BOARD OF TRUSTEES MEETING AGENDA a) · c) Bad Debt Write-Off for Water and Sewer Fund for 3rd Qtr...

BOARD OF TRUSTEES MEETINGTUESDAY, JANUARY 13, 2015 – 4:00 PM

CITY COMMISSION CHAMBERS - 3RD FLOOR1300 HOUSTON AVE.McALLEN, TX 78501

AGENDA

CALL TO ORDERPLEDGEINVOCATION

1. MINUTES:

a) Approval of Minutes for a Special Joint Meeting held December 8, 2014, and the Regular Meeting held December 9, 2014.

2. BIDS AND CONTRACTS:

a) Award of Contract for Colbath Road Water Transmission Line

b) Award of Contract - South Wastewater Treatment Plant Upgrade Project

c) South Wastewater Treatment Plant Upgrade Project - Change Order No. 1

d) South Wastewater Treatment Plant Upgrade Project - Amendment No. 4

3. RESOLUTION:

a) MPU Meter Change Out Program – RESOLUTION authorizing the submission of an application to the United States Department of Interior, Bureau of Reclamation, WaterSmart: Water and Energy Efficiency FY 2015

4. UTILITY LAYOUTS:

a) Rancho B2Z

5. MANAGER’S REPORT:

a) Consideration of Bariatric Procedure coverage for City Health Plan.

6. TABLED ITEMS:

a) Evaluation of SOQ's for General Water and Wastewater Engineering Services

7. FUTURE AGENDA ITEMS

8. EXECUTIVE SESSION, CHAPTER 551, TEXAS GOVERNMENT CODE, SECTION 551.071 CONSULTATION WITH ATTORNEY, SECTION 551.072 LAND TRANSACTION, SECTION 551.074 PERSONNEL MATTERS; SECTION 551.087 ECONOMIC DEVELOPMENT NEGOTIATIONS

a) Discussion of matters related to economic development. (T.G.C 551.087)

b) Consultation with City Attorney and Possible Action regarding legal issues related to personnel matters. (T.G.C. 551.074)

c) Discussion of South WWTP contract. (T.G.C. 551.071)

ADJOURNMENT

IF ANY ACCOMMODATION FOR A DISABILITY IS REQUIRED (OR INTERPRETERS FOR THE DEAF), NOTIFY UTILITY ADMINISTRATION (681-1630) FORTY-EIGHT (48) HOURS PRIOR TO THE MEETING DATE. WITH REGARD TO ANY ITEM, THE MCALLEN PUBLIC UTILITY BOARD OF TRUSTEES MAY TAKE VARIOUS ACTIONS; INCLUDING BUT NOT LIMITED TO RESCHEDULING AN ITEM IN ITS ENTIRETY FOR A FUTURE DATE OF TIME. THE MCALLEN PUBLIC UTILITY BOARD MAY ELECT TO GO INTO EXECUTIVE SESSION ON ANY ITEM WHETHER OR NOT SUCH ITEM IS POSTED AS AN EXECUTIVE SESSION ITEM AT ANY TIME DURING THE MEETING WHEN AUTHORIZED BY THE PROVISIONS OF THE OPEN MEETINGS ACT.

THE NEXT REGULARLY SCHEDULED BOARD MEETING WILL BE HELD ON JANUARY 27, 2015

AGENDA ITEM 1.a. PUBLIC UTILITY BOARD DATE SUBMITTED 01/07/2015 MEETING DATE 01/13/2015

1. Agenda Item: Approval of Minutes for a Special Joint Meeting held December 8, 2014, and the Regular Meeting held December 9, 2014.

2. Party Making Request: Nyla L. Flatau, TRMC, CPM, Utility Board Secretary 3. Nature of Request: Approval of Minutes as presented. 4. Budgeted:

Bid Amount: Budgeted Amount: Under Budget: Over Budget: Amount Remaining:

5. Reimbursement: N/A 6. Routing:

Shelton, Edith Created/Initiated - 01/07/2015Pagan, Kevin Final Approval - 01/07/2015

7. Staff's Recommendation: Approval of Minutes as presented. 8. City Attorney: Approved - KDP 9. MPU General Manager: approved

mav 10. Director of Finance for Utilities:

1

STATE OF TEXAS COUNTY OF HIDALGO CITY OF MCALLEN The McAllen Public Utility Board met in a Joint Special Meeting with the McAllen Board of Commissioners on Monday, December 8, 2014 at 4:00 p.m. in the City Commission Chambers with the following present. Public Utility Board Members:

Charles Amos Chairman Ernest Williams Vice-Chairman Tony Aguirre, Jr. Trustee

Board of Commissioners: Jim Darling Mayor Scott Crane Commissioner District 1 Trey Pebley Commissioner District 2 Hilda Salinas Commissioner District 3 Aida Ramirez Commissioner District 4 John Ingram Commissioner District 5

Veronica Vela-Whitacre Commissioner District 6 Staff: Roy Rodriguez, P.E. City Manager

Marco A. Vega, P.E. General Manager Kevin Pagan City Attorney Annette Villarreal City Secretary Edith Shelton Assistant to the Board Secretary Chris Lash KMB Michelle Leftwich Assistant City Manager Susan Lozano Deputy Finance Director Greg Townsend Strategic Coordinator Julie Rankin Director of Planning Omar Rodriguez Director of Convention Facilities Yvette Barrera Director of Engineering Rafael Balderas Fire Chief Elma Vela City Commission Liaison Estella Garza Admin Clerk Perla Lara Deputy City Secretary Mario Delgado Director of Transit Carlos Sanchez Director of Public Works Victor Flores Assistant City Attorney Sally Gavlik Director of Parks & Recreation Robert Acosta Director of IT Josh Ramirez Director of Health Angie Rodriguez Budget Director Ramon Navarro Deputy Director of Engineering Rebecca Olaguibel Retail & Business Development Victor Rodriguez Police Chief CALL TO ORDER:

2

Mayor Darling and Chairman Amos called the meeting to order. 1) Discuss and approve a plan of finance for the issuance of the City's Waterworks and

Sewer System Revenue Refunding Bonds; approve and recommend method of sale for the refunding; if necessary, approve the underwriting syndicate for a negotiated sale; authorize the City's staff, financial advisor and bond counsel to proceed with all matters thereto.

