STWA · 14. Joint Project with Nueces Water Supply Corporation-Pump Station Improvements at the...

STWA SOUTH TEXAS WATER AUTHORITY

TO: FROM: DATE:

MEMORANDUM

South Texas Water Authority Board of Directors Kathleen Lowman, President October 17,2016

P. 0. BOX 1701

KINGSVILLE, TEXAS 78364-1701

SUBJECT: Meeting Notice and Agenda for the South Texas Water Authority

A Regular Meeting of the STW A Board of Directors is scheduled for:

Tuesday, October 25, 2016 5:30p.m.

South Texas Water Authority 2302 East Sage Road, Kingsville, Texas

The Board will consider and act upon any lawful subject which may come before it, including among others, the following:

Agenda

1. Call to order.

2. Citizen comments. This is an opportunity for citizens to address the Board of Directors concerning an issue of community interest that is not on the agenda. Comments on the agenda items must be made when the agenda item comes before the Board. The President may place a time limit on all comments. The response of the Board to any comment under this heading is limited to making a statement of specific factual information in response to the inquiry, or, reciting existing policy in response to the inquiry. Any deliberation of the issue is limited to a proposal to place it on the agenda for a later meeting.

3. Approval of Minutes. (Attachment 1)

4. Quatierly Repoti/Treasurer's Report/Payment of Bills. (Attaclmtent 2)

5. TCEQ Enforcement Action and State Office of Administrative Hearings. (Attachment 3)

6. Kingsville Pump Station Bond Projects- Construction of the l.OMG Ground Storage Tank. (Attachment 4)

7. Kingsville Pump Station Bond Projects- Pump Replacement. (Attachment 5)

8. Joint Project with Nueces Water Supply Corporation- Pump Station Improvements at the Driscoll Pump Station. (Attachment 6)

9. Special meeting for review of HDR Engineering Report on Assessment of STW A's 42" waterline. (Attachment 7)

10. Allocation of Fiscal Year 2014,2015 and 2016 Pump Station Expenses. (Attachment 8) Kathl~en Lowman, President Filiberto Tre\iDo III, Vice-President Rudy Gah·an, Se(rctary-Treasurer Lupita Perez

STW A Agenda- I 0/25/2016 Page I of2

(361) 592-9323 Or (.!Dl) 691-0337 (C. C. line)

Fax: (361) 592-5965

Patsy A. Rodgers Dr. Alberto Ruiz Chuck Schultz Stenn C, Vaughn Carola G. Serrato, Ex«utin Director

11. Bids for purchase of mini-excavator. (Attaclunent 9)

12. Resolution 16-22. Resolution awarding the bid for the purchase of one mini-excavator. (Attachment I 0)

13. Bids for purchase of trailer for mini-excavator. (Attachment II)

14. Bids for purchase of trailer for site maintenance equipment. (Attaclm1ent 12)

15. Water Supply Contract with the City of Kingsville. (Attachment 13)

16. Revised Water Supply Contract with the City of Bishop. (Attaclunent 14)

17. STWA Board of Directors Meeting Schedule for 2017. (Attaclunent 15)

18. Request to close office for staff Clu·istmas luncheon and gift exchange on December 14, 2016. (Attachment 16)

19. Adjoumment.

The Board may go into closed session at any time when permitted by Chapter 551, Government Code. Before going into closed session a quorum ofthe Board must be assembled in the meeting room, the meeting must be convened as an open meeting pursuant to proper notice, and the presiding officer must announce that a closed session will be held and must identify the sections of Chapter 551, Government Code, authorizing the closed session.

KLICGS/fdl Attachments

This meeting notice was posted on STWA's website, www.stwa.org and on indoor and outdoor bulletin boards at STWA's administrative offices, 2302 East Sage Road, Kingsville, Texas at c;t..: 1'5 f'p.... on October 21, 2016.

F ances De Leon - Assistant Secretary I v

STW A Agenda- l 0/25/20 16 of2

ATTACHMENT 1

Approval of Minutes

Board Members Present:

Kathleen Lowman Filiberto Trevino Lupita Perez Patsy Rodgers Charles Schultz Steven Vauglm

Staff Present:

Carola G. Serrato Frances De Leon Jo Ella Wagner Jacob Hinojosa Dony Cantu

I. Call to Order.

SOUTH TEXAS WATER AUTHORITY Regular Board of Directors Meeting

September 27, 2016 Minutes

Board Members Absent:

Rudy Galvan Dr. Albert Ruiz

Guests Present:

None

Ms. Kathleen Lowman, Board President, called the Regular Meeting of the STW A Board of Directors to order at 5:31 p.m. A quorum was present.

2. Citizen Comments.

Ms. Lowman opened the floor to citizen's comments. No comments were made.

3. Approval of Minutes.

Ms. Rodgers made a motion to approve the minutes of the September 6, 2016 Public Hearing and Regular Meeting as presented. Mr. Vaughn seconded. The motion passed by unanimous vote.

4. Treasurer's Report/Payment of Bills.

The following reports were presented for the Board's consideration:

Treasurer's Report for period ending August 31, 2016 Revenue Fund Income Statement for period ending August 31, 2016 Tax Fund Income Statement for period ending August 31, 2016 STW A Revenue Fund Balance Sheet -August 31, 2016 STW A Revenue Fund GL Account Summary Repmt as of August 31, 2016 STW A Debt Service Fund Income Statement for period ending August 31, 2016 STWA Debt Service Fund Balance Sheet August 31, 2016 STWA Debt Service Fund GL Account Summary Report as of August 31,2016 STWA Capital Projects Fund Income Statement for period ending August 31, 2016 STW A Capital Projects Fund Balance Sheet- August 31, 2016

STW A Regular Meeting Minutes September 27,2016 Page2

STWA Capital Projects Fund GL Account Summary Report as of August 31,2016 STW A 2012 Bond Election Report Anticipated vs. Actual Water Rate Charged Maintenance & Technical Report from O&M Supervisor

Ms. Wagner distributed copies of invoices from the City of Driscoll and HDR Engineering and presented the following outstanding invoices for Board approval:

• Mission Automation Group $ 1,750.00 • LNV $ 5,550.00 • LNV $ 1,500.00 • City of Corpus Christi $ 136,526.80 • HDR Engineering $ 1,716.00 • City of Driscoll $ 3,600.00 • HDR Engineering $ 22,602.00

A motion was made by Mr. Schultz and seconded by Mr. Vaug1m to approve the Treasurer's Rep01t and payment of the bills as presented. The motion carried.

5. Fiscal Year 20 16 Budget Amendments.

Ms. Serrato reviewed the proposed FY 2016 Amended Budget. After reviewing the amendments, Mr. Schultz made a motion to approve the final FY 2016 Budget Amendments. Ms. Rodgers seconded and all voted in favor.

6. Tax Year 2016 tax roll/levy for the South Texas Water Authority's district in Kleberg County.

Ms. Senato presented the Kleberg County tax roll/levy for Tax Year 2016 reflecting a total taxable value of$1,045,786,856 and a total tax levy of$868,355 and recommended approval of Resolution 16-16.

7. Resolution 16-16. Resolution adopting the tax roll/levy for the South Texas Water Authority's district in Kleberg County for tax year 2016.

Mr. Trevino made a motion to adopt Resolution 16-16 adopting the tax roll/levy for South Texas Water Authority's district in Kleberg County for tax year 2016. Ms. Rodgers seconded the motion and all voted in favor.

8. Tax Year 2016 tax roll/levy for the South Texas Water Authority's district in Nueces County.

Ms. Serrato presented the Nueces County tax roll/levy for 2016 which reflected a total taxable value of$655,075,222 and a total tax levy of$543,772.11. She recommended approval of Resolution 16-17.

STW A Regular Meeting Minutes September27, 2016 Page 3

9. Resolution 16-17. Resolution adopting the tax ro!Vlevy for the South Texas Water Authority's district in Nueces County for tax year 2016.

Mr. Trevino made a motion to adopt Resolution 16-17 adopting the tax roll/levy for South Texas Water Authority's district in Nueces County for tax year 2016. Ms. Rodgers seconded the motion and all voted in favor.

I 0. STW A General Fund Investment Policies:

a) South Texas Water Authority General Fund b) South Texas Water Authority Debt Service Fund c) South Texas Water Authority Reserve Fund d) South Texas Water Authority Capital Project Fund

Ms. Serrato informed the Board that review and approval ofSTWA's Investment Policies is required every year and added there have been no changes to the Policies since last year. She then reconunended approval of the STWA General Fund, Debt Service Fund, Reserve Fund and Capital Project Fund Investment Policies.

11. Resolution 16-18 through 16-21. Resolution approving the South Texas Water Authority Investment Policies.

a) South Texas Water Authority General Fund b) South Texas Water Authority Debt Service Fund c) South Texas Water Authority Reserve Fund d) South Texas Water Authority Capital Project Fund

Mr. Schultz made amotion to adopt Resolutions 16-18,16-19,16-20 and 16-21. Ms. Perez seconded. All voted in favor.

12. TCEO Enforcement Action and State Office of Administrative Hearings.

Ms. Serrato stated that a Proposal for Decision from the Administrative Law Judge has not been received. She had nothing else to report.

13. Kingsville Pump Station Bond Projects- Pump Replacement.

Ms. Serrato reported that after the problems with Pump #2 and Pump #3 were corrected, there were discussions with the pump manufacturer regarding an extended warranty on the pumps. The manufacturer agreed to extend the warranty for materials only for an additional year which will end in November of2017. Odessa Pumps and ACP were contacted to see if either company is willing to provide an extension on the labor in case additional pump work is needed. ACP agreed to extend until November of2017 but only upon release of the retainage. Ms. Serrato stated that legal counsel Bill Flickinger advises that STWA should release the retainage with the understanding that ACP will provide the extended warranty. The Board requested that the check for the retainage be sent with a letter including a comment reflecting on this understanding. Mr.

STWA Regular Meeting Minutes September 27, 2016 Page4

Trevino made a motion to release the retainage and provide ACP with such a letter. Mr. Schultz seconded. All voted in favor.

14. Joint Project with Nueces Water Supply Corporation- Pump Station Improvements at the Driscoll Pump Station.

Ms. Serrato stated that a check valve at the Driscoll Pump Station appears defective. The matter has been discussed with the manufacturer who states that the valve is working correctly. Mr. Mercer of Mercer Controls has witnessed the problem and O&M Supervisor Jacob Hinojosa has taken a video of the check valve slamming. Mr. Schultz suggested forwarding the video to the manufacturer. Ms. Serrato also stated that Mercer Controls still needs to provide the operation manuals. She has not received any payment requests. The Board took no action.

15. One-Year Wholesale Water Supply Contract between the City of Kingsville and South Texas Water Authority.

Ms. Serrato stated that after the last Board meeting during which the Board tabled a decision on the One-Year Wholesale Water Supply Contract with the City of Kingsville, Mr. Flickinger notified the City ofthe Board's action. The City of Kingsville met on September 261

h and approved the One-Year Contract. Ms. Serrato stated that Mr. Flickinger recommends approval of the contract in order to allow time to settle terms on a twenty-year contract. In addition, Ms. Serrato feels that approval of the one-year contract will help in keeping water moving tlu·ough the line on a daily basis and improve residuals. Mr. Vaughn made a motion to approve the OneYear Wholesale Water Supply Contract between the City of Kingsville and South Texas Water Authority. Mr. Schultz seconded. All voted in favor.

16. Board Direction on Budgeted 3% Salary Increases.

Ms. Serrato requested the Board's direction on whether to include the Authority's newly hired employees among those receiving salary increases and asked if they had a particular method in mind on how the increases should be distributed. She explained that she normally takes the total amount of the increases and splits it out evenly among employees while allowing for slightly larger increases when employees have demonstrated exceptional performance. She added that she does not normally provide the same percentage increase to each employee because doing so year after year will eventually create a large spread in pay between the lower paid and higher paid employees. Mr. Vauglm said that he felt that one year of employment is fitting for an increase and does not think that a 3% increase would be appropriate for new hires. Mr. Trevino agreed that it was fine to leave the decision of distribution of the 3% increase up to Ms. Serrato based on performance. The Board agreed that it was not appropriate to grant increases to newly hired employees but that raises should be considered upon completion of their probationary period. In addition the Board agreed that distributing the 3% increase in salaries should be left up to Ms. Serrato's discretion. They also clarified that the Executive Director's salary should be included in the total 3% increase in salaries.

STW A Regular Meeting Minutes September 27,2016 Page 5

17. Personnel Evaluation of the Executive Director.

Ms. Lowman announced that the Board would convene in Closed Session at 6:33 p.m. pursuant to Section 551.074 of the Government Code to discuss the Personnel Evaluation of the Executive Director. The Board reconvened in Open Session at 6:59 p.m. No action was taken during Closed Session.

Ms. Lowman stated that as a group the Board feels that Ms. Serrato exceeds expectations. She added that they had referred to her previous evaluation and felt that Ms. Serrato exhibited improvement in many areas. The Board expressed their appreciation of Ms. Serrato's work as well as that of the entire staff.

18. Adjournment.

With no futther business to discuss, Ms. Lowman adjourned the meeting at 7:05p.m.

Respectfully submitted,

U,) Ot ~ :Frances De Leon i Assistant Secretary

ATTACHMENT 2

Qumierly Report/Treasurer's Report/Payment of Bills

CASH ACCOUNTS GENERAL ACCT ·PROSPERITY BANK GENERAL ACCT TEXPOOL 1371300002 GENERALACCTTEXSTAR 1111-000 PAYROLL ACCT ·PROSPERITY BANK OPERATIONS ACCT ·PROSPERITY BANK HEALTH REIMB. ACCT.- PROSPERITY BANK DEBT SERVICE ACCT TEXPOOL 1371300008 TOTAL CASH ACCOUNTS

GENER4L ACCT. PROSPERITY BANK GENERAL ACCT TEXPOOL 1371300002 GENERALACCTTEXSTAR 1111-000 PAYROLL ACCT • PROSPE.RITY BANK OPERATIONS ACCT ·PROSPERITY BANK HEALTH REIMB. ACCT.· PROSPERITY BANK DEBT SERVICE ACCT TEXPOOL 1371300008 TOTALS

SOUTH TEXAS WATER AUTHORITY INVESTMENT REPORT

FOR QUARTER ENDED SEPTEMBER 30, 2016

ENDING ENDING BOOKVALUE MARKETVALUE TRANSFERS REVENUES EXPENSES

1-Jul-16 1-Jul-16 FOR JULY, AUGUST, & SEPTEMBER

399,422.37 399,422.37 152,673.41 591,217.95 620,367.72 1,278,663.41 1 ,278,855.21 0.00 48,286.43 0.00 2,327,007.92 2,327,396.53 (487,673.41) 0.00 0.00

31,608.29 31,608.29 105,000.00 0.00 104,716.65 16,008.98 16,008.98 230,000.00 0.00 188,891.76 11,163.10 11,163.10 0.00 0.00 0.00

305,149.01 305,194.78 0.00 11,189.03 301,611.51 1 4,369,023.08 1 4,369,197.84 o.oo I 650,693.41 1 1,215,587.64 I

AVG.MAT. JULY JULY AUGUST AUGUST 913012016 RATE EARNING RATE EARNING immediate 0.2500% $86.28 0.2500% $49.44 45 days 0.3690% $402.83 0.3737% $410.73 43 days 0.3861% $763.09 0.3990% $788.90

immediate 0.2500% $6.97 0.2500% $6.53 immediate 0.2500% $8.95 0.2500% $13.29 immediate 0.2500% $2.36 0.2500% $2.36 45 days 0.3690% $96.33 0.3737% $3631

$1,366.81 $1,307.56

THIS REPORT IS IN COMPLIANCE WITH THE STRATEGIES AS APPROVED AND TH

(LJilioS2m~ CO-INVESTMENT OFFICIT

ENDING ENDING INTEREST BOOK VALUE MARKET VALUE

30-Seo-16 30-Seo-16

185.92 523,131.93 523,131.93 1,221.17 1 ,328,171.01 1,328,582.74 2,317.14 1,841 ,651.65 1,842,410.41

18.66 31,910.30 31,910.30 38.65 57,155.87 57,155.87

7.01 11,170.11 11,170.11 143.17 14,869.70 14,874.31

3,931.72 3,8o8,o6o.57 1 3,808,212.89

SEPTEMBER SEPTEMBER RATE EARNING TOTALS

0.2500% $50.20 $185.92 0.3799% $407.61 $1,221.17 0.4123% $765.15 $2,317.14 0.2500% $5.16 $18.66 0.2500% $16.41 $38.65 0.2500% $2.29 $7.01 0.3799% $10.53 $143.17

$1,257.35 $3,931.72

SOUTH TEXAS WATER AUTHORITY Treasurer's Report

For Period Ending September 30,2016

STWA Water Sales: Cost of Water Out of from City of District

Water Corpus Clu·isti Handling Surcharge Usage $2.303288 Charge@ and Pass-

Entity (1,000 g) per 1000 g $0.426386/1 OOOg Thm Credit

Kingsville 25,871 $59,588.36 $11,031.03 $0.00 Bishop 3,286 $7,568.60 $1,401.10 $0.00 AguaDulce 2,080 $4,790.70 $886.86 $0.00 RWSC 7,261 $16,724.17 $3,095.99 $0.00 Driscoll 3,778 $8,701.13 $1,610.76 -$38.70 NCWCID#5 2,027 $4,668.07 $864.16 $686.20 NWSC 13,590 $31,301.43 $5,794.54 $0.00 TOTAL 57,892 $133,342.48 $24,684.44 $647.50

Water Cost and Usage for Period of: 09/02/16 City of Corpus Christi Invoice for Cost of Water Purchased: Gallons of Water Recorded by City of Corpus Clu·isti: Gallons of Water Recorded by STW A from Customer's Master Meters: Water Loss Percentage:

Annual Usage for FY 2016 Gallons of Water Recorded by City of Corpus Christi: Gallons of Water Recorded by STWA from Customer's Master Meters: Water Loss Percentage: (year to date)

Total Due

$70,619.40 $8,969.71 $5,677.56

$19,820.16 $10,273.19

$6,218.43 $37,095.97

$158,674.42

10/03/16 $148,101.40

64,300,000 59,075,760

8.12%

Annual 532,850,000 538,059,110

-0.98%

REVENUE FUND INCOME STATEMENT

FOR PERIOD ENDING SEPTEMBER 30, 2016 100.00%1

2016 %OF 2016 2015 2015 MONTHLY YEAR TO FINAL FINAL YEAR TO FINAL

DATE BUDGET BUDGET DATE BUDGET REVENUES Water Service Revenue 133,342 1,239,849 1,211,645 102% 1,155,970 1,155,000 Handling Charge Revenue 24,684 228,160 216,969 105% 210,294 212,000 Surcharge - Out of District 686 8,234 8,234 100% 7,812 7,812 Interest Income 482 4,985 4,940 101% 2,042 2,020 Other Revenue

Operating & Maintenance Fees 38,669 489,368 482,907 101% 455,621 442,500 Miscellaneous Revenues 96 31,294 34,900 90% 12,626 24,000 NWSC reimbursement for Driscoll PS 141,278 141,278 92,975 152% 0 0

TOTAL REVENUES 339,238 2, 143,167 2,052,570 104% 1,844,364 1,843,332

EXPENDITURES Water Service Expenditures: Bulk Water Purchases 148,101 1 ,234,188 1,195,000 103% 1,153,869 1,158,325 Payroll Costs

Salaries & Wages- Perm. Employees 46,080 540,922 541,225 100% 527,035 527,135 Salaries & Wages - Part-Time 2,715 14,668 15,000 98% 10,514 11,072 Overtime - NWSC 322 11,971 13,000 92% 9,158 9,850 Stand-by Pay - NWSC 150 1,350 1,350 100% 1,300 1,350 Overtime - RWSC 1,464 13,497 13,485 100% 6,618 7,300 Stand-by Pay - RWSC 150 1,350 1,350 100% 1,300 1,350 Overtime- STWA 1,539 14,147 17,195 82% 14,314 15,720 Stand-by Pay- STWA 150 1,350 1,350 100% 1,300 1,350 Employee Retirement Premiums 9,933 79,818 80,302 99% 64,291 67,142 Group Insurance Premium 20,989 292,233 296,370 99% 310,745 314,277 Unemployment Compensation 143 2,722 2,790 98% 287 300 Workers' Compensation 0 13,418 13,692 98% 14,259 14,260 Car Allowance 400 4,800 4,800 100% 4,800 4,800 Hospital Insurance Tax 842 7,574 7,735 98% 6,976 7,352

Supplies & Materials Repairs & Maintenance 33,026 134,522 125,494 107% 108,349 107,000 Meter Expense 0 19,323 19,325 100% 4,125 4,125 Tank Repairs 0 33,780 33,781 100% 20,390 20,390 Major Repairs 0 0 25,000 0% 6,097 25,000

Other Operating Expenditures: Professional Fees

Legal 1,243 70,052 80,000 88% 65,896 75,000 Auditing 0 8,835 8,835 100% 8,581 8,581 Engineering 7,540 23,740 24,000 99% 11,007 14,500 Management & Consulting 294 3,671 5,880 62% 3,824 5,500 Inspection 0 1,675 1,675 100% 1,900 1,900 Field Professionals 0 0 0 0% 0 0

Consum Supplies/Materials Postage 1,070 9,345 9,700 96% 13,597 14,300 Printing/Office Supplies 2,233 14,895 15,000 99% 24,108 24,500 Janitorial/Site Maintenance 756 5,277 5,250 101% 4,678 5,000 Fuel/Lubricants/Repairs 6,225 63,892 65,250 98% 61,795 65,000 Chemicals/Water Samples 7,870 45,871 55,000 83% 55,696 59,000 Safety Equipment 299 2,863 3,500 82% 310 750 Small Tools 378 983 1,250 79% 922 1,000

2016 %OF 2016 2015 2015 MONTHLY YEAR TO FINAL FINAL YEAR TO FINAL

DATE BUDGET BUDGET DATE BUDGET Recurring Operating Costs

Telephone/Communications 5,965 20,176 21,100 96% 19,257 19,800 Utilities 11,823 97,678 105,000 93% 106,985 108,500 D & 0 Liability Insurance 0 3,393 3,500 97% 1,491 2,300 Property Insurance 0 30,566 30,600 100% 29,107 30,500 General Liability 0 2,647 2,750 96% 2,643 2,643 Auto Insurance 0 1,792 1,900 94% 2,885 2,885 Travel/Training/Meetings 392 4,905 5,500 89% 8,532 10,000 Rentai-EquipmenUUniforms 579 3,589 4,600 78% 2,461 3,200 Dues/Subscriptions/Publication 341 7,642 8,000 96% 11,394 12,500 Pass Through Cost 39 535 620 86% 500 500 Educational Materials 0 0 0 0% 260 260

Miscellaneous Miscellaneous Expenditures 2,700 7,711 7,750 99% 6,587 7,500

Total Administrative & Operations Exp. 315,751 2,853,365 2,874,904 99% 2,710,142 2,773,717

Capital Outlay Capital Acquisition 0 114,238 130,503 88% 49,751 52,080 Engineering 22,602 52,427 77,000 68% 22,236 14,736

TOTAL EXPENDITURES (w/o D.S. exp.) 338,353 3,020,029 3,082,407 98% 2,782,129 2,840,533

Excess (Deficiencies) of Revenue Over Expenditures 885 (876,862) (1,029,837) 85% (937,765) (997,201)

OTHER FINANCE SOURCE (USES) Transfer to Other Funds

Transfer from Tax Account (20,068) (993,575) (991,257) 100% (866,989) (906,603) Extra Ordinary Income

Disposition of Assets (Surplus Sale) 0 0 0 0% (610) (610)

TOTAL OTHER FINANCING (20,068) (993,575) (991,257) 100% (867,599) (907,213) SOURCES (USES)

EXCESS (DEFICIENCES) OF REVENUES OVER OTHER SOURCES (USES) 20,953 116,713 (38,580) (70,166) (89,988)

NET INCOME 20,953 116,713 (38,580) (70,166) (89,988)

TAX FUND INCOME STATEMENT

FOR PERIOD ENDING SEPTEMBER 30, 2016 100.00%!

2016 %OF 2016 2015 2015 YEAR TO FINAL FINAL YEAR TO FINAL

MONTHLY DATE BUDGET BUDGET DATE BUDGET REVENUES Ad-Valorem -Current 1,660 997,714 996,763 100% 930,885 929,750 Delinquent Tax Revenue 2,066 29,769 28,869 103% 31,309 29,350 Penalty & Interest- Tax Accounts 963 20,300 19,833 102% 20,034 19,150 Miscellaneous 0 0 0 0% 0 0

TOTAL TAXES & INTEREST 4,689 1,047, 783 1,045,465 100% 982,228 978,250

EXPENDITURES Tax Collector Fees 0 36,015 36,015 100% 47,739 47,739 Appraisal Districts 3,604 18,193 18,193 100% 23,906 23,908

TOTAL EXPENDITURES 3,604 54,207 54,208 100% 71,646 71,647

Transfer to General Fund 20,068 993,575 991,257 100% 866,989 906,603

EXCESS REVENUES & OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER USES (18,983) 0 0 43,593 0

Current Assets STW A - General STW A - Payroll STW A - Operations Health Reimbursement Petty Cash TexPool - STW A General Due From Capital Projects Fund Due from Debt Service Fund Due from D.S .-Collect Service Tax Accounts Receivable Allowance for Uncollect Taxes Service accts receivable lnterlocal Rec-Ricardo Interlocal Rec-Nueces Tnterlocal Rec. -Tax Assessor Inventory Prepaid Expenses

Total Assets

Current Liabilities Trade Accounts Payable Salaries & Wages Payable Unemployment Comp. Pbl. Miscellaneous Payables Compensated Absences Deferred tax revenue

Total Liabilities

Fund Equity Unassigned Fund Balance Assigned Fund Bal. - Inventory Current Earning

Total Fund Equity

Total Liabilities & Fund Equity

South Texas Water Authority Balance Sheet

September 30, 2016

$

ASSETS

523,131.93 31,910.29 57,155.87 11,170.11

150.00 1,328,171.01

25,717.94 46.37

1,241.!6 152,507.31 (51,061.95) 190,574.62

7,268.14 147,216.09

593.55 22,170.84

770.00

$ 2,448,733.28 ==~~==

LIABILITIES AND FUNDS EQUITY

$ 242,801.70 3,973.12

486.13 411.47

14,732.82 101,445.36

1,945,999.34 22,170.84

116,712.50

Unaudited -For Management Purposes Only

363,850.60

2,084,882.68

$ 2,448,733.28 ==~~==

South Texas Water Authority Gl Account Summary Report

As of: September 30, 2016

Account DescriQtiQn Beginning Debit Change Credit Chang~i:; Net Change Ending Balance Balance

Current Assets STW A - General 244,408.64 $ 757,283.16 $ (478,559.87) $ 278,723.29 $ 523,131.93 STW A - Payroll 47,152.25 30,005.16 (45,247.12) (15,241.96) 31,910.29 STW A - Operations 62,027.85 81,442.65 (86,314.63) (4,871.98) 57,155.87 Health Reimbursement 11,167.82 2.29 0.00 2.29 11,170.11 Petty Cash 150.00 0.00 0.00 0.00 150.00 Transfers 0.00 110,000.00 (110,000.00) 0.00 0.00 TexPool - STIV A General 1,297,066.85 31,104.16 0.00 31,104.16 1,328,171.01 Due From Capital Projects Fund 487,673.41 52,778.69 (514,734.16) (461,955.47) 25,717.94 Due from Debt Service Fund 19,834.96 46.37 (19,834.96) (19,788.59) 46.37 Due from D.S .-Collect Service 4,048.57 1,244.14 (4,051.55) (2,807.41) 1,241.16 Tax Accounts Receivable 152,507.31 0.00 0.00 0.00 152,507.31 Allowance for Uncollect Taxes (51,061.95) 0.00 0.00 0.00 (51,061.95) Service accts receivable 266,985.65 184,058.76 (260,469.79) (76,411.03) 190,574.62 Interlocal Rec-Ricardo 4,429.26 7,346.92 (4,508.04) 2,838.88 7,268.14 Intcrlocal Rec-Nueces 4,501.72 147,216.09 (4,501.72) 142,714.37 147,216.09 Interlocal Rec. -Tax Assessor 2,745.17 593.55 (2,745.17) (2,151.62) 593.55 Miscellaneous Receivables 179.62 0.00 (179.62) (179.62) 0.00 Prepaid Expenses 0.00 770.00 0.00 770.00 770.00 Inventory 22,170.84 0.00 0.00 0.00 22,170.84 Total Assets 2,575,987.97 1,403,891.94 (I ,531, 146.63) (127,254.69) 2,448,733.28

