San Jacinto River Authority. Board of Directors Meeting January 24, 2019

Transcription

1 San Jacinto River Authority Board of Directors Meeting January 24, 2019

2 AGENDA SAN JACINTO RIVER AUTHORITY THURSDAY, JANUARY 24, :00 A.M. GENERAL AND ADMINISTRATION BUILDING 1577 DAM SITE ROAD, CONROE, TEXAS 1. CALL TO ORDER 2. PLEDGES OF ALLEGIANCE 3. PUBLIC COMMENTS (3 minutes per speaker/10 minutes per topic) 4. DIVISION UPDATES - Receive updates from Operational Divisions and General & Administration Division related to ongoing projects, staff reports, or items on the consent agenda. a. G & A: Jace Houston, General Manager b. G & A: Tom Michel, Director of Finance and Administration c. Woodlands: Chris Meeks, Woodlands Division Manager d. GRP: Mark Smith, GRP Division Manager e. Lake Conroe: Bret Raley, Lake Conroe Division Manager f. Highlands: Kimberly Wright, Highlands Division Manager g. Flood Management: Chuck Gilman, Director of Water Resources and Flood Management 5. CONSENT AGENDA - This agenda consists of ministerial or "housekeeping" items required by law, such as routine bids, contracts, purchases, resolutions, and orders; items previously approved by Board action, such as adoption of items that are part of an approved budget or capital improvement projects, interlocal agreements, or action which is required by law or delegated to the General Manager; and items of a non-controversial nature. These items will be considered by a single motion unless removed and placed on the Regular Agenda for individual consideration at the request of any Director. G&A a. Approval of Minutes - Regular Meeting of December 13, b. Unaudited Financials for the Months of November and December, 2018 Consider approval of the unaudited financials for the months of November and December, c. Resolution Amending the Policy for Investment of San Jacinto River Authority Funds and Appointment of an Investment Officer Consider adoption of a resolution of the Board of Directors of the San Jacinto River Authority adopting amended policy for investment of Authority funds and appointing investment officer.

3 GRP d. New GRP Participants Consider authorizing the General Manager, or his designee, to execute letter(s) of assurance to Lone Star Groundwater Conservation District for Aqua Texas, Inc. (Woodland Ranch) and Quadvest, L.P. (Magnolia Reserve) in the GRP Program, as requested, and approve the GRP Contract(s) as presented and authorize the execution of same by the General Manager. RAW WATER ENTERPRISE e. Law Enforcement Interlocal Agreement with Harris County for Highlands Division Consider authorizing the General Manager to execute a Law Enforcement Interlocal Agreement with Harris County for law enforcement services commencing on March 1, 2019, and ending on February 28, 2020, for the Highlands Division. f. Legal Services Related to Acquisition of Real Property Interests in Highlands Consider authorizing the General Manager to approve additional expenditures to provide legal services related to acquisition of real property interest in Highlands. FLOOD MANAGEMENT g. Texas Water Development Board Flood Protection Planning Grant Consider authorizing the General Manager to negotiate and execute a contract with the Texas Water Development Board for the Flood Protection Planning Grant. 6. REGULAR AGENDA - This agenda consists of items requiring individual consideration by the Board of Directors. a. G&A 1. Appointment of Members to Standing Committees of the Board of Directors Announce appointment of members to standing committees of the Board of Directors. 2. Comprehensive Annual Financial Report for the Fiscal Year Ended August 31, 2018 Consider approving the Comprehensive Annual Financial Report - Audited Financial Statements and Related Notes, and the Federal Single Audit Report for the fiscal year ended August 31, Resolution Amending the Fiscal Year 2019 Operating Budget Consider adoption of a resolution of the Board of Directors of the San Jacinto River Authority amending the Fiscal Year 2019 Operating Budget for the GRP and General & Administration Divisions. Agenda Page 2

