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City of Workshop M2002-W-01 City Council Chambers I. Call to order. With a
quorum present, Mayor Elizabeth G. II. Pledge of Allegiance Mayor Flores led in the Pledge of Allegiance. III. Roll Call In attendance: Elizabeth G. Flores, Mayor Alfredo Agredano, Council Member, District I Louis H. Bruni, Council Member, District II John C. Galo, Council Member, District III Johnny Amaya, Council Member, District IV Eliseo VAldez, Jr., Mayor Pro Tempore, District V Joe A. Guerra, Council member, District VI Jose
A. Juan Ramirez, Council Member, District VIII Gustavo Guevara, Jr., City Secretary Jaime
Flores, 1. Discussion and review of ground water proposals. Mike Engle, from CH2MHILL, made the presentation before the Council: Overview Groundwater Source Study - November 1999. Qualification statements - November 1999. Preliminary priced proposals - March 2000. Request for detailed proposals - July 2001. Proposals - January 2002.
Risk Allocation RFP Assigned to project developer. Proposals received Shared implementation risk. Long-term risk to City
Proposals
Received US Filter/Killam Water Company Responsive to the RFP. Development in northern Acess and development rights indicated. City to acquire land or water rights. Water purchase price - 33 cents/1,000 gallons. Delivered cost - $1.50 to $2.50/1,000 gallons. Potable quality water expected. Moderate to high sustained yield. U S. Filter/Killam Water Co. An alternative proposal. Development close to Access and development rights indicated. Water purchase price not indicated. Delivered cost - $2.50 to $3.50/1,000 gallons. Saline water expected - treatment required. Low to moderate sustained yield.
Recommendation Moderate to high volumes of water potential. Expect potable water quality. Long-term sustainability potential. Extensive treatment not expected. Cost of water delivered in acceptable range. Advantage of pipeline to northern Webb Co. Project
Verification Verification procedures reviewed. Verification scope and budget reviewed. Minor modifications to proposed program. Development
Agreements Advance Authorization to Proceed (AATP) AATP being prepared. Council action no later than Design/Build agreement. MWH agreed to sign modified RFP agreement. RFP agreement as base. Negotiations in process. Mr. John Dantony and Wayne Hunter gave the following presentation for Montgomery Watson Harza: Transforming Our Project provides the Best Solution for Reliable Partner in MWH Lowest Cost System Fastest Delivery Significant Local Benefits
MWH has the Financial Stability to ensure
Project Success 5.500 employees worldwide $750 million in annual revenue 50 years of continuous growth in $1 billion of on-going design-build work An independent and Employee owned Company A
Proven Track Record Bexar MET IBPWTP $20 million DBO Surface Water Supply and treatment project Houston NEWPP $100 Million DBO Waterplant with 20 miles of pipeline SAWS ASR Well Field $20 Million 17 wells and pipeline Our Project provides the Best Solution for Laredo's Secondary Water
Supply System Reliable Partner in MWH Lowest Cost System Fastest Delivery Significant Local Benefits MWH's
1999 Evaluations have stood the Test of Time 78 locations evaluated Defined well cost + Treatment cost + Transport Cost Geospatial Analysis
Compares the value of different solutions Cumulative Effect defines least cost A Trusted Partner MWH has the financial stability to ensure the success of this project. MWH means financial strength and experience and we have successfully partnered with many cities on other design-build projects. These projects are a success because of our close working relationship with out clients and our adherence to principles of integrity, high quality of service and commitment. · 50 years of continuous growth and service · 750 million – annual revenue from engineering – construction projects · $1,000 million on going design build work · 30,000 million programs managed · 5,500 employees in nations As an Employee-owned company – MWH is inherently stable and more capable of managing DBO project risks than publicly-owned company. Investment
in Local Area sub consultants Robber S. Kier Consulting Foster Engineering Company Archaeological Consultants, Inc. Raba-Kistner Consultants, Inc. Associated Broker Realty Graphitiks Border Title Company Local Contractors (as determinted) Our team structure is
centered around local business participation: Our diverse team includes several local firms that will provide both design and construction support for this project. Significant portion of the project dollars will be pumped right back in the community, fostering business growth. Our proposal includes community involvement program. We propose to bring “WET
in the City” to Outreach Profile: WET in the City: As a national partner with WET in the City Program, Montgomery Watson has found that increasing educational opportunities, while providing service to the client, is an essential element of program success. This program, developed by the Council for Environmental Education is a K-12 urban environmental education program that focuses on water resources. Benefits include: ·
CEE is one of the 10 partners selected to
participate in the EPA’s Office of Environmental Education. ·
Part of key topics outlines in NPDES education
requirement. ·
Developed “Water on the Web” internet site for
the student/teacher information. MWH evaluated over 50 source locations to find the best secondary water supply for the City of Water Quality Better water quality found 43 miles from the City is current source of drinking water for other users. Water Commitment Availability commitment as $.00 per 1,000 gallons of water adjacent sources may offer lower cost water, at City’s option. The option available for additional water in the future. Oper. Simplicity City can operate the System with its current staff Conventional well water system is easy to operate City has the option to assign operation to others Water Cost Analysis Average total cost of water supply is about $1.50 per 1,000 gallons Cost of desalinization (RO system) expected to be nearly twice this value Flexibility of Use Can be used as a base-load flow system or for peak flows Ease of Implementation: City