Ms. Entrekin of First Southwest made a presentation to the Utility Board and City Commissioners in which she recommended the Public Utility Board the “negotiated sale” method of the proposed bond issuance. Vice Chairman Williams motioned to approve; seconded by Trustee Aguirre. The motion passed.

2) Discuss and approve a plan of finance for the issuance of the City's General

Obligations Refunding Bonds; approve the recommended method of sale for the refunding; if necessary, approve the underwriting syndicate for a negotiated sale; authorize the City's staff, financial advisor and bond counsel to proceed with all matters related thereto.

Ms. Entrekin recommended that the Board select Hutchinson Shockey as Senior Manager, Raymond James as Co-Manager, and Estrada Hinojosa as a third Manager. Vice Chairman Williams motioned for approval; seconded by Trustee Aguirre. The motion passed.

ADJOURNMENT There being no other business to come before the Board, the Joint Special Meeting was unanimously adjourned at 4:35 p.m. _______________________ Charles Amos, Chairman Attest: ________________________ Edith Shelton Assistant to the Utility Board Secretary

STATE OF TEXASCOUNTY OF HIDALGOCITY OF MCALLEN

The McAllen Public Utility Board (MPUB) convened in a Regular Meeting on Tuesday, December 9, 2014, at 4:00 pm in the City Commission Chambers at City Hall with the following present:

Chairman Charles AmosVice Chairman Ernest WilliamsTrustee Tony AguirreTrustee Albert CardenasCommissioner Veronica Whitacre

Staff: Mark Vega, P.E., General ManagerKevin Pagan, City AttorneyNyla L. Flatau, Board SecretaryEdith Shelton, Assistant to the Utility Board SecretaryMarco Pedraza, Director of Wastewater SystemsErika Diaz, Developmental Activities SpecialistTim Skoglund, P.E., Utility EngineerCarlos Gonzalez, P.E., Development/Special Projects EngineerOmar Gonzalez, CAD Operator IIIPablo Rodriguez, Customer Relations ManagerSusan D. Schane, Grant WriterJoe Solis, Interim Water Systems DirectorElizabeth Cabrera, Director of Purchasing & ContractingMiguel A. Esparza, Tansmission & DistributionRichard Jimenez, Transmission & DistributionJuan Muniz, Transmission & DistributionEmmanuel Hernandez, Water PlantDuranne Osuna, Customer RelationsMichelle Leftwich, Assistant City ManagerSusana Chapa, HR Trainer

CALL TO ORDER:

PROCLAMATION - CARLOS RUBINSTEIN, CHAIRMAN OF THE TEXAS WATER DEVELOPMENT BOARD

1. MINUTES:

a) Approval of Minutes for the Regular Meeting held November 25, 2014 and Workshop held November 11, 2014.

Page 1 of 5

Trustee Albert Cardenas moved to approve the minutes for the Regular Meeting held November 25, 2014 and Workshop held November 11, 2014. Commissioner Veronica Whitacre seconded the motion. The motion carried unanimously by those present.


a) Presentation by BBS.

Item was for report only.


Chairman Charles Amos recessed the meeting to go into executive session at 4:23 pm. Chairman Charles Amos reconvened the meeting at 5:17 pm and stated that the following action would be taken.

Commissioner Veronica Whitacre exited the workshop and meeting at 4:45 pm.

Mr. Pagan stated that items required no action.

2. BIDS AND CONTRACTS:

a) Selection of Consulting Engineer for North Water Treatment Plant Groundwater Well Design Project

Mr. Gonzalez stated that statements of qualification were solicited; in which, five (5) engineering firms responded. After completion of the evaluation process, Staff recommended that the team of Norris Leal Engineering Water and RW Harden & Associates be awarded the engineering design services for the North Water Treatment Plant Ground Water Well.

Trustee Albert Cardenas moved to approve engineers. Vice Chairman Ernest Williams seconded the motion. The motion carried unanimously by those present.

3. UTILITY LAYOUTS:

a) Jackson Meadows, Lots 66C, 66D & 66E Subdivision

Mr. Gonzalez presented a 3.68 acre tract property located on the south-west corner of E. Yuma Avenue and S. Jackson Road. He added that subdivision

Page 2 of 5

be granted approval subject to: 1) developer shall dedicate a minimum 10 foot utility easement for any proposed public utility installation, and 2) installation of proposed public utility infrastructure as proposed.

Vice Chairman Ernest Williams moved to approve subdivision. Trustee Tony Aguirre seconded the motion. The motion carried unanimously by those present.

b) Jackson Meadows, Lots 67C, 67D through 67W Subdivision

Mr. Gonzalez presented a 4.71 acre tract property located on the south-west corner of E. Keeton Avenue and S. Jackson Road. Mr. Gonzalez stated that subdivision should receive approval subject to: 1) developer shall dedicate a minimum 10 foot utility easement for any proposed public utility installation, and 2) installation of proposed public utility infrastructure as proposed.

Trustee Tony Aguirre moved to approve subdivision. Vice Chairman Ernest Williams seconded the motion. The motion carried unanimously by those present.

c) Ludayusa Subdivision

Mr. Gonzalez presented a 1 acre tract property located along the west side of North Bentsen Road, approximately 1,300 feet north of 4 Mile Line (Lark Ave.); south of Pelican Avenue. He further added that subdivision approval should be granted subject to: 1) dedication of a 10 foot utility easement within the proposed property, 2) installation of proposed public utility infrastructure as proposed, and 3) payment of a sewerline reimbursement in the amount of $1,968.05, payable to MPU for the Plantation Gap Participation and the Alton Interceptor.