4 b. RAW WATER ENTERPRISE 1. Construction Contract for Relief Well Rehabilitation at Lake Conroe Consider authorizing the General Manager to execute a construction contract for Relief Well Rehabilitation at Lake Conroe. 2. Work Order No. 1 for Construction Phase Services and Inspection for Relief Well Rehabilitation at Lake Conroe Consider authorizing the General Manager to execute Work Order No. 1 for construction phase services and inspection for Relief Well Rehabilitation at Lake Conroe. 7. BRIEFINGS AND PRESENTATIONS a. Summary of Seasonal Lake Lowering. b. Summary of 2018 Rainfall. c. Water Conservation and Drought Contingency Plan Update. 8. EXECUTIVE SESSION (if applicable) Closed Meeting-Executive Session regarding one or more of the topics below: a. Consultation with attorney, pursuant to Texas Government Code b. Deliberation regarding real property, pursuant to Texas Government Code c. Deliberation regarding prospective gift, pursuant to Texas Government Code d. Deliberation regarding personnel matters, pursuant to Texas Government Code e. Deliberation regarding security devices, pursuant to Texas Government Code RECONVENE IN OPEN SESSION FOR ACTION FOLLOWING EXECUTIVE SESSION, IF NECESSARY 10. ANNOUNCEMENTS / FUTURE AGENDA Next San Jacinto River Authority Board Meeting - February 28, ADJOURN All items on the agenda are for discussion and/or action. The Board of Directors reserves the right to adjourn into executive session at any time during the course of this meeting to discuss any of the matters listed above, as authorized by Texas Government Code Sections (Consultation with Attorney), (Real Property), (Prospective Gifts), (Personnel Matters), and (Security Devices). Persons with disabilities who plan to attend this meeting and would like to request auxiliary aids or services are requested to contact Cynthia Bowman at (936) at least three business days prior to the meeting so that appropriate arrangements can be made. Agenda Page 3

5 4 Receive updates from Operational Divisions and General & Administration Division 01/24/2019 related to ongoing projects, staff reports, or items on the consent agenda. FUNDING SOURCE: N/A ATTACHMENTS: N/A No action required.

6 5a Consider approval of minutes from the Board of Directors meeting of December 13, 01/24/ FUNDING SOURCE: N/A ATTACHMENTS: Minutes Approve the minutes of the December 13, 2018, Board of Directors meeting.

7 5b Consider approval of the unaudited financials for the months of November and 01/24/2019 December, The monthly unaudited financial statements are intended to keep the Board of Directors apprised of the ongoing financial condition of the Authority. The monthly statements include Financial Highlights, Schedules of Revenues and Expenses (Actual and Budget), Unaudited Balance Sheet, Unaudited Statement of Revenues and Expenses (Summary), and Schedule of Investments. FUNDING SOURCE: N/A ATTACHMENTS: Unaudited Financials Approve the unaudited financial statements for the months of November and December, 2018.

8 5c Consider adoption of a resolution of the Board of Directors of the San Jacinto River Authority adopting amended policy for investment of Authority funds and appointing investment officer. 01/24/2019 Several bills were passed in the 85 th Texas Legislature that require revisions to the Authority's current Investment Policy and the form of Collateral Security Agreement specified by the Investment Policy. The following is a summary of the revision(s) proposed in the amended Investment Policy. Any contract for goods and services that the Authority enters into must contain a representation by the counterparty that they will not discriminate against Israel during the duration of the contract. Additionally, the Authority may not enter into a contract for goods or services with a company that is identified on a list prepared and maintained by the Comptroller s office under Government Code Sections or Under the amended Investment Policy, the bank and the custodian will make the appropriate representations to address these legal requirements in the Collateral Security Agreement. FUNDING SOURCE: ATTACHMENTS: N/A Resolution; Redline Comparison of Investment Policy Adopt a resolution of the Board of Directors of the San Jacinto River Authority adopting an amended policy for the investment of Authority funds and appointing an investment officer.

9 5d Consider authorizing the General Manager, or his designee, to execute letter(s) of assurance to Lone Star Groundwater Conservation District for new participants in the GRP Program, as requested, and approve the GRP Contract(s) as presented and authorize the execution of same by the General Manager. 01/24/2019 If Lone Star Groundwater Conservation District ( Lone Star ) receives an application for a groundwater well that will withdraw more than 10 million gallons of water per year, the applicant is subject to Lone Star s groundwater reduction rules. When such an application is filed, Lone Star staff requires documentation demonstrating that the applicant will implement a groundwater reduction plan ( GRP ) or join an existing joint GRP. Each of the following has filed such an application with Lone Star and requested that SJRA issue a letter to Lone Star confirming that a contract will be prepared and completed such that the applicant will join SJRA s GRP. Aqua Texas, Inc. (Woodland Ranch) Quadvest, LP. (Magnolia Reserve) In addition, a contract to join SJRA s GRP (a GRP Contract ) has been prepared for each of the following and Board approval is now requested. Each GRP Contract is provided as backup. None this month as of preparation of the Board agenda package FUNDING SOURCE: N/A ATTACHMENTS: Request letter, Historical Usages, Projected Demands, LSGCD Permit Renewal Application, LSGCD Permit Amendment Application, Service Area Maps, Letter of Assurance Authorize the General Manager, or his designee, to execute letter(s) of assurance to Lone Star Groundwater Conservation District, as requested, and approve the GRP Contract(s) as presented and authorize the execution of same by the General Manager.

