Water Resources Board

MINUTES MURFREESBORO WATER RESOURCES BOARD January 28, 2020 The Murfreesboro Water Resources Board met on Tuesday, January 28, 2020 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. Kathy Nobles, Ms. Sandra Trail, 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, Alan Cranford, Joe Russell, John Strickland, Mike Bernard, Jay Bradley, Lynda Sullivan, Sharon Seibert, 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 Walter Hill Dam Rehabilitation Change Order No. 3 – Haren Construction Company, Inc. (HCCI) has completed the repairs of the Walter Hill Dam. In addition, the Tennessee Department of Environment and Conservation has inspected the dam and states that it is in compliance with the Safe Dams Act. Change Order No. 3 is to modify the contract amount by decreasing the amount by $60,940.50. The deduction comes from quantity adjustments from both Change Order No. 1 and Change Order No. 2. The first adjustment in the amount of $30,400 is for an unused coating system originally proposed in Change Order No. 1. The remaining $30,540.50 is for time, material, and labor not needed for the pressure grouting associated with Change Order No. 2. The contract price prior to this change order was $631,958.54, the revised contract price will be $571,054.04. This is $60,940.50 below what was approved. Staff recommended the Board recommend to the City Council approving Change Order No. 3 for Haren Construction Company, Inc. closing out the project. B. Consider Glenwood & Lawndale Drive Waterline Replacement Bids – Operations and Maintenance requested sealed bids for the materials necessary for the waterline replacement on Glenwood & Lawndale Drives. The table below shows the bid results. Bid Results Company Total Core & Main Waterworks $30,539.45 Fortiline $31,059.88 Hayes Pipe $31,594.18 G&C Supply Co Inc. $32,409.20 Consolidated Pipe $33,296.00 Page 16 Water Resources Board Minutes January 28, 2020 Page 2 Staff recommended the Board recommend to City Council approval to purchase the materials for the waterline replacement, from the lowest bidder, Core & Main. Funds are available in the Capital Budget. C. Consider 2018/19 Sanitary Sewer Rehab Contract Change Order No. 1 – The Board previously approved the Engineering, Construction Administration & Resident Inspection necessary for this next sanitary sewer rehabilitation project with S&ME. Bids were received and the project was awarded to SBW Constructors in the amount of $3,842,301. At this time, staff requested S&ME to prepare Change Order No. 1 for the project to add additional open-cut sewer point repairs, costs associated for exploratory digging just east of the Northfield Kroger, additional sewer main replacement within the intersection of W. Clark Blvd. and NW Broad Street, and other miscellaneous work and associated paving. This additional work was determined as necessary either through field verification by SBW prior to performing work, pre-rehab videos performed by a sub- contractor to SBW and/or recent video by Operations & Maintenance. Staff recommended that the Board recommend to the City Council approval of Change Order No. 1 in the amount of $150,812 to be added to the project along with an additional 73 days for the construction. Funding for the Engineering, Construction Administration, Inspection and Construction was approved from a combination of 2018/2019 and 2019/2020 Budget & Working Capital Reserves. Funding Source Budgeted Engineering Construction Remaining Amount Expenditures Expenditures Rate Funded Operating Budget 2018-19 $1,000,000 $0 $568,000 $(432,000) Working Reserves 2018-19 $1,500,000 $0 $1,500,000 Rate Funded Operating Budget 2019-20 $1,000,000 $0 $1,000,000 $(3,842,301) Working Reserves 2019-20 $1,000,000 $0 $(2,842,301) Change Order #1 $(150,812) $(150,812) Total $4,500,000 $(432,000) $(3,993,113) $74,887 The total contract amount with this change order will be $3,993,113. A motion was made by Ron Crabtree to accept the Consent Agenda as presented and it was seconded by Kirt Wade. The Board voted unanimously to approve. The December 10, 2019 Board Minutes were unanimously accepted as written. The Board considered Mill Street, Tiger Hill & Halls Hill Storage Tank Repair/Recoating Bids. Initial Invitations to Bid (ITB) for the Mill Street, Tiger Hill and Halls Hill Storage Tank Repair and Repainting project were accepted on November 5, 2019 and rejected by the Board on December 10, 2019. The ITB was re-advertised and released for bid for the second time on December 3, 2019 and bids were publicly opened on Tuesday, January 7, 2020. There were 11 plan holders, however, only 7 bids were submitted. The bid tabulation is below. Page 17 Water Resources Board Minutes January 28, 2020 Page 3 Bidder Bid Amount Currens Construction Services, LLC $2,557,130 Preferred Sandblasting and Painting, LLC $2,611,500 Utility Service Co., Inc. $2,959,500 Tank Pro, Inc. $3,040,970 