Current Liabilities Trade Accounts Payable (355,883.71) 454,960.98 (341,878.97) 113,082.01 (242,801.70) Salaries & Wages Payable (19,867.20) 19,867.20 (3,973.12) 15,894.08 (3,973.12) Hospital Ins Tax Payable 0.00 1,683.40 (1,683.40) 0.00 0.00 Withholding Taxes Payable 0.00 5,847.26 (5,847.26) 0.00 0.00 Emply Retire Prem Payable 0.00 14,316.08 (14,316.08) 0.00 0.00 Unemployment Comp. Pbl. (343.04) 0.00 (143.09) (143.09) (486.13) Miscellaneous Payables (802.57) 10,161.59 (9,770.49) 39l.l0 (411.47) Compensated Absences (14,732.82) 0.00 0.00 0.00 (14,732.82) Deferred tax revenue (101,445.36) 0.00 0.00 0.00 (101,445.36) Total Liabilities (493,074.70) 506,836.51 (377,612.41) 129,224.10 (363,850.60)

Fund Equity Unassigned Fund Balance (1,945,999.34) 0.00 0.00 0.00 (1,945,999.34) Assigned Fund Bal. - Inventory (22, 170.84) 0.00 0.00 0.00 (22, 170.84) Total Fund Equity (I ,968, 170.18) 0.00 0.00 0.00 (1,968,170.18)

Totals 114,743.09 $ 1,910,728.45 $ (1,908,759.04) $ 1,969.41 $ 116,712.50

DEBT SERVICE FUND INCOME STATEMENT


2016 %0F2016 2015 2015 YEAR TO FINAL FINAL YEAR TO FINAL

MONTHLY DATE BUDGET BUDGET DATE BUDGET REVENUES Ad-Valorem- Current 573 344,343 344,015 100% 353,745 353,400 Delinquent Tax Revenue 663 8,131 7,857 103% 7,297 6,750 Penalty & Interest- Tax Accounts 280 4,706 4,606 102% 4,634 4,450 lntererest on Temporary Investments II 617 650 95% 94 95 Miscellaneous Q Q Q 0% Q Q

TOTAL TAXES & INTEREST 1,526 357,798 357,128 100% 365,770 364,695

OTHER FINANCING SOURCES Excess Bond Proceeds Q Q Q 0% Q Q

TOTAL OTHER FINANCE SOURCES 0 0 0 0 364,695 TOTAL REVENUE AND OTHER

FINANCE SOURCES 1,526 357,798 357,128 100% 365,770 364,695

EXPENDITURES Fiscal Agent Fees 0 200 200 100% 200 200 Bond Interest Expense 0 135,250 135,250 100% 139,450 139,450 Bond Principal Payments 0 210,000 210,000 100% 210,000 210,000 Tax Collector Fees 0 12,430 12,430 100% 0 0 Appraisal District Fees 1,244 6,279 6,280 100% 0 0 Miscellaneous Q Q Q 0% Q Q

TOTAL EXPENDITURES 1,244 364,159 364,160 100% 349,650 349,650

EXCESS REVENUES OVER(UNDER) EXPENDITURES AND OTHER USES 282 (6,361) (7,032) 16,120 15,045

Current Assets Debt Service Acct. - TexPool Interlocal Rec.-Tax Assessors Taxes Receivable

Total CmTent Assets

Other Assets

Total Other Assets

Total Assets

Current Liabilities Defened Tax Revenue Due to General Fund

Total Current Liabilities

Long-Term Liabilities

Total Long-Tetm Liabilities

Total Liabilities

Fund Balance Fund Balance Net Income

Total Fund Balance

STW A Debt Service Fund Balance Sheet

September 30,2016

ASSETS

$ 14,869.70 15,295.63

200.83

$


$ 15,295.63 1,287.53

20,143.93 (6,360.93)

Total Liabilities & Fund Balance $

Unaudited · For Management Purposes Only

30,366.16

0.00

30,366.16

16,583.16

0.00

16,583.16

13,783.00

30,366.16

ST\V A Debt Service Fund Gl Account Summary Report


Account Account Descrintion Beginning Debit Change Credit Change Net Change Ending Balance Number Balance

10400 Debt Service Acct. - TexPool 34,581.23 $ 4,174.98 $ (23,886.51) $ (19,711.53) $ 14,869.70 13001 Interlocal Rec.-Tax Assessor 15,295.63 0.00 0.00 0.00 15,295.63 13300 Taxes Receivable 2,803.47 200.83 (2,803.47) (2,602.64) 200.83 21700 Deferred Tax Revenue (15,295.63) 0.00 0.00 0.00 (15,295.63) 24000 Due to General Fund (23,883.53) 23,886.51 (1,290.51) 22,596.00 (1,287.53) 39100 Fund Balance (20,143.93) 0.00 0.00 0.00 (20, 143.93)

Totals (6,642.76) $ 28,262.32 $ (27,980.49) $ 281.83 $ (6,360.93)

CAPITAL PROJECTS FUND INCOME STATEMENT


2016 %OF 2016 2015 2015 YEAR TO FINAL FINAL YEAR TO FINAL

MONTHLY DATE BUDGET BUDGET DATE BUDGET REVENUES Bond Proceeds 0 0 0 0% 0 0 Interest Income 765 8,624 8,500 101% 2,308 1,850 Other I nco me 0 0 0 0% 0 0

TOTAL REVENUE AND OTHER FINANCE SOURCES 765 8,625 8,500 101% 2,308 1,850

EXPENDITURES Right of Way Acquisition 0 0 0 0% 0 0 Engineering Fees 0 70,454 87,229 81% 62,140 70,000 Construction Costs -12,311 1,438,000 1,770,207 81% 118,085 197,923 Pipeline Condition Assessment 38,029 100,605 87,576 0% 0 0 Legal & Administrative Fees 0 0 0 0% 0 0 Cost of Bond Issuance 0 0 0 0% 0 0 Miscellaneous Fees Q Q Q 0% Q Q

TOTAL EXPENDITURES 25,718 1,609,059 1,945,012 83% 180,225 267,923

EXCESS REVENUES OVER(UNDER) EXPENDITURES AND OTHER USES (24,953) (1 ,600,434) (1,936,512) (177,917) (266,073)

Current Assets TexSTAR- Construction Fund

Total Cunent Assets

Property and Equipment

Total Property and Equipment

Other Assets

Total Other Assets

Total Assets

STW A Capital Projects Fund Balance Sheet

September 30, 2016

ASSETS

$ 1,841,651.84

1,841,651.84

0.00

0.00

$ 1,841,651.84


Current Liabilities Due to General Fund

Total Cunent Liabilities

Long-Term Liabilities

Total Long-Term Liabilities

Total Liabilities

Fund Balance Fund Balance Net Income

Total Fund Balance

Total Liabilities & Fund Balance

$ 25,717.94

3,416,368.38 (1 ,600,4 34.48)

Unaudited - For Management Purposes Only

25,717.94

0.00

25,717.94

1,815,933.90

$ 1,841,651.84

Account Account Number Description

11300 2400 39100

TexSTAR- Construction Due to General Fund Fund Balance

Totals

STW A Capital Projects Fund Gl Account Summary Report


Beginning Debit Change Credit Change Balance

2,328,560.10 (487,673.41)

(3,416,368.38)

$ 765.15 514,734.16

0.00

$ (487,673.41) (52,778.69)

0.00

Net Change

$ ( 486,908.26) $ 461,955.47

0.00

Ending Balance

I ,841,651.84 (25,717.94)

(3,416,368.38)

(1,575,481.69) $ 515,499.31 $ (540,452.10) $ (24,952.79) $ (1,600,434.48)

OUTSTANDING INVOICES FOR BOARD APPROVAL

IINVDATEI VENDOR ]]',TV# DESCRIPTION I STATUS! AMOUNT

4/11/2016 Mercer Control, Inc. 15743 Galvalume and metal skin-Driscoll PS pending $14,165.00 9/26/2016 HDREngineering, Inc. 9-10029630 Nitrification Action Plan pending $7,540.00 9/26/2016 HDR Engineering, Inc. 9-10027275 42 11 Line Assessment pending $38,028.69 9/30/2016 Willatt & Flickinger September Legal pending $1,243.20 10/1/2016 TML FY2017 lnsurances·property, auto, WC, GL pending $51,761.06 I 0/7/2016 City of Corpus Christi September water usage pending $148,101.40

10/11/2016 Kleberg County Tax Office Tax YR2016 per parcel fees pending $24,583.50 10/17/2016 NewGen Strategies 4785 Review City CC water rate true up pending S293.75

$285,716.60

Mercer Controls, Inc. POBox 777 Edna TX 77957

Bill To

South Texas Water Authority P 0 Box 1701 KINGSVILLE TX 78364

Quantity Description

P.O. No.

Invoice Date Invoice#

4111/2016 15743

Terms Project

Due on receipt

Rate Amount

Job completion to furnish and install Ga1valume R-panel roofing on the existing building at the Driscoll Water Plant. Includes a new metal skin for the walls and insulation under the roof.

1 Charges Quoted and approved. 14,165.00 14,165.00 (Reference Mercer Controls Proposal Dated Januaty 26, 20 16)

~@~'jj'[En2)

Total $14,165.00

"[_ ~R I ONE COMPANY .£""1....A... Many Solutions'"

HDR Engineering, Inc. Austin,TX 78741 Phone: (512) 912-5100

South Texas Water Authority

P.O.Box 1701 Kingsville, Texas 78364

Attn: Ms. Carola Serrato

Invoice Please send remittance with copy of invoice to

HDR Inc/US Engineering Accounts Recei\'able

P.O. Box 74008202

Chicago,ll60674-8202

HDR Invoice No. Invoice Date Period Ending

9-10029630 9/26/2016 9/24/2016

Client No.:

con0107002

Project No.:

011144

278824 $ 7,540.00

$ 7,540.00

Professional engineering services for Nitrification Action Plan dated February 4, 2016.

Percent Complete Amount Earned Lump Sum Fee $ 7,540.00 100.00% $ 7,540.00

Total Amount Eamed to Date Total Amount Invoiced to Date

Total Amount Due

$ $

$

7,540.00

7,540.00

TOTAL DUE TillS INVOICE:

$ 7,540.00

$ 7,540.00

Invoice

HDR Engineering, Inc. Austin,TX 78741 Phone: (512) 912-5100

Please send remittance with copy of invoice to

HDR Inc!US Engineering Accounts Receivable

P.O.Box 74008202

Chicago, ll60674-8202

South Texas Water Authority P.O.Box 1701 Kin~sville, Texas 78364

Attn: Ms. Carola Serrato

HDR Invoice No. Invoice Date Period Ending

con0103958

Client No.:

Project No.:

Engineering Services for 42-IN Pipeline Condition Assessment

$

Lump Sum

Fee

105,900.00

Percent

Complete

95.0%

Amount

Earned

$ 100,605.00

Total Amount Earned to Date: $ 100,605.00

Total Amount Invoiced to Date: $ 62,576.31

Due this invoice: $ 38,028.69

TOTAL DUE TillS INVOICE:

9-10027275 9/26/2016 9/24/2016

011144

271180 $ 38,028.69

$ 38,028.69

$ 38,028.69

WILLATT & FLICKINGER, PLLC ATTORNEYS AT LAW

12912 HILL COUNTRY BLVD., SUITE F-232 ·AUSTIN, TEXAS 78738 · (512)476-6604 ·FAX (512)469-9148

September 30,2016

Ms. Carola Serrato Executive Director South Texas Water Authority P.O. Box 1701 . Kingsville, Texas 78364-1701

FOR PROFESSIONAL SERVICES RENDERED since the date oflast billing:

GENERAL

BILL FLICKINGER

09/01/16

09/07/16

09/09/16

09/10/16

09/12/16

Receive and review email from Carola Serrato on revisions to email to Courtney Alvarez. Revise draft email to Courtney Alvarez accordingly and resend to Carola Serrato for review. (0.3 Hours). Telephone conference with Caro1a Serrato on memo to Board on Kingsville meeting. Revise same and resend to Carola Serrato. (0.2 Hours).

Telephone conference with Carola Serrato on last night's Board meeting and the City of Kingsville contract. (0.3 Hours). Rough draft email to Courtney Alvarez on last night's Board meeting related to Water Supply contract with the City of Kingsville and email same to Carola Serrato for her review, and receive her response, and send out email to Courtney Alvarez. (0.3 Hours).

Telephone conference with Carola Serrato on failure of Whataburger contractor to give proper notice to Authority on light pole installation and telephone conference with Whataburger attorney, John Stewart to express extreme concern and request he contact client and contractor to assure future compliance. (0.4 Hours). Receive and review email from Courtney Alvarez on City of Kingsville's consideration of one-year water supply contract at September 26, 2016 meeting. (0.2 Hours).

Receive and review email from Whataburger attorney John Stewart on action taken in response to our complaint and forward same to Carola Serrato for her information. (0.2 Hours). ·

Receive and review email from Carola Serrato with photos of light poles installed . at Whataburger site. (0.2 Hours).

WILLATT & FLICKINGER, PLLC.

Ms. Carola Serrato September 30,2016 Page2

09116/16

09/20/16

09/22/16

09/27/16

09/29/16

Telephone conference with Carola Serrato on status of negotiations with City of Bishop. (0.2 Hours).

Telephone conference with Carola Serrato on ACP contract. (0.2 Hours).

Telephone conference with Carola Senato on City of Kingsville agenda's inclusion of one-year contract on next STWA Board meeting. (0.2 Hours).

Receive and review email from Courtney Alvarez on City of Kingsville's approval of additional one-year water supply contract and forward same to Carola Serrato. (0.2 Hours).

Continue compiling responses to City of Bishop and City of Kingsville on water supply contracts. (1.2 Hours).

Attorney BF: 4.1 Hours

Attorney BF: 4.1 Hours@ $300.00 per hour Legal Assistant AN: 0 Hours@ $95.00 per hour

CLIENT EXPENSES

36 Photocopies@ $.20 each $7.20

12 Color Photocopies@ $.50 each $6.00

g\bil!s\STWA·2016.g 9/J0/16

$1,230.00

Total Client Expenses $13.20

TOTAL AMOUNT DUE $1,243.20

[Ri~~~~~~[Q) Texas Municipal League Intergovernmental Risk Pool

1821 Rutherford Lane, First Floor Austin, Texas 787 54

BU,LING STATElVIENT OCT 0 3 2016 Questions? Please contact Carol Platt at

[email protected] or extension 415 SOUTH TEXAS WATER AUTHORITY (512) 491-2300. (800) 537-6655

South Texas Water Authority Attn: Ms. Jo Ella Wagner P.O. Box 1701 Kingsville, TX 78364-1701

Date Description

9/01/16 BALANCE FROM PREVIOUS STATEMENT 9/30/16 Aug 2016 Deductibles

Statement Date: 10/01/16 Due Date . . DUE UPON RECEIPT Contract No . : 9187

Total Amount

.00 1,000.00

25,456.00 509.12-

2,092.00 1,188.00 1,216.00

10/01/16 Coastal Wind Cov 16/17FY 10/01/16 Coastal 2% Pre-Pay Disc 10/01/16 Automobile Liab 16/17FY 10/01/16 Errors & Omission 16/17FY 10/01/16 General Liability 16/17FY 10/01/16 Liab 2% Pre-Pay Disc 10/01/16 Auto Phys Damage 16/17FY ~([D~IJ~[W 10/01/16 Mobile Equipment 16/17FY . 10/01/16 Real & Pers Prop 16/17FY

89.92-1,490.00 1,435.00 5,545.00

10/01/16 Prop 2% Pre-Pay Disc 10/01/16 Workers' Comp 16/17FY 10/01/16 W/C 2% Pre-Pay Disc

~ - 1000.00

169.40-13,375.00

267.50-

$51,761.06

RETUBN THE BOTTOM PORTION WITH PAYMEN'l'

09187000051761060000000000000000000000000005176106

South Texas \'later Authority Attn: Ms. Jo Ella Wagner P.O. Box 1701 Kingsville, TX 78364-1701

TML Intergovernmental Risk Pool PO BOX 388 SAN ANTONIO TX 78292-0388 (512) 491-2300

· ·· .,;..%'- · -_ ·.. -· -· -· ·· · · ·_ ·_ ·_ ·. · -- · __ -__ -._... Account Name: SOUTH TX WATER AUTH _

. ~-!-':_"''--.,:_-_}-~~~CJS t~~h~=;toi~m;ty,serviJ~ ~~~~~~ ~~trg;~~ ~~t3~:~~w WTRS ~ CHRISTl P.o.Box9257·eoq,,pm,,_1X,"'•·"l!l1· AccountType: PUBLIC AGENCY FOR RE

·. .,,,} · ... ·_· · ·. · • !35l)8SO-CITY·wim,roex;;s.""" -·"'' Bill Date: 10/07/16 Cycle/Route: 01-60

j'ayfuenls (Cre~1ts)

. $8~,~0?.00_ i'~_,_107.0()j_. --.-~00 ____ $O.OO __ j_$_14_8,101.40 $O.oo '' $148,101.40 1

-~==

Heter Service Current Previous Consur~ption IO Type Read Read 10/2016 WT200006 WA 3373900 3309600 64300

SERVICE PERIOD: 9/02/16 10/03/16 31 DAYS

\R{~~~~~~IQ) OCT 1 2 2016

SOUTH I t..tV>-' ""' i-i-\ AUTHORITY

. - . : · I~IPORTANT MESSAGE . -

Effective February I, 2016 the Utility Business Office Hours of operation will be

Monday- friday 8:00am-5:00pm

**"-FOR f•10RE INFORf•tATION VISITWWW.CCTEXAS.CQl.t-OR CALL361.826.2489-

Sign up for the latest City news at www.cctexas.com/mydty

Accommodation for Trash and Recycle Cart Assistance· for custOmers who can not move the trash and recycle carts to the curb due to a temporary or

permanent disability or medical condition. This service is provided at no fee if certain criteria Is met. Contact Human Relations Office 826-3190

LAST BILL TOTAL PAID SINCE LAST BILL ADJUSTNENTS

BALANCE FORI-lARD DUE NO\</

NE\·1 CHARGES \•lATER RHCA $0.992/TGAL TOTAL \'lATER

TOTAL GAS

TOTAL \<IASTE\•IATER

TOTAL STREET FEES

TOTAL SOLID 1-/ASTE

PAY THIS AHOUNT BY 10/28/16 :I ACCOUNT BALANCE I

$82,107.00 -$282,107.00

$0.00

$o.ool

$84' 315.80 $63,785.60

$148' 101.40

$0.00

$0.00

$0.00

$0.00

$148, 1o1.4o I $148, 101. 4o 1

PLEASE ALLOWS BUSINESS DAYS BEFORE DUE DATE TO ENSURE PROPER CREDIT •

PLEASE FOLD ON PERFORATION BEFORETEARING- RETURN BOITOM PORTION WITH YOUR PAYMENT. MAKE (HECKS PAYABLE TO CITY OF CORPUS CHRISTl. INCLUDE ACCOUNT NUMBER ON1HE CHECK

,~Y~<;. CITYoF i~ECORPUS

~~-· CHRIST\ ts:;~

P.O. Box 9257 • Corpus Christi, TX 78469-9097 (361} 880-CITY • www.cclexos.com

Working to Serve You Better.

25-23

SOUTH TX WATER AUTH P 0 BOX 1701 KINGSVILLE TX 78364-1701 oiiiiiJJI 111 1IIilllll 11111111''11illol'ill 111llrl'lli'lllllolll 11

Account Number: 6123-5880 Se!Vice Address: END DR RAW WTRS Cycle-Route #: 01-60

DUE DATE: 10/28/16

AMOUNT DUE: $148,101.40

AFTER DUE DATE PAY: $155,506.47

When making payment In person, please bring entire statement.

Remit to:

CITY OF CORPUS CHRISTl P. 0. BOX 659722 SAN ANTONIO TX 78265-9722

0000061230000058800148101406

MELISSA T. DE LA GARZA, R';:_C. Kleberg County Tax Assessor-Collector

[Pd[e(G~~~~[Q) OCT 1 7 2016

SOUTH TEXAS WATER AUTHORITY

P. 0. Box 1457

Phone: 361-595-8541 Phone: 361-595-8542

Fax: 361-595-8546

COUNTY o.f KLEBERG KINGSVILLE, TEXAS

78364-1457

October 11,2016

South Texas Water Authority lv!rs. Carola G. Serrato POBox1701 Kingsville, TX 78364

Re: 2016 Annual Collection Fee

Dear Mrs. SetTato:

The 2016 tax roll lists 16,389 accounts for the South Texas Water Authority. The total fee due by November 15,2016 is $24,583.50 which is $1.50 cents per account.

Please make check payable to Kleberg County Treasurer.

If you have any questions, please call me.

Respectfully,

\'{~~do_~Cf,~~ Melissa T. De La Garza, PCC Tax Assessor-Collector

MTD/ea

NewGen Strategies·and Solutions, LLC

1300 E Lookout Dr, Suite 100

Richardson, TX 75082

Tel: 972-680-2000 Fax:' 972-680-2007

Time Entry Date: 8/01/2016 to 10/15/2016

Project Jd: Corpus Christie Rate Review FY 2017 TX-ER1664

Contract Amount: 2,500.00

Date Service ID Description Hours

8/8/2016 C. Ekrut Professional Fees 0.5

8/9/2016 C. Ekrut Professional Fees 0.5 8/15/2016. C. Ekrut Professional Fees 0.5



10/6/2016 K. Bostik Professional Fees 2 Total Services: 4.5

Grand Total:

STWAAmount:

NCWCID 4 Amount:

Time & Expense Detail by Project & Year-Billed

Printed on: 10/17/2016 ·

Page 1 of 1

B-Hrs. Amount

0.5 $117.50 F~ g.,p ltv 0.5 $117.50 ':/27. roo)J..~ ~13.'1S 0.5 $117.50

0.5 $117.50

!= 19-/JII 0.5 $117.50

3 o/'J, )(oo.oo 2 $320.00- -4.5 $907.50

45:?;./S $907.50

$453.75

$453.75

Contract Amount: $2,500.00 Amount Billed: $453.75 Amount Remaining: $2,046.25

SOUTH TEXAS WATER AUTHORITY 2012 BOND ELECTION

Cost of Bond Issuance:

Proposition #1: REGIONAL WATERLINE

Proposition #2: KINGSVILLE PUMP STATION

Proposition #3: BISHOP FACILITY

TOTAL BOND PROCEEDS:

Cost of Bond Issuance Financial Advisory Fee (First Southwest) Computer Structure Fee (for bidding securities) Bond Counsel - Leroy Grawunder (MP &H) Attorney General - State Fees and Review Standard & Poor's - Rating Agency Paying Agent - Bank processing bonds/paid semi annually Document Preparation/Printing Miscellaneous Accrued Interest - use to make first Debt Payment

TOTAL Cost of Bond Issuance

Proposition #1: REGIONAL WATERLINE 36.54%

Construction: Lewis Construction Change Order #I Change Order #2 Change Order #3 Change Order #4

ROW Acquisition: Pipeline Condition Assessment:

HDR Engineering

Construction Costs- Pipeline Assessment: HDR Engineering

Non-Construction Related Costs: TOTAL Proposition #I

Engineer Estimate

$1,130,100.00

$1,130,!00.00 $64,700.00

$300,000.00

$312,600.00

$92,600.00 $!,900,000.00

Contract Amount $1,035,100.00

$4,320.85 $30,815.17 -$5,100.00 $13,954.16

$1,079,090.18 $60,541.31

$105,900.00

$36,076.45 $1,281,607.94

$107,386.40

$1,900,000.00

$2,925,000.00

$375.000.00

$5,307,386.40

$30,385.00 $6,000.00

$39,000.00 $5,110.00

$11,000.00 $200.00

$5,000.00 $1,973.90 $8.717.50

$107,386.40

Percent Expended

95.49% 93.57%

95.00%

38.96%

36.54%

56.25%

7.21%

100.00%

Amount Expended

$1,035,100.00 $4,320.85

$30,815.17 -$5,100.00 $13,954.16

$1,079,090.18 $60,541.31

$100,605.00

$36,076.45 $1,276,312.94

Amount Remaining

$51,009.82 $4,158.69

$199,395.00

$312,600.00

$56,523.55 $623,687.06

Proposition #2: KINGSVILLE PUMP STATION 56.25%

Engineer Contract Percent Amount Amount Estimate Amount Expended Expended Remaining

ROW Acquisition: $0.00 $0.00 $0.00 Construction Related Costs:

Ground Storage Tank - PreLoad $1,894,460.00 $1,319,700.00 80.56% $!,063,!68.75 Mission Automation Group $1,750.00 $1.750.00

$1,321,450.00 $1,064,918.75 $829,541.25

New Pumps - ACP $327,378.00 $295,000.00 $295,000.00 Change Order #I $12,310.75 $12,310.75 Odessa Pumps $20,162.00 $20,162.00

$327,472.75 100.00% $327,472.75 -$94.75

Engineering Costs: $560,500.00 Engineering~ GST* $234,800.00 100.00% $234,800.00 Engineering ~ Pump Station $91,600.00 100.00% $91,600.00 Rock Engineering, Inc. $1,121.00 LNV - Generator $60,000.00 9.25% $5.550.00

$333,071.00 $227,429.00

Non-Construction Related Costs: $122,500.00 $60,404.85 $60,404.85 $62,095.15

TOTAL Proposition #2 $2,904,838.00 $2,095,727.60 $1,785,867.35 $1,118,970.65 *Amount will likely increase -will need to resolve from Liquidated Damages (PreLoad)

Proposition #3: BISHOP FACILITY 7.21%

Engineer Contract Percent Amount Amount Estimate Amount Expended Expended Remaining

Construction: Mercer $277,100.00 $109,900.00 42.44% $117,596.50 $159,503.50 Change Order: Painting huilding $3,996.00

Change to WYE $3,700.00 $117,596.00

Construction Related Costs: $69,300.00 $52,200.00 75.32% $52,200.00 $17,100.00 LNV Engineering

Non-Construction Related Costs: ;!i28,600.00 $13,330.35 46.61% $13~330.35 ;!i15,269.65

TOTAL Proposition #2 $375,000.00 $183,126.35 $183,126.85 $191,873.15

Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16

May-16 Jun-16 Jul-16

Aug-16 Sep-16

Avg Cost

All Customers

Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16

May-16 Jun-16 Jul-16

Aug-16 Sep-16

TOTAL

Kingsville Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16

Aug-16 Sep-16

TOTAL

ANTICIPATED (BUDGETED) vs. ACTUAL WATER RATE CHARGED

ANTICIPATED (BUDGETED) CHARGES ACTUAL CHARGES Difference: Handling Handling Actual vs. Charge CC Cost Total Charge CC Cost Total Budgeted

$0.426386 $2.3815 $2.8079 $0.426386 $2.343657 $2.770043 -$0.0379 $0.426386 $2.3827 $2.8091 $0.426386 $2.343373 $2.769759 -$0.0393 $0.426386 $2.3832 $2.8096 $0.426386 $2.356844 $2.783230 -$0.0264 $0.426386 $2.3840 $2.8104 $0.426386 $2.314230 $2.740616 -$0.0697 $0.426386 $2.3852 $2.8115 $0.426386 $2.310492 $2.736878 -$0.0747 $0.426386 $2.3825 $2.8088 $0.426386 $2.314471 $2.740857 -$0.0680 $0.426386 $2.3802 $2.8066 $0.426386 $2.309199 $2.735585 -$0.0710 $0.426386 $2.3805 $2.8069 $0.426386 $2.310100 $2.736486 -$0.0704 $0.426386 $2.3794 $2.8057 $0.426386 $2.309138 $2.735524 -$0.0702 $0.426386 $2.3792 $2.8056 $0.426386 $2.303484 $2.729870 -$0.0758 $0.426386 $2.3776 $2.8040 $0.426386 $2.304250 $2.730636 -$0.0734 $0.426386 $2.3805 $2.8069 $0.426386 $2.303288 $2.729674 -$0.0772 $0.426386 $2.3814 $2.8078 $0.426386 $2.318544 $2.744930 -$0.0628