10 5e Consider authorizing the General Manager to execute a Law Enforcement Interlocal Agreement with Harris County for law enforcement services commencing on March 1, 2019, and ending on February 29, 2020, for the Highlands Division. 01/24/2019 Harris County Constable Precinct 3 provides off-duty officers to provide law enforcement services at SJRA Highlands Division facilities through an interlocal agreement for law enforcement services. The agreement requires Harris County Constable Precinct 3 to devote the equivalent of seventy percent (70%) of one deputy s normal time to provide these services related to SJRA s geographical area. The geographical area includes SJRA Lake Houston Pump Station and resident operator home, the Main Canal, Highlands Reservoir, the South Canal, and the East Canal. The services to be performed shall begin on March 1, 2019, and end on February 29, SJRA will pay the County the sum of $69, to be used by the County for the purpose of paying seventy percent (70%) of the full-time equivalent cost to the County for supplying the law enforcement services under this agreement. The total amount for law enforcement services via this interlocal agreement remains the same as the previous year s agreement. FUNDING SOURCE: ATTACHMENTS: Highlands Operations and Maintenance Budget Interlocal Agreement for Law Enforcement Services Authorize the General Manager to execute a Law Enforcement Interlocal Agreement with Harris County in the amount of $69,165.00, for law enforcement services commencing on March 1, 2019, and ending on February 29, 2020, for the Highlands Division.

11 5f Consider authorizing the General Manager to approve additional expenditures to 01/24/2019 provide legal services related to acquisition of real property interests in Highlands. Current efforts related to Highlands Canal System Land Acquisition have been underway for the past few years, have included the acquisition or planned acquisition of dozens of parcels, easements, access agreements, etc., and are now nearing completion. Andrews Kurth LLP, which recently merged with another firm to become Hunton Andrews Kurth LLP (HAK), has provided legal support services and been a key team member from the beginning of and throughout the acquisition process. Due to the recent merger, a new engagement letter to provide legal services related to acquisition of real property interests for improvements to SJRA s Highlands Raw Water Delivery System was executed in November In addition to HAK s services, the executed engagement letter also provides for appraisal services by JLL Valuation and Advisory Services, LLC. In order to complete the current phase of land acquisition activities and obtain all desired property interests, additional efforts are required on the part of HAK and potentially JLL. On January 9, 2019, the first Purchase Order under the new engagement letter was issued in the amount of $74, This authorization will provide for an additional $126, in services, up to an amount not to exceed $200, FUNDING SOURCE: Bonds, Cash ATTACHMENTS: Engagement Letter, Business Justification Authorize the General Manager to approve additional expenditures up to a total contract amount not to exceed $200, with Hunton Andrews Kurth LLP, to provide legal services related to acquisition of real property interests in Highlands.

12 5g Consider authorizing the General Manager to negotiate and execute a contract with 01/24/2019 the Texas Water Development Board for the Flood Protection Planning Grant. The Texas Water Development Board (TWDB) offers grants to political subdivisions of the State of Texas for the evaluation of structural and nonstructural solutions to flooding problems, including early warning systems, implementation of local strategies for alerting and responding to floods, and flood protection planning. In May 2018, the TWDB published a request for applications for $1.8 million in flood protection grants, and received 38 applications for a total requested amount of just over $5.5 million. SJRA submitted an application to the TWDB on July 11, 2018 seeking grant funds to assist with the development of a flood early warning system in the San Jacinto River watershed by developing a flood forecasting and reservoir operations tool to improve flood response. On November 12, 2018, the TWDB authorized the Executive Administrator to negotiate and execute a contract with SJRA for the Flood Protection Planning Grant. The total cost for Phase II of the Project is $300,000, and SJRA was awarded a grant amount of $150,000. The SJRA portion of the local match is $150,000 which will be provided through previously budgeted project improvement funds for the Lake Conroe Division in FY-2019 and FY In 2016, the TWDB awarded a grant to the SJRA for Phase I of a multi-phased approach to address flood protection in the San Jacinto River Watershed. SJRA applied for funding for this second phase to develop a flood forecasting and reservoir operations tool which will leverage the Phase I study to enhance early flood warning capabilities for the region and improve flood response. The scope of Phase II includes evaluating and choosing a Decision Support System (DSS) software package, configuring the rainfall runoff routing model for the Lake Conroe watershed that was developed under the Phase I study for input into the chosen DSS software, and development and testing the DSS. The DSS will utilize observed and forecasted rainfall, current lake levels, and other criteria to provide operational support for Lake Conroe gate operations. Once fully developed, a technical memorandum and hands-on training will provided to familiarize SJRA staff with how the DSS functions. The Phase II grant application included the identification of flood mitigation opportunities within the Spring Creek watershed. SJRA coordinated with entities in the West Fork of San Jacinto River Basin, including ten MUDs in The Woodlands as funding partners. This portion of the Phase II application was not funded by TWDB, but SJRA continues to coordinate with the MUDs and other local funding partners to develop a path forward for this portion of the project. FUNDING SOURCE: ATTACHMENTS: Cash, TWDB Grant Exhibit, Map, Draft Contract between TWDB and SJRA Authorize the General Manager to negotiate and execute a contract with the Texas Water Development Board for the Flood Protection Planning Grant.