has bid price proposal from No Surprises Corp., Project: $20 Million. Water Works Park II; Value of Project $275 Million. Willamette River Water Plant, City of Total Value of Project: $44 Million. Water Treatment and transmission System Southern Nevada Water Authority, Las Vegas, NV. A design Bid Build – (DBB) Project Total Value of Project: $80 Million. Mohawk Water Treatment Plant design – Bid – Build – (DBB) Project Total Value of Project: $80 Million. Greater Project Total Value of Project: $1.2 Billion. North West Water Capital Program, Project Total Value of Project: $3.5 Billion Upgrade and Operation of Wastewater
Plants $284 Million. Cm. Galo asked Beto Ramirez, Acting Utilities Director, to do an analysis of what the overall average cost will be for the consumer. Charles Martens from U. S. Filter/Killiam Water Company, stated that he sincerely believes that Killiam’s proposal provides for the only City private partnership. He said that Killiam has a phase approach where they can allocate cost without exceptions. He encouraged Council to investigate further. He gave his opinion of the proposals submitted by other companies. of the project. He affirmed that the contract will reflect the maximum price of $2.75 price per 1,000 gallons. Denise Chenen,
Attorney for the City of Out on the request for proposals process, but in 2001 they decided to proceed with the Project through a Local Government Corporation. The City assigned all of its rights to the requests for proposals and to the Local Government Corporation. She said technically the contract will be between the Local Government Corporation and the successful proposer. She
noted that on for a meeting for Council and the Local Government Corporation. The Local Government Corporation will enter into a contract with the successful proposer. The Local Government Corporation will provide the City services and it will contract with the propose to provide it with services that pass through to the City. The City will pay the Local Government Corporation and they will pay the successful proposer. concerning the Local Government Corporation will be on the agenda for February 25, 2002. 2. Presentation by Hwkins, Delafield, and Wood of Draft Service Contract and appendices for the management of the City’s water and wastewater system. Rick Sapier, with Hawkins, Delefield and Woods, gave the following presentation: Hawkins Delafield & Wood Summary of Certain Key Provision of the
Draft Service Contract Exclusions from Uncontrollable Circumstances Term – 2 options: 1. 5-year initial plus 5-year renewal 2. 10 year initial; no renewal Transition Period following Contract Date and prior to Commencement Date: 1. Transition Employees 2. Obtain insurance, bond, and letter of credit 3. Inventory and valuation Assumption of Existing City Contracts Transfer of Designated Employees: 1. Required to offer employment to all Designated Employees (subject to pas drug screening test. 2. Substantially similar responsibilities and equal or better positions. 3. Wages and benefits equal or better than those provided by the City, including pensions benefits. 4. Recognition of years of service with City. 5. Accrued vacation, sick leave, or other paid time to carry over -0 paid by City as a Reimbursable Expense. 6. No termination of Transferred Employees without just cause. 7. Employee Grievance Committee. 8. Managed City Employees. 9. Right to City to Require Company to increase benefits during the term. “As is” Risk Assumption City’s rights regarding
Company’s Director of Operations Compliance with Applicable Law Company has the right to change staffing levels through attrition (not layoffs) upon notice to the City but may not make any such changes if it would adversely affect the ability of the Company to provide the Management Services in accordance with the Contract Standards. Access, Reporting, Auditing, Administrative Sanctions Local purchasing to develop economic development within the City Customer Service: 1. Customer service manual 2. 24-hours manned hotline 3. Local customer service location 4 . Meter quality assurance program. Billing and Collection: 1. Utilization and/or improvement in existing system 2. All funds collected by City Water Pollution Control: 1. IPP administration by Company 2. Administration of Water Conservation Program 3. Prevention of cross connections and Back-Flows 4. Water Pressure Guarantee 5. Unaccounted for Water Guarantee Wastewater System
Performance: 1. Effluent Guarantee 2. Sludge Guarantee 3. Odor Requirement Maintenance: 1. Company responsible for all maintenance except Major Corrective Maintenance 2. Company responsible for cost of first $15,000 of Major Corrective Maintenance 3. Company prohibited from including labor cost in quotes, bids or proposals for Major Corrective Maintenance Mechanisms to ensure Managed Assets are
property maintained: 1. Exit evaluation 2. Periodic Inspections 3. CMMS Residuals Management: 1. No on-site storage 2. Alternate disposal if Sludge Guarantee is not met at Company cost Capital Modifications: 1. Company Request – Company Cost 2. City Request – City Cost 3. Uncontrollable Circumstances – City Cost 4. Primary Procedure for Minor Capital Modifications 5. Primary Procedure for other Capital Modifications 6. Alternative Procedures 7. Company prohibited from including labor in quotes, bids or proposals Formulaic Service Fee
consisting of Fixed and Variable Components of a Base Operation Charge and
Reimbursable Charges and Credits 1. Fixed Fee for fixed level of service 2. Variable Fee for increased levels of service 3. Electricity subject to maximum guarantee 4. Sludge 5. Managed City Employees Breach, Default, Remedies, and Termination: Breaches, City has all remedies available under Service Contract, Security Instruments, and Applicable Law Events of Default certain Events of Default allow termination without notice and cure opportunity City Convenience Termination Security for Performance 1. Guarantor 2. Letter of Credit 3. Performance bond 4. Insurance V. EXECUTIVE SESSION The City Council hereby reserves the right to go into executive session at any time during this public meeting, when it deems it necessary to consult privately with its attorney about any item upon this agenda, pursuant to the provision of Section 551.071 (2) of the Texas Government Code. VI. Motion to adjourn. Moved: Cm. Galo Second: Cm.. Agredano For: 7 Against: 0 Abstain: 0 |