ANTICIPATED (BUDGETED) vs. ACTUAL WATER USAGE

Budgeted Actual Difference NWSC Budgeted Actual Difference 41,429,710 42,542,955 1,113,245 Oct-15 9,513,552 14,117,140 4,603,588 38,870,200 42,319,967 3,449,767 Nov-15 9,247,468 12,634,890 3,387,422 37,726,244 38,144,235 417,991 Dec-15 8,794,598 12,463,720 3,669,122 36,332,368 35,321,510 -1,010,858 Jan-16 8,678,298 12,519,970 3,841,672 34,300,726 36,063,450 1,762,724 Feb-16 8,254,825 12,939,260 4,684,435 39,320,704 38,085,070 -1,235,634 Mar-16 9,725,483 12,154,387 2,428,904 44,755,102 42,157,630 -2,597,472 Apr-16 10,624,549 13,444,933 2,820,384 44,074,968 40,644,940 -3,430,028 May-16 10,996,587 14,561,137 3,564,550 47,252,628 42,196,750 -5,055,878 Jun-16 12,135,821 13,725,490 1,589,669 47,586,396 62,923,820 15,337,424 Jul-16 12,062,677 18,161,360 6,098,683 53,297,584 57,990,560 4,692,976 Aug-16 13,016,456 15,682,310 2,665,854 43,909,912 57,892,230 13,982,318 Sep-16 10,647,528 13,589,890 2,942,362

508,856,538 536,283,117 27,426,579 TOTAL 123,697,841 165,994,487 42,296,646

Budgeted Actual Difference RWSC Budgeted Actual Difference 10,388,838 7,674,000 -2,714,838 Oct-15 8,446,000 9,225,000 779,000 10,388,838 12,271,000 1,882,162 Nov-15 7,508,400 7,003,000 -505,400 10,388,838 8,401,000 -1,987,838 Dec-15 7,335,200 6,898,000 -437,200 10,388,838 5,783,000 -4,605,838 Jan-16 6,875,600 6,157,000 -718,600 10,388,838 4,913,000 -5,475,838 Feb-16 6,110,200 6,588,000 477,800 10,388,838 6,086,000 -4,302,838 Mar-16 8,025,400 7,905,000 -120,400 10,388,838 9,312,000 -1,076,838 Apr-16 10,070,000 7,517,000 -2,553,000 10,388,838 4,214,000 -6,174,838 May-16 9,628,200 8,630,000 -998,200 10,388,838 9,295,000 -1,093,838 Jun-16 11,234,000 7,275,000 -3,959,000 10,388,838 15,907,000 5,518,162 Jul-16 10,854,600 11,705,000 850,400 10,388,838 17,327,000 6,938,162 Aug-16 11,755,800 10,745,000 -1,010,800 10,388,838 25,871,000 15,482,162 Sep-16 8,411,600 7,261,000 -1,150,600

124,666,052 127,054,000 2,387,948 TOTAL 106,255,000 96,909,000 -9,346,000

Bishop Budgeted Actual Difference Banquete Budgeted Actual Difference Oct-15 5,858,400 4,123,000 -1,735,400 Oct-15 2,531,878 2,116,680 -415,198 Nov-15 4,977,800 3,960,000 -1,017,800 Nov-15 2,316,064 1,894,320 -421,744 Dec-15 4,528,000 4,025,000 -503,000 Dec-15 2,256,828 1,928,880 -327,948 Jan-16 3,973,200 3,873,000 -100,200 Jan-16 2,135,888 1,958,390 -177,498 Feb-16 3,658,800 4,454,000 795,200 Feb-16 2,034,534 2,170,330 135,796 Mar-16 4,663,400 4,252,000 -411,400 Mar-16 2,249,844 2,089,960 -159,884 Apr-16 6,560,000 4,052,000 -2,508,000 Apr-16 2,419,570 2,038,120 -381,450

May-16 5,645,000 4,576,000 -1,069,000 May-16 2,593,264 2,065,900 -527,364 Jun-16 5,489,600 3,910,000 -1,579,600 Jun-16 2,645,506 2,011,110 -634,396 Jul-16 6,327,000 6,446,000 119,000 Jul-16 2,638,934 2,724,830 85,896

Aug-16 9,502,800 5,027,000 -4,475,800 Aug-16 2,698,054 2,366,640 -331,414 Sep-16 7,263,800 3,286,000 -3,977,800 Sep-16 2,480,760 2,026,700 -454,060

TOTAL 68,447,800 51,984,000 -16,463,800 TOTAL 29,001,124 25,391,860 -3,609,264

Driscoll Budgeted Actual Difference Agua Dulce Budgeted Actual Difference Oct-15 2,310,420 2,892,455 582,035 Oct-15 2,380,622 2,394,680 14,058 Nov-15 2,297,860 2,556,727 258,867 Nov-15 2,133,770 2,000,030 -133,740 Dec-15 2,301,060 2,549,545 248,485 Dec-15 2,121,720 1,878,090 -243,630 Jan-16 2,267,520 3,103,100 835,580 Jan-16 2,013,024 1,927,050 -85,974 Feb-16 2,057,640 3,016,100 958,460 Feb-16 1,795,889 1,982,760 186,871 Mar-16 2,258,840 3,623,900 1,365,060 Mar-16 2,008,899 1,973,823 -35,076 Apr-16 2,448,320 3,579,900 1,131,580 Apr-16 2,243,825 2,213,677 -30,148

May-16 2,554,380 3,781,200 1,226,820 May-16 2,268,699 2,816,703 548,004 Jun-16 2,791,920 3,369,000 577,080 Jun-16 2,566,943 2,611,150 44,207 Jul-16 2,685,640 5,158,700 2,473,060 Jul-16 2,628,707 2,820,930 192,223

Aug-16 2,801,940 4,456,400 1,654,460 Aug-16 3,133,696 2,386,210 -747,486 Sep-16 2,334,790 3,777,700 1,442,910 Sep-16 2,382,596 2,079,940 -302,656

TOTAL 29,110,330 41,864,727 12,754,397 TOTAL 27,678,391 27,085,043 -593,348

Kingsville Actual Usage vs. Bell Chart Volume Target Actual

Volume Volume Difference Oct-15 11,656,465 7,674,000 -3,982,465 Nov-15 8,089,650 12,271,000 4,181,350 Dec-15 5,062,145 8,401,000 3,338,855 Jan-16 4,650,000 5,783,000 1,133,000 Feb-16 5,316,780 4,913,000 -403,780 Mar-16 8,359,305 6,086,000 -2,273,305 Apr-16 10,482,750 9,312,000 -1,170,750

May-16 12,892,900 4,214,000 -8,678,900 Jun-16 14,072,400 9,295,000 -4,777,400 Jul-16 15,365,770 15,907,000 541,230

Aug-16 15,777,915 17,327,000 1,549,085 Sep-16 13,274,700 25,871,000 12,596,300

TOTAL 125,000,780 127,054,000 2,053,220

Net Revenue per Thousand (1,000) Gallons

Kingsville Actual Net Rev Per1000g NWSC Actual Net Rev Per1000g Oct-15 7,674,000 $2,824.31 $0.3680 Oct-15 14,117,140 $4,338.33 $0.3073 Nov-15 12,271,000 $3,557.04 $0.2899 Nov-15 12,634,890 $4,383.96 $0.3470 Dec-15 8,401,000 $2,107.23 $0.2508 Dec-15 12,463,720 $3,741.06 $0.3002 Jan-16 5,783,000 $1,156.70 $0.2000 Jan-16 12,519,970 $4,053.64 $0.3238 Feb-16 4,913,000 $1,087.16 $0.2213 Feb-16 12,939,260 $4,137.35 $0.3198 Mar-16 6,086,000 $1,359.91 $0.2234 Mar-16 12,154,387 $3,900.03 $0.3209 Apr-16 9,312,000 $2,771.23 $0.2976 Apr-16 13,444,933 $4,390.04 $0.3265 May-16 4,214,000 $552.35 $0.1311 May-16 14,561,137 $4,705.28 $0.3231 Jun-16 9,295,000 $3,090.06 $0.3324 Jun-16 13,725,490 $4,463.57 $0.3252 Jul-16 15,907,000 $5,133.80 $0.3227 Jul-16 18,161,360 $6,235.83 $0.3434

Aug-16 17,327,000 $5,496.53 $0.3172 Aug-16 15,682,310 $5,416.21 $0.3454 Sep-16 0 #DIV/0! Sep-16 0 #DIV/0!

TOTAL 101,183,000 $29,136.32 $0.2880 TOTAL 152,404,597 $49,765.30 $0.3265

Bishop Actual Net Rev Per 1000g RWSC Actual Net Rev Per1000g Oct-15 4,123,000 $428.00 $0.1038 Oct-15 9,225,000 $2,093.37 $0.2269 Nov-15 3,960,000 $490.05 $_0.1238 Nov-15 7,003,000 $1,915.20 $0.2735 Dec-15 4,025,000 $535.61 $0.1331 Dec-15 6,898,000 $1,410.69 $0.2045 Jan-16 3,873,000 $494.07 $0.1276 Jan-16 6,157,000 $1,447.20 $0.2350 Feb-16 4,454,000 $499.34 $0.1121 Feb-16 6,588,000 $1,550.91 $0.2354 Mar-16 4,252,000 $585.28 $0.1376 Mar-16 7,905,000 $1,986.40 $0.2513 Apr-16 4,052,000 $493.52 $0.1218 Apr-16 7,517,000 $1,817.16 $0.2417 May-16 4,576,000 $581.07 $0.1270 May-16 8,630,000 $2,427.38 $0.2813 Jun-16 3,910,000 $531.88 $0.1360 Jun-16 7,275,000 $1,733.40 $0.2383 Jul-16 6,446,000 $1,113.64 $0.1728 Jul-16 11,705,000 $3,143.52 $0.2686

Aug-16 5,027,000 $774.61 $0.1541 Aug-16 10,745,000 $3,234.32 $0.3010 Sep-16 0 #DIV/0! Sep-16 0 #DIV/0!

TOTAL 48,698,000 $6,527.07 $0.1340 TOTAL 89,648,000 $22,759.55 $0.2539

Driscoll Actual Net Rev Per1000g Banquete Actual Net Rev Per1000g Oct-15 2,892,455 $859.68 $0.2972 Oct-15 2,116,680 $412.60 $0.1949 Nov-15 2,556,727 $603.10 $0.2359 Nov-15 1,894,320 $470.26 $0.2482 Dec-15 2,549,545 $409.67 $0.1607 Dec-15 1,928,880 $299.63 $0.1553 Jan-16 3,103,100 $812.54 $0.2618 Jan-16 1,958,390 $386.58 $0.1974 Feb-16 3,016,100 $734.08 $0.2434 Feb-16 2,170,330 $341.38 $0.1573 Mar-16 3,623,900 $835.84 $0.2306 Mar-16 2,089,960 $293.63 $0.1405 Apr-16 3,579,900 $891.89 $0.2491 Apr-16 2,038,120 $301.66 $0.1480

May-16 3,781,200 $1,026.34 $0.2714 May-16 2,065,900 $388.07 $0.1878 Jun-16 3,369,000 $778.86 $0.2312 Jun-16 2,011,110 $329.74 $0.1640 Jul-16 5,158,700 $1,443.80 $0.2799 Jul-16 2,724,830 $487.13 $0.1788

Aug-16 4,456,400 $1,167.18 $0.2619 Aug-16 2,366,640 $328.19 $0.1387 Sep-16 0 #DIV/0! Sep-16 0 #DIV/0!

TOTAL 38,087,027 $9,562.98 $0.2511 TOTAL 23,365,160 $4,038.87 $0.1729

Agua Dulce Actual Net Rev Per1000g All Customers AcliJal Net Rev Per1000g Oct-15 2,394,680 $251.65 $0.1051 Oct-15 42,542,955 $11,207.94 $0.2634 Nov-15 2,000,030 $398.06 $0.1990 Nov-15 42,319,967 $11,817.67 $0.2792 Dec-15 1,878,090 $0.31 $0.0002 Dec-15 38,144,235 $8,504.20 $0.2229 Jan-16 1,927,050 $162.96 $0.0846 Jan-16 35,321,510 $8,513.69 $0.2410 Feb-16 1,982,760 $131.35 $0.0662 Feb-16 36,063,450 $8,481.57 $0.2352 Mar-16 1,973,823 $114.67 $0.0581 Mar-16 38,085,070 $9,075.76 $0.2383 Apr-16 2,213,677 -$221.84 -$0.1002 Apr-16 · 42,157,630 $10,443.66 $0.2477

May-16 2,816,703 $345.76 $0.1228 May-16 40,644,940 $10,026.25 $0.2467 Jun-16 2,611,150 $107.64 $0.0412 Jun-16 42,196,750 $11,035.15 $0.2615 Jul-16 2,820,930 -$113.11 -$0.0401 Jul-16 62,923,820 $17,444.61 $0.2772

Aug-16 2,386,210 -$209.01 -$0.0876 Aug-16 57,990,560 $16,208.03 $0.2795 Sep-16 0 #DIV/0! Sep-16 0 #DIV/0!

TOTAL 25,005,103 $968.44 $0.0387 TOTAL 478,390,887 $122,758.53 $0.2566

INTER-OFFICE MEMO

TO: FROM: DATE:

Carola G. Serrato, Executive Director Jacob Hinojosa, O&M Supervisor October 20, 2016

RE: Maintenance & Technical Report

During the week of September 19, 2016 the following work was completed.

• Safety Meeting for all Field Techs.

• Exercised generators.

• Downloaded GPS.

• Performed line locates.

• Replaced battery on generator at Bishop East Pump Station.

• Went to Bishop East Pump Station to trouble shoot Cl2 and LAS.

• Took trackhoe for service at WPI.

• Worked on Banquete chlorine room.

• Went to trouble shoot SCAD A repeater at Driscoll Pump Station.

• Met with DPC to remove chlorine bottles at Banquete Pump Station.

• Got spare keys made for Unit #5 and Unit #4.

• Had to troubles shoot transfer switch at Bishop East Pump Station.

• Sprayed weed killer at Driscoll Pump Station.

• Worked on flow switch for chlorination system at Sablatura Park.

• Worked with Hoelscher Electric at Bishop East Pump Station.

• Took tool inventory on all trucks.

• Had to trouble shoot chlorine at Central Pump Station.

• Trimmed trees around the office.

• Took samples for NAP.

• Checked on temporary electric poles being placed by AEP in vicinity of 42" easement South of CR 30.

During the week of September 26, 2016 the following work was completed.



• Downloaded GPS.


• Went to trouble shoot master meter at Sablatura Park Pump Station.

• Installed new pressure transmitter at O.N. Stevens Water Treatment Plant.

• Repaired generator at Bishop East Pump Station.

• Checked on placement of new chlorine pump at Sablatura Park Pump Station.

• Worked on Banquete Pump Station chlorine room.

• Delivered chlorine to Central Pump Station.

• Worked on Driscoll Pump Station booster pump.

O&M Supervisor Report October 20, 2016 Page 2

• Picked up tools that needed to be replaced for certain trucks.

• Took Unit #4 to get oil change.

• Went over punch list items with Mercer Controls at Driscoll Pump Station.

• Mission Automated came in to work on Kingsville SCAD A.

• Took Bac-T water samples.

• Stewart and Stevenson came in to do a load bank test on the Kingsville office generator.

• Took diesel to the generator at Banquete Pump Station.


During the week of October 3, 2016 the following work was completed.



• Downloaded GPS.


• Employees took exam for CDL driver's license.

• Picked up items at Northern Safety for new employee.

• Repaired booster pump at Bishop West Pump Station.

• Mowed Pump Stations.

• Met with Hoelscher Electric to get quote on work for Sablatura and Banquete chlorine rooms.

• Cleaned out Kingsville Pump Station yard.

• Delivered chlorine to Central Pump Station.


During the week of October 10,2016 the following work was completed.



• Downloaded GPS.


• Mow pump stations.

• Worked with Hoelscher Electric trouble shooting Driscoll booster pump.

• Worked with Mission Automation at Kingsville Pump Station trouble shooting MOV.

• Drove out 42" line checking for leaks.

• Worked on beacon lights for Unit #5.

• Pressure washed chlorine and LAS buildings at pump stations.


• Took pressure transmitters from Bishop East to get repaired.

ATTACHMENT 3

TCEQ Enforcement Action and SOAH

To: From: Date: Re:

Memorandum

South Texas Water Authority Board of Directors Carola G. Serrato, Executive Director October 21,2016 Texas Commission on Environmental Quality (TCEQ) Enforcement Action and SOAH (State Office of Administrative Hearings)

Background:

This case was heard by the TCEQ Commissioners on Wednesday, October 19'h. Bill Flickinger, Willa!! and Flickinger, Aaron Archer, HDR Engineering, Inc. and I attended the hearing. Legal counsel and staff anticipated that the Commissioners would approve an Order allowing STW A to convett the Driscoll Disinfection Booster Station from a chlorine to a chloramine station with time allowed to determine if that conversion addresses the loss of residual on the 42" line. Whether or not the TCEQ would agree to the installation of a second booster station south of Driscoll and allow time extensions was questionable, despite Administrative Law Judge Craig Bennett agreeing that those options requested by STW A were reasonable.

Analysis:

As repmted previously, the request for additional disinfection stations and time extensions were made as a means of avoiding a return to a new Enforcement Action. Mr. Flickinger stated that concern in his statement to the Commission. However, it appears the Commissioners suppmted the TCEQ staff's recommendation not to include the construction of a second booster station. The Commissioners did agree to include the following paragraph which allows for the TCEQ Executive Director to provide extensions:

"The Executive Director may grant an extension of any deadline in this Order or in any plan, report, or other documell/ submitted pursuant to this Order, upon a written and substantiated showing of good cause. All requests for extensions by Respondent shall be made in writing to the Executive Director. Extensions are not effective until Re~pondent receives written approml from the Executive Director. The determination of what constitutes good cause rests solely with the Executive Director. Extension requests shall be sent to the Order Compliance Team at the address listed above."

Staff Recommendation:

Staff believes that an Order will likely not be available for the Board's review. However, provided such an Order is available and reviewed by legal counsel to confirm it is in agreement with the Commission's decision, staff and legal counsel recommend that the Board agree to abide by the TCEQ Order including payment of the fee in the amount of approximately $2,500 and that the Board decide not to appeal the Order. In addition, the Board will recall that STWA had filed a case with the District Court of Travis County challenging TCEQ's interpretation of their rules, patticularly the definition of a Public Water System. Mr. Flickinger recommends that the Board decide that such "lawsuit be nonsuited and dismissed."

Board Action:

Determine whether to not appeal the Order and drop the District Court case.

Summarization:

The TCEQ Order means STW A will maintain a minimum residual and convett the Driscoll Booster Station to inject chloramines as well as additional testing, monitoring and reporting.

ATTACHMENT 4

Kingsville Pump Station Bond Election Improvements- l.OMG Ground Storage Tank

Memorandum

To: From:

South Texas Water Authority Board of Directors Carola G. Serrato, Executive Director

Date: October 21,2016 Re: Kingsville Pump Station Bond Project- Construction of the 1.0 MG Ground Storage Tank

Background:

Enclosed please find the latest email correspondence pertaining to this project. As you can see, Brothers Electric has filed a claim with the bonding company for Preload. This information has been provided to Bill Flickinger, Willatt and Flickinger. You will also note that the bonding company, Great American Insurance Group, is not making any request of STW A. In addition, enclosed is Pay Estimate #7 from Preload. As of yesterday, October 20'\ the tank, mixing system, chemical feed system and motor operated valve were working properly.

Analysis:

As you can see from my email to Mr. Flickinger, I have asked for his advice on payment of Pay Estimate #7. In addition, as the Board is aware, there have been several discussions regarding the need for liquidated damages as a result of time overruns on this project. HDR Engineering, Inc. (HDR) has stated that they believe their company is entitled to additional fees which should be recouped through liquidated damages against Preload. Fmther, STW A has experienced expenses as a result of Preload's failure to complete the job in a timely manner as well as issues with the quality of the work provided. Enclosed is a breakdown of those costs.

With regards to putting Preload on notice about these deficiencies, the Board has been provided with letters from Mr. Jason Christensen, HDR, to Preload. According to my conversation with Mr. Christensen this morning, another letter will be forthcoming next week.

At this time, Preload has not made any demands for payment of Pay Estimate #7. However, you will note that their failure to receive payment is referenced in the information from their bonding company.


Await a response from Mr. Flickinger. The issue of payment for Pay Estimate #7 will depend on applicable law as well as the need to retain sufficient funds as a result of liquidated damages and additional expenses as a result of Preload's failure to complete the project in a timely manner.

Board Action:

Consider any recommendation from Mr. Flickinger with regards to payment of Pay Estimate #7.

Summarization:

Staff is pleased that the project is now operating as contract documents specified. It appears that the time has arrived to deal with the subject of liquidated damages in addition to the added factor of Brothers Electric's filing with the bonding company.

Carola Serrato

From: Sent: To:

Carola Serrato <[email protected]> Friday, October 21, 2016 10:17 AM Bill Flickinger

Subject: Attachments:

FW: Kingsville Pump Station - Tank Replacement 20161020104159025.pdf

Bill,

Here is the email and attachment sent to Jo Ella from Great American Insurance Group. Please advise on Pay Estimate #7 that we discussed.

Carola

Carola G. Serrato Executive Director South Texas Water Authority P.O. Box 1701 Kingsville, Texas 78364 cserrato@stwa o~rg 361-592-9323 x12 361-592-5965 fax

From: Joella Wagner [mailto:[email protected]] Sent: Friday, October 21, 2016 10:11 AM To: Carola G. Serrato <[email protected]> Subject: FW: Kingsville Pump Station- Tank Replacement

From: Dierkers, Ryan [mailto:[email protected]!] Sent: Thursday, October 20, 2016 9:50AM To: J.I!@Q!1er(Qlstwa.org Subject: Kingsville Pump Station -Tank Replacement

Ms. Wagner:

Thanks for taking my call today. As we discussed, a claim was made on the payment bond issued for the captioned project. GAIC is required to provide an update to the claimant, copy to the owner, within 45 days of receipt of the claim. For your records, attached is GAle's response to the claimant's attorney. GAIC is not requesting anything of SWTA at this time.

Let me know if you have any questions. Thank you.

Ryan Dierkers Claim Specialist I 513-579-6328 I 888-290-3706 fax I [email protected]

--~ G HI3Alit1Jl:llJ<i\N.

lllSURANC! GROUP

Bond Division P. 0. Box 2119 Cincinnati OH 45201

1

Our activities are undertaken with a full reservation of surety's rights and defenses under the terms of its bond, the contract,

and the law. This reservation of rights shall remain in full force and effect unless expressly revoked by surety in writing.

The content of this e-mail message and any attachments arc cont1dential and may be legally privileged, intended solely for the addre-ssee. If you are not the intended recipient, be advised that any use, dissemination, distribution, or copying of this e-mail is strictly prohibited. If you receive this me-Ssage in error, please notify the sender immediately by reply email and destroy the me-ssage and its attachments.

2

~ GREA:IAMERICAN.

INSURANCE GROUP 301 East fourth Street, 24th Floor, C'nctnnati, OH 45202-4201 P.O. Box 2119, ClnclnnaU, OH 45201

Grea!Americanlnsurance.oom

fax 888.290.3700 (U.S. On~)

Octobcr20,2016 Via USPS First-Class Mail

Mr. Haven Massey Lovein Ribman, P.C. 109 River Oaks Drive Southlake, TX 76092

RE: Principal: Bond No.: Claim No.:

Preload, LLC 348 39 32 941-504251 02 1

Obligee: Project: Claimant:

Dear Mr. Massey:

South Texas Water Authority Kingsville Pump Station- Tank Replacement Brothers Electric Company, Inc.- $215,105.60

This letter shall serve as an update into yonr claim on behalf of Brothers Electric Company, Inc. ("Brothers") on the above-referenced bond. By letter, dated September 20, 2016, Great American Insurance Company ("GAIC") acknowledged receipt of your claim and requested cmtain information to assist in its investigation. To date, GAIC has not received a response. Without this information we catmot properly investigate your claim. A copy of GAIC's September 20, 2016 correspondence is enclosed for your convenience.

As part of our investigation, we refened this matter to Preload, LLC ("Preload") for its review. Their response in enclosed for yom review. Within its response, Preload assmts that there is no undisputed amount due and owing Brothers for its work on the above-referenced project. Without the information requested of Brothers, it is unclear to GAIC that there is any undisputed amounts due and owing Brothers.

The executed subcontract between Preload and Brothers states, in relevant patt:

"10.3 PROGRESS PAYMENTS. Progress payments to the Subcontractor for satisfactory performance of Subcontractor's Work, and for which a periodic invoice has been tendered as required in Section 10.2, shall be made to the subcontractor no later than ten (1 0) working days after receipt by the Contractor, at the Contractor's home office, of payment from the Owner for the Subcontractor's Work. It is expressly understood and agreed that Subcontractor's payment is conditioned upon Owner's payment to Contractor for the Subcontractor's work."

Mr. Haven Massey October 20, 2016 Page 2 of2

It appears to GAIC that Brothers work on its payment application #2 was included in Preload's payment application #7 submitted to the Owner. Preload asserts that it has not been paid by the owner for its payment application #7. Accordingly, it appears to GAIC that the pmtion of your claim for this work is not yet due and owing tmder the terms of the subcontract.

Preload fmther asserts that it has incurred damages as a result of Brothers perfmmance, or nonperfonnance, on the project, and that these damages will be recouped from any amounts due to Brothers. Please include with your response Brothers position to Preload's assertion, and include any documentation you believe evidences your position.

Please provide any additional information that you believe would be of assistance to our investigation. We reserve the right to request additional infmmation as our investigation continues.

Our continued investigation of your claim should not be constmed by you to be an admission of liability or a promise to pay your claim in whole or in part. Our investigation is undeliaken with a full reservation of GAIC's rights and all defenses available to GAIC under the terms of the bond, the constmction contract and the law, including all applicable notice periods and statutes of limitation. You are not to rely upon our promise to investigate your claim as a waiver of any of the surety's or its principal's rights nor as the basis for an extension of any applicable time limits, including the time within which to file suit. It is your responsibility to take such actions as might be necessary to fully protect your rights under the tenus of the bond, the construction contract and any applicable laws. Fmther, this reservation of rights shall remain in full force and effect unless expressly revoked by GAIC in writing.

Should you have any questions concerning your claim or the documentation requested, please feel free to call me at (513) 579-6328.

Sincerely,

GREAT AMERICAN INSURANCE COMPANY

Ryan Dierkers Claim Specialist 513.579.6328

Enclosures

CC: Ryan Harvey, Preload, LLC (via email) JoElla Wagner, South Texas Water Authority (via email)

~ GH.EA:If1MERICAN.

INSURANCE GROUP 301 East Foorth S~eel, 241ll Fk>or, Cincinnati, OH 452024201 P.O. Box 2119, Ci'ldnnati, OH 45201

Grea!Americanlnsurance.com

fax 888.200.3706 (U.S. Only)

September 20, 2016 Via USPS First-Class Mail

Mr. Haven Massey Lovein Ribman, P.C. 109 River Oaks Drive Southlake, TX 76092

RE: Principal: Bond No.: Claim No.: Obligee:

Preload, LLC 348 39 32 Pending South Texas Water Authority

Project: Claimant:

Kingsville Pump Station- Tank Replacement Brothers Electric Company, Inc.- $215,105.60

Dear Mr. Massey:

Great American Insurance Company ("GAIC") acknowledges receipt of your correspondence dated September 13, 2016 submitting a claim on the above-referenced bond. GAIC will C011llllence an investigation into your claim.

As part of our investigation, we have referred this matter to Preload, LLC ("Preload") for its review. Once we receive their response we will be in a better position to respond to you. In the interim, we request you provide us the following information to assist with our investigation:

1. Copies of any signed contract or purchase order agreement between Brothers Electric Company, Inc. ("Brothers") and Preload for this project.

2. Copies of any correspondence between Brothers and Preload regarding this claim.

3. Copies of any checks received for work performed under the contract or purchase order. If copies are not available, please provide an accounting of the amounts received, as well as the dates of any payments.

4. An accounting of the contract or purchase order.

5. Copies of any documentation evidencing Preload specifically requested that Brother retain Moody Bros. as a subcontractor to provide and install the chlorinating system.

6. Copies of any documentation evidencing Preload had knowledge that the system proposed by Moody Bros. would not gain approval of the owner and its design professionals.

Mr. Haven Massey September 20, 2016 Page2 of2

7. Copies of any liens filed or prior notices of claim.

8. A sworn affidavit stating that the information and documents supplied by you are true and conect. We are providing you with a copy of a "Payment Bond Affidavit of Claim" which should assist you in putting together the infmmation requested.

Please provide any additional information that you believe would be of assistance to our investigation. We reserve the right to request additional information as our investigation continues.