Trustee Tony Aguirre moved to approve Ludayusa Subdivision. Vice Chairman Ernest Williams seconded the motion. The motion carried unanimously by those present.


b) Evaluation of SOQ’s for General Water and Wastewater Engineering Services

Mr. Vega recommended that item be tabled until the next meeting.

Vice Chairman Ernest Williams moved to table item. Trustee Tony Aguirre seconded the motion. The motion carried unanimously by those present.

Page 3 of 5

c) Bad Debt Write-Off for Water and Sewer Fund for 3rd Qtr of FY 2013-2014.

Mr. Pablo Rodriguez presented the bad debt write-off for water and sewer fund for the 3rd Quarter of FY 2013-2014 and recommended authorization to write-off bad debt for water fund in the amount of $4,294.25 and $4,738.71 for sewer, for a total write-off of $9,032.96

Vice Chairman Ernest Williams moved to approve bad debt write-off. Trustee Tony Aguirre seconded the motion. The motion carried unanimously by those present.

d) Review of Unaudited Results of Financial Operations for the Quarter ended September 30, 2014

Item was for information only.

e) Reimbursement Collections Update

Said item was for information only.


a) Discussion of matters related to economic development. (551.087 T.G.C.)

Mr. Pagan asked the Board to entertain a motion that authorized the General Manager and Board Attorney to negotiate within the parameters as discussed in closed session.

Vice Chairman Ernest Williams moved to approve Attorney's recommendation. Trustee Tony Aguirre seconded the motion. The motion carried unanimously by those present.

b) Consultation with City Attorney and Possible Action regarding legal issues related to personnel matters. (T.G.C. 551.074)

Item required no action.

ADJOURNMENT

There being no other business to come before the Board, the meeting unanimously adjourned at 5:32 pm.

Page 4 of 5

______________________________Charles Amos, Chairman

Attest: ______________________________ Edith SheltonAssistant to the Utility Board Secretary

Page 5 of 5


1. Agenda Item: Award of Contract for Colbath Road Water Transmission Line 2. Party Making Request: MPU Staff - Carlos Gonzalez, P.E. 3. Nature of Request: Consideration and approval of Professional Engineering

Services Contract to Hinojosa Engineering, Inc. for the amount of $40,000 for the Colbath Avenue Water Transmission Line Project

4. Budgeted: yes

Bid Amount: $40,000.00 Budgeted Amount: $40,000.00 Under Budget: $0.00 Over Budget: $0.00 Amount Remaining: $0.00

5. Reimbursement: not applicable 6. Routing:

Gonzalez, Carlos Created/Initiated - 01/07/2015Pagan, Kevin Approved - 01/07/2015Cabrera, Elizabeth Final Approval - 01/07/2015

7. Staff's Recommendation: Approval based on conditions set-forth 8. City Attorney: Approved - KDP 9. MPU General Manager: approved


Memo TO: Marco A. Vega, P.E., Interim General Manager

FROM: Carlos Gonzalez, P.E., Development/Special Projects Engineer

DATE: January 5, 2015

SUBJECT: Colbath Water Transmission Line Project Professional Services Contract; Consideration & Approval of Contract

On July 29, 2014, MPUB approved a recommendation to award engineering design phase services for the Colbath Avenue Water Transmission Line Project to Hinojosa Engineering, Inc., out of Mission, TX.

The project consists of the design of an 18” water transmission line that will run along Colbath Avenue from 26th Street to Ware Road, for a distance of approximately 4,000 LF. This line will connect to the recently installed 18” waterline along 26th Street and the existing 16” waterline along Bentsen Road.

Hinojosa Engineering, Inc., has proposed an engineering fee of $40,000 for the design phase services which include all work necessary to prepare construction plans and specifications for this project. The engineer has also submitted a preliminary engineer’s estimate of $360,000 for this project. Staff recommends MPUB approval of Professional services engineering contract for the amount of $40,000.00 to Hinojosa Engineering, Inc. I am available for further discussion/questions.

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Source: Esri, DigitalGlobe, GeoEye, i-cubed, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AEX, Getmapping, Aerogrid, IGN, IGP,swisstopo, and the GIS User Community

²PROPOSED 18" COLBATH WATER LINE

1 " = 400 '

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Water Lines

AGENDA ITEM 2.b. PUBLIC UTILITY BOARD DATE SUBMITTED 01/07/2015 MEETING DATE 01/13/2015

1. Agenda Item: Award of Contract - South Wastewater Treatment Plant Upgrade Project

2. Party Making Request: Carollo Engineers 3. Nature of Request: Award of Contract to low bidder, CSA Construction. Project

#09-14-C40-168 4. Budgeted: Yes

Bid Amount: $66,189,000.00 Budgeted Amount: $63,640,000.00 Under Budget: $0.00 Over Budget: $2,549,000.00 Amount Remaining: $0.00

5. Reimbursement: Is Not Applicable 6. Routing:

Shelton, Edith Created/Initiated - 01/07/2015Cabrera, Elizabeth Approved - 01/08/2015Pagan, Kevin Final Approval - 01/08/2015

7. Staff's Recommendation: Award of contract contingent on approval of Change

Order No. 1. 8. City Attorney: Approved at amended amount - KDP 9. MPU General Manager: approved


of 1

MCALLEN PUBLIC UTILITY

Memo To: Mark Vega, General Manager

From: Tim Skoglund, Utility Engineer

Date: January 7, 2015

Re: South WWTP Upgrade – Award of Construction Contract

Two bids were received on October 16, 2014 for the South WWTP Upgrade project. CSA Construction

of Houston, TX submitted in the low bid in the amount of $66,189,000. Please refer to the attached bid

tabulation.

Staff recommends award of contract to CSA Construction.

PREPARED: 10/16/2014

BY: LV

BID OPENING: OCTOBER 15, 2014 AT 2:00 P.M.