Worldwide Industries Corp $3,087,620 TMI Coatings, Inc. $3,270,000 Classic Protective Coatings, Inc. $3,472,870 After evaluation of the submitted bids, the low responsive and responsible bidder is Currens Construction Services, LLC in the amount of $2,557,130. The low bidder, Currens Construction Services, LLC is located in Harrodsburg, KY. Though SSR and MWRD have not worked with Terry Currens recently, SSR is familiar with this company as they have completed multiple projects with SSR’s coating inspection subcontractor, Mid-South Tank Consultants, and come highly recommended. The opinion of probable construction cost for this work was approximately $2,596,300. Currens’ bid is slightly under the original cost estimate. The previous bid, which was rejected due to errors, was in the amount of 2,650,840 after the errors were corrected. The rebidding of the project saved the Department $93,710. Staff recommended the Board recommend to the City Council approving the storage tank repair and repainting bid from Currens Construction Services, LLC in accordance with their bid. Funding is budgeted in the amount of $2,800,000 in the FY20 and FY21 Working Capital Reserves 5-yr CIP. Kathy Nobles made a motion to approve. Kirt Wade seconded. The motion unanimously passed. The Board considered SSR Engineering Task Order 1941021.0, SRWTP High Service Pump Station and Membrane Feed Pumps Improvements. Staff brought this project to the December Board meeting for adjustment to the current budgeting schedule and provided additional information regarding the need for renovations to the High Service Pump Station and Membrane Feed Pump Station. The High Service Pump Station and Membrane Feed Pump Station have been budgeted for replacement in the Department’s FY20-FY22 rate funded capital expenditure budget. The re-budgeting request compresses the previous 3-yr plan for improvements into completing the project during a portion of FY20 and FY21. All of the mechanical and electrical work will be conducted by John Bouchard and Sons in accordance with the Water/Wastewater Mechanical and Electrical contract. The equipment portion of the project will likely bid in the last quarter of the MWRD Financial Year of 2019-2020 (June 2020). Construction is anticipated to begin in the first quarter of the MWRD Financial Year of 2020-2021 and all work should be completed within that fiscal year. Page 18 Water Resources Board Minutes January 28, 2020 Page 4 The immediate fiscal impact for designing these improvements is $140,130. The total estimate for the entire project is $2,561,000 with funding coming from working capital reserves with an accompanying refunding component coming from rate funded capital in the amount of $1,000,000 for FY21. Staff recommended the Board recommend to the City Council approval of SSR Engineering Task Order 1941021.0 in the amount of $140,130. Kathy Nobles made a motion to approve. Madelyn Scales-Harris seconded. The motion unanimously passed. The Board considered ELI Engineering Work Authorization (WA) for Thompson Lane Widening Utility Design Improvements. In 2015 the Department received Preliminary Field Review plans that TDOT was going to reconstruct and widen Thompson Lane between NW Broad Street and Memorial Boulevard. On December 30, 2019, all Utilities received notification to proceed with the engineering necessary to prepare plans, a schedule of working days and cost estimates for the adjustment or relocation of water, sewer, and repurified water mains that may be in conflict with the reconstruction. As with all roadway improvement projects staff considers these projects as ideal opportunities for making improvements to the water, sewer and/or repurified water systems and to replace old cast iron, clay and concrete lines. Currently, Wiser Company (Wiser) is the design engineer for the roadway. Typically, the Department would request the design engineer for the roadway project give a proposal for the water, sewer and/or repurified water main improvements or relocations. In this situation however, Wiser has not provided the Department with a professional engineering staff member demonstrating acceptable experience in the area of utility design in conjunction with such a significant roadway reconstruction project. Therefore, the Department has requested and received WA#4 from ELI to design the improvements and/or relocations utilizing the City’s MSA unit prices. The staff at ELI are familiar with the project as well as MWRD’s system. It is anticipated that this work would be included in TDOT’s project for bid and constructed through their contract. The anticipated bid date is June of 2022; however, this depends on funding and right of way acquisition. The WA from ELI for the initial design, as TDOT refers to it as an “A Date Package Submittal”, is in an amount not to exceed $175,000. Additional engineering past this “A Date Package” will be brought back to the