Our acknowledgement of your claim for investigation should not be construed by you to be an admission of liability or a promise to pay your claim in whole or in palt. Our investigation is undertaken with a full reservation of GAIC's rights and all defenses available to GAlC under the terms of the bond, the construction contract and the law, including all applicable notice periods and statutes of limitation. You are not to rely upon our promise to investigate your claim as a waiver of any of the surety's or its principal's rights nor as the basis for an extension of any applicable time limits, including the time within which to file suit. It is your responsibility to take such actions as might be necessary to fully protect your rights under the terms of the bond, the construction contract and any applicable laws. Further, this reservation of rights shall remain in full force and effect unless expressly revoked by GAIC in writing.

Should you have any questions concerning your claim or the documentation requested, please feel free to call me at (513) 579-6328.

Sincerely,

GREAT AMERICAN INSURANCE COMPANY

Ryan Dierkers Claim Specialist 513.579.6328

Enclosure

CC: Ryan Harvey, Preload, LLC

Dierkers, Ryan

From: Sent: To: Cc: Subject: Attachments:

Importance:

Ryan,

Ryan Harvey <[email protected]> Wednesday, October 12, 2016 11:53 AM Dierkers, Ryan Bruce Burke; Tim Halloran 15PD106 Kingsville, Texas- Bond Claim 15PD106 Kingsville, Texas - GAIG Response to Bond Claim.pdf; Attachement B - Preload Email Confirmation - Moody Brothers.pdf; Attachment A - Brothers Electric - Executed Subcontract.pdf; Attachment C - Notice of Delay - Brothers Elec 02.29.2016.pdf; Attachment E - Brothers Electric Pay Requests.pdf; Attachment F - Brothers CO 2 Justification Letter and Return Email.pdf; Attachment G - Preload Pay Apps 5, 6 and 7.pdf; Attachment H- Subcontract Report 10-10-2016.pdf; Attachement D- Invoices for Actual Damages Claim.pdf

High

As we discussed by phone, attached is our response to the bond claim by Brothers Electric on the above referenced project titled "15PD106 Kingsville, TX- GAIG Response to Bond Claim" along with supporting information in Attachments A- H for your investigation. Please let me know if you need additional information or if you would like to discuss our response.

Regards, Ryan

1<. Ryan Harvey, PE, SECB Chief Executive Officer

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Wlre·Wound Prestressed Concrete Tanks 631.231.8i00 Office I 631.231.8881 fox 1502.475.3266 Mobile .W/....it'/...QrE:~ooci,com

Connect with us:

1

Prestressed Concrete Tanks

October 9, 2016

Via Email: rdierkers(Qlqaia.com

Mr. Ryan Dierkers Great American Insurance Group 301 East Fourth Street, 24th Floor Cincinnati, Ohio 45201

RE: Preload Project 15PD1 06 Claim by Brothers Electric Bond No. 348 39 32 South Texas Water Authority Kingsville Pump Station- Tank Replacement

Dear Ryan:

As we discussed by phone, we are in receipt of your letter dated September 20 regarding the bond claim brought about by our subcontractor, Brothers Electric, on the above referenced project. We offer the following information to assist you in investigating the claim:

1. Background: Brothers Electric is our subcontractor on the above referenced project to provide electrical and instrumentation work as well as materials and installation of a mixing system. A subcontract agreement was executed for the work with Brothers Electric on October 20, 2015. A copy of our subcontract agreement with Brothers is provided as Attachment A for your reference. The original subcontract amount was $192,526.00. The following are key points that arose during the execution of the contract:

a. Bid Preparation: As Is customary during the bid process, Preload sent Requests for Proposals to subcontractors and suppliers for the portions of the project outside of the construction of the tank. These Requests for Proposal were sent to various trades including piping subcontractors, electrical subcontractors and equipment subcontractors. We then contacted all of the proposers for subcontracting services prior to the bid date to verbally confirm that their proposal met the requirements of the specification. We received verbal and written communication from Moody Brothers that their proposed system would meet the project specification. A copy of our email correspondence is provided as Attachment B.

b. Post Bid Discussions: After the successful bid by Preload, Preload discussed the possibility of Brothers Electric taking the entire scope of electric and mixer and chlorination equipment since the two scopes of work contained overlap.

4000 Tower Road • Louisville, Kentucky 40219 • 125 Kennedy Drive, Suite 500 • Hauppauge, New York 11788 631-231-8100 • Fax 631-231-8881 •WIW/,preioad,com

Brothers Electric agreed to take the mixing system as part of their subcontract. At that time, Preload foJWarded the quotation that we received from Moody Brothers along to Brothers Electric as shown In Attachment B.

c. Subcontract Agreement: It is our understanding that Brothers Electric chose to contract with Moody Brothers to supply the equipment. In no way did Preload direct Brothers Electric to use any specific supplier for the mixing system. In fact, as shown in the subcontract agreement, our only requirement was for Brothers Electric to supply the "tank mixing system and controls, chlorine and LAS feed system, associated fiberglass buildings, and required electrical modifications" ... "as required for a turnkey Installation" and which would "conform to all of the requirements of the Contract Documents".

d. Contract Execution: During the execution of the contract, it became apparent that the mixing system which was being proposed for use by Moody Brothers, Brothers Electric subcontracted supplier, would not be approved for use by the engineer due to the Inability of the equipment to meet the specification. While Brothers Electric and Moody Brothers continued to try to gain approval for their proposed mixing system, Preload received a notification of delay from the Owner and Engineer which was directly attributable to the mixing system and other portions of work by Brothers Electric. At that time, the tank construction was complete and the remaining work to be done on the contract was that work Identified in the subcontract agreement with Brothers Electric. As shown in Attachment C, Preload notified Brothers Electric that we would hold them responsible for any liquidated damages Imposed by the Owner In accordance with our subcontract agreement.

Subsequently, Brothers Electric decided to provide another mixing system which the engineer agreed would meet the specification In order to move foJWard with the contract. It is our understanding that the Brothers Electric contract with Moody Brothers for the mixing system was terminated and the new system was ordered; however, the lead time for the equipment was such that the substantial and final completion date could not be met on Preload's contract.

During the remainder of the contract, Brothers Electric continued to perform in a manner which was inconsistent with the requirements of our subcontract agreement and the Contract Documents. In fact, the Inability of Brothers Electric to perform the work required that Preload hire other subcontractors to complete portions of the work which were a part of the Brothers Electric scope on the contract including the start-up of the mixing system itself and several aspects of the electric work which were not performed to the satisfaction of the owner. To date, the inability of Brothers Electric to perform their portions of the work has cost Preload an additional $23,274.46 not including any liquidated damages which may be assessed by the Owner. Invoices for these services are included for your information as Attachment D. Further, because of poor performance on the part of Brothers Electric, the Owner required Preload to have representation on site any time Brothers Electric would be on the site. To date, this has cost Preload actual damages in the amount of $34,739.17.

In total, Preload's actual damages incurred to date have totaled $58,013.64. Article 8.3 of our Subcontract Agreement with Brothers Electric allows us to recuperate actual damages which are caused by the subcontractors' delay.

Thus, Preload is entitled to deduct these actual damages and any accessed liquidated damages from amounts owed to the contractor. At this time, we await the assessment of liquidated damages to determine what the total deduct will be.

In addition to the Issues with the mixing system, the chemical buildings that were part of the package were approved by the engineer along with a Change Order for an increase in size for the buildings on February 19, 2016. Even though these buildings were approved for purchase and deliver, Brothers Electric and their supplier, Moody Brothers did not order the equipment until March 7, 2016. The buildings were not physically delivered to the site for installation until after the final completion date for the project. Obviously, this also contributed to the delay In Brothers Electrics work.

e. Pay Applications: As shown in Attachment E, Brothers Electric has submitted the following Pay Applications to Preload:

I. Pay Application 1: Brothers Electric submitted their first pay application on March 31, 2016 in the amount of $29,740 for electrical work associated with the project.

ii. Pay Application 2: Brothers Electric submitted their second pay application on June 31,2016 in the amount of$180,491.15

f. Change Order Requests: Brothers Electric has submitted the following Change Order requests to Preload:

I. Change Order Request No. 1: Brothers Electric submitted a Change Order on March 26, 2016 to increase the size of the LAS Building to 1 0' x 8' x 8' as shown in the attached in the amount of $1625.00. This Change Order was approved by Preload.

ii. Change Order Request No. 2: Brothers electric requested a change order in the amount of $79,429.57 in September for the change in the mixer system. Subsequent to receiving the Change Order request, Preload requested that Brothers Electric provide written justification for the Change Order. Brothers Electric provided their justification for the Change Order on October 3, 2016. This Change Order request has not been sent to the Owner due to factual inaccuracies In the language of the justification and missing Information on why a Change Order should be granted based on a comparison of the proposed equipment and the specification requirements. A copy of Preload's correspondence to date between Preload and our attorney and between Preload and Brothers Electric is also included in Attachment F for information.

g. Preload Pay Applications: Preload's pay applications for this project have been Included as Attachment G. It should be noted that Brothers Electric work was properly billed by Preload on our Pay Application No. 5. There was no electric or mixing system work billed by Brothers Electric for Pay Application No. 6. Preload has not received payment for our Pay Request No. 7 which includes the items in Brothers Electric Pay Application 2. Presumably this is due to the Owners intention to assess liquidated damages in connection with the work of Brothers Electric.

h. Contract Payments: A copy of payments to our subcontractors on this project has been included as Attachment H. It should be noted that Preload has paid

all funds it has received from the owner to date to Brothers Electric based on their pay requests and the Owners payments.

We continue to work toward a speedy resolution to the contract with the Owner and Engineer. Once we resolve the issues surrounding Brothers Electric and their performance of the work and receive payment from the Owner, we fully Intend to pay Brothers Electric any monies that are still due under their contract agreement, minus any actual damages to Preload and any liquidated damages accessed by the Owner.

We appreciate the opportunity to address the claims from Brothers Electric and their attorney and we believe we have provided the information that you have requested. Please fE1el free to contact me for any additional information that you require as you investigate the claim.

CC: Bruce Burke, Tim Halloran Attachments

Sincerely,

PRELOAD, LLC c-··-·~---..._

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~~Y-K. Ryan Harvey, PE Chief Executive Officer

ATTACHMENT C- NOTICE OF DELAY TO BROTHERS ELECTRIC

Prestre&sed Concrete Tanks 1~n AfOnnatlve Actlon/EOE/Mfnorttiea/

Fcmalcs/Dlaablcd/Vetcrans"

Februaty 26, 2016

Mr. Kenneth Brown Brothers Electric 16649 Peyne Road, Suite 200 Conroe, 'rX 77302

Reference: 15PD106 l.OMG Water Storage 'rank

Preload LLC • 4000 Tower Road Louisville KY 40219

631.741.8883 • Fax 978.418.9156 tha1loratill·pre1oad,com

www .preloud.corn

Kingsville Pump Station- Ground Storage 'rank Replacement Project Notification of Delay

Dear Mr. Brown,

Preload recelved a "Notlflcatlon of Delay" on February 26, 2016 from HDR Engineering for the above referenced project (attached). This notice is due to delays caused by Brothers Electric specifically In regards to the chlorination and tank mixing system. Preload was unable to meet our Substantial Completion requirements as outlined In specification section 00500 4.l.B.2.a. because of the issues mentioned. To date the tank mixing system has not yet been approved.

Please consider this letter a formal notification of delay, Preload will be exercising our rights under Article 8 of our mutual subcontract agreement and will hold Brother's Electl"lc liable for any liquidated damages accrued as caused by Brother's Electric.

In addition, Brother's electric wlll have three (3) working days after receipt of this wtitten notice to prove they are working dlllgently to resolve this issue and provide all information as requested ln paragraph three (3) of the attached. If Brother's Electric falls to provide this Information In a timely fashion, additional steps wilt be taken as outlined in Article 14 of our mutual subcontract agreement.

Final Completion for this project is March 22, 2016. All work under Brother's Electric scope must be completed prior to this date or additional damages mey be sought.

If you have any questions, or require additional Information, please feel free to contact myself at the below information or Bruce Burke (781.789.9135).

Thank you,

·N~V~-, Tim Halloran

Project Engineer

cf:.,;;;;;;:::;;;::~~ Wire-Wrapped Prestressed Concrele Tanks M: 631.741.8883jF: 978.418.9156 Em: thal!oran(rVpreload.com y,rww.prcload.com

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February 26, 2016

Mr. Bruce Burke, Area Manager Preload, LLC 49 Wireless Blvd, Suite 200 Hauppauge, NY 11788

RE: South Texas Water Authority Kingsville Pump Station- Ground Storage Tank Replacement Notification of Delay

Dear Mr. Burke,

According to the Contract Documents for the referenced Project, the Substantial and Final Completion dates are February 22, 2016 and March 22, 2016, respectively. At the present lime, the Project has not reached Substantial Completion and shop drawings still have not been approved by the Engineer for the proposed Tank Mixing System. Due to Contractor delays, the South Texas Water Authority (STWA) will likely Incur additional expenses resulting from continued construction administration of the Project.

The contractual liquidated damages per Section 00500 are $500.00 per day for each calendar day that expires after the dates of both Substantial and Final Completion. Therefore, Preload Is hereby notified that the STWA reserves the right to assess liquidated damages for each calendar day that the work Is not completed In order to recover additional expenses.

To facilitate successful Project completion, please prepare and submit a revised Project Schedule to completion. Preload's revised Project Schedule should Include accurate dates fCIJ both Substantial and Final Completion to the best of the Contractor's current knowledge; a minimum 72 hour demonstration period in accordance with Section 01650, Paragraph 3.3; temperature uniformity field testing of the installed Tank Mixing System as described in Section 11220, Paragraph 2.3J; and sufficient time for Engineer's Inspection of the work, punch list and project closeout. The beginning times and procedures for the demonstration period and Tank Mixing System temperature uniformity test shall be agreed upon by Preload, HDR and the STWA In advance of Initiation. When the Contractor believes the work Is substantially complete, submit a Notice of Substantial Completion and Request for Inspection of the Project per Section 01650, Paragraph 3.2.E. Refer to the

4401 West Gate Blvd .. Suite 400, Austin, TX 76746 T 512.912.5100 F 612.912.6156 Texas Registered Engineering Firm F-754

Bruce Burke February 26, 2016 Page 2

General Conditions and Sections 01650 and 11220 for additional requirements related to Substantial and Final Completion, and system starl·up.

Please call me at 512·912·51 09 If you have any questions.

Sincerely, HDR Engineering, Inc.

Jason Christensen, PE Project Manager

CC: Carola Serrato, Executive Director South Texas Water Authority

ATTACHMENT F- BROTHERS CO #2 JUSTIFICATION LETTER AND ASSOCIATED EMAIL CORRESPONDANCE FROM PRELOAD.

DATE:

REGARDS:

JOB NUMBER: JOB NAME:

ENGINEER:

Phone: Address:

Mr. Burke,

BROTHERS ELECTRIC C 0 M P A N Y I N C.

Phone: 281-429-9000 Fax: 281-429-0396 16649 PAYNE RD.

CONROE TEXAS 77302

October 3, 2016

Change order request narrative

South Texas Water Authority (Kingsville pump station)

HDR Jason Christensen 512-912-5158 4401 West Gate Blvd. Austin, Texas 78745

Brothers Electric is requesting compensation In regards to the chemical mixing system. It Is understood that Preload had knowledge that Moody Brothers proposed mixing system would not meet the engineer's specification. Although there were several attempts made by Moody Brothers to get their system approved, they had no success.

Brothers Electric had a subcontract agreement with Moody Brothers that they could satisfy the engineers specification. Moody Brothers was not able to meet the specification that they had a copy of prior to quoting this project. Brothers Electric had to cancel the contract between the two parties and go with PAX. We had to purchase the equipment separately from the original proposal from Moody Brothers.

The PAX proposal INCLUDED the tank mixer, 2-chemical skids, PAX water quality station, and smart controller.

The PAX proposal did NOT INCLUDE the two FRP buildings, Scales, Spill safe drum kit, two eye wash stations, chemical piping, ammonia piping, swltchover Vacuum regulators, booster pump, injector panel, and chlorine gas detector with light and horn. This was an additional cost of $79,429.57.

Ryan Harvey

From: Sent:

Henderson, Steven <[email protected]> Thursday, October 6, 2016 10:44 PM

To: Ryan Harvey; Bruce Burke Cc: Tim Halloran Subject; RE: Justification letter- Brothers electric

I agree. Brothers Electric's letter illustrates the sub's failure to understaud that the change order request mttst explain why the Solar Bee system was wrongfully 1·ejected by the ownerfeugineer, and therefom, the extl·a cost for the PAX system should be approved as a change order by the owner. BE's letter creates the impression that the Moody B1·others system did not meet the specification and that Preload/Brothers Electric knew that before a bi<l was submitted. This is the exact opposite of what BE must show to warmnt a chauge order.

Brothers Electric needs to revise this and submit something that has a chance of success. I would call them and explain the factual inaccuracy and also make sure they understand that the change order 1·equest is going to be passed along to the owner before they revise it.

Regards,

Steven M. Henderson, P.E. Member Direct: 502-779-5826 Mobile: 502-321·3177 Fax: 502-779-9809 [email protected]

STITES&HARBISON PLLC 400 Wast Market Street, Suite 1800, louisville, KY 40202-3352 About Stites & Harbison I.Bio 1 V-Card

NOTICE:Thls messaga Is Intended only for the addressee arid may oontaln information that Is privileged, confldenUal and/or attorney worX product If you are not I he intended recipient. do not read, copy, retain or fofWard U1ls message or any allachment Please notify the sender lmmediately and delete all copies of the message and any attachments. Neither the llansmJsslon of this message or any attachment, nor any error In transmission, constitutes a watver of any applicable legal privilege. To ensure eompllanca with requirements Imposed by the IRS, we inform you that any U.S. federal tax advice 0011talned In this communlcaUon (including any attachmanls) Is not Intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Coda.

From: Ryan Harvey [mallto:[email protected]] Sent: Thursday, October 6, 2016 2:00PM To: Henderson, Steven <[email protected]>; Bruce Burke <[email protected]> Cc: Tim Halloran <[email protected]> Subject: FW: Justification letter- Brothers electric

As we discussed, I am forwarding along this letter and the associated email to Steven for review. My opinion Is that we should not submit this letter for the following reasons but I would like to hear Steven's opinion before we decide on a direction:

1. The second sentence of the first paragraph of the letter Is, I believe, factually Incorrect. The second sentence states "It Is understood that Preload had knowledge that Moody Brothers proposed mixing system would not meet the engineer's specification". The email that was forwarded along by Brothers electric (which is attached] contains an email trial between the equipment supplier (Moody Brothers), the proposed equipment manufacturer (Solar Bee), the engineer (HDR) and Rusty Spangler (Preload). Yes, we did reach out to Moody

1

Brothers to confirm that the proposed mixing system by Moody met the specification during the bid. We always seek confirmation that proposals meet the specification. Their response on page two was "Reply- SolarBee had sent a doc[ument] showing ... our bid is for (2) GS-12 which have a 5 hours turn time and puts us under the spec." Further, In paragraph 2, sentence 1 of the same email "That said we think we are within the spec .. ". So, we confirmed that the suppliers proposal met the specification and put our concerns to rest. End of story. We had no flllther reason to believe that the system did not meet the specification.

2. Regardless, there is no indication in here of why a change order should be granted. The justification for a change order should be something along the lines of "performance data which was submitted by Solar Bee proved that the proposed system would meet the specification and Intended use; however, the engineer or owner would not approve the system due to ". I don't think, "Brothers Electric had a subcontract agreement with Moody Brothers that they could satisfy the engineers specification. Moody Brothers was not able to meet the specification that they had a copy of prior to quoting this project" Is going to fly In any way and, In fact, points to a dispute that should be settled between Brothers and Moody Brothers. In short, If I am the engineer and owner, I would say "Why is this my problem?".

Steven, if you could comment so we can decide on a direction we would appreciate your Insight and advice.

Regards, Ryan

K. Ryan Harvey, PE, SECB Chief Execullve Officer

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Wire-Wound Prestressed Concrete Tanks 631.231.8100 Office I 631.231.8881 Fox 1502,475.3266 Mobile \'I'NVV .ore!oad.corn

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From: Bruce Burke Sent: Thursday, October 6, 2016 1:06PM To: Ryan Harvey <[email protected]> Cc: Tim Halloran <[email protected]> Subject: FW: Justification letter- Brothers electric

Ryan, Attached Is the letter from Brother's for the justification of the claim for extra cost to go with the PAX system at Kingsville. I'd like to discuss at your convenience- it doesn't make much of a case to the Ovmerfor extra costs. Thanks,

Bruce Burl<e Area Manager

~ Wire-Wrapped Prestressed Concrete Tanks 631.231.8100 Oflice 1631.231.8881 Fox 1781.789.9135 Mobile 1'1\\'\\'[email protected] .. eom

2

From: [email protected] [rnallto:kbrown(dlbrotherselectrjccQ_,Qjll] Sent: Monday, October 03, 2016 5:34 PM To: Bruce Burke Subject: Justification letter

Please see attached letter.

Best Regards,

Kenneth Brown

Brothers Electric Company, Inc. 16649 Payne Rd. Conroe, Texas 77302 Ph: 281-429-9000 fx: 281-429-0396 Cell: 832-233-2378

3

Carola Serrato


Carola,

Christensen, Jason <[email protected]> Friday, October 21, 2016 10:11 AM 'Carola Serrato' Archer, Aaron D.; Singer, Lisa STWA Kingsville GST: Pay App 07 Pay Application 07.pdf

A signed copy of pay application 07 is attached. The requested pay items are now satisfactorily functional.

Thanks, Jason

1

Contractor's Application and Certificate for Payment

To: From:

South Texas Water Authority Preload, LLC

2302 East Sage Road 4000 Tower Road

Kingsville, TX 78634 Louisville, KY 40219

Application No.:

Application for Payment Chango Order Summacy

Change Orders Approved by Owner

Number Date Approved Additions

TOTALS

$0.00

NET CHANGE BY CHANGE ORDERS $0.00

Contractor's Certification

The undersigned Contractor certifies that to the best of the Contractor's knowledge, infonnation and belief, the Work covered by this Application for Payment has been completed in accordance with the Contract Documents, that all amounts have been paid by the Contractor for Work for which previous Certificates for Payment were issued and payments received from the Owner, and that current payment shown

herein is nq¢ dui / ;:/ &j:{ Date: 0712512016

Approved For Payment:

Bv: Date: Caroll2 Serrato, Executive Director

15PD106

SEVEN (07)

Deductions

Page 1 of 1

J-)~ Via:

II HDR Engineering, Inc. I

4401 West Gate Blvd., Suite 400

Austin, TX 787 45

Application Period: 7/25/2016

1. ORIGINAL CONTRACT SUM $1,319,700.00

2. Net change by Change Orders I' $0.00

3. CONTRACT SUM TO DATE (Une 1 + 2) I $1,319,700.00

4. TOTAL COMPLETED AND STORED TO DATE I: (Column F on Progress Estimate) '

$1,304,422.50. 5. RETAINAGE: 5% of Completed Work and Stored Material

$65,221.13 G. AMOUNT EliGIBLE TO DATE

$1,239,201.38

7. LESS PREVIOUS PAYMENTS (Line 6 from prior. certificate)

$0.00 $1,063,168.75 8. AMOUNT DUE THIS APPLICATION

$176,032.63

9. BALANCE TO FINISH, PLUS RETAINAGE {Column G on Progress Estimate)

$80,498.63

Payment of I$ 176,032.63 I is recommended.

Bv: Date: Jacob Hitlojou, STWA

Bv: ~ Date: 10/21116

Approved For Paymenv.

HDR Engineering. Inc.

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$4,015.00 $4,01500

$:13,7()(1:00) $33,700.00

$2_1,1(}()_-~t ~:2~,100.00

Page 2 of5

~:J,eoo.oo

~

_$25,000.00

m,aoa.oo

ss,ooo.oo $111,500.00

~~_.!00.0

$33,700 00

$49,100.00

$21,100.00

~

$4,675.00

$4-,01::0.00

S500.1 -za-------ns.ooo.or:. 100:0ll%-

$a,Ql!JO.,

$62,800.00 100.0!1"%

~.aoo.oo ~

iOa,CO'N

s1n.soo.oo 1 1oo.aa% --- ~

100.00:

$8,!100.

$0.00

$0.00

$0.00

$0,00

~ -so:oo ().00% l $1,700.00

$1,7111.1

$1SAll6.0ll 100.00".1.

$4,1175.00 100.00%

$4,015.00 100..00%

~.;ao.oo L ;oa~-~·-

J<l,OO'Il

iO,W;(

$2~~-~oo 1 ,Oii':Qii%--

$0,00

$0.00

.$0.00

$0,00

$0.00

$0.00

KJ ville Pum St:rtlon-Ground Storm.::o Tonk Roclaceoment Contractor's Proor'ess Estimate - - ~

1-)~ Aopllcotlon Numbor: SEVEN 1071

AD Jlcnt'1on Poriod: 7/25!20,6 M li ai nDeo: 7125/2016 A P1~lo~d, LLC 151"0106 c 0 ' F 0

I tam Work Complotod

Scheduled M~t~rlol.:l Tou.l Complotod

Pr~ntly S10rod and Soorad to Date % Balance to Finish I tom DMcrl tlon Units Ouantlt\1 Unit Pdco Value from ?rcvlouo Appllootlon) Thlo Perle<~ fnot In Cor 01 IC+O•E) (F/6) IB·FI

4.c.2.d Joinu :.md Curb 1 $14,000,00 $14,000.00 $14,000,00 $14,000.00 100.00% $0.00

4.c.2.e Shotcrete on Diaphragm 1 $14,100.00 $14,100.00 $14,100.00 $14,100.00 100.00% $0.0G

4-C.3 D<MP.c <S S~,800)

I 4.c.3.a Ercet F~lsowork I $20,900.00 $20,900.00 $20,90MO $20,900 co 10MO% $0.00

4.c.3.b &cdFonnworlr. 1 $12,tl00.00 $12,000.00 $12,000.00 $12,000,00 100.00% $0,00

4.c.3.c Reinforei>t I $r.I,OOO.OI) $Q,000.00 $9,000,00 :$11,000.00 tOO.OO% $0.00

4.c.3.d Place Dome Concrete I $15,000,00 $15,000,00 $15,000.00 $15,000.00 100,00% $0.00

4.c.3.e Remove Fonnwork 1 $2,900.00 $2,000.00 $.2,1)00,00 $2,900,00 1ll0.00% $0.00

4.C.4 Pr.,;trtl!IB $ S4,SOO)

4.c 4a Pre~~tr~ 1 $26,200.00 $211,200.00 $.26,200.00 .$26,200.00 100.01)% $0.00

4.c.4.b Win: Coat 1 $1"1.~0.00 $9,1100.00 $9,800.00 $9,~00.00 100.00% $0.00

4.c.4.c Bo CoM I $12,500,00 $12.,500.00 $12,!l00,00 $12,500.00 100.00% $0,00

4,c.4.d final Comt 1 $2.200.00 $2,200.00 $2,200.00 $2,200.00 100.,00% $0.00

4,e.4.c Dc:eor!ltiV<> Paint l $3.800.00 $3,1100.00 $3,1100.00 $3,MO.OO 100.00% $0.00

4.C.S MOO:cllancous ($ 7~:ZO

4.C..S.a. TnnkPi in~ 1 $31,520.00 $31,520,00 $31,520.00 $31,5:1.0,00 10000% $0.00

4.C.S.b Lllddcr/HIItchJVe!lt 1 $311,000.00 $38,000.00 $3~,000.00 $311,000,00 100.00% $0.00

4.C.S.c Disinfect and Stcrili2c 1 ss.ooo.oo' $5,000.00 $5,000.00 $5,000.00 100.00% $0,00

4.C.S.d Fill und Test Tank 1 $4,000,00 $4,000.00 $4,000.00 $4,000.00 10000% $0,00

4.C.S.e P(e!ond Dosil\ll DmwinRS 1 $75.000.00 $7S,OOO.OO $7:1,000,00 $75,000.00 100,()0% '""' 4.C..5.f Pcrfoi'I'Mllec & Payment Bond I .$6,700.ao $e,70MO $6,700.00 $$,700,00 100,00',{, $0.00

' ALTERNATE 1 T:mk Mixiltl:' S tcm ($171,700)

(Including: snu.U diamclo:r pip\ng & conduit nnd confirmation testing o( mlxin~~: sysltcm)

A I GPH LAS cbemicul um 1Yof2 1 $ll,415.00 $$),415 00 :59,415,00 $9,415.00 100.00% $0,00

8 Pulntion Drunpner 1 :$2,370.00 $2,870.00 $1,1170.00 $2,370.00 100.00% $0.00

c C!llibrntion column 1 $2,870.00 $2,870.00 $2,370 00 $2:,370.00 100.00% """ D Flow indicntior TV 2 1 $3,3a7.00 $!>,l(l7,00 $3,lii7,00 $!>,387.00 100,00% $0.00

