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HomeMy WebLinkAbout1999-06-21 Water & Sewer NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 REGULAR MEETING, JUNE 21, 1999 PAGE 513 ASSEMBLY The District Board of Commissioners of the New Hanover County Water and Sewer District met in Regular Session on Monday, June 21, 1999, at 11:41 a.m. in the New Hanover County Public Library, 2nd Floor Conference Room, 201 Chestnut Street, Wilmington, North Carolina. Members present were District Commissioner Buzz Birzenieks; District Commissioner Ted Davis, Jr; District Commissioner William A. Caster; Vice-Chairman Charles R. Howell; Chairman Robert G. Greer; County Manager, Allen O’Neal; County Attorney, Wanda M. Copley; and Clerk to the Board, Lucie F. Harrell. Chairman Greer called the meeting to order. NON-AGENDA ITEMS Chairman Greer announced that time has been reserved to allow the public to present an item that was not listed on the regular agenda. He requested all persons speaking to limit their remarks to three minutes. No items were presented. AWARD OF SURVEY CONTRACT #99-0401 TO ARNOLD W. CARSON, RLSPC TO PROCEED WITH DESIGN OF THE SEWER COLLECTION SYSTEMS FOR THE BRIERWOOD\BROOKFIELD AREA, WEAVER ACRES, AND GLYNWOOD MOBILE HOME PARK AND APPROVAL OF THE ASSOCIATED BUDGET AMENDMENT #99- 0193 County Engineer, Wyatt Blanchard, requested the District Board to award the survey and design contract in the amount of $52,150 to Arnold W. Carson, RLSPC, the lowest bidder, for the sewer collection systems to serve the Brierwood/Brookfield area, Weaver Acres, and Glynwood Mobile Home Park. Motion: District Commissioner Howell MOVED, SECONDED by District Commissioner Caster to award the survey and design contract in the amount of $52,150 to Arnold W. Carson, the lowest bidder, and to approve the associated budget amendment for the sewer collection systems to serve the Brierwood/Brookfield area, Weaver Acres, and Glynwood Mobile Home Park. The Chairman was authorized to execute the necessary contract documents. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the contract is on file in the Legal Department. NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 REGULAR MEETING, JUNE 21, 1999 PAGE 514 Budget Amendment #99-0193 ADJUSTMENTDebitCredit Sewer Operating Fund: Appropriated Fund Balance $52,150 Water & Sewer Engineering: Contracted Services$52,150 Explanation: To appropriate Water and Sewer District Fund Balance for survey and design contract #99-0401 with Arnold W. Carson. APPROVAL OF CHANGE ORDER #3 TO HEATH CONSTRUCTION CONTRACT #98- 0176 County Engineer, Wyatt Blanchard, reported that Heath Construction Company was hired to install water and sewer taps and make emergency repairs beyond the capability of the County’s personnel and equipment. Due to the increased number of taps requested and emergency repairs, the original contract in the amount of $91,900 is almost depleted. The District Board was requested to approve a Change Order #3 in the amount of $75,000 to continue the service. Motion: District Commissioner Birzenieks MOVED, SECONDED by District Commissioner Caster to approve Change Order #3 to the Heath Construction Contract #98-0176 in the amount of $75,000 as recommended by the County Engineer and to approve the associated budget amendment. The Chairman was authorized to execute the necessary contract documents. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the change order is on file in the Legal Department. Budget Amendment #99-0192 - Water & Sewer District - Sewer Operating Fund/Water & Sewer Engineering DebitCredit Sewer Operating Fund: Appropriated Fund Balance $75,000 Water & Sewer Engineering: Contracted Services$75,000 Explanation: To appropriate Water & Sewer Fund Balance for Change Order #3 of Contract #98- 0176 with Heath Construction Company. NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 REGULAR MEETING, JUNE 21, 1999 PAGE 515 AUTHORIZATION TO FILE AN APPLICATION TO THE UNSEWERED COMMUNITIES PROGRAM ADMINISTERED BY THE RURAL CENTER TO ASSIST WITH FUNDING THE WILMINGTON-HANBY BEACH AND CASTLE HAYNE AREA SEWER SYSTEMS County Engineer, Wyatt Blanchard, requested authorization for staff to file an application to the Unsewered Communities Program administered by the Rural Center to assist with funding the Wilmington-Hanby Beach and Castle Hayne area sewer systems. Motion: District Commissioner Caster MOVED, SECONDED by District Commissioner Birzenieks to authorize staff to file an application to the Unsewered Communities Program administered by the Rural Center to assist with funding the Wilmington-Hanby Beach and Castle Hayne area sewer systems. The Chairman was authorized to execute the necessary documents. Upon vote, the MOTION CARRIED UNANIMOUSLY. ADOPTION OF 1999-2000 BUDGET ORDINANCE FOR THE NEW HANOVER COUNTY WATER AND SEWER DISTRICT Motion: District Commissioner Birzenieks MOVED, SECONDED by District Commissioner Caster to adopt the 1999-2000 Budget Ordinance for the New Hanover County Water and Sewer District. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the Budget Ordinance is hereby incorporated as a part of the minutes and is contained in W&S Book II, Page 26. ADOPTION OF ORDINANCES UPON THE FIRST READING TO INCREASE WATER AND SEWER RATES Ms. Julie Griffin, Finance Director of the Water and Sewer District, reported the District Board has not increased water and sewer rates since 1991. She requested the Board to adopt ordinances that will increase the water rate to $1.87 per 1,000 gallons and the sewer rate to $3.64 per 1,000 gallons. The proposed increases will generate an additional $100,000 in water revenues and $1,000,000 in sewer revenues per year. Motion: Vice-Chairman Howell MOVED, SECONDED by District Commissioner Caster to adopt the ordinances as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY. Copies of the ordinances are hereby incorporated as part of the minutes and are contained in W&S Book II, Page 26. NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 REGULAR MEETING, JUNE 21, 1999 PAGE 516 ADOPTION OF RESOLUTION AWARDING THE LOWEST RESPONSIBLE BID (CONTRACT #98-0356) TO THE GENEVA CORPORATION FOR THE PURCHASE OF 17 GENERATORS, APPROVAL OF A CONTRACT WITH STURDY POWER COMPANY FOR THE PURCHASE OF TWO SELF-MONITORING GENERATORS, AND APPROVAL OF ASSOCIATED BUDGET AMENDMENT #99-0191 Chairman Greer requested to be recused from discussing or voting on this issue since he is associated with one of the companies. Motion: District Commissioner Caster MOVED, SECONDED by District Commissioner Birzenieks to recuse Chairman Greer from voting on this issue. Upon vote, the MOTION CARRIED by a 4 to 0 vote. County Engineer, Wyatt Blanchard, reported that four companies presented bids for the purchase of backup generators for pump stations and portable generators. The lowest bidder, Owsley & Sons, did not submit a complete package as specified in the bid. The vendor was contacted by phone the day following the bid and the company was requested to provide the necessary information. The vendor did not provide the required information. The vendor was notified by telephone and by fax on Monday, June 7, 1999, and told if the information was not received by the deadline, the bid would be disqualified. The information was received by the deadline, but the bid was not in compliance with the specifications. County Engineer Blanchard advised that staff recommends award of the bid to Geneva Corporation for Alternate #1 Price for Pump Stations in the amount of $340,857 and the Base Bid for portables in the amount of $84,380 for a total purchase price of $425,237. In closing County Engineer Blanchard introduced Mr. Jack Talbert, of Sturdy Power Company, and stated he has requested time to make a presentation to the District Board regarding a new technology incorporating self-monitoring generator systems. Mr. Talbert expressed appreciation to the District Board for allowing him time to present the new concept of self-monitoring generator systems. He requested the District Board to consider purchasing two emergency power systems with battery packs that are charged by generators when power levels fall at pumping stations. The system is electronically monitored 24 hours a day, and it will initiate an alarm that can be tied into a pager used by a maintenance person through a satellite monitoring system. The initial cost of the systems will be more expensive than purchasing two generators, but in the long term, the systems will be more cost effective. These systems will not fail because they are self-monitoring and they are designed to last for 20 to 30 years without replacement of parts. One visit per year is required to change the oil and air system. Mr. Talbert commented on this being a new concept, and he offered to negotiate a five-year agreement with the District to purchase two Sturdy battery pack units at a cost of $42,000 each with the County keeping maintenance records to verify operational costs between the two units versus NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 REGULAR MEETING, JUNE 21, 1999 PAGE 517 the Geneva generators for a 5-year period. If the cost analysis pro-rated over the estimated life of the equipment does not verify that Sturdy units cost less to operate over the 5-year period, the company will reimburse the District the total purchase price of the two units upon the return of the equipment to the Sturdy Power Company. In closing, Mr. Talbert informed the Board that the systems proposed will last longer without replacement of parts and they will not fail during power outages. He offered to