13 6a1 Announce appointment of members to standing committees of the Board of 01/24/2019 Directors. FUNDING SOURCE: N/A ATTACHMENTS: N/A No action.

14 6a2 Consider approving the Comprehensive Annual Financial Report - Audited Financial Statements and Related Notes, and the Federal Single Audit Report for the fiscal year ended August 31, /24/2019 The Authority is required by law to prepare a comprehensive annual financial report and have its financial records and procedures audited on an annual basis by an independent certified accounting firm. The Authority engaged the firm of Knox Cox and Company, LLP, to perform the audit. The Finance Committee of the Board of Directors was provided copies of the draft reports, met on January 4, 2019, to review with staff and auditors, and recommends acceptance of the attached San Jacinto River Authority Comprehensive Annual Financial Report for the Fiscal Year Ended August 31, 2018 and the attached San Jacinto River Authority Federal Single Audit Report for the Fiscal Year Ended August 31, FUNDING SOURCE: N/A ATTACHMENTS: Comprehensive Annual Financial Report for the Fiscal Year Ended August 31, 2018 and Federal Single Audit Report for the Fiscal Year Ended August 31, 2018 Approve the Comprehensive Annual Financial Report - Audited Financial Statements and Related Notes, and the Federal Single Audit Report for the fiscal year ended August 31, 2018.

15 6a3 Consider adoption of a resolution of the Board of Directors of the San Jacinto River Authority amending the Fiscal Year 2019 Operating Budget for the GRP and General & Administration Divisions. 01/24/2019 The GRP Division FY2019 budget included legal expenses of $250,000 for the W2B line break along with $100,000 for general legal expenses but did not include budgeted legal expenses for the City of Conroe lawsuit. On August 31, 2018, the appellate court ruled on the lawsuit and staff expects legal expenses for this lawsuit to be approximately $500,000 in FY2019. Current Proposed Proposed Amended FY2019 Budget Resolution FY2019 Budget Professional Fees: SW Legal $350,000 +$500,000 $850,000 The General & Administration Division (G&A) FY2019 budget included Capital Improvements of $142,000 to replace the roof on the G&A office building. The Jim Adams building (Lake Conroe offices) was scheduled for significant repairs/replacements in FY2019 and FY2020, including window repairs and roof replacement. In addition, the Adams building experienced mold issues mid-2018 and has not been occupied since then. While investigating the mold issues, separate issues dealing with the HVAC and electrical systems were detected. The roof replacement and window repairs, along with the HVAC replacement and electrical repairs, the mold remediation and repairs, and all engineering and design activities are being condensed into one project. $605,000 is estimated to be needed to complete all areas of work on the Adams building. Current Proposed Proposed Amended FY2019 Budget Resolution FY2019 Budget Capital Improvements: GA Buildings $142,000 +$605,000 $747,000 Staff recommends that the proposed resolution be approved to the GRP and G&A FY2019 Budget. FUNDING SOURCE: GRP Cash/G&A General Fund Cash ATTACHMENTS: Summary of GRP and G&A FY2019 Budget Amendments. Consider adopting a resolution of the Board of Directors of the San Jacinto River Authority amending the Fiscal Year 2019 Budget for the GRP and G&A Divisions.