E Di~Pbi'III!!.Q!e:i!!Ure guuRe 01i' 2 1 $2,009,00 $2,0<19.00 ~1,004,50 $1,004 . .50 50.00% $1,004.$0

F Spill We drum ~cll.le with indic.~~tor 1 $Q,75Q.OO $!l,75f.I.OO $~.75!1.00 $9,759,00 100.00% $0,00

G axs I'RP .ilic:lter 1 $:28,(06.00 m,40ti,OO $26,4De,OO $26,4011,00 100.00% $0,00

H s ~~ 1 $;) 444,00 $3,-444.00 $0,00 O,OO'IC. $3,#4.00

[ Shi pinrt 1 .JS74.0Cl $574,00 $574,00 ~74.00 100.00'.4 so.oo J GLI2 tank rnixerr.; QT\i 2 1 S2e,g~1.0o $26,931.1Xl $26,$61,00 $26,1181.00 100.0ll% $0.00

K Total CL2 nnalyzct" 1 $9,867,00 $9,007.00 -$11,007,00 $5,567.();) 10000% $0.00

L Control box with aci1Ciol monitom~g_ for twlk mixen< QTY 2 1 $8,72Cl.OO $8,72e.OO $6,7:21!1.00 u.~u.oo Hlll.Oll'.4 $0.00

N Booster um to feod in' celion #tem 1 $3,444.00 $3,444,00 $3,444 oo $3,4«,00 100,00% $0.00

M Frci ' 1 $~74,00 "''"" $574.00 $574.00 100.0(1'.4 $0.00

N· Cblorinlltor 0-100 PPD-M1111ual·stllrtl:rtop 1 $M37,00 $ll,l)l7,00 $8,1)37 00 $8,037.00 100.00% so.oo 0 Sot of $Witch over vncuum rep:ullltonl 1 ~5.741.00 $5,741,00 ;5,7-n.oo $5,741,00 100,00',!. $0.00

p l'lojector pand 1 $5,741.00 $5,741.00 $5,741.00 $5,741.00 100.00% I $0.00

Po.gc 3 of 5

Klnr vme Pumo Sbtion·Ground Stornoe Tank ReD!acemcnt Contractor's Progress Estimate I-)< Application Number: SEVEN (07)

Ao lie f n Podod•. 7/7.5/?.016 (II! cation Oat : 7125/2016 A F'<elood, lLC 15PDlOG ' 0 ' ' G

Item ,I

Work Completl!ld i

' ' Matorlnl~ Totnl Compi11Wd

ScheduiOO I rrcm Pr~lc"" Appl!catlon)j] Thl5 Porlod

Prll.rlontlv StCitftd Md Stt!r8d to Data % Salanca to Flr~lsh I tam Dezcri)>t!OI'I Units Quantity Unit Price Value lnot InC ar 01 IC+D+E! (f/81 IB·Fl

Q Chlw'inc ~.a.:J dcctoctor with light nnd hom 1 .,;5,167.00 ~.167.00 I I "-" 0.00% $5,167,00

R OlUll h druulie !SO!b cyllndon;eale 1 $!l,lll!IHXl $6,all9.00 Sd,8$!l.OO $8,11!!1l,OO 10000% "" s lOX& FRP ~heltcr 1 $28,12UO' $28,12!1.00 $26,12e.oo $26,1Zl.OO 100.00% $0.00

T Sp~ 1 $1,722.00 $1.722.00

'

$0,00 0,00% $1,7::2.00

u FOB iob sit~ 1 $1,Wl.OO $1,146.00 I $1,148.00 $1,146.00 100.00% $0.00

Altemato

Poge4of5

~-· -- ···---· ·-· --···· .. -· 1-)~ For (contract): Kingsville Pump Station-Ground Storage Tank Replacement Application Number: SEVEN 107) Application Period: 7/25/2016 Application Date: 7/25/2016

Drawing Transmittal

Invoice No. No. Materials Description Stored Previously Stored this Month Incorporated in Work

Materials Date Amount Amount Date Amount Remaining in

(Month/Year) ($) ($) Subtotal (Month/Year) ($) Storage($) $0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00 ' so.oo:

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Total $0.00 $0.00 $0.00 $0.00 $0.00

.. ..... ----- -----

Page 5 of 5

ATTACHMENT 5

Kingsville Pump Station Bond Election Improvements- Pump Replacement

Memorandum

To: South Texas Water Authority Board of Directors From: Carola G. Serrato, Executive Director Date: October 20,2016 Re: Kingsville Pump Station Bond Project- Construction of the 1500 gpm Pumps

Background:

Last month the Board considered an email from Associated Construction Partners (ACP) (enclosed) regarding the release of retainage and providing an additional one-year extension on the potential labor that could be required should additional problems with the new pump/motors occur. ACP's email indicates that it would be willing to provide the extended warranty provided the retainage is released.

In addition during last month's meeting, staffrepmted that legal counsel, Bill Flickinger, agreed that ACP had completed the contract as required. Mr. Flickinger recommended release of retainage. The Board approved the release of retainage but instructed staff to include a document for ACP to execute which would provide the extension of the labor warranty. Enclosed are the pettinent documents.

Analysis:

Mr. Flickinger provided the draft extended warranty for ACP to consider. Shortly after sending the payment and document, I heard from an ACP representative inquiring about payment. I indicated that payment had been sent by cettified mail and that an extended warranty document had been enclosed for their signature. To date, an extended warranty has not been received.


Keep the Board updated on this matter.

Board Action:

Provide feedback to staff.

Summarization:

Pump 2 and Pump 3 continue to work satisfactorily.

Carola Serrato

From: Sent: To: Cc: Subject:

Jason,

Carola Serrato <[email protected]> Tuesday, September 20, 2016 4:15 PM 'Christensen, Jason' 'Archer, Aaron D.' RE: STWA Extended Labor Warranty Request.

I discussed the matter with Bill Flickinger, Willatt and Flickinger. I will be asking the Board to consider ACP's email and release the retainage based on receiving the extension to the warranty.

Carola

Carola G. Serrato Executive Director

South Texas Water Authority P.O. Box 1701 Kingsville, Texas 78364 [email protected] 361-592-9323 x12 361-592-5965 fax

From: Christensen, Jason [mailto:[email protected]] Sent: Tuesday, September 20, 2016 3:35 PM To: Carola Serrato (STWA) ([email protected]) <[email protected]> Cc: Archer, Aaron D. <[email protected]> Subject: FW: STWA Extended Labor Warranty Request.

Carola,

I had a conversation with ACP this morning about extending their warranty to cover potential labor costs resulting from repairs that may occur under the extended equipment warranty provided by Grundfos for Pumps #2 and #3 at Kingsville. Below is an email from ACP that resulted from the phone call. Basically, ACP is refusing to entertain an extended warranty until they receive final payment, which of course reduces any leverage we have in this matter. Please review and let us know your thoughts. ACP's standard contractual warranty is one year from the date of substantial completion, or April4, 2017.

Note that Odessa has also declined to extend a labor warranty beyond their typical 18 months from date of pump manufacture, which also falls short of the extended equipment warranty from Grundfos.

Thanks, Jason

From: [email protected] [[email protected]] on behalf of Leighton Moore [[email protected]] Sent: Tuesday, September 20, 2016 2:45 PM To: Christensen, Jason; Norman Reitmeyer; chad@;,acpartners.org; Jill Simpson Subject: STWA Extended Labor Warranty Request.

Jason,

Thanks for taking our call earlier. As our reputation around the state shows, we would never abandon a client on a

1

problem if they call us outside of warranty. We highly encourage anyone at STWA to call around and ask any of the other water districts in South Texas if that is the case; Freer, Corpus, El Tanque, McAllen, Agua SUD, Elsa, Laguna Madre etc.

We help on things that are outside of our warranty requirement for years afterwards all of the time. We have a crew dedicated to just this and we've never extended a single contract warranty beyond its original terms . It is one of many reasons we are such a highly sought-after contractor all over Texas.

We would like to continue that trend with STW A. But, in response to your letter, I have some points I'd like to make for all to consider:

1) The pumps were promptly fixed under the warranty in which the contract calls for.

2) The extended warranty offered by Odessa and Grundfos is not required by the contract and was offered as a good faith gesture to help alleviate any concern STW A had about the longevity of said pumps. The offering of any warranty extension is the result of a collaborative effort between us (ACP), the pump distributor (Odessa Pumps) and the pump manufacturer (Grundfos) and is not a contract requirement per ACP's contract with STWA.

3) All the patiies involved have worked hard to not only finish the project on time, within budget and perform warranty work as required, but also to offer things outside of the current contract (the extended pump warranty).

I'd also like to point out one important performance requirement of the contract by STWA is to make payment to ACP within the terms of the contract. The holding of our retainage beyond the time our contract allows and possibly attempting to use it as leverage to get us to agree to extending a warranty beyond what is called for in the contract simply won't work. We will have to respectfully decline participating in such an arrangement.

Before STW A begins asking ACP for considerations outside and beyond the contract, we'd like to see STW A recognize and comply with the current terms .first and get us paid in accordance with those. Let's get this settled up first, then we can discuss adding potentially different I further warranty terms.

We look hopefully forward to a long-term, healthy relationship with STW A and all who work there. We hope this goes both ways and that we can all expect fair, reciprocal, mutually beneficial treatment for years to come. Since STW A's legal counsel was advising them on the request you sent us, let us know how they feel about that and then we can possibly continue the dialog. Thanks and I look forward to hearing from you.

Leighton Moore Associated Construction Partners, LTD 215 W Bandera Rd Ste 114-461 Boerne TX 78006 210 218 7307 Mobile 210698 8714 Office210 698 87!7 Fax Lei ghton(iiu\ CI-'arlners. on::

Special Note:

The information contained within or attached to this e-mail is confidential and is intended only for the use of the individual or entity to which it is addressed. Dissemination, distribution, copying or use of this e-mail is strictly prohibited. If you have received this message in error, please immediately notify the sender and delete the message from your system.

2

STWA

Mr. Leighton Moore Associated Construction Partners, LTD 215 W Bandera Rd., Ste. 114-461 Boerne, Texas 78006


P. 0. BOX 1701


October 5, 2016

RE: South Texas Water Authority- Release ofRetainage and Extended Warranty

Dear Mr. Moore:

Enclosed is check# 5234 in the amount of$14,750 which represents the retainage on the contract between ACP and the Authority for the South Texas Water Authority Kingsville Pump Station hnprovements Project.

On September 27, 2016 during a duly posted and open meeting, the Board of Directors of the Authority voted to release of this retainage after reviewing your email dated September 20, 2016 to Jason Christensen, HDR Engineering, Inc. Now that all amounts have been paid to ACP, the Board of Directors of the Authority is requesting that ACP provide au extended warranty substantially in the form of the attached letter.

The Authority looks forward to a long-term, healthy relationship with ACP and to your response. Thank you.

CGS/f Enclosures

Kathleen Lowman, President Filiberto Tre,ifio III, Vice-President Rudy Galvan, Secretary-Treasurer Lupita Perez

r;Grel:~ r·. (;; s; )?;~i:: u ·~'-'-- ---;:__\ Caro Ja G. Serrato 1

Executive Director .J

(36!) 592-9323 Or (361) 692-0337 (C. C. line)

Fax: (361) 592-5965

Patsy A. Rodgers Dr. Alberto Ruiz Chuck Schultz Steven C. Vaughn Carola G. Serrato, Executive Director

Ms. Carola G. Setrato Executive Director South Texas Water Authority P.OBoxl701 Kingsville, Texas 783 64

Re: E;,.iended Warranty

Dear Ms. Serrato:

October 10, 2016

Associated Construction Pmtners, LTD ("ACP") will provide an extended warrant)' to South Texas Water Authority ("STW A") until November 3 0, 20 17 for costs for removal, reinstallation or gaining access thatmay be required to repair or replace Pumps #2 or #3 at Kingsville, should those pumps he defective in material or workmanship. Grundfos CBS, 1nc. has provided an extended warranty for defects in material and workmanship in those pumps for two years from the date of shipment (November, 2017), but such watrant)' does not cover the costs of removal, reinstallation or gaining access.

ACP Seller shall not be liable ifSTW A or others repair, replace or adjust equipment or parts without ACP's prior written approval and if that occurs, this warrant)' by ACP shall expire and ACP is relieved of any further obligation to STW A under this warrant)'.

Signed: --~--------Leighton Moore Associated Construction Partners, LTD 215 W Bandera Rd Ste. 114-461 Boerne TX 78006 210 218 7307 Mobile 210 698 8714 Office 210 698 8712 Fax [email protected]

ATTACHMENT 6

Joint Project with Nueces Water Supply Corporation- Driscoll PS Improvements

To: From: Date: Re:

Memorandum

South Texas Water Authority Board of Directors Carola G. Senato, Executive Director October 20, 2016 Joint Project with Nueces Water Supply Corporation- Pump Station Improvements at the Driscoll Pump Station

Background:

Enclosed is the most recent email correspondence related to this project. As you can see, there has been a considerable amount of communication in an attempt to wrap up this project. However, unless all ofthe applicable documents are made available, release of retainage may not be appropriate at this time.

Analysis:

It appears that efforts are being made to submit all of the necessary paperwork; however, it would be premature to release retainage without everything being in order.

Staff Reconm1endation:

Consider any request for final payment and release of retainage, provided all items have been properly addressed.

Board Action:

Contingent upon satisfactorily completing all punch list items and based on Mr. Christensen's recommendation, consider approval of any properly submitted requests for final payment and release of retainage.

Sulllmarization:

Staff continues to inquire ofHDR Engineering about the close out of this project. Enclosed for your review is staffs analysis of the breakdown in cost between STWA's share and the Nueces Water Supply Corporation's share.

DRISCOLL PUMP STATION IMPROVEMENTS JOINT PROJECT- STW A/NWSC

South Texas Water Authority 28.7564% Nueces Water Supply Corp. 71.2436%

CONTRACTOR STWA NWSC Mercer Controls Building Pumps Generator Slab $3,600.00 Chlorination Building Slab $3,200.00 Reconnect Generator Fuel Tank $1,200.00 Electrical Material $14,000.00 Electrical Labor $13,500.00 Motor Statter $4,500.00 Red Concrete for Electrical Conduit $2,500.00 Chlorine Ball Valve Insert $1,000.00 New Chlorine Lines $2,400.00 New Water Supply for Chlorine Building $1,000.00 Double Gate on North Fence $4,350.00 Building Extension Material $6,500.00 Building Extension Labor $6,500.00 Exhaust Fan and Curb $1,700.00 Piping Material $10,500.00 Piping Labor $16,350.00 Pump $7,700.00 Pump Pad $2,400.00 Pump Installation $3,600.00 0 & M Manuals $1,750.00 Startup Miscellaneous $6,750.00 CONTRACTED AMOUNT $115,000 $31,450.00 $83,550.00

Change Order #1- Chlorine Enclosure Relocate $1,265.00 Change Order #2- Relocate Chlorine Analyzer $500.00 Change Order #3- Pump Pressure Switch $4,438.00 Change Order #4- New Exhaust Fan $2,300.00 FINAL CONTRACTED TOTAL $35,515.00 $87,988.00

STWA NWSC ENGINEERING Engineering Engineering HDRJ Inc. (ner engineering agreement) nrorata share n:rorata share

Design $39,200.00 $19,496.83 $48,303.17 Bidding $ 9,600.00 Construction $19,000.00

MOBILIZATION STWA NWSC Mercer Controls Mobilization Mobilization

Bonds, Insurance & Mobilization nrorata share nrorata share $2,012.95 $4,987.05

TOTALS $57,024.78 $141,278.22

$123,503.00

$67,800.00

$7,000.00

$198,303.00

Carola Serrato

From: Sent: T.o:

Cc: Subject:

Sherrel, Adrian and Steve,

Christensen, Jason <Jason.Christensen@hdrin(.com> Wednesday, October 19, 2016 10:31 AM [email protected]; Adrian Garza ([email protected]); '[email protected]' 'Carola Serrato'; Singer, Lisa; Archer, Aaron D. STWA Driscoll PS: Final Pay Application

.)

We received the final pay application for Driscoll. It looks fine, but there are several other documents that need to accompany the final pay application, as required by the contract. They include:

• Final O&M manuals (separate email) • Record drawings (separate email) • Updated insurance certificate(si • Consent of surety to final payment • Release of liens or Contractor's affidavit of all bills paid

Please reference article 14.07 A of the General Conditions, Section 00700, for further description of these requirements. We will not recommend final payment to the STWA until acceptable copies of these items are received by HDR.

Thanks, Jason

1

~a~r~o~la~S~e~r~ra~t~o ................ .-.......................................................... ._

From: Sent:

Christensen, Jason <[email protected]> Wednesday, October 19, 2016 11:07 AM

To: 'Carola Serrato'; Sherrel Mercer Cc: Jacob Hinojosa; Singer, Lisa Subject: RE: video clip of check valve

Carola, Lisa Singer has sent the video clip to Sherrel and Adrian via slingshot.

Sherrel, Please share the video with the valve supplier and let us know their response.

Thanks, Jason

From: Carola Serrato [mailto:[email protected]] Sent: Friday, October 07, 2016 11:35 AM To: Christensen, Jason; Sherrel Mercer Cc: Jacob Hinojosa SUbject: video clip of check valve

Jason and Sherrel,

I tried emailing the video clip of the check valve slamming. But, I got undelivered mail messages from both your servers. Jason, it appears the file is too large. Sherrel, I don't know why it was rejected.

Carola

Carola G. Serrato Executive Director

South Texas Water Authority P.O. Box 1701 Kingsville, Texas 78364 [email protected] 361-592-9323 x12 361-592-5965 fax

1

Carola Serrato


Archer, Aaron D. <[email protected]> Thursday, October 20, 2016 12:06 PM [email protected]; Christensen, Jason; [email protected] [email protected]; [email protected]; Singer, Lisa RE: STWA Driscoll PS: Pump Alternator

It seems there is a misunderstanding of the scope of what we are asking for when requesting record drawings.

Record drawings are, at a minimum, the contractor's copy of the engineer's drawings with hand-entered revisions to capture any changes implemented as a result of field orders and CPRs issued during the project. Per General Conditions 6.12, the contractor shall maintain a set of record drawings to show any changes made during construction. Other items documenting changes (such as the motor start cabinet diagram and pump alternator diagram) should also be submitted with the set of record drawings.

Have you maintained a set of redlined drawings as described above, or are you suggesting there has been absolutely no changes to the issued-for-construction engineer's drawings?

Aaron

Aaron Archer, P.E. D 512.912.5183 M 512.587.0882

From: [email protected] [mailto:[email protected]] Sent: Thursday, October 20, 2016 11:46 AM To: Christensen, Jason; [email protected] Cc: [email protected]; [email protected]; Singer, Lisa; Archer, Aaron D. Subject: Re: STWA Driscoll PS: Pump Alternator

A separate document has been provided for the motor starter cabinet.

Sherrel Mercer

* * *

In a message dated 10/19/2016 10:51:58 A.M. Central Daylight Time, [email protected] writes:

Sherrel,

Call it what you want, but it only pertains to the pump alternator. We need marked up record drawings for the entire project.

Thanks,

Jason

From: ~1ERCERCONJROLS(Q)aol.com [mailto:[email protected]] Sent: Wednesday, October 19, 2016 10:45 AM To: Christensen, Jason; a.garza(Q)mercercontrols.com Cc: cserrato(G;stwa.org; s.gabrvsch!Wmercercontrols.com; Singer, Lisa; Archer, Aaron D. Subject: Re: STWA Driscoll PS: Pump Alternator

1

Jason, the referenced document is plainly marked "AS_BUILT" and contains the complete schematic, as well as all of the documents that contain specifications of all important components.

Please tell us what we are missing, other than the extra copy and the PDF on CD??

Mercer Controls/Sherrel Mercer

* * *

In a message dated 10/19/2016 10:31:29 A.M. Central Daylight Time, Jason [email protected] writes:

Sherrel and Adrian,

We received the attached document as an "as-built". This is an O&M manual, not an as-built.

Per O&M manual requirements in Section 01342, please provide HDR with two PDF copies on CD and one additional hard copy of this manual.

With respect to as-builts or record drawings, please reference Article 6.12 of the General Conditions, Section 00700. We need contractor mark-ups to the contract drawings, which reflect changes that occurred during construction.

We will not recommend final payment to the STWA until acceptable record drawings are received.

Thanks,

Jason

2

Carola Serrato


Sherrel and Adrian,

Christensen, Jason <[email protected]> Wednesday, October 19, 2016 10:31 AM [email protected]; Adrian Garza ([email protected]) 'Carola Serrato'; '[email protected]'; Singer, Lisa; Archer, Aaron D. STWA Driscoll PS: Pump Alternator Pump Alternator CPR 03.pdf

We received the attached document as an "as-builf'. This is an O&M manual, not an as-built.

Per O&M manual requirements in Section 01342, please provide HDR with two PDF copies on CD and one additional hard copy of this manual.

··With respect to as-builts or record drawings, please reference Article 6.12 of the General Conditions, Section 00700. We need contractor mark-ups to the contract drawings, which reflect changes that occurred during construction.

We will not recommend final payment to the STWA until acceptable record drawings are received.

Thanks, Jason

1

Carol a Serrato


Sherrel and Adrian,

Christensen, Jason <[email protected]> Wednesday, October 19, 2016 10:30 AM [email protected]; Adrian Garza ([email protected]) 'Carola Serrato'; '[email protected]'; Singer, Lisa; Archer, Aaron D. STWA Driscoll PS: Final O&M Manuals

I reviewed the final O&M manuals that were received by HDR on 9/29/16. They are acceptable. However, per Section 01342, Paragraphs 1.58.2 and 1.58.3, please provide HDR with two PDF copies on CD and one additional hard copy for each manual.

Thanks, Jason

1

ATTACHMENT 7

Special Meeting for HDR Repoti on Assessment of 42" Waterline

Memorandum

To: From:


Date: October 18,2016 Re: Special Meeting for HDR Engineering, Inc. (HDR) Presentation on 42" Line Assessment

Background:

Last Friday (October 141h), Aaron Archer (HDR), Richard Pousard (HDR) and I reviewed the Draft Technical Memorandum No. 2 and 42-Inch Pipeline Condition Assessment Repm1 during a conference call. You will recall this field investigation and report are part of the Bond projects, specifically Proposition I which included the relocation of the 42" waterline in the vicinity ofCR 36 and US Highway 77 as a result of the I-69 upgrades.

Analysis:

The conference call was extremely helpful since there were several items of concern regarding the draft report. In particular, there was little mention of the pipeline segment leaving the O.N. Stevens Water Treatment Plant which is under Up River Road/Leopard Street. In addition, I had numerous questions regarding recommendations related to the internal inspection of certain segments of the pipe and the cost effectiveness of proceeding in the outlined sequence of the recommendations. It was determined that alternative approaches should be considered given the limited amount of available dollars to (I) locate problem areas and (2) address or correct the problems. Additionally, it was decided given the complex nature of the report and number of subtopics to the repm1 that a special presentation meeting could prove extremely valuable in establishing a protocol for future studies, field investigations, field testing and upgrades to the cathodic protection system.


Consider setting a special meeting- either at the regular time or during the day- for HDR Engineering, Inc. to present its repm1 and discuss future effot1s to extend the life of the 42-inch waterline.

Board Action:

Determine whether to hold a special meeting devoted to the 42-inch line assessment and future endeavors.

Summarization:

Staff believes that this matter is of utmost importance and warrants a special meeting to review the information and discuss in detail a logical, economical and efficient manner in which to proceed.

ATTACHMENT 8

Allocation ofFY 14, 15 and 16 Pump Station Expenses

Memorandum

To: From:


Date: October 21,2016 Re: FY 14, FY 15 and FY 16 Pump Station Allocations

Background:

As discussed previously, when staff met with the Driscoll City Council and their interim City Administrator the subject of potential operation, maintenance, repair and replacement costs were of concern. I indicated that numerous years of information had been gathered and I would be willing to update the information for the most recent fiscal years. As repmted in recent Weekly Updates, I have completed that work and the information is enclosed for your review.

Analysis:

The summaries include a listing by month for each of STW A's seven (7) wholesale customers. The summaries also list any work to tanks/storage facilities as well as a cost of chemicals allocated on the basis of the 5-year running average volumes. I have also enclosed the City of Driscoll's past year of updated invoices which show their prorated share of electric costs which are based on volumes pumped fi·om the Driscoll Pump Station.


Staff believes another meeting with the Interim City Administrator and City Council is warranted in order to provide and review the enclosed information. Staff recommends contacting the City in writing with a follow-up phone call as necessaty to arrange a meeting or meetings.

Board Action:

Determine whether to authorize staff to provide this information to the City of Driscoll and meet with the Interim City Administrator and/or City Council.

Summarization:

Staff is attempting to provide information requested by a wholesale customer as a means of moving forward with negotiations on a long-term contract.

