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King William Treatment Plant Effluent Utilization 13 7

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King William Treatment Plant Effluent Utilization 13 7 COMMISSION MEETING MINUTES May 24, 2016 No. Topic Page 1. Consent Agenda 3-4 a. Approval of Minutes 3 b. Contract Awards 3 c. Task Orders 3 d. Contract Change Orders 3 e. Sole Source 4 f. HRSD Use of Existing Competitively Awarded Contract Vehicle 4 2. Fiscal Year-2017 Budgets 5-7 3. Center Avenue I&I Remediation Phase II 8-9 Rejection of Bids 4. Effingham Street Interceptor Force Main Emergency Replacement 10-11 Additional Appropriation and Contract Change Order 5. Extensometer Construction and Monitoring at Nansemond Treatment 12 Plant Agreement 6. King William Treatment Plant Effluent Utilization 13 7. Sustainable Water Recycling Initiative (SWRI) 14 Quarterly Update 8. Election of Officers 15 Operations & Nominations (O&N) Committee Appointment 9. Reschedule Commission Meeting Date – September 2016 16 10. Unfinished Business 17 11. New Business 17 12. Commissioner Comments 17 Meeting held at 1434 Air Rail Avenue, Virginia Beach, VA 23455 Page 1 of 18 COMMISSION MEETING MINUTES May 24, 2016 No. Topic Page 13. Public Comments Not Related to Agenda 17 14. Informational Items 17 a. Management Reports 17 b. Strategic Planning Metrics Summary 17 c. Effluent Summary 17 d. Air Summary 17 15. Announcements 17 Attachments (6) Meeting held at 1434 Air Rail Avenue, Virginia Beach, VA 23455 Page 2 of 18 COMMISSION MEETING MINUTES May 24, 2016 Present for Name Title Item Nos. Lakdawala, Vishnu K. Commission Chair 1-15 Elofson, Frederick N. Commission Vice-Chair 1-15 Bredemeyer, Arthur C. Commissioner Absent Glenn, Michael E. Commissioner Absent Levenston, Jr., Willie Commissioner 1-15 Lynch, Maurice P. Commissioner 1-15 Rodriguez, Stephen C. Commissioner 1-15 Rotkis, Susan M. Commissioner 4-15 1. CONSENT AGENDA Action: Approve the items listed in the Consent Agenda. Moved: Maurice Lynch Ayes: 5 Seconded: Willie Levenston Nays: 0 Brief: a. Approval of minutes from previous meeting. b. Contract Awards 1. Aquifer Replenishment System Laboratory Services $221,215 2. Work Safety Shoes $240,000 c. Task Orders 1. Regional Hydraulic Model and Other Consent Order $360,000 Requirements d. Change Orders 1. Emissions Stack Testing Services $56,000 2. Mobile Workforce Managed Services Support Contract $25,000 Meeting held at 1434 Air Rail Avenue, Virginia Beach, VA 23455 Page 3 of 18 COMMISSION MEETING MINUTES May 24, 2016 e. Sole Source 1. CAMBI® Pilot Unit 2. Flygt Pumps 3. ISCO Flow Meters, Samplers, Probes and Related Accessories 4. Laboratory Total Organic Carbon (TOC) Analyzer 5. Primary Total Suspended Solids (TSS) Analyzer f. HRSD Use of Existing Competitively Awarded Contract Vehicle 1. Combination Jet Vacuum Sewer Cleaner $372,548 Item(s) Removed for Discussion: None Attachment #1: Consent Agenda Public Comment: None Meeting held at 1434 Air Rail Avenue, Virginia Beach, VA 23455 Page 4 of 18 COMMISSION MEETING MINUTES May 24, 2016 2. FISCAL YEAR-2017 BUDGETS Actions: a. Approve the FY-2017 to FY-2036 Financial Forecast b. Approve the Operating Budget for FY-2017, which includes the Operating, Debt Service and Transfer Appropriations, and authorize distribution of the Budget in accordance with the Trust Agreement. c. Approve the Capital Budget for FY-2017 d. Approve the Capital Improvement Program for FY-2017 to FY-2026 (Summary Capital Improvement Program) e. Approve the Rate Schedules to be effective July 1, 2016 subject to the requirements of the Enabling Act. Moved: Willie Levenston Ayes: 5 Seconded: Frederick Elofson Nays: 0 Brief: The annual budgeting process includes updating the 20-year Financial Forecast and preparing the Operating Budget (which includes the operating, debt service and transfer appropriations), the Capital Budget and the Capital Improvement Program (CIP) as well as the corresponding Rate Schedules to support these budgets. The preliminary budgets were forwarded for Commission review in mid- March. The Chairman appointed Commissioners Elofson and Rodriguez to the Finance Committee. They and several other commissioners participated in the CIP review meetings and met with staff to review the draft components of the budget for the next fiscal year. The Finance Committee reported to the Commission at the April 26, 2016 meeting. The Commission is required to approve an annual budget by June 1 and to print and distribute the budget by June 30. Meeting held at 1434 Air Rail Avenue, Virginia Beach, VA 23455 Page 5 of 18 COMMISSION MEETING MINUTES May 24, 2016 The Capital Budget includes the first year of the CIP. The CIP includes the proposed capital projects to be undertaken by HRSD over the next ten years. Projects in the approved CIP (including those in the approved Capital Budget) are individually presented to the Commission for full project funding specific to each project at the time first dollar is spent for funding authorization. Changes to the CIP, which may be required by changing conditions, are