three bypass pumping companies to provide bypass pumping services for approximately a two-week period. Quotes were obtained from Xylem, Nashville Pump and Power, and United Rentals, and Xylem provided the lowest bid. The total estimate to complete this project is $24,869.06 with funding recommended to come from the Department’s working capital reserves. Company Totals Xylem $24,869.06 Nashville Pump & Power $33,522.00 United Rentals $35,441.21 Page 19 Water Resources Board Minutes December 10, 2019 Page 7 Staff recommended the Board approve the rental, setup, and tear down of a bypass pumping system consisting of 2-12” pumps and approximately 1600’ of HDPE piping for approximately a two-week period. A motion was made by Brian Kidd to accept the Consent Agenda as presented and it was seconded by Ron Crabtree. The Board voted unanimously to approve. The October 22, 2019 Board Minutes were unanimously accepted as presented. The Board considered ADS temporary flow monitoring and monitor upgrades. Currently, the Department is contracted with ADS, LLC to operate and maintain the Department’s 19 permanent flow monitors and 7 rain gauges, to analyze data recorded from these monitors and to report on this data annually. We are in year one of this contract. Each year staff, after review of the annual report, requests ADS to perform temporary flow monitoring of one basin in the system which is typically one of the top 5 worst basins. This year staff would like to study/monitor basin 3, with the addition of basins 11A & 13. ADS would install 6 monitors in MF03, 9 monitors in MF11A, and 3 monitors in an unmonitored area staff named MF13 North. The total for the temporary flow monitoring for a 60-day period is $117,703.80. Basin MF03 was ranked 5th of the worst basins and hasn’t had temporary flow monitoring performed since 2005, MF11A was ranked 3rd of the worst basins and even though temporary monitoring was performed in 2012, staff has received numerous requests for high density developments and would like to get a better handle on the remaining capacity in this area. Staff has performed wet weather CCTV and inspections in the unmonitored area and although we don’t feel a need to install a permanent meter at this time, these three temporary monitors will help narrow down the area that is allowing the infiltration and inflow into the system. In addition to the temporary monitoring, staff requested approval for the upgrade of four existing monitors. Flow monitors MF01-04 are FlowShark Triton monitors and are being phased out. ADS ended the sale of these monitors in 2017. ADS has given staff a price to upgrade to the Triton+ model in the amount of $7,749 total for all four. Staff recommended that the Board recommend to the City Council approval of the temporary flow monitoring and the upgrade to the existing monitors in the amount of $125,452.80. A portion of this amount will be from the FY20 budget and the remainder of $69,000 from working capital reserves. Kirt Wade made a motion to approve. Brian Kidd seconded. The motion unanimously passed. The Board considered SSR Task Order 1941018.0, Overall Creek Pump Station & Force Main Expansion. 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. Page 20 Water Resources Board Minutes December 10, 2019 Page 8 The Board approved at the March 2019 meeting 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. At last month’s Board meeting SSR had prepared a memo that refined the itemized costs associated with this upgrade estimated at $12,671,000. The revised estimate with the proposed engineering task order is $12,395,070. The Water Resources Department Capital Improvements Plan (CIP) has been updated to reflect these new values, and recommended the Board recommend to City Council to approve SSR’s engineering task order 1941018.0 in the amount of $864,070. Brian Kidd made a motion to approve. Kirt Wade seconded. The motion unanimously passed. The Board considered bids for a sewer bypass pump for O&M. MWRD requested sealed bids to purchase a sewer bypass pump to be utilized by the Sewer Rehabilitation Division. The results are listed in the table below. Company Unit Price CDPW, Inc $34,306.00 United Rentals (#1) $37,301.85 Thompson Pump $37,420.00 Nashville Pump & Power $42,238.00 Xylem $49,324.00 Southern Sales $55,320.00 United Rentals (#2) $63,102.43 Staff recommended the Board recommend the City Council to approve the purchase of the 6” Sewer Bypass Pump from United Rentals (#1) in the amount of $37,301.85. This company provided the lowest bid and met the requirement of having a service facility within 100 miles with fully stocked parts. Brian Kidd made a motion to approve. Dr. Carter seconded. The motion unanimously passed. The Board considered Mill Street, Tiger Hill, and Halls Hill Storage Tank bid rejection. Invitations to Bid the Mill Street, Tiger Hill and Halls Hill Storage Tank Repair and Repainting project were advertised and released for bid on October 8, 2019. There were six plan holders, however, only four bids were submitted. The bid tabulation is below. Bidder Bid Amount 1. Maguire Iron, Inc. $2,345,965 2. Preferred Sandblasting and Painting, LLC $2,888,840 3. Tank Pro, Inc. $3,040,970 4. Classic Protective Coatings, Inc. $3,474,450 After evaluations of the submitted