Water Resources Board

MINUTES MURFREESBORO WATER RESOURCES BOARD December 13, 2022 The Murfreesboro Water Resources Board met on Tuesday, December 13, 2022 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, Ms. Sandra Trail, Mr. Brian Kidd, Mr. Kirt Wade, Ms. Madelyn Scales-Harris, and Ms. Kathy Nobles. Also present were Darren Gore, Doug Swann, Valerie Smith, Michele Pinkston, Sarah Mathews, Alan Cranford, Joe Russell, John Strickland, Matt Powers, Donald Hughes, Steve Campbell, Adam Todd, Linda Sullivan, Katie Driver, Travis Wilson, and Brent Fowler along with other members of the public. Items D and E of the Consent Agenda were removed and presented as regular items to the Board for approval: D. June 20, 2022, Water Resources Department Audit Summary A motion was made by Ron Crabtree to accept Item D of the Consent Agenda as presented and it was seconded by Dr. Carter. The Board voted unanimously to approve. E. June 20, 2022, Stormwater Fund Audit Summary A motion was made by Brian Kidd to accept Item E of the Consent Agenda as presented and it was seconded by Kathy Nobles. The Board voted unanimously to approve. Items A, B, C, F, and G of the Consent Agenda were presented to the Board for approval: A. Public Utility Easement Abandonment along S. Church St. B. Sewer Easement Abandonment within Clari Park C. Water and Sewer Easement Abandonment St. Thomas Hospital F. SRWTP Switchgear Improvement CCF No. 1 G. JBS Task Order 22-07, Lake RW Intake Pump #3 & Motor Rebuild A motion was made by Sandra Trail to accept Items A, B, C, F, and G of the Consent Agenda as presented and it was seconded by Dr. Carter. The Board voted unanimously to approve. The October 25, 2022 Board Minutes were unanimously accepted as presented. The Board considered MWRD/CUD boundary revision. In meetings with the City’s Planning Department regarding the proposed Legacy Sports Complex along NW Broad Street, it was determined that a portion of this Complex is within Consolidated Utility Districts (CUD’s) water service area and a portion is with MWRD’s area. MWRD has an existing 16” water main along NW Broad Street that can serve the property with both domestic water and fire protection. Page 13 Water Resources Board Minutes December 13, 2022 Page 2 However, to be fair, CUD asked if there was any undeveloped property within our area that could be swapped. Both CUD’s and MWRD’s staff researched the boundary and only found a tract where the current boundary splits the tract in half. It is currently being served by CUD and MWRD does not have a water main near. Therefore, it would make sense for CUD to completely serve this tract. Staff recommended approving the revision to the CUD/MWRD boundary and the Mayor executing an amendment to the Water Service Boundary. Sandra Trail made a motion to approve. Kathy Nobles seconded. The motion unanimously passed. The Board considered WRRF Bleach Chemical Contract 2nd Amendment and budget amendment. Sodium Hypochlorite is used at the Water Resource Recovery Facility (WRRF) for disinfection of the reuse water. Due to the volatility in fuel and inflation, Dycho Company is only entering into 6-month agreements. Amendment #1 expires at the end of December 2022, and this Amendment #2 goes through June 30, 2023. The original contract, executed in May 2020, allows for a fuel cost-related price adjustment based on market conditions. Staff recommended the Board recommend to City Council approving the amendment to purchase Sodium Hypochlorite from Dycho Company, Inc. and increasing the sodium chlorite FY23 budget item. Amendment #2 changes the unit price cost of bleach to $2.43/gallon versus the previous unit price cost of $1.90/gallon (28% increase). The requested budget amendment is from $50,000 to $175,000 and is expected to cover the costs through June 30, 2023. Kathy Nobles made a motion to approve. Dr. Carter seconded. The motion unanimously passed. The Board considered SRWTP Granular Activated Carbon (GAC) Media Replacement 2nd Amendment. Granular Activated Carbon media is used in the water treatment process to remove disinfection by- products (DBPs), total organic carbon (TOC) compounds, pharmaceutical and personal care products (PPCPs) and taste and odor compounds during the peak seasonal times. The Stones River Water Treatment Plant has four GAC contactors used in the treatment process. The Department changes media in one contactor per year, unless unusual circumstances exist. MWRD currently has a contract for GAC media. The 1st Amendment started July 2022 and the media was replaced at the contract amount of $122,840. Calgon requested for the City to make a price adjustment due to market conditions beyond their control for their 2nd Amendment in the amount of $143,560. Funding will come from the capitol budget. Staff recommended the Board recommend to City Council approving the amendment from Calgon Carbon Corporation. Brian Kidd made a motion to approve. Ron Crabtree seconded. The motion unanimously passed. Page 14 Water Resources Board Minutes December 13, 2022 Page 3 The Board considered SRWTP High Service Pump Station PLC replacement. The bid awarded to J. Cumby Construction Company included the replacement of the existing Allen Bradley PLC with a Bedrock Automation PLC. M/R Systems is to replace the PLC under the existing Master Services Agreement with M/R Systems outside of the contract with J. Cumby Construction Company. Unfortunately, the parent company of Bedrock Automation has decided to shut down this line of products. As a result, M/R will be using the existing PLC for startup of all systems at the High Service Pump Station in a temporary mode to complete this project. The PLC will still need to be replaced. By approving this work using the existing Master Services Agreement with M/R Systems, it will allow J. Cumby to complete all their work as early as January 2023. The expected lead time for the Schneider PLC is around 13-weeks and will require additional time for programming and installation. The cost for M/R Systems performing this work through the MSA is $92,743 with funding from working capital reserves. Staff recommended that the Board recommend to the City Council approving the work form M/R Systems in accordance with their task order. Sandra Trail made a motion to approve. Ron Crabtree seconded. The motion unanimously passed. The Board considered