LOCATION: Conference RoomPROJECT NO. 09-14-C40-168 SOUTH WASTEWATER TREATMENT PLANT UPGRADE

BIDDERS

CSA CONSTRUCTION, INC.

PEPPER-LAWSON WATERWORKS, LLC.

HOUSTON TEXAS KATY TEXAS

1

Treatment Facilities and associated improvements not identified under the other bid items. 1 LS N/A $58,157,610 $60,577,000

2 Implementation of SWP3. 1 LS N/A $20,000 $15,610

3

Trench safety, sheeting, shoring and bracing for open excavations. 1 LS N/A $20,000 $26,000

4 Neuros Turbo Blowers. 1 LS N/A $2,220,000 $2,220,000

5 Ovivo Membrane Thickening System. 1 LS N/A $780,000 $780,000

6 Headcell Grit Removal Equipment. 1 LS N/A $362,690 $362,690

7 Coanda Grit Dewatering Equipment. 1 LS N/A $236,000 $236,000

8

Belt Filter Press and replacement parts for the existing belt filter press. (Deductive Alternative No. 3) 1 LS N/A $428,900 $428,900

9 Allowance for SCADA computers. 1 LS N/A $125,000 $125,000

10 Installation of the pre-negotiated items. 1 LS N/A $100,000 $100,000

11

Maintenance Building. (Deductive Alternative No. 1) 1 LS N/A -$1,000,000 -$850,000

12

Dewatering Building Expansion. (Deductive Alternative No. 2) 1 LS N/A -$1,400,000 -$600,000

13 Invent Mixers. 1 LS N/A $998,800 $998,800

14

g , g pfrom Existing Aeration Basins and Digester. 4,000 CY $85.00 $340,000 $80,000

$66,189,000 $67,400,000

$63,789,000 $65,950,000

910 CALENDAR DAYS 910 CALENDAR DAYS

SUBMITTED SUBMITTEDAKNOWLEDGED AKNOWLEDGED

YES YESNOT REQUIRED NOT REQUIRED

QTY UNITUNIT

PRICE

TOTAL INCL. (DEDUCT) ALT. #1 & #2

NUMBER OF DAYS TO COMPLETE CONTRACT

TOTAL ALL ITEMS

BID BONDADDENDUM #1

EPLS VERIFICATION (3 LOW BIDS)TLIST VERIFICATION (3 LOW BIDS)

HARDCOPY OF BID SUBMITTEDELECTRONIC BID SUBMITTED

AGENDA ITEM 2.c. PUBLIC UTILITY BOARD DATE SUBMITTED 01/07/2015 MEETING DATE 01/13/2015

1. Agenda Item: South Wastewater Treatment Plant Upgrade Project - Change Order No. 1

2. Party Making Request: Carollo Engineers 3. Nature of Request: Consideration of change order proposal to reduce

contract $10,189,000 bringing the negotiated contract amount to $56,000,000. 4. Budgeted: Yes

Bid Amount: $0.00 Budgeted Amount: $63,630,000.00 Under Budget: $7,630,000.00 Over Budget: $0.00 Amount Remaining: $0.00



7. Staff's Recommendation: Approval as proposed. 8. City Attorney: Approved - KDP 9. MPU General Manager: approved


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Date: January 7, 2015

Re: South WWTP Upgrade – Change Order No. 1

Carollo Engineers has worked with CSA to revise the project scope and reduce the original contract

amount for the South WWTP Upgrade from the low bid price of $66,189,000. Based on cost reduction

measures that Carollo recommends, CSA has agreed to reduce the project price to a negotiated

amount of $56,000,000. Please refer to the attached change order form listing 55 cost reduction

measures totaling a price reduction of $10,189,000.

Included in the total amount is a $200,000 deduction contingent on extending the contract time an

additional 155 days to a total of 36 months.

In recommending approval of Change Order No. 1, Staff believes all the cost reduction measures are

necessary to reach the negotiated price of $56,000,000 and does not believe the additional contract

time will negatively affect the project or ongoing operation of the plant.

Funding for the project consists of loans and grants through the TWDB in a net amount of $45.93

million and $16.7 million from MPU’s bond, sewer depreciation, and sewer CIP funds totaling a

combined budget of $63.63 million.

8561A.10 | Vega_Change Order_010715.docx 8911 Capital of Texas Highway North, Suite 2200, Austin, Texas 78759 P. 512.453.5383 F. 512.453.0101

carollo.com

January 7, 2015 McAllen Public Utility 1300 Houston Avenue McAllen, TX 78501 Attention: Mark Vega, P.E. General Manager Subject: South Wastewater Treatment Plant Upgrade Project Project No. 09-14-C40-168 Change Order No.1 Dear Mr. Vega:

Carollo has worked with CSA Construction, Inc. to re-scope the project and reduce the project cost. A list of potential cost reduction items was prepared and reviewed with MPU staff. Cost reductions for the accepted items were negotiated with CSA Construction, Inc. Change Order No. 1 for a reduction in the project cost from $66,189,000 to $56,000,000 is attached. It should be signed at the same time as award of the project is made by the MPU Board. Included with and is a part of the change order are the following:

Proposed Contract Modification Descriptions

Redlined Drawings

Redlined Specifications

Electrical Modifications

If you have any questions, please do not hesitate to call (512) 453-5383. Sincerely, CAROLLO ENGINEERS, INC.

Hani E. Michel, P.E. Project Manager Vice President HEM:siw

AGENDA ITEM 2.d. PUBLIC UTILITY BOARD DATE SUBMITTED 01/07/2015 MEETING DATE 01/13/2015

1. Agenda Item: South Wastewater Treatment Plant Upgrade Project - Amendment No. 4

2. Party Making Request: Carollo Engineers 3. Nature of Request: Consideration for additional fee for design of cost

reduction measures in the amount of $98,900 that will bring the total contract amount to $6,141,940.00.