bids, the low bidder is Maguire Iron, Inc. Unfortunately, Maguire Iron’s bid cannot be accepted due to their Tennessee Contractor’s License monetary limit being $1,500,000 and less than the contract amount. The second low bidder, Preferred Sandblasting and Painting Page 21 Water Resources Board Minutes December 10, 2019 Page 9 also had a major error with their unit price bid item. Given this information, it is in the best interest of the City to reject all bids and re-bid the project on January 7, 2020. Staff recommended the Board recommend to the City Council rejecting all bids for the Mill Street, Tiger Hill and Halls Hill Storage Tank Repair and Repainting project. Ron Crabtree made a motion to approve. Kirt Wade seconded. The motion unanimously passed. The Board considered Thompson Lane Pump Station #10 and Fogle property land swap. SEC has submitted a request for the Department/City to swap a portion of the pump station property, south of the station, for wider access into the Fogle property, in exchange for the same amount of property, to the rear (west), of the pump station. The owner of the property behind the pump station wishes to develop the property into 6 single family lots, however, the access into the property is not wide enough to meet the City’s roadway width requirements. This swap will allow the width necessary for the subdivision entrance. Currently, the Department’s Maintenance Technicians enter the pump station from an access drive along Thompson Lane in front of the station, however, per the plans for the future widening of Thompson Lane, this access may not continue to be a viable option. The Tennessee Department of Transportation (TDOT) has plans for a turning lane into the Thompson Square Subdivision which will reduce the existing station access drive from ~31.5 feet to 15 feet long. This is not long enough for a truck to safely pull off the roadway and open the gate to the station. The property the City will receive on the rear (west) side of the station will allow for a new safer access for the Department. This additional property will also allow working room around the station at such time in the future the station needs replacing. Both parties are in in favor of the swap. Staff will request the developer to install the PS driveway apron along the new roadway, fencing similar to the existing type fence around the new property line and install landscaping as a barrier to the station with the development of the subdivision roadway. Staff has worked with the Legal Department regarding this swap and will continue to do so. The City may also ask for additional property along the rear of the subdivision that backs up to what is known as Hooper’s Bottom. Staff recommended that the Board recommend to the Planning Commission and City Council approval of the even land swap around the pump station in the amount of 1906 sf. Dr. Carter made a motion to approve. Brian Kidd seconded. The motion unanimously passed. Staff provided the Board a PowerPoint presentation reviewing the Working Capital Reserve Account in conjunction with FY2020-2024 Capital Improvements Plan (CIP). The Murfreesboro Water Resources Department (MWRD) staff has drafted an updated 5-Year Capital Improvements Plan (CIP) from Fiscal Year (FY) 2020 through 2024. The primary focus of this preliminary draft is the capital improvements projected to be funded by working capital reserves. After receiving the FY18-19 draft estimate of the Department’s working capital reserve amount of $82,474,171 Page 22 Water Resources Board Minutes December 10, 2019 Page 10 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 FY20-24 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 FY20-24 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) 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 $48.4M of unassigned cash in reserves is determined available as of November 2019 (2nd quarter of FY20). When applying this to the FY20-24 CIP, and assuming projected additional FY20 reserve fund revenue and expenditures a working capital account balance of available funds is estimated as $58.9M at FY20 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 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 Water and Sewer 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 $88.49M to $98.87M, or $10,385,000. Increasing the budget for the Overall Creek Pumping Station from $8,850,000 to $12,300,000 along with the addition of the biosolids polymer system replacement for $1,450,000, the addition of High Service pump station and membrane feed pump improvements for $2,500,000, the addition of Joe B Jackson Sewer for $800,000, and the increase of $1,175,000 on the Cherry Lane Repurified watermain extension were the primary reasons for the increase. Page 23 Water Resources Board Minutes December 10, 2019 Page 11 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 and provides a pro forma for anticipated capital costs. Staff updated the Board on the biosolids polymer system replacement. Currently, MWRD has two existing dry polymer feed systems originally built in 2001 and 2008, respectively. Due to the age of the existing polymer systems, staff is concerned with the capacity and overall reliability of the systems. Additionally, the current feed system is not