Board for approval. Staff recommended the Board recommend to City Council approval of the WA with ELI in an amount not to exceed $175,000. This project is not included in the Department’s Capital Improvement Plan (CIP). Based on the Board approved recommendations of the 2007 Financial Conditions Assessment prepared by SSR, all water and sewer improvements associated with new roadway or roadway improvements in the City would be Page 19 Water Resources Board Minutes January 28, 2020 Page 5 funded from the Department’s working capital reserves account. It is therefore recommended that the design costs for this project come from working capital reserves account. The future fiscal impact associated with the construction costs associated with utility improvements at this intersection will be brought back before the Board for approval. Sandra Trail made a motion to approve. Kirt Wade seconded. The motion unanimously passed. The Board considered JB&S Task Order 19-05, Aerator Gearbox Installation at WRRF. Staff submitted Task Order 19-05 with John Bouchard & Sons (JB&S) for the installation and replacement of three pre-existing aerators in the oxidation ditches at the Water Resource Recovery Facility (WRRF). In April 2019, the Board approved purchase of three oxidation ditch aerators and associated parts in the amount of $383,022. At that time, staff estimated that the installation of these aerators through the contract with JB&S to be $72,000. These aerators have been delivered to the WRRF and are ready to be installed. The pre-existing oxidation ditch aerators to be replaced were originally installed at the WRRF in 2000 and are at the end of their useful life. They are key units of the water treatment process. The system relies on a total of nine 200 HP Aerators mechanically introducing oxygen into the biological mixed liquid. Staff recommended the Board recommend to City Council approving the installation of the WRRF’s oxidation ditch aerators 1B, 1C, and 2B by JB&S at a cost of $70,047 ($23,349 each). Funding will be from the Department’s working capital reserves. Sandra Trail made a motion to approve. Kathy Nobles seconded. The motion unanimously passed. The Board reviewed Special Sanitary Sewer Assessment Districts (SSSAD) recoupment as of December 2019. Starting in 1994, MWRD established certain areas that the Department “front end” funded with cash reserves to facilitate growth by installing adequate sanitary sewer infrastructure. That forward- thinking, proactive planning has continued throughout the past 20 years. Setting the proper utility foundation has been a viable model to trigger and support structured growth in “green field” areas within and around the City of Murfreesboro. In addition, the Department’s initial tenets were as follows: 1) The special sanitary sewer assessment districts were established so that the ratepayer would not bear the financial burden of fostering new development. 2) The intent of establishing special sanitary sewer assessment districts was to recoup the Department’s investment; not to make a profit. 3) The initial sewer assessment districts term limits were based on a trajectory or trend of development that the City was experiencing in the late 1990’s and early 2000’s. The recession that occurred in the latter 2000’s was not accounted for in the timeline anticipated to fully recoup the Department’s investment. Page 20 Water Resources Board Minutes January 28, 2020 Page 6 As a result of some of the skewed recoupment periods and that some of the SSSAD’s had been fully recouped, the Board recommended in December 2014 and the Council approved in February 2015; 1) Modifying assessment district ordinances that had a specific time limit (e.g. 15 or 25 years) to an indefinite limit based on complete repayment of MWRD’s expenses and 2) Modifying assessment district ordinances that the special assessment cease when all of the district’s construction expenses have been recouped. In September of 2018 the Board asked staff to look at the earnings foregone by making the cash outlay for the sewer improvements associated with the special sanitary sewer assessment districts. As of December 2019, there has been approximately $5.0M in foregone interest earned (assuming 1% annually) in the 20 years since the inception of the Overall Creek SSSAD established in 1999 and the last assessment district established in 2016 on South Church Street. MWRD has invested $35.8M in SSSAD’s since 1999 and have recouped $25.1M (70.1% of total). When accounting for the interest earnings foregone the recoupment drops to 61.5%. Staff presented and discussed the Water Resources Dashboard Performance for December 2019. Staff presented the Financial Reports for the year ending December 31, 2019. Staff proposed to reschedule the February 25th meeting to Tuesday, March 3rd. There being no further business, the meeting was adjourned. Alphonse Carter, Jr., Vice Chairman Page 21