City Council Chambers
I. Call to order.
quorum present, Mayor Elizabeth G.
II. Pledge of Allegiance
Mayor Flores led in the Pledge of Allegiance.
III. Roll Call
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
Juan Ramirez, Council Member, District VIII
Gustavo Guevara, Jr., City Secretary
1. Discussion and review of ground water proposals.
Mike Engle, from CH2MHILL, made the presentation before the Council:
Groundwater Source Study - November 1999.
Qualification statements - November 1999.
Preliminary priced proposals - March 2000.
Request for detailed proposals - July 2001.
Proposals - January 2002.
Assigned to project developer.
Shared implementation risk.
Long-term risk to City
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.
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.
Verification procedures reviewed.
Verification scope and budget reviewed.
Minor modifications to proposed program.
Advance Authorization to Proceed (AATP)
AATP being prepared.
Council action no later than
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:
Our Project provides the Best Solution for
Reliable Partner in MWH
Lowest Cost System
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
Significant Local Benefits
Evaluations have stood the Test of Time
78 locations evaluated
Defined well cost +
Treatment 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.
Local Area sub consultants
Robber S. Kier Consulting
Foster Engineering Company
Archaeological Consultants, Inc.
Raba-Kistner Consultants, Inc.
Associated Broker Realty
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
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.
· 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
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
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.
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
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
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
of the project. He affirmed that the contract will reflect the maximum price of $2.75
price per 1,000 gallons.
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,
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
2. Substantially similar responsibilities and equal or better positions.
3. Wages and benefits equal or better than those provided by the City, including
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
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
Access, Reporting, Auditing, Administrative Sanctions
Local purchasing to develop economic development within the City
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
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
Mechanisms to ensure Managed Assets are property maintained:
1. Exit evaluation
2. Periodic Inspections
1. No on-site storage
2. Alternate disposal if Sludge Guarantee is not met at Company cost
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
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
City Convenience Termination
Security for Performance
2. Letter of Credit
3. Performance bond
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