4. Budgeted: Yes

Bid Amount: $98,900.00 Budgeted Amount: $63,630,000.00 Under Budget: $0.00 Over Budget: $0.00 Amount Remaining: $0.00



7. Staff's Recommendation: Approval as proposed. 8. City Attorney: N/A - KDP 9. MPU General Manager: approved


8561A.10 | Vega_Amendment_010715.docx 8911 Capital of Texas Highway North, Suite 2200, Austin, Texas 78759 P. 512.453.5383 F. 512.453.0101

carollo.com

January 7, 2015 McAllen Public Utility 1300 Houston Avenue McAllen, TX 78501 Attention: Mark Vega, P.E. General Manager Subject: South Wastewater Treatment Plant Upgrade Project Project No. 09-14-C40-168 Engineering Contract Amendment Dear Mr. Vega:

Since the bids were received for the above referenced project, Carollo has worked with CSA Construction, Inc. to re-scope the project and reduce the project cost. Attached herewith is an amendment to our contract for the engineering effort to re-scope the project and prepare the change order documents. The amount of the amendment is $98,900.

If you have any questions concerning this amendment, please do not hesitate to call (512) 453-5383. Sincerely, CAROLLO ENGINEERS, INC.

Hani E. Michel, P.E. Project Manager Vice President HEM:siw


1. Agenda Item: MPU Meter Change Out Program – RESOLUTION authorizing the submission of an application to the United States Department of Interior, Bureau of Reclamation, WaterSmart: Water and Energy Efficiency FY 2015

2. Party Making Request: Susan Schane, Grant Writer 3. Nature of Request: Resolution authorizing the submission of an application for

financial assistance to the Bureau of Reclamation for MPU’s water meter replacement program installing AdvancedMetering Infrastructure (AMI) in an effort to promote water conservation through “smart” metering technology. Financial assistance being sought is 50% grant with 50% local match.

4. Budgeted:


5. Reimbursement: Is Not Applicable. 6. Routing:

Gomez, Erika Created/Initiated - 01/08/2015Pagan, Kevin Final Approval - 01/08/2015

7. Staff's Recommendation: Approval of Resolution 8. City Attorney: Approved - KDP 9. MPU General Manager: approved



GRANTS MEMORANDUM

To: Marco A. Vega, P. E., MPU General Manager From: Susan D. Schane, Grant Writer Date: January 8, 2015 Subject: Submission of a Grant Application

GOAL

Submission of a grant application to the United States Department of Interior, Bureau of Reclamation, WaterSmart: Water and Energy Efficiency FY 2015.

BRIEF EXPLANATION

Resolution authorizing the submission of an application for financial assistance to the Bureau of Reclamation for MPU’s water meter replacement program installing Advanced Metering Infrastructure (AMI) in an effort to promote water conservation through “smart” metering technology. Federal funding request in an amount not to exceed $1,000,000. Financial assistance being sought is 50% grant with 50% local match.

RECOMMENDATION

Staff recommends submission of the grant application.

RESOLUTION NO 2012 - _____

AUTHORIZING THE SUBMISSION OF A GRANT APPLICATION REQUESTING FINANCIAL ASSISTANCE FROM THE UNITED STATES DEPARTMENT OF INTERIOR, BUREAU OF RECLAMATION, WATERSMART: WATER AND ENERGY EFFICIENCY FY 2015 AND DESIGNATING AN AUTHORIZED REPRESENTATIVE TO ACT ON BEHALF OF THE CITY OF MCALLEN AND MCALLEN PUBLIC UTILITY TO CARRY OUT THE IMPLEMENTATION OF THIS PROJECT

STATE OF TEXAS COUNTY OF HIDALGO CITY OF MCALLEN

WHEREAS the United States Department of Interior, Bureau of Reclamation makes financial support available to local municipalities through the Water and Energy Efficiency Grant program

WHEREAS the City of McAllen and McAllen Public Utility has a project which is eligible for financial assistance through the Water and Energy Efficiency Grant program: the installation of Advanced Metering Infrastructure (AMI) Meters,

WHEREAS if financial assistance is awarded through the Water and Energy Efficiency Grant program, the City of McAllen and McAllen Public Utility is required to provide fifty percent of the project costs as a local match and

NOW THEREFORE BE IT RESOLVED BY THE BOARD OF COMMISSION OF THE CITY OF MCALLEN TEXAS THAT

1. McAllen Public Utility is hereby authorized and instructed to develop and submit a grant application to Bureau of Reclamation WaterSmart Program for funding in an amount not to exceed $1,000,000 to provide for installation of Advanced Metering Infrastructure (AMI) Meters.

2. That Marcos A Vega, P. E., General Manager of McAllen Public Utility be and is hereby designated the authorized representative of the City of McAllen and McAllen Public Utility for the purposes of furnishing such information and executing such documents as may be required in connection with the preparation and filing of such application for financial assistance and the rules of the United States Department of Interior, Bureau of Reclamation and in all matters pertaining to this application including appearing before the Bureau of Reclamation and submitting other documentation as may be required by the Executive Administrator or the Bureau of Reclamation Board.

3. Upon the approval of this application, the General Manager of McAllen Public Utility is authorized to execute all legal documents necessary and to perform any acts necessary to implement the Project. McAllen Public Utility is requesting an amount not to exceed $1,000,000 from the Bureau of Reclamation WaterSmart program.

CONSIDERED PASSED APPROVED AND SIGNED this 13th day of January 2015 at a regular meeting of the Board of Commission of the City of McAllen Texas at which a quorum was present and which was held in accordance with Chapter 551 Texas Government Code.