AMI equipment sole source contract. MWRD Operations and Maintenance is requesting approval to enter a contract with United Systems to purchase AMI Equipment including leak detection sensors (Mlog) which monitors frequency sounds to help locate service and main line leaks, encoder receiver transmitters, and antennas. Encoder Receiver Transmitters, or ERTs, must be placed at each water meter location as these are the devices that communicate the meters readings via cellular networking cards. United Systems is a sole source provider of Itron equipment within our region. Staff recommended the Board recommend to City Council to agree to a contract with United Systems. AMI’s approved Capital Budget includes $100,000 for the purchase of equipment. Brian Kidd made a motion to approve. Kirt Wade seconded. The motion unanimously passed. The Board considered Mechanical/Electrical Services Contract extension. Staff accepted bids in January 2022 for one base-bid task order (22-01) along with supplemental unit prices for outside labor and equipment services. The bid was awarded to John Bouchard and Sons Co (JB&S), and the agreement was executed on February 3, 2022. The agreement allowed for the provision of extending the supplemental unit prices an additional three, 12-month terms. Staff is requesting approval from the Board to extend the agreement with JB&S an additional 12 months to February 3, 2024. Staff recommended the Board recommend to City Council to extend the Water/Wastewater System Mechanical/Electrical Services Contract with JB&S for an additional 12-month period. Dr. Carter made a motion to approve. Kathy Nobles seconded. The motion unanimously passed. Page 15 Water Resources Board Minutes December 13, 2022 Page 4 The Board considered Beasie Road waterline extension construction contract. This Beasie Road extension is due to an agreement between the City and Costco. With the development of this commercial area east of the Stones River, staff was concerned about the volume of water and pressure available for domestic water and fire protection from the existing water main. Therefore, the Department proposed to extend a 10” main from its current terminus, crossing the Stones River and connecting to the 12” water main along River Rock Blvd. This extension will provide a redundant system as well as a higher volume of water at a higher pressure. Bids were received by the City and Volkert recommends awarding the project to Bell and Associates, LLC who is the lowest responsive and responsible bidder. Staff recommended the Board recommend the City Council award the Beasie Road waterline extension project to Bell and Associates, LLC. The design and construction of the waterline is proposed from Working Capital Reserves for a total construction cost of $1,000,295. Sandra Trail made a motion to approve. Kirt Wade seconded. The motion unanimously passed. The Board considered Salem Barfield Special Sanitary Sewer Assessment District Revisions. This project is comprised of three work areas: 1. Upsizing of a section of 15” diameter sewer to 24” diameter under the West Fork Stones River; total cost $3,685,159 2. Repair and reinstallation of a 36-inch diameter section of sanitary sewer installed under New Salem Hwy; total cost $1,637,834 3. New Salem Hwy sanitary sewer upgrades to allow increased capacity for 3473 new connections within the Salem/Barfield service basin; total cost $8,389,949 The last component of the project is proposed to be recouped through the establishment of a new Salem/Barfield special sanitary sewer assessment district. A pre-existing SSSAD exists within this service basin established in 2001. Staff is recommending an update to the pre-existing, original Salem/Barfield SSSAD fee for developments approved for sewer connections prior to 12/27/2021. The SSSAD fee is per single family unit (sfu). Staff recommended the Board recommend to City Council approval to revise the existing SSSAD fee to $840/sfu and to create the proposed SSSAD fee of $3,150/sfu for all newly approved sewer connections. Sandra Trail made a motion to approve. Dr. Carter seconded. The motion unanimously passed. Staff provided the Board a PowerPoint presentation reviewing the Working Capital Reserve Account in conjunction with FY2023-2027 Capital Improvements Plan (CIP). The Murfreesboro Water Resources Department staff has drafted an updated 5-Year Capital Improvements Plan from Fiscal Year (FY) 2023 through 2027. The primary focus of this preliminary draft is the capital improvements projected to be funded by working capital reserves. After receiving the FY21- 22 draft estimate of the Department’s working capital reserve amount of $112,798,065 provided by Jobe Page 16 Water Resources Board Minutes December 13, 2022 Page 5 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 FY23-27 Capital Improvements Plan highlights three 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 FY23-27 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 $35.7M of unassigned cash in reserves is determined available as of November 2022 (second quarter of FY23). When applying this to the FY23-27 CIP, and assuming projected additional FY23 reserve fund revenue and expenditures a working capital account balance of available funds is estimated as $86.4M at FY23 year-end. 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 within $17.35M in FY25. The Northeast Regional pumping station and the Full-scale biosolids drying project construction costs has been moved into a debt funded project in order for all other projects to be funded with working capital reserves and not go below a secured minimum balance. The increase in capital improvement projects increased from $105.95M to $101.63 using working capital reserves. Anticipated debt service went to $59.5M as compared to $20.5M in FY22. This increase is due to the Northeast Regional Pump Station substantially increasing in costs and including Full-scale biosolids drying project as debt funded. The overall increase to debt funded and working capital reserves funded projects is $34.68M. Staff presented and discussed the Water Resources Dashboard Performance for November 2022. Staff presented the Financial Reports for the year ending October 31, 2022. There being no further business, the meeting was adjourned. ____________________________ John Sant Amour, Chairman Page 17