Repairs and Maintenance Costs Allocated to Wholesale Customer

FY 2014 AD· City BA • District BIWest DR·City Kingsville NWSC RWSC October $ $ 652.48 $ $ 142.89 $ 494.59 $ 1,650.19 $ $ 2,940.15 November $ 106.37 $ 109.86 $ 264.33 $ 113.43 $ 611.60 $ 596.71 $ 405.78 $ 2,208.08 December $ 104.27 $ 107.69 $ 43.99 $ 18.87 $ 1,168.78 $ 358.91 $ 67.53 $ 1,870.04 January $ 9.78 $ 195.57 $ 24.30 $ 10.43 $ 56.24 $ 169.30 $ 37.31 $ 502.94 February $ 62.27 $ 64.31 $ 24.57 $ 10.54 $ 56.85 $ 320.06 $ 37.72 $ 576.32 March $ $ $ $ $ $ 383.01 $ $ 383.01 April $ $ $ $ $ $ 1,476.45 $ $ 1,476.45 May $ 2,648.24 $ " $ $ 83.78 $ $ 6,926.27 $ $ 9,658.30 June $ 30.45 $ 31.45 $ 75.68 $ 32.47 $ 448.88 $ 4,933.41 $ 116.17 $ 5,668.52 July $ 17.51 $ 18.09 $ 12.52 $ 5.37 $ 28.97 $ 600.51 $ 19.22 $ 702.19 August $ 17.77 $ 4.64 $ 1,593.12 $ $ 23.39 $ 119.66 $ $ 1,758.57 September $ 1,123.41 $ 1,160.28 $ 11,093.28 $ 1,185.32 $ 6,391.39 $ 6,939.49 $ 8,906.03 $ 36,799.21

$ 4,120.08 $ 2,344.38 $ 13,131.79 $ 1,603.12 $ 9,280.68 $ 24,473.98 $ 9,589.76 $ 64,543.78

Tank Repairs and Inspections Allocated to Wholesale Customer

FY 2014 AD· City BA • District Bl West OR-City Kingsville NWSC RWSC October $ $ $ $ $ $ $ $ November $ $ $ $ $ $ $ $ December $ 161.24 $ 166.53 $ $ $ $ 2,692.23 $ $ 3,020.00 January $ 185.32 $ 284.99 $ $ 166.37 $ $ 1,010.93 $ $ 1,647.60 February $ 3,753.11 $ 3,876.27 $ $ $ $ 16,910.49 $ $ 24,539.87 March $ $ $ $ $ $ $ $ April $ $ $ $ $ $ $ $ May $ $ $ $ $ $ $ $ June $ $ $ $ $ " $ $ $ July $ $ $ $ $ $ $ $ August $ " $ $ $ $ $ $ $ September $ $ $ $ $ $ $ $

$ 4,099.66 $ 4,327.79 $ $ 166.37 $ $ 20,613.64 $ $ 29,207.47

Chemical Costs Allocated to Wholesale Customer

FY 2014 AD· City BA • District BIWest DR· City Kingsville NWSC RWSC

All Months $ 2,611.81 $ 2,697.52 $ 6,490.25 $ 2,784.99 $ 15,016.98 $ 12,378.67 $ 9,963.39 $ 51,943.62 $51,943.62

Total Allocated Costs to Wholesales Customers· Repairs and Chemicals

FY2014 AD· City SAw District BIWest DR·City Kingsville NWSC RWSC All Months $ 10,831.55 $ 9,369.70 $19,622.04 $ 4,554.48 $ 24,297.65 $ 57,466.30 $ 19,553.15 $ 145,694.87


FY 2015 AD- City BA - District Bl West DR- City Kingsville NWSC RWSC October $ 749.43 $ 785.25 $ 1,582.48 $ 673.02 $ 3,609.89 $ 3,545.82 $ 2,456.57 $ 13,402.47 November $ 16.27 $ 107.43 $ $ 467.84 $ 114.95 $ 249.61 $ $ 956.10 December $ 1,332.Dl $ 3,446.60 $ 415.92 $ 1,939.17 $ 948.78 $ 6,186.65 $ 645.66 $ 14,914.80 January $ 315.58 $ 330.67 $ 131.09 $ 30.11 $ 161.51 $ 994.29 $ 109.91 $ 2,073.15 February $ 1,237.76 $ 76.09 $ 179.58 $ 76.38 $ 598.45 $ 1,325.55 $ 278.78 $ 3,772.59 March $ 366.99 $ 414.38 $ 819.40 $ 379.16 $ 1,869.18 $ 1,810.47 $ 1,271.99 $ 6,931.57 April $ 131.41 $ 736.72 $ 324.97 $ 287.27 $ 741.30 $ 1,112.66 $ 504.46 $ 3,838.78 May $ 351.70 $ 240.39 $ 242.99 $ 184.09 $ 554.29 $ 1,037.21 $ 377.20 $ 2,987.86 June $ 166.24 $ 155.69 $ $ 23.88 $ $ 531.01 $ $ 876.82

July $ 768.59 $ 1,125.57 $ 401.10 $ 1,457.70 $ 914.97 $ 4,000.93 $ 622.65 $ 9,291.52 August $ 132.09 $ 2,550.56 $ 326.66 $ 169.62 $ 745.16 $ 2,483.71 $ 507.09 $ 6,914.90 September $ 519.95 $ 3,238.66 $ 1,285.81 $ 546.85 $ 2,933.14 $ 8,025.55 $ 1,996.03 $ 18,545.99

$ 6,088.03 $ 13,207.98 $ 5,710.00 $ 6,235.08 $ 13,191.63 $ 31,303.48 $ 8,770.34 $ 84,506.55


FY2015 AD -City BA- District Bl West OR-City Kingsville NWSC RWSC October $ 6,400.30 $ 5,193.73 $ $ $ $ 8,795.97 $ $ 20,390.00 November $ $ $ $ $ $ $ $ December $ $ 23.97 $ $ 398.34 $ $ 155.51 $ $ 577.82 January $ 180.33 $ 283.74 $ $ 166.69 $ $ 969.24 $ $ 1,600.00

February $ $ $ $ $ $ $ $ March $ $ $ $ - $ $ $ $ April $ $ $ $ $ $ $ $ May $ $ $ $ $ 300.00 $ $ $ 300.00

June $ $ $ $ $ $ $ $ July $ $ $ $ $ $ $ $ August $ $ $ $ $ $ $ $ September $ - $ - $ $ $ $ $ $

$ 6,580.63 $ 5,501.44 $ - $ 565.03 $ 300.00 $ 9,920.72 $ - $ 22,867.82


FY 2015 AD- City BA - District Bl West DR- City Kingsville NWSC RWSC

All Months $ 2,542.87 $ 2,664.39 $ 6,288.44 $ 2,674.42 $ 14,344.93 $ 12,696.63 $ 9,761.86 $ 50,973.54 $50,973.54

Total Allocated Costs to Wholesales Customers- Repairs and Chemicals

FY 2015 AD- City BA - District BIWest DR- City Kingsville NWSC RWSC All Months $ 15,211.53 $ 21,373.81 $11,998.44 $ 9,474.54 $ 27,836.56 $ 53,920.82 $ 18,532.20 $ 158,347.91


FY2015 AD-City BA - District BIWest DR- City Kingsville NWSC RWSC October $ 58.19 $ 1,859.90 $ 101.96 $ 57.04 $ 220.27 $ 4,696.11 $ 161.20 $ 7,154.68 November $ 23.75 $ 23.91 $ 57.62 $ 25.04 $ 5,782.24 $ 373.99 $ 348.66 $ 6,635.22 December $ 340.71 $ 564.38 $ 627.69 $ 258.49 $ 1,285.33 $ 1,576.14 $ 940.62 $ 5,593.36 January $ 122.06 $ 126.59 $ 187.68 $ 151.85 $ 654.93 $ 2,087.46 $ 136.07 $ 3,466.64 February $ 65.33 $ 65.77 $ 145.25 $ 63.11 $ 313.82 $ 488.37 $ 229.66 $ 1,371.31 March $ 445.27 $ 509.90 $ 29.65 $ 1,164.64 $ 13,444.29 $ 2,658.65 $ 46.88 $ 18,299.29 April $ 168.48 $ 350.72 $ 304.42 $ 132.27 $ 657.70 $ 807.22 $ 481.31 $ 2,902.11 May $ 860.60 $ 1,373.80 $ 255.19 $ 110.87 $ 671.36 $ 3,394.44 $ 403.47 $ 7,069.74 June $ 551.70 $ 617.56 $ 13.63 $ 5.92 $ 29.45 $ 1,224.50 $ 21.55 $ 2,464.31 July $ 130.31 $ 131.18 $ 316.11 $ 137.35 $ 682.95 $ 1,891.03 $ 499.79 $ 3,788.72 August $ 638.38 $ 653.36 $ 3,129.73 $ 111.79 $ 389.04 $ 3,171.39 $ 284.70 $ 8,378.40 September $ 951.62 $ 1,414.11 $ 166.94 $ 72.53 $ 360.67 $ 5,574.36 $ 263.95 $ 8,804.18

$ 4,356.41 $ 7,691.18 $ 5,335.87 $ 2,290.91 $ 24,492.05 $ 27,943.67 $ 3,817.87 $ 75,927.96


FY2015 AD- City BA- District Bl West OR-City Kingsville NWSC RWSC October $ $ $ $ $ $ $ $ November $ $ $ $ $ $ $ $ December $ $ $ $ $ $ $ $ January $ 263.42 $ 127.11 $ $ 1,678.81 $ $ 1,043.78 $ - $ 3,113.12 February $ $ $ $ $ $ - $ $ March $ $ $ $ $ $ $ $ April $ - $ $ $ $ $ $ $ May $ $ $ $ $ $ $ $ June $ - $ $ $ $ $ $ $ July $ $ $ $ $ $ $ $ August $ $ $ $ $ $ $ $ September $ $ $ $ $ $ $ $

$ 263.42 $ 127.11 $ - $ 1,678.81 $ - $ 1,043.78 $ $ 3,113.12


FY2015 AD- City BA - District BIWest OR-City Kingsville NWSC RWSC

All Months $ 2,665.94 $ 2,683.67 $ 6,466.89 $ 2,809.78 $ 13,971.63 $ 13,068.06 $ 10,224.67 $ 51,890.65 $51,890.65

Total Allocated Costs to Wholesales Customers- Repairs and Chemicals

FY2015 AD- City BA - District BIWest OR-City Kingsville NWSC RW5C All Months $ 7,285.78 $ 10,501.96 $ 11,802.76 $ 6,779.51 $ 38,463.69 $ 42,055.50 $ 14,042.54 $ 130,931.73

·~TWA SOUTH TEXAS WATER AUTHORITY

815-118

City of Driscoll P.O. Box 178 Driscoll, Texas 78351

Usage

Current Reading: Previous Reading:

ADJUSTED INVOICE

10/1/2015 9/1/2015

1167328 1124776

Total Water Usage for Period 9/1/2015 to 10/1/2015 Adjusted Total Water Usage- fv1eter registering at 110%

Less adjustment for pass-through*

Net Usage for current billing period

P. 0. BOX 1701


October 13, 2015 Revised on January 18, 2016

4,255,200 3,868,364

(919,000)

2,949,364

Contract Year to Date Usage-----------------. 29,978,667 gallons

· . Water Rate (per thousand gallons)

Cost of Water from CitY of Corpus Christi (Total charges divided by total consumption): Total charges $95,160.32 Total consumption 40,600

Cost of Water from City of Corpus Christi $2.343850

STWA Handling Charge Corpus Christi Water Cost

2,949,364 g@ 2,949,364 g @

$ OA26386 $ 2.343850

Water Rate for current billing period $ 2.770236

Cost of Water

2,949,364 gallons@ $2.770236 per thousand gallons

= =

$ $

$

Amount Due 1,257.57 6,912.87

8,170.43

Less NWSC Pass-through charges @ 0.05 per thousand gallons (45.95)

Total Due for Water Usage for period 9/1/2015 to 10/1/2015

Kathleen Lowman, President Filiberto Treviiio III, Vice-President Rudy Galvan, Secretary. Treasurer Lupita Perez

Net Water Revenue - STWA

Handling Charge less Pumping Cost = Net Revenue

$1,257.57 $608.97 $648.60

Payment Due within 30 days of Receipt of Invoice Thank You I

(361) 592-9323 Or (361r692-0337 (C.C. line)

Fax:· (361) 592-5965

8,124.481

Patsy A. Rodgers Dr. Alberto RuiL Chu~kSchultz Steven C. Vaughn Carola G. Serrato, Executive Director

-sTWA SOUTH TEXAS WATER AUTHORITY

S15 -136


Usage

Current Reading: Previous· Reading:

11/1/2015 10/1/2015

206042 167328

Total Water Usage for Period 10/1/2015 to 11/1/2015 Adjusted Tot<JI V>Jater Usage - Meter registering at 11 0%



November 12, 2015 Revised on January18, 2016

3,871,400 3,519,455

(627-,000)

2,892,455

Contract Year to Date Usage-----------------· 3,244,400 gallons

Water Rate (per thousand gallons)

Cost of Water from City of Corpus Christi (Total charges divided by total consumption): Total charges $96,089.92 Total consumption 41,000

C.ost of Water from City of Corpus Christi $2.343657

STWA Handling Charge Corpus Christi Water Cost

2,892,455 g@ $ 0.426386 2,892,455 g @ $ 2.343657

Water Rate for current billing period · $ 2.770043

Cost of Water

2,892,455 gallons@ $2.770043 per thousand gallons

Amount Due = $ 1,233.30 = $ 6,778.92

$ 8,012.22

Less Nyvsc Pass-throuQh charges@ 0.05 per thousand gallons (31.35)

Total Due for Water Usage for period 10/1/2015 to 11/1/2015

Kathleen Lowman, President Filiberto Trevino III, Vice-President Rudy Galvan, Secretary· Treasurer Lupita Perez



$1,233.30 $523.69 $709.62

Payment Due within 30 days of Receipt of Invoice Thank You!

(361) 592-9323 Or (361) 692-0337 (C. C. line)

Fax: (361) 592-5965

7,980.871

Patsy A. Rodgers Dr. Alberto Ruiz Chuck Schultz Steven C. Vaughn Carola G. Serrato, Executive Director

BTWA SOUTH TEXAS WATER AUTHORITY

P. 0. BOX 1701

***REVISED INVOICE - FOR INFORMATION ONLY -l5ff~~f.li;XAS 78364-1701

S15 - 147

City of Driscoll P.O. Box 178_ Driscoll, Texas 78351

Usage


12/1/2015 11/1/2015

240535 206042

Total Water Usage for Period 11/1/2015 to 12/1/2015 Adjusted Total Water Usage - Meter registering at 11 0%


-Net Usage for current billing period

December 9, 2015 Revised on January 18,2016

3,449,300 3,135,727 (579,000)

2,556,727

Contract Year to Date Usage - - - - - - - - - - - - - - - - '"{- \.11 . 00 gallons A~- ~=-.-J

Water Rate (per thousand gallons) l,_~r 6,_,._ ... --

Cost of Water from City of Corpus Chriqtj (T~"PChilfges divided by total consumption): Total charges $97,4~32\~--Total consumption ~:- 4f;_OOj:lf

Cost of Water from City of Corgt~ ciiri§fr'< · $2.343373 ~ ""'~ .-

T

STWA Handling Charg_e \ ~,556,727 g@ Corpus Christi Wateli~Gos'f">, J 2,556,727 g@ Water Rate for cutr !< ling~p;riod

' -....

Cost of Water -4~;_c:.~~"' .r

$ 0.426386 $ 2.343373

$ 2.769759

gallons@ $2.769759 per thousand gallons

Amount Due = $ 1,090.15 = $ 5,991.37

$ 7,081.52

A(~ ywsc Pass-through charges@ 0.05 per thousand gallons (28.95)

" ·- """--~or Water. Usage for period 11/1/2015 to 12/1/2015

Kathleen Lov.man, President FWberto Tr.eriiio ill, Vke-President Rudy Galvan, Secretary-Treasurer

-Lupita Perez c.



$1,090.15 $487.05 $603.10


(361) 592-9323 Or (361) 692-0337 (C.C.!ine)

Fax: '(361) 592-5965

7,052.571

Patsy A. Rodgers D(. Alberto Ruiz Steven C. Vaughn Carola G. Serrato, Executive Director


P. 0. BOX 1701

"''"'REVtSELJ lNVOtCE - t-UK tNi-dRMAi tuN ONLY - W&WJi.¥£x<\s 78364-1701

816 - 003


Usage


1/1/2016 12/1/2015

276280 240535

January 18, 2016

Total Water Usage for Period 12/1/2015 to . 1/1/2016 Adju-sted Total Water Usage- Meter registering at 11o'%*

Less adjustment for pass-through

3,574,500

' (-' ____ 3....~,i~:....:ci::::-~J..::::~:::.:6~'-L..)

-~"-Net Usage for current billing period 2,549,545

Contract Year to Date Usage - - - - - - - - - - - - - -.- - - ; O.<r gallons _.§_


Cost of Water from City of Corpus ~hristi (~tal~.£_harges divided by total consumption): Total charges $81,~,64.61'/ ~v Total consumption :};f,~,50 \.-

Cost of Water from City of Corpus~.~' ...... ~ '-- ~ -~-

STWA Handling Charge[ · ~ ,549,545 g@ Corpus Christi Water co~ . 72,549,545 g @

Water Rate for curr£t~llfnf,.,petiod f ~f--

Cost of Water

$2.356845

$ 0.426386 $ 2:356845

$ 2.783231

2,549,54 )"allons@ $2.783231 per thousand gallons

= =

s NWS · Pass-through charges@ 0.05 per thousand gallons

Total D E

·terusage for period 12/1/2015 to 1/1/2016

lL ~ . stment for over-registering meter

~ffite fg}Water Usage for period after adjustment ..-=-- -~



$1,087.09 $677.42 $409.67

Payment Due within 30 days of Receipt of Invoice Thank You! Kathleen Lowman, President

Filiboh'bii~viiSII!le'ltla<i~ adjusted. See attached explanation. Rudy Galvan, Secretary-Treasurer Lupita Perez - - (361) 592-9323 Or (361) 692-0337 (C.C._Iine)

Fax: (361) 592-5965

$ $

$

$

$

Amount Due 1,087.09 6,008.88

7,095.97 (35.00)

7,060.97 (5,083.20) 1,977.78

Patsy A. Rodgers Dr. Alberto Ruiz Steven C. Vaughn Carola G. Serrato, Exetutive Director


P. 0. BOX 1701

***REVISED INVOICE -FOR INFORMATION ONLY -lOlSQIIUPWA.'\'E}('AS 78364-1701

S16- 020


U13age


2/1/2016 . 1/1/2016

Total Water Usag.e for Period 1/1/2016 Less adjustment for pass-through*


to

312421 276280

-2/1/2016

-- -==::..

r~~'~ Contract Year to Date Usage-----------------,; \! 1, 10'\827 gallons

~ ~ 1


February 17,2016

Cost of Water from City of Corpus Chri~ti ('Th!a)sj)__grges divided by total consumption): Total charges $75,'&;jl.6('( " Total consumption _ = 3~")t;~Y

Cost of Water from City of Corpus ~l r $2.314230 ~-~

STWA Handling Charge{ Corpus Christi Wate1-~-o"~

# . ~ -

,103,100 g@ 3, 1 03,100 g @

$ 0.426386 $ 2.314230

Water Rate for CI.Jfi'e!!J.!1lUiin91}8riod $ 2.740616 -..._ ~-

Cost of Water

lgallons@ $2.740616 per thousand gallons

= =

SC Pass-through charges @ 0.05 per thousand gallons

Water Usage for period 1/1/2016 to 2/1/2016

Net Water Revenue- STWA ·


$1,323.12 $510.58 $812.54


Kathltql Lowman, Pres\!! ~Pi .._ _ , Filih<rt! @l§,l;l~li!JiV;I!'I'iidlU<ii\11 adJusted. See attached explanation. Rudy Galvan, Secretary-Treasurer LupitaPeru (361) 592-9323 Or (361) 692-0337 (C.C.I(ne)

Fax: (361) 592-5965

$ $

$

Amount Due 1,323.12 7,181.29

8,504.41

(25.55)

8,478.861

Patsy A. Rodgers Dr. Alberto Ruiz Steven C. Vaughn Carola G. Serrato, Executive Director


P. 0. BOX 1701 --- -·- -

***REVISED INVOICE- FOR INFORMATION ONLY -~~~s 78364-1701

S16 - 031


Usage


3/1/2016 2/1/2016

Total Water Usage for Period 2/1/2016 to Less adjustment for pass,through*


Contract Year to Date Usage -- ---------------, §..

348492 312421

3/1/2016

.t~(:· -~~,~~~---

March 11,2016

A_

3,607,100 (591 ,000)

3,016,100


".f.-.,_~ '-·· r . Cost of Water from City of Corpus Christi (TQfal,,eharges divided by total consumption):

Total charges $90,$.a6.8il/·'"f~ "'"..._.,.__ .,

Total consumption ~- 3()~~4!20)-· Cost of Water from City of Corpus~s!i';; ·r

~.~·(~~=:~~, STWA Handling Charge[ "'.,~, "\,.3,016,100 g@ Corpus Christi Water ,C,o\t 1 .-3,016,100 g @.

Water Rate for curr.efJt bjJiTfi§,~eitod . .4.. <"'" .

$2.310492

$ 0.426386 $ 2.310492

$ 2.736878

Cost of Water "'F:;::~~;~t-.~'7 3,016,;~":-gallons@

~-'g-... ' """? -$2.736878 per thousand gallons

£ """" --~ --:

= =

0.05 per thousand gallons

2/1/2016 to 3/1/2016



$1,286.02 $551.94 $734.08

Payment Due within 30 days of Receipt of Invoice · Thank You!

~:~r~~~~l~Jt~etjfP adjusted. See attached explanation. RUdy Galvan, Secretary-Treasurer Lupita Perez (361) 592-9323 Or (361) 692-0337· (C. C. line)

Fax: (361) 592-5965

$ $

$

Amount Due 1,286.02 6,968.67

8,254.70

(29.55)

8,225.151

Patsy A. Rodgers Dr. AJberto Ruiz Steven c:vaughn Carola G. Serrato, Executiye Diredor


P. 0. BOX 1701

***REVISED INVOICE - FOR INFORMATION ONLy -F0W~'i::¥fj§;t..~8 78364-1701

S1.6 - 042


Usage


Total Water Usage for Period

41112016 311/2016

3/1/2016 to

390901' 348492

4/1/2016

April11, 2016

Less adjustment for pass-through "y 4,240,900

~- ,' ___ ___.(.::..61;_;,7-'-', 0..::.00::..!..) -4-..,t._ _..:-=

Net Usage for current billing period -=-~---- -,....._ __ 3,623,900

ls~'·'~--Contract Year to Date Usage - - - - - • - - - - - - - - - -.~% \z, 7 4l8i7 gallons

-~<-- ? """"-""-- ·--~

Water Rate (per thousand gallons) l~,_'"'Y' Cost of Water from City of Corpus Chri§!i (~~T~arges divided by total consumption):

Total charges $74,"l;1ii,40:.'". · . Total consumption -~~ 32,~g' Cost of Water from City ofCorp.u~ Ch>[s'fii', · $2.314471 .. ~-- y

r STWA Handling Cha~ge~ Corpus Christi Wat~.rfCos~_ j 3,623,900 g @

Water Rate for curi?AJ;<tim~9·-p~riod . "\.,._ "%.

$ 0.426386 . $ 2.314471

$ 2.740857

A~ -(~~;~.,_ 7

Cost of Water "'>-':""y

:?.,64!,900 Y gallons @ .. "" . $2.7 40857 per thousand gallons

= =

$ $

$

Amount Due 1,545.18 8,387.41

E~~

_f~.l - ~?~~sc Pass-through charges @ y

0.05 per thousand gallons · (30.85)

JiotaUme.to x--- Water Usage for period 3/112016 to 4/1/2016.

~~

Kathleen Louman, President Filiberto Trevilio ill, Vice-President Rudy Galvan, Secretary-Treasurer Lupita Perez ·



$1,545.18 $709.34 $835.84


(361) 592-9323 Or (361) 692-0337 (C. C. line)

Fax: (361) 592-5965

9,901.741

Patsy A. Rodgers, Dr. Alberto Ruiz Steven C. Valigbn Carola G. Serrato, Executive Director


P. 0. BOX 1701

***REVISED INVOICE- FOR INFORMATION ONLY- OO!'I~~TEXAS 78364-1701

S16 - 059


Usage


Total Water Usage for Period ·Less adjustment for pass-through



5/1/2016 4/1/2016

4/1/2016 to

437170 390901

5/1/2016

·--> ~:..._.,.

May 11, 2016

4,626,900 (1,047,000)

3,579,900

Cost of Water from City of Corpus Christi (Tdi~-9h.'!me~ divided by total consumption): Total charges $97 ,4~8.20 '( --Total consumption ~-"· __ 4i,?og_ ·.,.

Cost of Water from City of Corpll~pnr~li'~ -,. $2.309199 ,::::-[ ~~-~ "'~;c·

-"-~ o·'---- •• ""' __ ,-~--~-"",_

STWA Handling Charge £ --~~-;_·-zc_3,579,900 g @ Corpus Christi Water Gosl;c '\ 3,579,900 g @

Water Rate for CUIJe~l\lilli;-if'Peiiod =._ ~~-

$ 0.426386 $ 2.309199

$ 2.735585

$2.735585 per thousand gallons

Amount Due

= $ 1,526.42 $ 8,266.70

$ 9,793.12

(52.35) .~-"'o.~i'El~~'NWSC Pass-through charges @ 0.05 per thousand gallons { ~~ }~_,-

T)?j_:IL~tv2J;Water Usage for period 4/1/2016 to 5/1/2016 I $ 9,740.771

Kathleen Lowman, President Filiberto Trevino III, Vice-President Rudy Galvan, Secretary-Treasurer Lupita Perez



$1,526.42 $634.53 $891.89


(361) 592-9323 Or (361) 692-0337 (C. C. line)

Fax: (361) 592-5965

Patsy A. Rodgers Dr. Alberlo Rufz: Chuck Schultz Steven C. Vaughn Carola G. Serrato, Executh·eDirector


P. 0. BOX 1701

***REVISED INVOICE - FOR INFORMATION ONLY- i!)@~~.t(l(llEKAS 78364-1701

816-070


Usage


Total Water Usage for Period Less adjustment for pass-through



6/112016 511/2016

51112016 to

483892 437170

6/t/2016

June 10, 2016

3,781,200

Cost of Water from City of Corpus Christi, (T~1'9ilaJ~:fs·divided by total consumption): Total charges $92,635.00 '; · Total consumption _.,_ 40\]0o _·'?

Cost of Water from City of Corpu:;;_ cfiri$ti;,.1_ "t .~-( --~ "'~~ ~

ry...~~:..~:::-_&-"'.

STWA Handling Charge i "'u;781,200 g@ Corpus Christi Water Qosl~.. ' 3,781,200 g@ Water Rate for curreht_billi~"perlod

.""'", -~

Cost of Water .-=-~~~~~~~- ·y,7 J~~-- ~

"""·

$2.310100

$ 0.426386 $ 2.310100 $ 2.736486

3,~j.200''%%_~~11ons@ $2.736486 per thousand gallons o---"'¥:~ 7

= =

•. -.:1'-es~'NWSC Pass-through charges @ I ~.~3$_ ~- .

0.05 per thousand gallons

TQtitl JO!l.f:~~~er Usage for period 5/1/2016 to 6/1/2016 --=~~ ffh_ ~~....,

'f-&

Kathleen Lowman, President . Filiberto Treviiio III, Vice-President Rudy Galvan, Secretary~ Treasurer Lupita Perez



$1,612.25 $585.91

$1,026.34


(361) 592-9323 Or (361) 692-0337 (C.C.line)

Fax: (361) 592-5965

$ $

$

Amount Due 1,612.25 8,734.95

10,347.20

(44.55)

10,302.651

Patsy A. Rodgers Dr, Alberto Ruiz Chuck Schultz Steven C. Vaughn Carola G. Serrato, Executive Director


----- P. 0. BOX i701

***REVISED INVOICE -FOR INFORMATION ONLY- ~N~ftiYJ'EKAS 78364-1701

S16 - 08'1


Usage


7/1/2016 6/1/2016

530992 483892

Total Water Usage for Period 6/1/2016 to 7/1/2016 Less adjustment for pass-through


Contract Year to Date Usage - - - - - - - - - - - - - - - -


July 7, 2016

4,710,000 (1,341,000)

3,369,000

-Cost of Water from City of Corpus Total charges

divided by total consumption):

Total consumption Cost of Water from City of $2.309138

Cost of Water

Kathleen Lowman, President Filiberto Trevino III, Vice-President Rudy Galvan, Secretary-Treasurer Lupit:i: Perez

$ 0.426386 $ 2.309138 $ 2.735524


6/1/2016 to 7/1/2016



$1,436.49 $657.63 $778.86


(361) 592-9323 Or (361) 692-0337 (C.C.Iine)

Fax: (361) 592-5965

= =

Amount Due $ 1,436.49 $ 7,779.49

$ 9,215.98

(67.05)

9,148.93l

Patsy A. Rodgers Dr. Alberto Ruiz Chuck Schultz Steven C. Vaughn Carola G. Serrato, Executi\·e Director

~WA SOUTH TEXAS WATER AUTHORITY

P. 0. BOX 1701

***REVISED INVOICE· FOR INFORMATION ONLY. ~~p~\f·liXAS 78364-1701

S16 • 098


Usage


8/1/2016 7/1/2016

600189 530992



Contract Year to Date Usage----------------,.;;,;_ - ~~-


August 16, 2016 .

6,919,700 (1,761,000)

5,158,700

Cost of Water from City of Corpus Chrjsti (tiitt];g!)_<3rges divided by total consumption): Total charges $14tfi§ll_o.2o)f'- · Total consumption ~~6~-Q~>

Cost of Water from City of Corm:i_§~C11H®~,-~

STWA Handling Charge~~~~;;~:.~OO g @ Corpus Christi Wat<=p~os\t.""~-~'W 5,158,700 g@ Water Rate for <;J.JfriTi&ffilling~p~riod -

""=~.~~

Cost of Water

$2.303484

$ 0.426386 $ 2.303484 $ 2.729870

= $ $

Amount Due 2,199.60

11,882.98

1:4~,700~~ gallons@ $2.729870 per thousand gallons $

c.ccc~~~~~i\JWSC Pass-through charges @ 0.05 per thousand gallons (88.05)

14,082.58

if~~:-~~~~~ . T~tafq~;Ji~'r Water Usage for period 7/1/2016 to 8/1/2016 I $ 13,994.53 I ~:#l~--~~--====~~========~====u ~.....:_--:..;....;__s

Kathleen Lowman, President Filiberto Trevino III, Vice-President Rudy Galvan, Secretary-Treasurer Lupita Perez

Net Water Revenue • STWA


$2,199.60 $755.80

$1,443.80'


(361] 592-9323 Or (361) 692-0337 (C. C. line)

Fax: (361) 592-5965

Patsy A. Rodger.; Dr. Alberto Ruiz Chuck Schultz Steven C; Vaughn Carola G. Ser'rato, Executive Director

--sTWA SOUTH TEXAS WATER AUTHORITY

P. 0. BOX 1701

***REVISED INVOICE- FOR INFORMATION ONLY- OO"'i<:t~E>XAS 78364-1701

816- 109


Usage


9/1/2016 8/1/2016

657303 600189



Contract Year to Date Usage - - - - - - - - - - - - - - - -


Cost of Water from City of Corpus Total charges $1 Total consumption

Cost of Water from City of

Cost of Water

$2.304250

$ 0.426386 $ 2.304250 $ 2.730636


= =

.It~ 0.05 per thousand gallons

"'E

I2i'al'ltu '·~ Water Usage for period

~~?.('.~~ . 8/1/2016 to 9/1/2016

· Net Water Revenue- STWA

Kathleen Lowman, President Filiberto Treviiio III, Vice-President Rudy Galvan, Secretary-Treasurer Lupita Perez


$1,900.15 $732.96

$1,167.18


(361) 592-9323 Or (361) 692-0337 (C.C.Iine) Fax: (361) 592-5965

September 14,2016

5,711,400 (1 ,255,000)

4,456,400

Amount Due $ 1,900.15 $ 10,268.66

$ 12,168.81

(62.75)

12,106.061

Patsy A. Rodgers Dr. Alberto Ruiz Chuck Scbu\t7. Steven C. Vaughn Carola G. Serrato, Executive Director

ATTACHMENT 9

Bids for Mini-Excavator

To: From: Date: Re:

Memorandum

South Texas Water Authority Board of Directors Carola G. Serrato, Executive Director October 20, 20 16 Purchase of Mini-Excavator

Background:

As the Board is aware, during the FY 2017 budget planning, staff presented a request for the purchase of a mini-excavator. The final budget adopted by the Board included funding for this equipment. Enclosed are two (2) bids for that piece of equipment. It should be noted that the NPE price is based on the Houston- Galveston Area Council, which is similar to the BuyBoard Cooperative purchasing entity.