Attest City of McAllen, Texas McAllen Public Utility ______________________________ ______________________________ Charles Amos Marcos A. Vega, P. E. Chairman Board of Trustees General Manager Approved as to form:

______________________________ ______________________________

Nyla L. Flatau TRMC, CPM Kevin D. Pagan

Utility Board Secretary City Attorney

Application Resolution - Certificate of Secretary THE STATE OF TEXAS COUNTY OF HIDALGO

I, the undersigned, Secretary of the McAllen Public Utility, McAllen, Texas, DO HEREBY CERTIFY as follows:

1. That on the 13th day of January, 2015 , a regular/special meeting of the Board of Trustees was held at a meeting place within the City; the duly constituted members of the Board being as follows:

Charles Amos, Chairman Place A Ernest Williams, Vice Chairman Place D Tony Aguirre, Trustee Place B Albert Cardenas, Trustee Place C Veronica Vela Whitacre, Trustee/Ex-Officio Member

and all of said persons were present at said meeting, except the following: Among other business considered at said meeting, the attached resolution entitled:

"A RESOLUTION by the Board of Trustees of the McAllen Public Utility requesting financial assistance from the United States Department of Interior, Bureau of Reclamation, WaterSmart: Water and Energy Efficiency authorizing the filing of an application for assistance; and making certain findings in connection therewith."

was introduced and submitted to the McAllen Public Utility Board for passage and adoption. After presentation and due consideration of the resolution, and upon a motion made by and seconded by , the resolution was duly passed and adopted by the Board of Trustees by the following vote: voted "For" voted "Against" abstained all as shown in the official Minutes of the McAllen Public Utility Board for the meeting held on the aforesaid date.

2. That the attached resolution is a true and correct copy of the original on file in the official records of the McAllen Public Utility; the duly qualified and acting members of the Board of Trustees on the date of the aforesaid meeting are those persons shown above and, according to the records of my office, advance notice of the time, place and purpose of said meeting was given to each member of the Board ; and that said meeting, and deliberation of the aforesaid public business, was open to the public and written notice of said meeting, including the subject of the above entitled resolution, was posted and given in advance thereof in compliance with the provisions of Chapter 551 of the Texas Government Code.

IN WITNESS WHEREOF, I have hereunto signed my name officially and affixed the seal of said City of

McAllen this the 13th of January, 2015 .

Nyla L. Flatau TRMC, CPM Utility Board Secretary

(SEAL)


1. Agenda Item: Rancho B2Z 2. Party Making Request: Carlos Gonzalez, P.E., Development/Special Projects

Engineer 3. Nature of Request: Approval of subdivision as conditions set forth. 4. Budgeted:



Gonzalez, Carlos Created/Initiated - 01/06/2015Pagan, Kevin Final Approval - 01/06/2015

7. Staff's Recommendation: Approval of subdivision as conditions set forth. 8. City Attorney: Approved - KDP 9. MPU General Manager: approved


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1. Agenda Item: Consideration of Bariatric Procedure coverage for City Health Plan.

2. Party Making Request: Jolee Perez, Benefits Coordinator 3. Nature of Request: Consideration of Bariatric Procedure Coverage for City

Health Plan. 4. Budgeted:



Perez, Jolee Created/Initiated - 12/30/2014Pagan, Kevin Approved - 01/02/2015Vega, Mark Final Approval - 01/08/2015

7. Staff's Recommendation: Recommend approval of coverage on the City's

Health Plan for Gastric Bypass and Gastric Sleeve procedures, with a 2 year employment tenure requirement and recommended guidelines as presented by Blue Cross Blue Shield.

8. City Attorney: N/A - KDP 9. MPU General Manager: N/A


CITY OF MCALLEN

EMPLOYEE BENEFITS

MEMORANDUM TO: Public Utility Board FROM: Jolee Perez, Benefits Coordinator CC: Mark Vega, General Manager DATE: January 12, 2014 RE: Bariatric Procedures for City’s Health Plan

The City’s Health Plan currently excludes Bariatric weight loss procedures from its eligible expenses. Over the past decade, it has been considered a few times by the Commission and City Management, but has not been formally discussed within the last five years. After a thorough evaluation which proved positive on the impact of Health Plan expenses in the long run, the topic was brought before the Insurance Committee. The Insurance Committee met several times to discuss the options, impact on the health plan, quality of life considerations and any other pertinent details they felt needed to be reviewed. Most of that information discussed can be found in the additional information supplied. The inclusion of two specific procedures (Gastric Sleeve and Gastric Bypass) were favorably supported from the Insurance Committee with the guidelines provided by Blue Cross (attached) and a 2 year tenure requirement. In light of this evaluation, there are two options –

1) Continue to exclude from coverage - or - 2) Add procedure(s) as a covered item on the City’s Health Plan (with or without restrictions).

Recommendation Staff recommends, with the support of the Insurance Committee, approval of coverage on the City's Health Plan for Gastric Bypass and Gastric Sleeve procedures, with a 2 year employment tenure requirement and recommended guidelines as presented by Blue Cross Blue Shield.

BARIATRIC DISCUSSION INFORMATION

Consideration

Request has been made by a member of the City of McAllen Health Plan for consideration to amending the Health Plan to allow for Bariatric

Weight Loss Surgery. Currently the City of McAllen does not cover any form of weight loss surgery, nor does it cover post-surgical complications

that arise from surgery paid for by the member directly.

Relevant Statistics & Facts

American Journal of Health Promotion released figures in May of 2014 that show a morbidly obese employee costs an employer over

$4000 per year in health care expenses OVER an employee of normal weights regular health expenses. Normal weight employees cost

on average $3,830 per year according to the study while an obese person is $8,067.

Body Mass Index (BMI) of 30% or higher is considered obese.

A 2006 study showed that for BMI ranges 25 to 45, medical costs increased $119.70 (4%) and pharmacy costs $82.60 (7%) per BMI unit.

The same study showed adjusted medical costs related to diabetes and heart disease increased $6.20 and $20.30 per BMI unit.

The likelihood of having any medical claim increased 11.6% per BMI unit for diabetes and 5.2% for heart disease.

In 2013, only 160,000 weight loss surgeries were performed, roughly the same number as back in 2004 which reflects a steady 1% of the

population that traditionally elects this alternative for weight loss.

Average death rate is 1 in 1,000.