configurated optimally to most effectively dewater the biosolids. This is because the polymer system was built in two phases coinciding with the installation of the pre-existing rotary presses. The polymer system upgrades will address these issues by designing an upgraded system, sized for future solids production loadings with 100-percent redundancy. Equipment planned includes the following: • 2 sets of mixing/aging tanks, each sized for all 8 rotary presses • 2 disperser/mixers (feeders), each sized for all 8 rotary presses • 2 bag unloaders, each sized for all 8 rotary presses • 10 polymer feed pumps (8 duty and 2 spare) The new dry polymer system equipment will be procured and installed by John Bouchard & Sons (JBS) along with the installation of ancillary equipment necessary for a complete upgrade via the City Master Services Agreement with JBS. The SCADA integration and integration of local controls and field instrumentation will be performed by MR Systems and contracted directly with MWRD via the City Master Services Agreement. No formal recommendation was submitted, but staff wanted to update the Board on the costs prior to bringing a task order from SSR for designing the necessary upgrades. The upgraded costs of $1,436,000 have been incorporated into the Department’s 5-yr CIP. The increase in costs does not cause the Department to violate any of our working capital reserve financial policies based on our 5-yr pro forma. Staff updated the Board on SRWTP High Service Pump Station & Membrane Feed Pump Improvements re-budget. The High Service Pump Station and Membrane Feed Pump Station have been budgeted for replacement in the Department’s FY19-FY22 rate funded capital expenditure budget. The items included: • High Service Pump Check Valves $165,000 • VFD High Service Pump Station $600,000 • PLC Upgrade High Service Pump Station $150,000 • Add #4 High Service Pump $680,000 TOTAL BUDGETED COSTS $1,595,000 Page 24 Water Resources Board Minutes December 10, 2019 Page 12 Recent issues with a high service pump variable frequency drives (VFDs) instigated staff to review the plan in place and reprioritize the proposed multi-year improvements into a more immediate project to properly address redundancy and capacity. As is customary, when projects are reprioritized or new costs are identified as necessary for a project, staff wants to inform the Board of the re-budgeted costs and factor these costs into the working capital reserve bucket versus the rate funded capital bucket. Additional costs include: • Re-budget High Service PS Improvements $-(69,000) • Membrane Feed Pump Improvements $490,000 • Contingency $404,000 • Engineering & Construction Admin $141,000 TOTAL ADDED COSTS $966,000 TOTAL RE-BUDGETED PROJECT COSTS is $2,561,000. In late October one of the VFDs, controlling the high service pump, malfunctioned and is no longer operable. Staff contacted SSR to discuss the possibility of a different direction with the improvements. From discussion it was determined that all the work, originally scheduled at different times, needed to be completed in one project. Considering the 12-15-week delivery plus installation for replacing the VFD that failed in October, it could be catastrophic for operations. To provide more capacity and additional redundancy, a fourth high service pump is being proposed to be added to the facility now instead of FY22. With the replacement and addition of the high service pump VFDs, it was proposed to go ahead and replace the GAC backwash pump VFD which is also located in the high service pump station. This replacement would complete the electrical rehabilitation portion of the high service pump station. Because of operation and maintenance difficulties associated with the existing check valves on the high service pumps and backwash pump, the check valves will be replaced. The capacity of the existing surge relief valve will also be evaluated. The valve will be replaced if the analysis deems it is undersized following the installation of the fourth high service pump. The existing programmable logic controllers (PLCs) are due for replacement. To complete the instrumentation and control rehabilitation of the high service pump station, the PLC for the high service pump station with be replaced by MR Systems. Pump pressure monitoring will also be added to the high service pumps for future integration with a future pump monitoring system. All four membrane feed pump VFDs will be replaced. These VFDs were installed in 2008 and are critical infrastructure to the treatment plant and are approaching the end of their useful life. Pressure monitoring instrumentation will also be added to the membrane feed pump station to be used with a future pump monitoring system. Page 25 Water Resources Board Minutes December 10, 2019 Page 13 The total estimate for the entire project is estimated at $2,561,000 funding requested as coming from working capital reserves with an accompanying refunding component coming from rate funded capital in the amount of $1,000,000 in FY21. Staff presented and discussed the Water Resources Dashboard Performance for October / November 2019. Staff presented the Financial Reports for the year ending October 31, 2019. Staff reminded 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 26