presented to the Commission as amendments. The proposed CIP recommends spending approximately $1.52 billion over the next 10 years. The CIP will be available on the HRSD website upon Commission approval. The Financial Forecast was updated to cover the period 2017 through 2036 to forecast HRSD finances over an extended timeframe. The Financial Forecast is a planning tool used to project revenue requirements and spending limits needed for HRSD to comply with its financial policies throughout the forecast period. The Rate Schedules summarize rates necessary to generate sufficient revenue to cover expenses and reserves requirements for the next fiscal year. HRSD’s Rate Model assigns the operating and debt service costs from the proposed budget to the four primary treatment parameters of Biochemical Oxygen Demand (BOD), total suspended solids, phosphorus and nitrogen at each treatment plant as weighted averages or percentages to determine the total cost for treating each parameter. The total cost is converted into a unit cost based on the estimated quantity of each parameter, and surcharge rates for high strength wastewater are calculated. The result is that the Rate Model calculates rates sufficient to recover expenses based on the waste characteristics of each customer. To meet the requirements of the Financial Forecast, the FY-2017 wastewater charge will increase from $4.13 per 100 cubic feet to $4.51 per 100 cubic feet. The current average residential customer (as measured by a 5/8-inch meter) uses approximately 6.5 CCF of water per month, resulting in an average monthly increase of $2.47 (approximately $0.08 per day). Our charges for wastewater treatment remain reasonable, with the average residential customer paying less than $1.00 per day to ensure future generations will inherit clean waterways and be able to keep them clean. Rates to provide wastewater services to the Middle Peninsula communities include both the cost of the treatment and the collection systems. Middle Peninsula residents pay the HRSD regional treatment rate, the weighted Meeting held at 1434 Air Rail Avenue, Virginia Beach, VA 23455 Page 6 of 18 COMMISSION MEETING MINUTES May 24, 2016 average sewer collection system rate for the metro area, plus the capital costs (Capital Recovery Rate) of the collection systems. The capital cost component generally includes the amortized cost incurred by HRSD when the systems were acquired. Attachment #2: FY-2017 Annual Budget Public Comment: None Meeting held at 1434 Air Rail Avenue, Virginia Beach, VA 23455 Page 7 of 18 COMMISSION MEETING MINUTES May 24, 2016 3. CENTER AVENUE I&I REMEDIATION PHASE II REJECTION OF BIDS Action: Reject all bids. Moved: Stephen Rodriguez Ayes: 5 Seconded: Frederick Elofson Nays: 0 CIP Project: JR011500 Type of Procurement: Competitive Bid Bidder Bid Amount SAK Construction, LLC $1,443,510.00 AM-Liner East, Inc. $1,801,630.70 TA Sheets General Contractors $1,972,844.00 WB and E Contractors, Inc. $2,062,425.00 Tri-State Utilities, Co. $2,122,154.40 Shaw Construction $3,186,034.91 Engineer Estimate: $2,364,061.15 Project Description: This project includes the rehabilitation and/or replacement of approximately 8,340 linear feet of existing 18, 21 and 24-inch vitrified clay and reinforced concrete gravity sewer and will complete the rehabilitation of HRSD’s Center Avenue Pump Station service area. The project includes all or portions of line numbers NG-175, NG-176, NG-045 and NG-098. City laterals directly connected to HRSD infrastructure will also be rehabilitated along with the construction effort at HRSD cost. HRSD recommends rejection of all bids. During the evaluation of bids, a unique approach to Cured in Place Pipe (CIPP) rehabilitation and associated bypass pumping activities was brought to HRSD’s attention by the apparent low bidder, SAK Construction, LLC. The proposed approach to CIPP rehabilitation and bypass pumping is reflected in the apparent low bid, which was $358,121 less than the next lowest bid. The difference in bids highlights the potential to save HRSD in Meeting held at 1434 Air Rail Avenue, Virginia Beach, VA 23455 Page 8 of 18 COMMISSION MEETING MINUTES May 24, 2016 construction costs due to reduced construction duration. Additionally, the proposed approach has the potential to significantly reduce the construction impacts to the residents in the project area (greater Hilton Village area of Newport News). SAK Construction, LLC, met with HRSD to explain their approach to completing the CIPP rehabilitation project with a bypass pumping system that is fully removed from the project site at the end of each work day. The described approach was the basis for their low bid. SAK Construction, LLC shared that their bid did not reflect completing the project in the manner described in the contract documents and subsequent addenda. SAK Construction, LLC has used this approach in other regions of the country successfully and the equipment used for their bypass pumping system is widely available and not proprietary.
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