About 20% of those that choose lap band regain their weight and long term success is extremely variable. Only a small percentage that

choose bypass regain their weight.

Types of Bariatric Surgery & Related Facts

Types of Bariatric Surgery

Category * Average Long-Term Excess Weight

Loss Complication

Rate Average

Cost Research Ranking

Gastric Bypass Combination

(Primarily Restrictive) 50% to 70% Up to 15% $24K A

Gastric Sleeve Restrictive 65% to 75% Up to 10% $19K A

Valley Claim

* Category: bariatric surgery works in one of 3 ways:

A. RESTRICTIVE: Surgeries shrink the size of the stomach which reduces the amount of

food it can hold. This makes you feel full when eating much sooner than you did before

surgery.

B. MALABSORPTIVE: Surgeries rearrange and/or remove part of your digestive system

which limits the amount of calories and nutrients that your body can absorb. There are

no longer any purely malabsorptive operations being performed.

C. COMBINATION: When surgery combines both restrictive and malabsorptive

techniques. Most surgeries today carry at least a small element of both techniques.

Medical Complications of Obesity

Sleep Apnea

Lung Disease (Asthma, Pulmonary Blood Clots)

Liver Disease (Fatty Liver, Cirrhosis)

Gallstones

Cancer (Breast, Uterus, Colon, Esophagus, Pancreas, Kidney, Prostate)

Stroke

Heart Disease (Abnormal Lipid Profile, High Blood Pressure)

Diabetes

Pancreatitis

Abnormal Periods & Infertility

Urinary Stress Incontinence

Arthritis

Inflamed veins (often with Blood Clots)

Gout

Potential Benefits of Coverage

Reversal of medical conditions noted above

Reduced and/or eliminated pharmacy claims

Reduced and/or eliminated medical claims

Reduced workers compensation claims

Improved mobility

Increased self-esteem

Increased productivity

Reduced lost time from work

Decreased depression and anxiety

Increased social interactions

Expense Factors for Consideration

Expenses tend to go up by about $1,000 just prior to surgery in order for member to do works ups, evaluations and tests.

Expenses tend to go up for a few months post surgery by about $4,400 for post surgical care.

Traditionally, all expenses are recouped by savings to health plan by year 3 on average as a result of reduced medical/pharmacy claims.

Post surgery, request for surgery is common for removal of excess skin. Many times this is not covered unless deemed medically

necessary under the following criterion: skin irritation, sexual dysfunction, pain, hygiene issues and ulceration or infection.

Survey Results of Local Entities

Local school district of similar size incurred expenses of $128,000 in 2013 for weight loss surgeries. Same district paid $133,400 in 2012.

They have covered these procedures since well before 2008, although current administration does not have history of how long before

2008 as there was a change in administration.

MISD, City of Mission, City of Pharr do not currently cover any weight loss surgeries. All have considered, some plan to consider again

now that availability, cost, education have all progressed.

Miscellaneous Factors

If services are to be included in plan: We cannot increase the out of pocket max for these services only.

If services are to be included in plan: We can include a tenure requirement for eligibility.

If services are to be included in plan: Blue Cross does not recommend going out for bid for EPO services as this would be difficult to

administer from our end and particularly on a regular basis; However, BCBS has a program where they indicate a facility as “Blue

Distinction Centers” after a very thorough evaluation.

o These centers have a proven track record for better results – including fewer complications and readmissions – than hospitals

that are not indicated as a Blue Distinction Center. Evaluation criterion includes among other things: 1) Know-how and

expertise of medical team, 2) Number of times hospital has performed the procedure and 3) Hospital’s track record for

procedure results.

o Blue Distinction Centers for Bariatric Surgery have demonstrated their commitment to quality care, resulting in better overall

outcomes for bariatric patients. Each facility meets stringent clinical criteria, developed in collaboration with expert physicians

and medical organizations, including the American Society of Metabolic and Bariatric Surgery, the Surgical Review Corporation,

and the American College of Surgeons, and is subject to periodic re-evaluation as criteria continue to evolve.

o For McAllen, as of 10/1/14 the only hospitals certified as a Blue Distinction Center at this time are South Texas Health System &

Rio Grande Regional.

About 50% of those undergoing bariatric evaluation will drop out before surgery. (Dropouts tend to be Men, Less Obese, Smokers or Older)

Recovery time is generally 3-6 weeks for successful surgeries. Complications can impact recovery time.

Average City Employee tenure is 9.2 years.

Patient Selection Criteria for Coverage (Suggested wording provided by BCBS)

For a member to be considered eligible for benefit coverage of bariatric surgery to treat morbid obesity, the member must meet the following two criteria:

1. Diagnosis of morbid obesity, defined as a:

Body mass index (BMI) equal to or greater than 40 kg/meter² (* see guidelines below for BMI calculation); OR

BMI equal to or greater than 35kg/meters² with at least one (1) of the following clinically significant obesity-related diseases or complications that are not controlled by best practice medical management:

o Hypertension, OR o Dyslipidemia, OR o Diabetes mellitus, OR o Coronary heart disease, OR o Sleep apnea, OR o Osteoarthritis; AND

2. Documentation from the requesting surgical program that:

Growth is completed (generally, growth is considered completed by 18 years of age); AND

Documentation from the surgeon attesting that the patient has been educated in and understands the post-operative regimen, which should include ALL of the following components:

o Nutrition program, which may include a very low calorie diet or a recognized commercial diet-based weight loss program; AND o Behavior modification or behavioral health interventions; AND o Counseling and instruction on exercise and increased physical activity; AND o Ongoing support for lifestyle changes to make and maintain appropriate choices that will reduce health risk factors and improve overall

health; AND

Patient has completed an evaluation by a licensed professional counselor, psychologist or psychiatrist within the 12 months preceding the request for surgery. This evaluation should document:

o The absence of significant psychopathology that would hinder the ability of an individual to understand the procedure and comply with medical/surgical recommendations, AND

o The absence of any psychological comorbidity that could contribute to weight mismanagement or a diagnosed eating disorder, AND o The patient’s willingness to comply with preoperative and postoperative treatment plans.