answer any questions. Discussion was held on the number of generators to be purchased from Geneva. County Engineer Blanchard responded that 19 generators were to be purchased from the Geneva Corporation; however, after discussion with the company about reducing the generators to 17, Geneva Corporation does not have a problem with amending the bid award. Further discussion was held on the additional cost of the two units versus the generators. Mr. Talbert explained that the price was based on a 20 to 30 year life cycle of the equipment and a 5-year time frame at no risk to the District. The cost of operation, manpower, and other costs will be included in the agreement. District Commissioner Davis asked what would happen if the District experienced a hurricane and the Sturdy systems did not function. Mr. Talbert responded that the battery pack systems could not fail because each system monitors itself through a micro-processor that pages a designated person when the system has a problem. It informs that person about the probable cause and the solution to the problem. This type of monitoring is programmed into the equipment. He said when a generator is needed, even though it was tested the day before, there is no way to assure the generator will crank the next day. County Engineer Blanchard asked Mr. Talbert to comment on the life expectancy and cost of each battery pack. Mr. Talbert said the cost of each battery pack was $8,400. He explained that it would be difficult to project a time frame because it would depend on the amount of use. The batteries control when there is sufficient need to cut on the generator. If there is a light load, the batteries will not turn on the generator; however, if the load becomes heavy, the batteries will shift the load to the generator. In a pump lift station environment, the company is comfortable with a 20 to 30 year life expectancy of the system. District Commissioner Davis requested County Engineer Blanchard to express his feelings about the proposed units. County Engineer Blanchard responded that the concept was excellent and stated, however, NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 REGULAR MEETING, JUNE 21, 1999 PAGE 518 the system has not been proven and the battery unit generators cost more than regular generators. Mr. Talbert reported the long term savings will be in annual maintenance and the cost of parts. When you eliminate fan belts, radiators, starter motors, and starter batteries, the operating cost is reduced. Sturdy believes that over a 5-year period, the District will save untold dollars. District Commissioner Birzenieks asked how long it will take Sturdy to place the two units on line. Mr. Talbert responded the units can be delivered by the first of October. District Commissioner Birzenieks said he felt the system will save money, but he would like to know the exact amount of money that will be saved. Deputy County Manager Atkinson estimated that the District will save approximately $8,000 per year over the 5-year period. Motion: After further discussion, District Commissioner Caster MOVED, SECONDED by District Commissioner Birzenieks to adopt a resolution to: (1) purchase 17 instead of 19 pump station generators plus four portable generators from the Geneva Corporation at a total cost of $391,049; (2) purchase two battery pack generator units from Sturdy Power Company at a cost of $84,000 contingent upon the District keeping maintenance records to verify operational costs for the 5-year period between the Sturdy units versus the Geneva generators with the guarantee that if the 5-year cost analysis pro-rated over the estimated life of the equipment does not result in the equipment provided by Sturdy being less expensive to operate, the District will be reimbursed by Sturdy Power Company the total purchase price of the two units upon the return of the units to the company; (3) authorize the Chairman to execute the necessary contract documents; (4) and approve the associated budget amendment. Upon vote, the MOTION CARRIED UNANIMOUSLY. Budget Amendment #99-0191 - Sewer Operating Fund/Water & Sewer Engineering DebitCredit Sewer Operating Fund: Appropriated Fund Balance$475,049 Water & Sewer Engineering: Capital Outlay - Equipment $475,049 Explanation: To appropriate Water & Sewer District fund balance for purchase of generators, Bid #99-0356. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in NEW HANOVER COUNTY WATER AND SEWER DISTRICT BOOK 2 REGULAR MEETING, JUNE 21, 1999 PAGE 519 W&S Exhibit Book II, Page 26. ADJOURNMENT Motion: District Commissioner Birzenieks MOVED, SECONDED District Commissioner Davis to adjourn. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Greer adjourned the meeting at 12:40 p.m. Respectfully submitted, Lucie F. Harrell Clerk to the District Board