Analysis:

You will notice that there is quite a price difference between the WPI price of$65,000 and the NPE price of$40,013, excluding the sales tax. This price also includes a counter weight at a cost of$1,016, which management believes is an important safety feature. This is as a direct result of the HGAC pricing. The FY 2017 budget included the following:


Capital Outlay Mini Excavator JD Mower Booster LAS I 6-foot trailer 12-foot trailer 16" Stihl Saw

$39,000 $7,200

$130,000 $4,525 $2,500 $1.550

$184,775

Approve the purchase of the Case CX36B including the counter weight in the amount of $40,013 from Nueces Power and Equipment.

Board Action:

Determine whether to approve the purchase of the Case CX36B including the counter weight in the amount of $40,0 I 3.

Summarization:

Field managers indicate that the use of this equipment will be particularly helpful in tight spaces and transpmtation of the equipment will also be easier. In addition, this will free up the use of the backhoe for other types of repairs and still allow a crew to work on smaller jobs.

NUECES POWER EQUIPMENT CC

P.O. BOX 4789 CORPUS CHRISTl, TX 78469 (361) 289-0066

To: SOUTH TEXAS WATER AUTHORITY P. 0. BOX 1701 KINGSVILLE, AB 78363 (512) 592-9323 Customer#: RSOU11

Quote Items:

Make Model Description

Case CX36B MINI EXCAVATOR

2016 MODEL W/FULL MAHINE WARR

11.8" RUBBER TRACKS

SHORT ARM 4'4"

24"BUCKET

ROTATING BEACON

ADDITIONAL COUNTERWEIGHT

SALES TAXES IF APPLICABLE

Special Instructions:

SUBJECT TO AVAILABILITY AND SALES TAXES

Serial Number

NFTN66641

THIS UNIT IS IN STOCK. PRICING MAY VARY IF NEW UNIT HAS TO BE ORDERED.

REFER TO THE SPEC SHEET ATTACHED FOR SPECIFIC DATA

Terms and Conditions:

'Signature:

Created: 10/11/2016 Printed 10/11/2016

Created: Expiration: Prepared By:

Phone#

October 11, 2016 November 15, 2016 RUBEN PENA, JR

(361) 739-2630

Unit# Quantltv Price Ext. Price

1 $38,997.00 $38,997.00

~

Total Units: Sales Tax:

Total Amount: Down Payment:

Amount Due:

II Date of Acceptance:

$3,373.49

~oo!3. oo

$43,386.49 $0.00

$43,386.49 $0.00

$43,386.49

Quotation Number: ROP7006265.03 Page Number: 1

I

CASE -MX3B 04

~--~·--, -.' ~- . ' ~. ' J; ~- ••

Standard Equipment

ENGINE•

3TNV88A-BJPYB 4 Cycle 3 cyl. water-cooled, direct injection diesel

Tier 4 Final Glow plugs Horsepower:

Net (SA&) 23.1 HP (17,2 Kw) at 2,400 RPM

Dry type air cleaner One touch deceleration Hinged engine cover

OPERATOR PROTECTIVE STRUCTURB:

ROPS/FOPS: three post canopy design with seat belt

Tilt up control panel with two lever control for boom, arm, bucket and swingi pilot-operated wrist controls and foot pedals

Gauges: Engine Coolant Temperature and Fuel Level

Indicator Lights: Engine oil pressure, coolant temperature, battery charge, low fuel warning, engine air :filter warning, and high travel speed

Foot pedal swing tov;er control

ELECTRICAL: 12 Volt electrical startirtg system

includes heavy-duty battery and starting motor

BLADE: Hydraulically controlled do~er blade

UNDERCARRIAGE ,

Rubbex tracks Track pad width: 11.8 11 (300 mm) Track length: 7 1 1" {2150 mm) Gradeability: 30D Ground Clearance: 11.8 11 (300 mm)

TRACK DRIVE: ~vo speed travel: Fully hydrostatic drive system Track tension adjustment

(grease type} Sealed and lubricated track rollers

HYDRAUfriCS:

Control pattern selector valve Hydraulic oil filter Total Auxiliary FloN: 2 x 10.1 gpm

(2 x 38.4 L/min} Main Pump: 3,336 PSl Nibbler and breaker auxiliary valve and

piping Large capacity hydraulic oil cooler Proportional auxiliary hydraulic flmt

control

UPPER•

Standard Arm: 4 1 6 11 {1.37 m)

Optional Long Arm: 5 1 6 11 (1.6'7 m)

Zero Tail Swing Swing lock swing brake: disc type, spring applied

and hydraulically released

}ofiSCELLANBOUS:

operating weight: Canopy - 8,212 lbs. {3725 kg} Cab - 8 ~ 554 lbs. (3880 kg) Counterweght - 55~ lbs. (250 kg}

ro;rmto BY SOW110.'/S

Quotation To: SOUTH TEXAS WATER AUTHORITY PO BOX 1701 KINGSVILLE TX 78364 Attn: Email:

Waukesha- Pearce Industries, Inc. 5226/nterstate 1-37 Corpus Christi Texas 78469-9267 Construction - Mining - Recycling Machinery Solutions

IVIVIV.wpi.com Phone: 1-888-458-0448 Fax: 361-882-2416

Equipment Quotation (TMs quotation is subject to terms and conditions)

Quote#: QU0-05378-T5D3Y2 Date: 10/10/2016 Delivery Date: TBD REQ:

We at WPI are pleased to offer you the following equipment for your consideration.

2016 New PC35MR-5 SIN TBD sm hrs: 0

• OPEN CAB

• 24" BUCKET WARRANTY: 1 Yr I Unlimited Hrs Complete Machine

Total Sales Price (Ea)

Finance Terms Net Sales Price $65,000.00

Down Payment Sales Tax 8.2500000 $5,362.50

Amount Financed $71,924.98 Diesel Tax 1.5000000 $975.00

Fees $450.00 HET 0.2115000 $137.48

Months Rates Monthly Payment Total Safes Price $71,474.98

60 1.9000 $1,257.54

$65,000.00

We look fo!Ward to your valued order. If you have any questions or comments please feel free to contact me at 361-537-7248 or perezc@wpLcom

Regards, Cris Perez

CUSTOMER HAS READ, UNDERSTANDS AND ACKNOWLEDGES THE TERMS I CONDITIONS AS SET FORTH IN THIS DOCUMENT. This quol.e becomes a safes order upon y,rftten accsptance by BOTH p.3rtJes suf>.'ed to thos8 terms and conditions. This order is not valid Uf).~S [J(;(;epted b'f an authorized WPI Manager.

Accepted: WAUKESHA-PEARCE INDUSTRIES, INC. Accepted: SOUTH TEXAS WATER AUTHORITY

By: _________________ _ X _____________ _ Title: ___________ Date: ____ _

Title: ___________ Date: ____ _

Jacob Hinojosa

From: Sent: To: Subject: Attachments:

Sent From .1\fy Sprint Phone.

------ Original message-----From: Cristobal Perezz Date: Mon, Oct 10,2016 2:10PM To: dcantu((l)_stw~.org; Cc: 'William Nittinger';'John Shiller'; Subject:PC35 Quote

Mr. Cantu,

[email protected] Monday, October 10, 2016 5:02 PM [email protected] Fw: PC35 Quote Quote South Texas Water Authority PC35 10-10-16.doc

Here is the quote per our discussion. Let me know if you have any questions.

Regards,

Cris Perez Sales Representative

CMD Phone{361)884-8275

Cell (361) 537-7248 [email protected] WPI- Powered by Solutions"' www.wpi.com

CONFIDENTIALITY NOTICE

The information in this email may be confidential and/or privileged. This email is intended to be reviewed by only the individual oro rganization named above. If you are not the intended recipient or an authorized representative of the intended recipient, you are hereby notified that any review, dissemination or copying of this email and its attachments, if any, or the information contained herein is prohibited. If you have received this email in error, please immediately notify the

sender by return email and delete this email from your system.

1

Engine

PC30MR-5/ PC35MR·5 Standard Equipment

®

Model ........................................................... Komatsu 3088E-7' Type .•.......•..•..........•....••............... Water-cooled, direct Injection Numberofcyllnders ................................................................ 3 &>re ..................................................................... aa n1m 3.4611

Stroke ....•..............•....................•..•.....•.........•...... 90 mm 3.64" Piston displacement. ......•..•..........................• 1.6421tr 100.21n' Horsepower:

SAEJ1995 ...••..•.•........................•..•. Gross 18.2 kW 24.4 HP ISO 9249/ SAE J1349 ....•................... Net 18.2 kW 24.4 HP Rated rpm ..................................................................... 2200

Fen drive method for radiator ooollng ........•................ Mechanlcal "EPATier4 Rnalemls~ons ceftifled

Drives & Brakes

Steertng oontroi... ......•...•.........•......•........ Two levers with pedals D<lve metl10d ........•...•.....•.............................•.......... Hydrostatic

Gradeabllty .......................................................................... 30' Maximum travel speed (rubbe~:High .•.•..... 4.6 kmi112.85 mph

(Auto-shnQ Low ......... 2.6 kmA11.61 mph Service brake ....................................................... Hydraulic lock Parking braka .................•......•.......•................... Mechenlcal dl"'

Maximum drawbar oull •...•...•...••.••.•.. 33 kN 3400 kof 7.495 lbf

Undercarriage

Center frame .................................................................. X-frame Track fran1e .............................................................. Box-section Track type ....................................................................... Sealed Track adjuster .........................•...•.....•.••................. Greased gun Number of carrter rollers (each side) ...................•..•..•..•........... 1 Number of track rollers (eaoh side) .......................................... 4

Operating Weight

~eratilg weight lnoiUdh;J 2160rrm 7'2' {PC30MR-5) 2540mm 8'4' (PC35MR-5) one piece bocm, 137Gmm 4'6" (PC30MR-5) 1720 5'8" (PC35MR-5) arm, .09 m' 3.17 ffl (PC30MR-5) 0.11m' 3.88 fl' (PC35MR-5) bucke~ ~:Jade, rated capacity ollubrtC<U1te, coolant , M luel tenk, operate.- ard standard equipment.

Coolant & Lubricant Capacity

Engine ........................................................ 6.71tr 1.77 U.S. gal Hydraulic syatem ......................................... 391tr 10.3 u.s. gal COODng syatem ...•.•.........................•.....•.... 3.31tr 0.87 U.S. gal Fuel tank ..............................•...•..•............... 411tr 10.8 U.S. gal Final drtve (each side) .................•.........•...•• 0.61tr 0.15 U.S. gal

Hydraulics

Number of selectable working modes ................................... 2

Main pumps:

Pumps for .................. Boom, arm, bucket, and travel circuits Type ........................••..•....... Vartable displacement piston x 2 Maximum llow ................................ 32 ttr/mln 18.3 gal/min

Pumps for. •......................•...•...................... SV/Ing and blade Type .....•...•....................•......•.....................•.•........... Gearx2 Sl'llng pump maximum flow ........... 18.71tr/mln 4.9 gal/min Suing pressure maximum ..................... 20.1 MPa2,915 psi Blade pump maximum flow ........... 9.9 ltr/mln 2.61 gal/min Blade pressure maximum ..................•.•• 21.5 MPa 3,1181>SI Max auxllary flow rate ............................. 50 Lpm 13.2 gpm

at 20.5 MPa 2,973 psi

Hydraulic valve ...............••................•.....•....•.........•........ 8 spool Operatng method ............................................. Hydraulic assist

Travel motor:

Type ........•.......•..........••....... Varlable displacement piston x 2 (wtth counterbalance valve and travel shaft brake)

&lAng motor:

Type ..................•............. Axed displacement piston type x 1 ~llllh blake valve and swtng shaft brake)

Hydraulic cylnders: (Number ofcyiOOera.- bore x stroke x rod diomete~

Boom (PC30MR-5) ................ 1-80 nvn x 550 mm x 46 mm 3.1411 X 21.611 X 1.771

(PC35MR-5) ••..•......•.... 1-80 mm x 585 mm x 45 mm 3.1411 X 23.011 X 1.71 11

Arm (PC30MR-5) ...•......•...•. 1-75 nvn x 695 mm x 46 mm 2.91 X 23.411 X 1.771

(PC35MR-5) ....•.......•..• 1-76 mm x 695 mm x 46 mm 2.9 1 X 23.411 X 1.771

Bucket (PC30MR-5) ............... 1-65 mmx 490 mm x 40 mm 2.55' X 19.29' X 1.57'

(PC35MR-5) .•............. 1-65 mm x 490 mm x 40 mm 2.551 X 19.291 X 1.57 1

Boom S'Ning (PC30MR-5) ...••..•....•.•• 1-80 mmx 500 mm x 40 mm 3.1411 X 19.61 X 1.57"

(PC35MR-5) ............... 1-95 mm x 482 mm x 50 mm 3.7411 X 18.971 X 1.9711

Blade (PC30MR-5) ................ 1-85mmx 135 mmx46mm 3.3411 X 5.11 1 X 1.7711

(PC35MR-5) •..•............ 1-95 mmx 140 mmx45mm 3.7411 X 5.61" X 1.771

www.wpi.com

Quotation Tenns & Conditions

ACCEPTANCE: Unless otherwise noted, this quotation expires in 30 days from the date of quotation.

PAYMENT TERMS: Payment in full is due upon delivery.

TRADE-IN EQUIPMENT: Purchaser warrants the trade-in equipment as shown is free and clear of all encumbrances and/or liens except In the amounts shown for "pay-off' as of the date of the quotation.

TAXES: Any taxes listed upon this quotation are estimates only and are subject to change. Purchaser shall reimburse Waukesha· Pearce Industries, Inc. (WPJ) for all taxes Incident to this transaction for which WPI is compelled to collect

DELIVERY: Any delivery quoted is an estimate only. WPI assumes no liability for delays In delivery.

VALIDITY: This quotation Is not binding on either WPI or the purchaser until it is accepted and validated, In writing by both parties, as a sates order. Whereupon, it becomes subject to all terms and conditions of a sales order as set forth below.

Sales Order Terms & Conditions WARR'ANTfES WPi makes no express '..',!ft!'r&ntles untess sarne appear in ''if!t/ng, are am_1 fo this sales orcier. NO WARRANTY lS f'/IAOE THAT THE EC)!)!PMEfv'T WILL

'h"'''e"yrefer 10 sairJ ecuuou•u•" THE SELECTfON

EQ!JIPAI!ENT HAViNG BEEN MAOE BY CUST0,•\1EA /\;Q,c; !d:;:E THERE AN'( WARRANTiES OF l/!ERCHANTABiLiT'( OR FITNESS FOR l+ PARTICULAR PUF.:POSE NOR Afi.IY OTHER WARRANTIES'_ EXPFESS OR fMPLiEO. WHfCH EXTENCJ BEYOND THE DESCRIPTION OF THE EQUIP/'IiENT OR. rr· /'YEW EQUIPMENT BE'(OND ·ri--fE MANUFACTURER'S WARRANTY WP! M/1,KES NO 'r!r!ARRANTY AS TO Tr-fE PPOOUCTIVITY' OF THE EQUIPMENT I..Jf'..JDER NO C/RCUMSTAr',JCES' S.HAL L VI/PI BE LIABLE FOR LOSS OF USE. DOV'/fJ, Tif/fE 0.~ AN'( OTHER CONSEQUENTIAL DA.MAGES

Cus.lomen:ha.!r' assume /iebdily 2nci fuii responsrbiii!y for arw damage· (otfis'r rhan normal v.iear and r&ar) to or ;! is shtppBd From il:!Pi's pi ace of siorage

r A.XE$ Customer shalt pay aN l&les. assessmenrs. fees and penait:ss ,';hte!: may t·e iev1ecf or assessed on or in respect to rhe oper,omJn, leasing. possession w use ol the Equ.cp.1nen.r Ccistorner shBii pmvitJe. at ;{s 0'/iO expense. all perrn·its and iicenses necessar-:1 for oper&rJOn &nd use of rhe Eqwpment. Customc~r shai{ comply ;'.-rfh ail IaviS. regui&tions. &nd ord:nances applic;Jble to the use possession anci op-eration of rhe Equipment. anct shall inci&mn:fy defencf and hold iVPi l;arrniess .~'orn ar7JI conser.JuenC6'S of Cu:s!omer'·s noncornp!lanc:e,

Cusrcrner. at ds cw,:r;· e.<p&t!s& S.~"""!&.ii rnainiai.n ,-n force cdequatG· pubirc itabiMy insurt;nce agamsr bodiiy in!':..iry death. and propeny wou""'" from !he !..i.~~e or c;perar10n or the Equipment frorn fh& t:me rhat 1! is sl7tpped from iNPt's place of storage Customer also agrees

Ia keep the Equtpment :osureci in accorciance '/,i!th t!Je terms and condi!!on:s c;,t' any .f!m-cf i&as1ng company or finance company thai has an ,'nterest m ft:e Equrprner1! .l)nir! such ttrne that ti'm equ:prnent !1as been paid. customer agtees to insure the Equipmen,i ai its fuif rep.lacem&nt vaiuB aga1·nst &r;y ioss or dan rage ihrough ,;cc.icient. fire. conci:tion theh or rnai:'cious destruction In addttron_ Cusfcrner sha-ii acfequatefy insure the Equipment aga:nsr any crhe.' ,'nsurabie risks to·:': is exposed and those Which V'/Pt may designate Ail such poliCies shail be subject to WP.:'s &pprovai and shall be 10 0( on VVPi ami Customer_ as !heir interests appear CUSTOMER SHALL DELiVER TO VVPi CERT/FiCA TES OF INSURANCE. CUSTOMER AGREES TO iNDEMNiFY. DEFEND AND HOLD WPi ,i--iARA1LESS .FROM A!'VY !:".J,JURY DEATh Oe PROPERTY DAMAGE RESUL T/NG FRo~~~~ CUSTOMER'S OPERli.'TiON OF THE EQUfPf,r?ENT ii\1CLUOfNG CLA.!MS A,RiSING 0!.../T OF !/r/Pi'S ALLEGED NECUGENCE i! IS the Cu.'o~rorrrer's r&spcms!Ll,-/Jty to rna:nl&:n rnsurence from the point of .shrpment

T1!i8 io the- Equip.m.s'o! sha/.1 rernaio vestee} ,n WPf until Custorner .seWes ror sarne- by e:.::eculing a cash payment. e>:ecu!ing leas-e trar:sfer i1t!r: fer a third party cornpany or Slecuring finar.'ce docurnents ',vith 21 il1rrd firr2nce company tn tile- e',rem of

such linanclnQ_ Customer hereby 1ts nghrs urrcJer !h1s saies orcfer are subJect and to the ug!J!s of the hoider of :::ecurity inieres1 in the equipment Cus!omet agrees fh&r WPi has !he nght to assrgrr iis under this order. and ;rr rhe even; of such ass,-gnmen! anrJ rece-ip-t ol nonce !hereof Customer shafi 171ai-e any pa.y!nenr due to VVPI d:'rectfy to such assignee

·';"'"-~-'""'C,. Th1s saies orci&r 1S E:ntered into in qoo:7 .faith oe,l- '/een Custcrner a.na· WPi and both par-r,-es agree ro perform their duNes hereuncter essenCE! 2->nd Cuslorner shai:' rna-ke all Vi herr due Par:'ure io rnake such >'!hen cfue sha!i corr~otilute a

del'euit'. Lf!C::·OfV' CUSTOMEF:'S OEPAULT ;r,;Pi MA:'i THIS OFWER. P!GhT TO T.HE EQU!P.MENT $HAL/_ CEASE FORTHWITH, bu! Cusrorn&r shall rema,•o J,-aoie lc V'lPI for a// unpatct payme.nrs due hereurrds-r up to and rnclucfing the fuN seres pice indicated pius an; incidental exp-enses cr legal CCiSts rr:curred 'lvPi proc:eecf by appropri&!e court act;on to enforce by Customer cd the terms of th.:s safes orcfer or !o recover fer ih& breac/1 WPf's ngh.ts hereunder are cunwia!:"<.re and nof WPf may waive any default or re-medy without ·,;;a·iving a-n-y prior or subsequent de-fauft or remedy or without wafvi'ng- any cia-1m for damages

DOCUMENTATiON. Customer agrees on cfemand ro execute end deirver to ili!F'f suet-;. additional iotms and C:ocumerr!s (such as a F'inerncing .Statement_ ,Request fer rnforrnouon and Pequest for Statement of Accouni) as may be reasonab/y requtmd by WPI to consummate this order ;~ti)en acceptecJ.

PAYMENT OF MONtES: Ali surns. of mor:6''/ Customer urrder 1!1e terms or ihi.s order sha.!i be clue and p6yatr/e at the iocation specified tJy rfie aciuEn' bi!i:ng received ftom m money of ihe i_inilect Sia!es, and ·>'iJ/i be to a !ate charge of up to ewl mctuclii!g Hre maxtinum a//(Jl';-ed by .l&f;-' afier moiuruy unt:i p,::jid Si~ouid any proceedings be instituted by to recover monres due and ro become due hereunder Cus!orner shaii pay a reason&bie sum as aftome;'.s

T/rrs orcfer vihen accepteci oy 'NPi. shall con-sti!ure rl:e ent1rB &greement of !he parties. a-net Customer by ,<my represerrtalivti or .terrns n1ade- an_':! officu agent or employee oi VVPi relative to ttos iransact10n :,vhich at·e

and this order rnay be rncdd.ieci or rescincied

'=''li'I!EY!:J1!.E!2Et9~!/;;!:{[This safes crcJer and rhe ensu.'nU saies rranseciicm shaif /)S 90verned b/ a-nd construed urider fhe IB'/o's of tfJ& S'ta!e of

tRC SEC 1CJ3"t EXCHANGE NOTfF!CA TfON: Waukesh-a-Pe-arce Industries,. Inc .. has assigned its rights to self its rental' equipment! (as de-scribed herein) to North Star De:ferred Exchange .. This assignment has no e-ffect on your rights or obf(gati'ons hereund'e-rc

ATTACHMENT 10

Resolution 16-22


RESOLUTION 16-22

RESOLUTION AWARDING THE BID FOR THE PURCHASE OF ONE MINIEXCAVATOR.

WHEREAS, the South Texas Water Authority solicited bids to acquire one (1) miniexcavator for the Authority's use, and

WHEREAS, the Board of Directors of the South Texas Water Authority has reviewed the bids and finds that has submitted the lowest responsible bid.

NOW, THEREFORE, BE IT RESOLVED that the South Texas Water Authority Board of Directors awards the bid for one mini-excavator to ______________ ,

Duly adopted this 25111 day of October, 2016.

KATHLEEN LOWMAN, PRESIDENT

ATTEST:

RUDY GALVAN, SECRETARY/TREASURER

ATTACHMENT 11

Trailer for Mini-Excavator

To: From: Date: Re:

Memorandum

South Texas Water Authority Board of Directors Carola G. Serrato, Executive Director October 20, 2016 Purchase of Trailer for Mini-Excavator

Background:

As the Board is aware, during the FY 20 17 budget planning, staff presented a request for the purchase of a trailer to haul a mini-excavator, which was also a FY 1 7 requested purchase. The final budget adopted by the Board included funding for this trailer. Enclosed are three (3) bids for that piece of equipment.

Analysis:

The three (3) bids are as follows: I. Bishop Farm Equipment in the amount of$4,340. It should be noted that this is actually a 20-foot

trailer. 2. Husky Trailer and Parts Company in the amount of$4,640. This is also for a 20-foot trailer. 3. Superior Trailer Sales in the amount of $4,525, which is a 16-foot trailer.

The FY 2017 budget included the following:

Capital Outlay Mini Excavator JDMower Booster LAS 16-foot trailer 12-foot trailer 16" Stihl Saw


$39,000 $7,200

$130,000 $4,525 $2,500 $1,550

$184,775

Approve the purchase of the 20-foot trailer from Bishop Farm Equipment in the amount of$4,340 which is slightly under the budgeted amount of $4,525.

Board Action:

Determine whether to approve the purchase of the 20-foot trailer from Bishop Farm Equipment in the amount of$4,340.

Summarization:

As mentioned in the memo pertaining to the mini-excavator, field management believes that the use of this equipment will be pmticularly helpful in tight spaces and transportation of the equipment will also be easier. This trailer will be needed to transpm1 the new excavator.

BISHOP FARM EQUIPMENT 900 S. HWY 77 BYP

BISHOP, TEXAS 78343 PH#(361) 765-9610 * FAX#(361) 584-2025

QOUTE FOR 20FT STAGECOACH BUMPER PULL TRAILER

--20FT LONG

--83" WIDE INSIDE FENDER

--LED LIGHTS (FENDER LIGHTS)

--KNEE RAMPS

--7K AXLES WITH BRAKES

--SPARE TIRE & RACK

--100% PAINT TOP AND BOTTOM

--D-RINGS INSIDE FENDERS

-·3" SQUARE TUBE TOPRAIL

--12K DROP LEG JACK

PRICE $4,295.00

$45.00

TOTAL AMOUNT DUE $4,340.00·

TRAILER & PARTS CO. ~114 H. Hetway

HOOs\011, Te;<;M 77037 281-448-4!!!15

fax ~81-44B•Sln

PRIIITCL~/1.LY toR RliGtSWArutiJ

CUSTOMER >.""@t.,·U.1

www,huskytrailer~.com

nG!S.loOf>E-..1 HOU6too, T"""' 77007 713·644•12!11

ra• 713-1144-17D7

~Ms Nc,<for

5202Ayecs CJrpl.l$ (;t\11!~, 'i&XS:9 78415

361-857-1611 888·8~7·8811

Fax 361·857-11820

SIW..S krterS18-ttl45 s. Hootsvmr. TtXM 77340

936..Z95-i900 Fax 936-2~D!HI3

du:ft.nv:~ P.O.#

No. and Street ~hon/_PIX K-z«~ s=rc.r -- ~-

City - state ~-,....,

Zip Attn:

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., ...

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• .. •: -:'. ,,~; .'·,: \ I . , " .: ;

MFG BY: ~. /.{" ,J_ 9 "'~ '

SE.R1Al4f t/£(00 ()0

SIZE '"7 ':1 n AXLE

d--7&oe# CAPACITY X

COWR 'F-.! c.w/, HITCH SIZE rl-q;v. ,, R/4.-M BRAKE~fvEY<> 2-c-<.~></., Tll\10 SIZE: '8---s-s·!voR.n- IOni. WHE~L PATTERN )(It_ . ._ SAtE"S TAX 6 ¥4 % I !I I 0

b'\.¢ + ')(j

REGISTRATION FEE I'S"O ()C>

Ct=f:lTIFJCATE O~TITLE FEE 33 00 DOGUMCNTATION FEC• 50 00 INSPEGTION Fli!i 7 00 Total tfto(lo (10

Deposit

Balance

AS PURCHASER, I claim tax exemption for the reason; Agricultural Use

- -

Slgfl Here:•-------------,

It is agreed that thE:! sum of $ , deposited by the customer Is to be retained by seller In case of cancellation of thi& agreement.

'This is a processing fee col/r.cted by Husky Trailers.

Date Deliltered ~-----------

Customer~--·---·----------

Seller __________ ---~-

-

g Siiiitiar ~ ==~mAILEil~ 361-289-5648 .; 1-800-235-8920

FAX#361-289-5716 5825 L<opord ~ ·Corpus Christi, TX 78408

-<..-.o-r 1-1 --rf: • "L G) 1:m~_ 'l;l t4 r ..J it .