Contraindications for surgical treatment of obesity include:

Patients with mental handicaps that render a patient unable to understand the rules of eating and exercise and therefore make them unable to participate effectively in the post-operative treatment program (e.g., a patient with malignant hyperphagia [Prader-Willi syndrome], which combines mental retardation/intellectual disability with an uncontrollable desire for food).

Patients with portal hypertension, an excessive hazard with laparoscopic gastric surgery.

Women who are pregnant or lactating.

Patients with serious medical illness in whom caloric restriction could exacerbate the illness.

Bariatric Surgery in Patients with a BMI less than 35 kg/m2

Bariatric surgery is considered experimental, investigational and/or unproven for patients with a BMI less than 35 kg/m2.

* Guidelines on how to calculate BMI :

Body Mass Index (BMI) can be calculated using pounds and inches with this equation: BMI = [Weight (lbs) ÷ Height (in2)] x 703 Body Mass Index can also be calculated using kilograms and meters: BMI = Weight (Kg) ÷ Height (m2) To convert pounds to kilograms, multiply pounds by 0.45. To convert inches to centimeters, multiply inches by 2.54. To convert feet to meters multiple feet by 0.30.

COVERAGE STATEMENTS FOR SPECIFIC BARIATRIC SURGICAL PROCEDURES (Gastric Restrictive and Gastric Malabsorptive)

NOTE: For a member to be eligible for benefit coverage of any one of these procedures the member must meet the Patient Selection Criteria

described above AND the member’s contract or certificate of coverage must allow coverage of bariatric surgery


1. Agenda Item: Evaluation of SOQ's for General Water and Wastewater Engineering Services

2. Party Making Request: Marco A. Vega, P.E., General Manager 3. Nature of Request: Consideration and award of approval of Engineering

Professional Services rotation list. 4. Budgeted:


5. Reimbursement: Is Not Applicable. 6. Routing:


7. Staff's Recommendation: Award of Engineering rotation list. 8. City Attorney: Approved - KDP 9. MPU General Manager: approved


Memo To: Public Utility Board of Trustees

From: Marco Vega, P.E., General Manager

Date: 1/8/2015

Re: Recommendation of Engineering Rotation List - 2015

PUB Members, please see Staff’s recommendation for newly updated engineering rotation list: GENERAL ENGINEERING ROTATION LIST

Perez Consulting Engineers

Melden and Hunt

Cruz‐Hogan

Javier Hinojosa

SG & E

Guzman & Munoz

Hinojosa Engineering

Salinas Engineers

LeFevre Engineering

SAMES

Aranda & Associates

LNV

Garcia Engineering

South Texas Infrastructure Group

TEDSI

Please contact me with any questions you may have regarding this memo. Thank you.

Halff & Associates

Norris‐Leal

Dannenbaum

of 1




Date: December 3, 2014

Re: SOQ Evaluation for General Water & Wastewater Engineering Services

Staff has evaluated 26 statements of qualifications submitted for general water and wastewater engineering

services. All firms are listed below in rank order with their location of business indicated if outside McAllen

and neighboring cities.

The evaluation was complicated by the fact that firms have differing strengths and capabilities, and while

some may rank highly because of past performance, they do not necessarily have broad experience for all

types of work. Conversely, some firms with broad capabilities have not been very strong performers. Staff

attempted to balance quality of work and range of capabilities in its ranking.

Given the large number of respondents, PUB may wish to consider cutting the list down to a smaller pool

for assignment to projects over the next 3-5 years.

Perez Consulting Engineers

Halff Associates

Melden & Hunt

Cruz-Hogan

TEDSI

Sigler Winston & Greenwood ...............(Weslaco)

Dannenbaum

Javier Hinojosa Engineering

Norris-Leal ...................................................(Harlingen)

Naismith ........................................................(Brownsville)

S&GE Civil ....................................................(San Antonio-Pharr 2013)

SDI Engineering

Guzman & Munoz ....................................(Mercedes)

Hinojosa Engineering

Crane Engineers ........................................(Laredo)

Salinas Engineering

Quintanilla - Headley

LeFevre

R.Gutierrez

SAMES

LNV Engineering .......................................(Corpus Christi-McAllen 2013)

Plagar Engineering ...................................(Brownsville)

Aranda & Assoc.

M. Garcia Engineering

South Texas Infrastructure Group

Cleary Zimmermann Engineers ...........(Pleasanton)


1. Agenda Item: Discussion of matters related to economic development. (T.G.C 551.087)

2. Party Making Request: Marco A. Vega, P.E., General Manager 3. Nature of Request: Consultation with City Attorney regarding consideration of

economic development matters. 4. Budgeted:




7. Staff's Recommendation: Consideration of economic matters. 8. City Attorney: N/A - KDP 9. MPU General Manager: N/A


AGENDA ITEM 8.b. PUBLIC UTILITY BOARD DATE SUBMITTED 01/06/2015 MEETING DATE 01/13/2015

1. Agenda Item: Consultation with City Attorney and Possible Action regarding legal issues related to personnel matters. (T.G.C. 551.074)

2. Party Making Request: Marco A. Vega, P.E., General Manager 3. Nature of Request:

4. Budgeted:




7. Staff's Recommendation: 8. City Attorney: N/A - KDP 9. MPU General Manager: N/A


AGENDA ITEM 8.c. PUBLIC UTILITY BOARD DATE SUBMITTED 01/06/2015 MEETING DATE 01/13/2015

1. Agenda Item: Discussion of South WWTP contract. (T.G.C. 551.071) 2. Party Making Request: Marco A. Vega, P.E., General Manager 3. Nature of Request: Discussion of South WWTP Contract. 4. Budgeted:




7. Staff's Recommendation: 8. City Attorney: N/A - KDP 9. MPU General Manager: N/A


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