16 6b1 Consider authorizing the General Manager to execute a construction contract for 01/24/2019 Relief Well Rehabilitation at Lake Conroe. Firm Name: Project: Type of Services: TerraFirma Earth Technologies, Ltd. Relief Well Rehabilitation Construction Contract Type of Agreement: Project Description: Standard Construction Agreement (Contract No ) A system of twenty (20) relief wells exists along the toe of the western portion of the Lake Conroe Dam for the purpose of relieving hydraulic pressures in the dam embankment. During a recent inspection of the relief well system by SJRA s dam safety engineering consultant (Consultant), bio-fouling (reddish-brown sludge) was identified within the well system. The Consultant s inspection report recommended cleaning/rehabilitation of the relief well system. Subsequently, TerraFirma Earth Technologies was selected through a competitive sealed proposal process to perform a rehabilitation pilot study on three (3) of SJRA s relief wells. That project was successfully completed, and the results of and lessons learned from that project were incorporated in the project documents for this project. This construction contract provides for all of the labor, materials, and equipment required to rehabilitate the remaining seventeen (17) Lake Conroe Dam relief wells in a phased approach. The Contracotor shall perform testing, mechanical and chemical cleaning, and disinfection on the remainder of the relief wells. This project is necessary to prevent relief well failure and provide proper embankment drainage, ensuring continued reliable operation of the Lake Conroe Dam. No. Proposals Received/Proposal Receipt Date: Four (4) / November 15, 2018 Highest Ranked Offeror / Proposed Cost: Second Ranked Offeror / Proposed Cost: Third Ranked Offeror / Proposed Cost: Engineer: TerraFirma / $243, (96.4 Pts.) Weisinger Inc. / $243, (83.9 Pts.) Hydro Resources. / $295, (73.0 Pts.) Freese and Nichols, Inc. Base Items Amount: $237, Extra Unit Price Items Amount: $ 6, Total Proposal Amount: $243, Engineer s Estimate: $267, Contract Days: 200 Calendar Days FUNDING SOURCE: Cash ATTACHMENTS: Map, Summary, Proposal Form, and Agreement Authorize the General Manager to execute a construction contract in the amount of $243, with TerraFirma Earth Technologies, Ltd., for Relief Well Rehabilitation at Lake Conroe, and contract modifications up to $60,

17 6b2 Consider authorizing the General Manager to execute Work Order No. 1 for construction phase services and inspection for Relief Well Rehabilitation at Lake Conroe. 01/24/2019 Firm Name: Freese and Nichols, Inc. Project: Type of Services: Relief Well Rehabilitation Professional Engineering Services Type of Agreement: Project Description: Professional Services Work Order Agreement (Contract No ) A system of twenty (20) relief wells exists along the toe of the western portion of the Lake Conroe Dam for the purpose of relieving hydraulic pressures in the dam embankment. During a recent inspection of the relief well system by SJRA s dam safety engineering consultant (Consultant), bio-fouling (reddish-brown sludge) was identified within the well system. The Consultant s inspection report recommended cleaning/rehabilitation of the relief well system. Subsequently, TerraFirma Earth Technologies was selected through a competitive sealed proposal process to perform a rehabilitation pilot study on three (3) of SJRA s relief wells. That project was successfully completed, and the results of and lessons learned from that project were incorporated in the project documents for this project. Rehabilitation phases will include preliminary testing, mechanical and chemical cleaning, disinfection, and post testing on each of the seventeen (17) relief wells in a phased approach. Work Order No. 1 includes all labor, materials, and expenses required to perform pre-construction support, construction phase services, and inspection required to support the rehabilitation of the remaining seventeen (17) relief wells. This project is necessary to prevent relief well failure and provide proper embankment drainage, ensuring continued reliable operation of the Lake Conroe Dam. Due to the uniqueness of this Project and the critical inspection necessary for this Project, the Consultant will utilize their unique expertise and knowledge of the project scope to provide key supplementary inspection services, as necessary to support SJRA s inspection team. Key Deliverable(s): Responses to Submittals Responses to RFIs Inspection Reports Due Date(s): Within 7 Calendar Days of Receipt of Submittal Within 3 Calendar Days of Receipt of RFI Within 3 Calendar Days of Inspection Type of Compensation (WO No. 1)/Amount: Lump sum/$26, Cost Plus Multiplier with Not-to-Exceed/$109, Total Amount: $136, Construction Cost: $243, Anticipated Completion Date: August 23, 2019 FUNDING SOURCE: Cash ATTACHMENTS: Professional Services Agreement, Work Order No. 1, Scope, Level of Effort, Schedule, Business Justification Authorize the General Manager to execute Work Order No. 1 in an amount not to exceed $136, with Freese and Nichols, Inc., for construction phase services and inspection for Relief Well Rehabilitation at Lake Conroe.