• < '. :·.:,·: ' ': -'~ .... ;._: •••

DATE: '1-'1- I /_p

[CUST. ORDER NO. I DATE SHIPPED . . >VIA [TeRMs

QUANTITY DESCRIPTION

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UNIT PRICE AMOUNT

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/

ATTACHMENT 12

Trailer for Site Maintenance Equipment

Memorandum

To: From:


Date: October 21,2016 Re: Purchase of Trailer with Cage for Site Maintenance Equipment

Background:

As the Board is aware, during the FY 2017 budget planning, staff presented a request for the purchase of a 12-foot trailer and mower. The final budget adopted by the Board included funding for this trailer. Enclosed are three (3) bids for trailers.

Analysis:

The three (3) bids are as follows: I. Bishop Farm Equipment in the amount of $3,440. It should be noted that this is actually a 16-foot

trailer which includes a cage for other tools such as weed-eaters and chainsaw. 2. Bishop Farm Equipment in the amount of$3,244. This is a 14-foot trailer which also includes a

cage. 3. Husky Trailer and Parts Company in the amount of $2,934. This is for a 14-foot trailer and does not

include a cage for other tools such as weed-eaters and chainsaw.

The FY 20 I 7 budget included the following:


Capital Outlay Mini Excavator JD Mower Booster LAS 16-foot trailer 12-foot trailer 16" Stihl Saw

$39,000 $7,200

$130,000 $4,525 $2,500 $1,550

$184,775

Consider approving the purchase of either the 16-foot or 14-foot trailer from Bishop Farm Equipment in the amount of $3,440 or $3,244 either of which are over the budgeted amount of $2,500.

Board Action:

Determine whether to approve the purchase of any of the above-listed trailers.

Summarization:

Field management has indicated that the current trailer hauling the site maintenance equipment is in fair condition despite being purchased in 2008. However, field supervisors are proposing to use both the current conventional mower as well as the requested/budgeted zero turning radius mower to maintain the eleven (II) sites. Staff is in the process of gathering bids on the zero turning radius mower for presentation at the next Board meeting.



QOUTE FOR 16FT STAGECOACH BUMPER PULL TRAILER

--16FT LONG



--BIFOLD 4FT GATE

--2FT DOVETAIL

--3500LB AXLES WITH BRAKE

--SPARE TIRE & RACK



--2" SQUARE TUBE TO PRAlL

--4FTX4FTX83 WIDE WEED EATER BOX (2 DOORS & 2 RACKS ON EACH SIDE)

--DIAMOND PLATE FENDERS

PRICE

TOTAL AMOUNT DUE

$3,395

$45.00

$3,440.00



QOUTE FOR rt6FT STAGECOACH BUMPER PULL TRAILER \"---'·' i

--14FTLONG -



--BIFOLD 4FT GATE

--2FT DOVETAIL

--3500LB AXLES WITH BRAKE

--SPARE TIRE & RACK



--2" SQUARE TUBE TOPRAIL

--4FTX4FTX83 WIDE WEED EATER BOX (2 DOORS & 2 RACKS ON EACH SIDE)

--DIAMOND PLATE FENDERS

PRICE

TOTAL AMOUNT DUE

$3,200

$44.00

$3,244.00

TRAILER & PARTS CO. 811.4 H. Ftu\'t'iijl

Hoostoo. TCXM 770..17 261-4411-4!153

Fax ZB1•44&>81io

PRJ.W'CL.EARLY F<lR llEGISTRATION

CUSTOMER s<&.£{.l,

www~huskytrailers.com

nW $.. Lqqp East .( tillll3too, 'rBMS 71007

713-644·12111 f:a.x 713·B44-1'1tJ7

5202Ayeu I}Qcpvi Cbri!;:ii, T~7s-t15

3S1·B5Nl61f 888·!157·8811

Fa~ 861-8!17-ll82D

No. and$lre<!l~---·---------------------

City ~- Slate_

SIZ~ 7 Y. t<t' COL.OR

I

HITCH SIZE

TIRE SIZE:

SALES TAX 6%1% I ' REGISTRATION FEE

ClJR'tiFICATE OF T/Tl.E FEE

DOCUMENTArlON FEE~>

INSPECTION FEE

Tol<>l

Deposit

Balance

Zip Atln:

aAAKe(-ve~o 1 a._x to_

W/ii1EL PATTERN :c:: I u--,

d'

AS PURCHASER, I claim tax exemption for the reason: Agricultural Use

fjM-B Jnt~fstatu45 S. HvnWollllt~, rel\.\& nMo

936-29fi.9000 Fax 9:le-zsa-soo3

33 00

50 00

7 00

Sign Here:'~-----------

It Is agr(led that tho sum of$ , deposited by the customer is to be retained by seller in ease of cancellation of this agreement.

'Tflis is a proces.s/ng tee col/oclod by Husky Trailers.

Date Delivered

j.

ATTACHMENT 13

Water Supply Contract- City of Kingsville

To: From: Date: Re:

Memorandum

South Texas Water Authority Board of Directors Carola G. Serrato, Executive Director October 20,2016 Wholesale Water Supply Contract between the City of Kingsville and STWA

Background:

Staff has communicated with Bill Flickinger, Willatt and Flickinger, on several occasions regarding the long-term contract with the City of Kingsville since meeting with City representatives. Enclosed is the most recent email from Mr. Flickinger to Ms. Couttney Alvarez, City Attorney. Also attached is the red-line version of the wholesale contract with changes discussed during said meeting.

Analysis:

Yesterday, after the SOAH hearing, staff once again discussed the matter with Mr. Flickinger. He agreed that continued negotiations were necessary and indicated he would be following up on his latest email to Ms. Alvarez. As you can see from the latest email he has done so.


This is an update only.

Board Action:

Provide feedback to legal counsel and staff.

Summarization:

As discussed previously, staff believes that there is a mutual interest on the City's part as well as STWA's pmt in entering into a wholesale water supply contract. There are details that need to be agreed upon which will require additional time and effmt and staff is committed to such. This position is for the overall welfare of all STW A wholesale customers.

Carola Serrato


Dear Courtney:

Bill Flickinger <[email protected]> Thursday, October 20, 2016 5:18 PM 'Courtney Alvarez' 'Carola G. Serrato ([email protected])'; Allison Nix; 'Jesus Garza'; 'Charlie Cardenas'; 'Bill Donnell' RE: STWA -Water Supply Contract

Can you please advise when we could schedule a follow-up meeting to discuss the information I emailed to you on September 1, 2016? We would like to continue discussion of the 20-year contract.

Thank you.

Very truly yours,

PLKASE NOTE: NEW PHYSICAL AND MAILING ADDRESS: 12912 HILL COUNTRY BOULEVARD, SUITE F-232, AUSTIN, TEXAS 78738

Willatt & Flickinger, PLLC

Attorneys at Law 12912 Hill Country Blvd., Suite F-232 Austin, Texas 78738

Phone: (512) 476-6604 Facsimile: (512) 469-9148

CONFIDENTIALITY NOTICE: This email transmission (and/or the attachments which accompany it) may contain confidential information belonging to the sender which is protected by the attomey-client privilege. The information is intended only for the use of the intended recipient. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution or the taking of any action in reliance on the contents of this information is strictly prohibited. Any unauthorized interception of this transmission is illegal under the law. If you have received this transmission in error, please promptly notify the sender by reply email, and then destroy all copies of the transmission. Thank you.

From: Bill Flickinger Sent: Thursday, September 1, 2016 11:44 AM To: 'Courtney Alvarez' <[email protected]>

Cc: 'Carola G. Serrato ([email protected])' <[email protected]>; Allison Nix <[email protected]>; 'Jesus Garza' <[email protected]>; 'Charlie Cardenas' <[email protected]>; 'Bill Donnell' <[email protected]> Subject: RE: STWA- Water Supply Contract- Revised Red line Draft and Proposed One-Year Water Supply Contract

Dear Courtney:

In follow-up to our meeting of August 10, 2016, I am attaching a revised red line of the 20-year Water Supply Contract to facilitate future discussions. I am also attaching a draft quitclaim document for conveyance of facilities. The intent is that the

1

quitclaim would be finalized with a description of all facilities to be conveyed to the City and that the conveyance would be made at the same time the long-term contract was executed.

Also, as we discussed in our meeting, due to the expiration of the current one-year contract, we recommend approval of an additional one-year contract. This will allow for continued study on the TCEQ matter particularly as it relates to the construction of the LAS system at Driscoll. Therefore, I have also attached a one-year contract with provisions the same as the current one-year contract with the dates changed. Separately I have attached a pdf of Exhibit "A" to the new one-year contract. The STWA Board will consider the one-year contract at its September 6, 2016. Your comments on the one-year contract would be appreciated prior to that meeting.

Very truly yours.

PLEASt; NOTE: NEW PHYSICAL AND MAILING ADDRESS: 12912 HILL COUNTRY BOULEVARD, SUITE F-232, AUSTIN, TEXAS 78738

Willatt & Flickinger, J>LLC

Attomcys at Law 12912 Hill Country Blvd., Suite F-232 Austin, Texas 78738

Phone: (512) 476-6604 Facsimile: (512) 469-9148

CONFIDENTIALITY NOTICE: This email transmission (and/or the attachments which accompany it) may contain confidential information belonging to the sender which is protected by the attorney-client privilege. The information is intended only for the use of the intended recipient. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution or the taking of any action in reliance on the contents of this information is strictly prohibited. Any unauthorized interception of this transmission is illegal under the law. If you have received this transmission in error, please promptly notify the sender by reply email, and then destroy all copies of the transmission. Thank you.

2

WATER SUPPLY CONTRACT RED LINE DRAFT DATED 8/31/16

SHOWING CHANGES FROM DRAFT DISCUSSED ON 8/1016

THE STATE OF TEXAS §

COUNTY OF KLEBERG §

The Parties to this Contract are the South Texas Water Authority, a governmental agency, conservation and reclamation District and body politic and corporate, having been created under Chapter 436 Acts of the 661h Legislature, Regular Session, 1979, of the laws of the State of Texas, all pursuant to Atticle XVI, Section 59 of the Texas Constitution ("Authority") and the City of Kingsville, Kleberg County, Texas (hereinafter called "Wholesale Customer"). The Authority and Wholesale Customer are hereafter referred to in the singular as a "Patty," and in the plural as the "Parties." They agree as follows.

RECITALS

WHEREAS, the Authority owns a water transmission line extending from the City of Corpus Christi O.N. Stevens Water Treatment Plant to the Authority's office on Sage Road in Kingsville; and

WHEREAS, the Authority has entered into that cettain Water Supply Agreement by and between the Authority and the City of Corpus Christi dated October 14, 1980, pursuant to which the Authority purchases water for resale to its customers; and

WHEREAS, the Authority is willing to sell, and the Wholesale Customer is willing to buy, water available to the Authority from the City of Corpus Christi; and

WHEREAS, the Patties acknowledge that the Contract includes a study to determine the minimum amount of water that can be taken by Wholesale Customer while still maintaining the chloramine residual in the Authority's 42-inch transmission line near Kingsville at the level required by the TCEQ.

AGREEMENT

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, Authority and Wholesale Customer agree as follows:

SECTION 1. DEFINITIONS

Terms and expressions as used in this Contract, unless the context clearly shows otherwise, shall have the following meanings:

(A) "Corpus Christi Water Supply Agreement" means that Water Supply Agreement between the Authority and the City of Corpus Christi dated October 14, 1980 as amended and

1

supplemented from time to time and as modified by the Settlement Agreement and Mutual Release between the Authority, San Patricio Municipal Water District and the City of Corpus Christi effective as of August 13, 2013.

(B) "Cost of Water" shall mean the actual price per one thousand gallons paid by the Authority to the City of Corpus Clnisti for water received by the Authority under the Corpus Christi Water Supply Agreement during a Service Month.

(C) "Customers" shall mean the water customers of the Authority.

(D) "Fiscal Year" shall mean the twelve-month period beginning on October 1 and ending September 30, or such other twelve-month period as designated by the Authority.

(E) "Maintenance and Operating Expenses" shall mean all costs of the Authority for operation, maintenance repair and replacement of the System to the point of delivery for each Wholesale Customer, including, but not limited to, accounting, administration, engineering, and legal expenses and a reasonable reserve to pay for any extraordinary or nonrecurring expenses of operation or maintenance of the System and for replacements and repairs if such expenses should become necessary. Maintenance and Operating Expenses shall include payments under contracts for the purchase of water supply or other services for the System. Maintenance and Operating Expenses shall not include any costs or expenses incurred by the Authority in connection with Special Services.

(F) "Maintenance and Operations Tax" shall mean the ad valorem tax levied by the Authority in accordance with Chapter 49 of the Texas Water Code as authorized by the election of August 11,2001, at a rate not to exceed $0.12 per $100 taxable value

(G) "Service Month" means that period of time from one meter reading to the next in the billing cycle. Each Service Period will be approximately one calendar month, unless the patties agree otherwise.

(H) "Special Services" shall mean services provided by the Authority to a Wholesale Customer or other entity for the operation, maintenance or management of any facilities or operations of such patty that are not patt of the Authority's System.

(I) "System" shall mean the Authority's existing water supply and transmission system, together with all future extensions, improvements, enlargements and additions thereto, and all replacements thereof.

(J) "System Operating Charge" shall mean the monthly charge, per 1,000 gallons described in Section 8 consisting of the "pass through charge" for the purchase of water from the City of Corpus Christi and the "handling charge" to pay maintenance and Operating Expenses.

(K) "Water Rate" shall mean the rate to be charged for water, set in accordance with Section 8 (A).

2

(L) "Wholesale Customers" shall mean the Cities of Agua Dulce, Bishop, Driscoll and Kingsville, Nueces County Water Control and Improvement District No. 5, Nueces Water Supply Corporation and Ricardo Water Supply Corporation, and any other future contracting parties that purchase water from the Authority for municipal, industrial or agricultural purposes

SECTION 2. OUANTITY

(A) The Authority shall make available for purchase by the Wholesale Customer, at the delivery point or points herein specified, water, with the quality described in Section 3 below, at a maximum authorized daily purchase rate which, together with the actual production capacity of the Water Customer's system as such production exists from time to time, is at least 0.6 gallon per minute per connection in the Wholesale Customer's water distribution system, in accordance with the number of such cmmections as may exist from time to time. The word "connection" as used in this paragraph shall have the same meaning as in Texas Administrative Code Title 30, Patt 1, Chapter 290, Subchapter D, Section 290.38(14). The Authority's obligation herein to deliver water to the Wholesale Customer shall be limited by the provisions of the Corpus Christi Water Supply Agreement, as more fully stated in Sections 9 and 11 of this Contract.

(B) The Authority futther agrees to use its best efforts to furnish water sufficient for the reasonable demands of the Wholesale Customer, but its obligations to furnish such water shall be limited to the quantity of water available to it and the capacity of the Authority's supply main, having due regard for the equitable interests of the Wholesale Customer, the Authority, and the other Customers and fmther limited by the provisions of the Corpus Christi Water Supply Agreement.

SECTION 3. OUALITY

Hh:'ei.-iH-g---th-t--+e-ttHi-fecme-Ht-:T-,t::t-f-nl-f---s+ft-h:~---·~~t1:..i --ft:-tk-H:t-i---ffit'~-·-s·--H-Hd:-+05iliEt{ff.m-s--tn--Tefi:;n.•T~B-e--t-freH4fh-----H-·

W~lli&-~i:tskrrrti'+-Jnn----rH:)i -- t-a-l+e,---t'ftfr-Hth- -vrnt-cT----h+--+T+tti--n-t-a-i-R--t~-..;:.hfmi'i-ffMnc t·c .. _; i d tl a l. ct.~

SECTION 4. POINTS OF DELIVERY & TITLE CONVEYANCE OF THE FACILITIES

The point of delivery of the water by the Authority to Wholesale Customer shall be the outlet of the Authority's meter located next to the Authority's office in Kingsville, Texas

3

immediately before it enters the Authority's 5.0 million-gallon ground storage tank, and any such other point of delivery mutually agreed upon by the Wholesale Customer and the Authority. The Wholesale Customer shall provide and maintain an air gap between the Authority's system and the Wholesale Customer's distribution system at the point of delivery.

The Authority is in the process of replacing its 5.0 mg ground storage tank and pumps with a 1.0 mg ground storage tank and three pumps. The Authority will convey those facilities to Wholesale Customer, and Wholesale Customer will accept those facilities. The conveyance

sha II be ~C'!EL~"'"····-"·'"·'·'·'·"·'"""'•'''·''•.'c!.!!.2}.): . !':2LL' ... ''':'"~·· '.'-'''"'" "· ... !'L ·' '':""·····'•'''"'"·"'"'}"!Y. ... !~!!L ..• !=.v J

conveyance documents acceptable to the Authority and Wholesale Customer.

SECTION 5. MEASURING EQUIPMENT

(A) The Authority shall furnish, install, operate and maintain at its own expense the necessary metering equipment of standard type for measuring properly the quantity of water delivered under this contract. The cost of the metering equipment shall be a cost that is recovered tlu·ough the Handling Charge. Such metering equipment shall be located on the Authority's supply main at a location already designated by Authority. Such meter or meters and other equipment so installed shall remain the property of Authority. The calibration, adjustment and reading of the meter equipment shall be done only by the employees or agents of the Authority. However, the Wholesale Customer shall have access to such metering equipment at all reasonable times. For the purpose of this contract, the original record of the reading of the main meter shall be the journal or other record book of the Authority in its office in which the records of the employees or agents of the Authority who take the reading are or may be transcribed. Upon written request of the Wholesale Customer, the Authority will give the Wholesale Customer a copy of such journal or record book, or permit the representative designated by Wholesale Customer's governing body to have access to the same in the office of the Authority during reasonable business hours.

(B) Not more than once in each of the Authority's fiscal years, on a date as near the end of such fiscal calendar year as practical, the Authority shall calibrate its main meter or meters and present to the Wholesale Customer accuracy cettification. This calibration shall be performed in the presence of a representative of Wholesale Customer, and the Patties shall jointly observe any adjustments which are made to the meter in case any adjustments shall be necessary, and if the check meter hereinafter provided for has been installed, the same shall also be calibrated in the presence of a representative of the Wholesale Customer and the parties shall jointly observe any adjustments which are made to the meter in case any adjustments shall be necessary. The Authority shall give the Wholesale Customer notice of the time when any such calibration is to be made. If a representative of the Wholesale Customer is not present at the time set, the Authority may proceed with calibration and adjustments in the absence of any representative of the Wholesale Customer.

(C) If either party at any time observes a variation between a main delivery meter and the check meter, if any such check meter shall be installed, such patty will promptly notify the other party, and the meters shall then be adjusted to accuracy. Each party shall give the other

4

party forty-eight ( 48) hours' notice of the time of any test of meter so that the other patiy may conveniently have a representative present.

(D) If, upon any test, the percentage of inaccuracy of metering equipment is found to be in excess of two percent (2% ), registration thereof shall be corrected for a period extending back to the time when such inaccuracy began, if such time is asce1iainable, and if such time is not asce1iainable, then for a period extending back one-half (1/2) of the time elapsed since the last date of calibration, but in no event farther back than a period of six (6) months. If, for any reason, the main meter is out of service or out of repair so that the amount of water delivered cannot be ascertained or computed from the reading thereof, the water delivered, through the period such meter is out of service or out of repair, shall be estimated and agreed upon by the parties thereto upon the basis of the best data available. For such purpose, the best data available shall be deemed to be the registration of any check meter if the same has been installed and is accurately registering. Otherwise, the amount of water delivered during such period may be estimated (i) by correcting the error if the percentage of error is ascertainable by calibration tests or mathematical calculation, or (ii) by estimating the quantity of delivery by deliveries during the preceding periods under similar conditions when the meter was registering accurately.

(E) The Wholesale Customer may, at its option and its own expense, install and operate a check meter to check the meter installed by the Authority, but the measurement of water for the purpose of this contract shall be solely by the Authority's meter, except in the cases hereinabove specifically provided to the contrary. Such check meter shall be of standard make and shall be subject at all reasonable times to inspection and examination by any employee or agent of the Authority, but the reading, calibration and adjustment thereof shall be made only by the Wholesale Customer, except during any period when a check meter may be used under the provisions hereof for measuring the amount of water delivered, in which case the reading, calibration and adjustment thereof shall be made by the Authority with like effect as if such check meter had been furnished or installed by the Authority.

SECTION 6. MEASUREMENT

The volume of water that is billed to the Wholesale Customer shall be the amount of water delivered to the Wholesale Customer at the Points of Delivery described in Section 4. The unit of measurement for water delivered hereunder shall be 1,000 gallons of water, U.S. Standard Liquid Measure.

SECTION 7. DELIVERY PRESSURE

The water shall be delivered by the Authority at the point of delivery at the Wholesale Customer's distribution system at "0" pressure.

SECTION 8. PRICES AND TERMS

(A) System Operating Charge. The System Operating Charge shall be billed monthly as a price per I ,000 gallons of water purchased by the Wholesale Customer. The System Operating Charge shall consist of the sum of (1) a "pass through charge" to recover the cost of

5

water purchased pursuant to the Corpus Christi Water Supply Agreement at a rate equal to the cost of water, per 1,000 gallons, from the City of Corpus Christi, and (2) a "handling charge" which shall be a rate equal to the estimated annual Maintenance and Operating Expenses per 1,000 gallons, less the amount of Maintenance and Operations Tax revenues budgeted for payment of Maintenance and Operating Expenses. Maintenance and Operating Expenses shall not include any management fees or similar expenses relating to Special Services. All rates charged for Maintenance and Operating Expenses shall be set to recover the cost of service, based on generally accepted rate making principles, including those set forth in the American Water Works Association ("A WW A") Manual M1 on water rates. The amount of the Maintenance and Operations Tax shall be determined by the board of directors of the Authority in its sole discretion.

Wholesale Customer shall be responsible for the cost of operation, maintenance, repair and replacement of the facilities located after the point of delivery.

Each year after the Authority receives its audit, the Authority will conduct a "ltue-up" for the year to which the audit applies; i.e., the prior year, using audited costs to determine if there was any over-recovery or under-recovery of costs during that year. Any over-recovery or underrecovery of costs will be carried over as a credit or debit, as appropriate, to the costs included in the 'K'iLCG!!L'.0_budget that are considered to determine the price for the following year. (There will be a one-year delay in each "true-up.'')

(B) Billing and Payment - The Authority shall bill the Wholesale Customer monthly for the amounts due the Authority hereunder for water delivered to the Wholesale Customer during the preceding Service Month, which bill shall disclose the nature of the amounts due. Each bill shall show the amount of water delivered to the Wholesale Customer during the Service Month, and the total amount of water delivered to the Wholesale Customer during the Contract Year to-date. The monthly bill will be delivered to the Wholesale Customer as soon as practicable after the Authority receives a statement from the City of Corpus Christi showing the Cost of Water for that period. All such bills shall be payable by the Wholesale Customer on or before the thhiieth day from the date on which they are received by the Director of Finance at the Wholesale Customer's Office. Any mistakes by the Authority in calculations or figures shall not alleviate the Wholesale Customer's obligation to pay the bill in full. Any mistakes in any calculations or figures shall be corrected promptly upon discovery and the corrected bill will be furnished to the Wholesale Customer. An adjustment in the amount paid as a result of such mistake in calculation or figure will be added or deducted from the following month's bill, as appropriate, with an explanation of the mistakes. The corrected bill shall be payable within 30 days after receipt. If the Wholesale Customer disputes a bill, it shall nevetiheless pay the bill, in full, pending any refund, as may be determined as a result of appeal of the disputed portion of the bill. If the dispute is not resolved by agreement, or by appropriate administrative agency or court decision, it shall be resolved by the dispute resolution procedures provided in Section 16.

(C) Late Payment - In the event the Wholesale Customer shall fail to make any payment required to be made to the Authority under this Contract, within the time specified herein, interest on the amount due shall accrue from the time payment is due at the rate of fifteen percent (15%) per annum, or the maximum rate allowed by law, whichever is less, from the date

6

such payment becomes due until paid in full. In the event any such payment is not made within sixty days from date such payment becomes due, the Authority may, at its option, discontinue the delivery of water to the Wholesale Customer until the amount then due the Authority is paid in full with interest as above specified.

(D) Authority's Budget- The Authority's fiscal year shall be from October I through September 30 of each year, or such other period as the Authority, after sixty (60) days written notice to the Wholesale Customer, shall adopt. Not later than the forty-fifth ( 451h) day before the beginning of the Authority's next fiscal year, commencing with the Authority's fiscal year in which this Contract becomes effective, the Authority shall provide the Wholesale Customer with a copy of the Authority's proposed budget for the following fiscal year, showing the budgeted total annual rate, and the components thereof, to be paid by the Wholesale Customer to the Authority for the fiscal year of the Authority to which the budget applies for sale and purchase of water under this Contract. The Wholesale Customer shall have thirty (30) days to review and provide written comments on the proposed budget. The Authority shall adopt its fiscal year budget as soon as practicable following the expiration of such thirty (30) day period and shall deliver to the Wholesale Customer a copy of each fiscal year budget within five (5) days after the adoption thereof.

SECTION 9. SPECIAL CONDITIONS

(A) The Authority agrees that it will not sell water to any customer now being served by the Wholesale Customer or reasonably capable of being served by the Wholesale Customer's watetworks distribution system, except with the express written consent of the Wholesale Customer.

(B) The Authority shall, subject to Section 11 and the other provisions of this Contract, hold itself ready, willing, and able to supply water to the Wholesale Customer to the extent it is capable.

(C) Each of the patiies hereto (the indenmifying party) shall be responsible for and agrees to save and hold the other party harmless from all claims, demands and causes of action which may be assetied by anyone on account of the transpmiation, storage, treatment, delivery, or disposal of said water while title remains in the indemnifYing pmiy.

(D) The Authority shall never have the right to demand payment by the Wholesale Customer of any obligation assumed or imposed on the Wholesale Customer under and by virtue of this Contract from funds raised or to be raised by taxation. The Wholesale Customer's obligation under this Contract shall never be constmed to be a debt of the Wholesale Customer of such kind as to require it under the laws of this State to levy and collect a tax to discharge such obligation, it being expressly understood by the parties hereto that all payments due by the Wholesale Customer hereunder are to be made from the revenues received by the Wholesale Customer from its waterworks system.

(E) The Wholesale Customer represents and covenants that the water supply to be obtained pursuant to this Contract is essential and necessary to the operation of its waterworks

7

system, and that all payments to be made hereunder by it will constitute reasonable and necessary "operating expenses" of the Wholesale Customer's waterworks system as defined in Chapter 1502 of the Government Code, as amended; and that all such payments will constitute reasonable and necessary "operating expenses" of the Wholesale Customer's waterworks system under any and all revenue bond issues of the Wholesale Customer, with the effect that the Wholesale Customer's obligation to make payments from its waterworks revenues under this Contract shall have priority over its obligations to make payments of the principal of and interest on any and all of its revenue bonds.

(F) The Wholesale Customer agrees to fix and collect such rates and charges for water and services to be supplied by its waterworks system as will make possible the prompt payment of all expenses of operating and maintaining its waterworks system, including all payment contracted hereunder, and the prompt payment of the principal of and interest on its obligations payable from the revenues of its waterworks system.

(G) During any period of time when, in the judgment of the Authority, there is a critical shortage of water in the sources of supply available to the Authority, which makes it impractical or inadvisable for the Authority to deliver to the Wholesale Customer and the other Customers the full amounts of water required to be delivered under the water supply contracts with the Customers, the water deemed available by the Authority from its sources of supply shall be rationed to the Wholesale Customer and other Customers during each month of such period of time in accordance with the "Drought Contingency Plan for the South Texas Water Authority" adopted on May 28, 20 13 which shall be amended from time to time in compliance with applicable State and Federal Requirements. Such rationing shall also be subject to the requirements of paragraph (J) below.

(H) The Wholesale Customer is participating in the Federal Flood Insurance Program and will continue to do so during the term of this Contract.

(I) The Wholesale Customer, in accordance with Water Code 11.1272, does hereby agree to implement a water conservation plan that provides for the utilization of those practices, techniques, and technologies that reduce or maintain the consumption of water, prevent or reduce the loss of and reuse of water, or prevent the pollution of water, so that a water supply is made available for future or alternative uses and the Wholesale Customer will develop a conservation plan and it shall be filed with the Authority.

(J) The Wholesale Customer acknowledges that it is required by Sec. 11.1272, Water Code, to develop a drought contingency plan consistent with the appropriate approved regional water plan. Wholesale Customer also acknowledges that the Corpus Christi Water Supply Agreement requires that, if the City of Corpus Christi implements any measures under its Water Conservation and Drought Contingency Plan, the Authority shall within thirty (30) days of notice of the implementation of any restrictions, surcharges or rationing by the City of Corpus Christi, impose similar restrictions, surcharges or rationing measures on its Wholesale Customers. Any contract for the resale of water furnished by the Authority shall contain a similar condition. Wholesale Customer understands and agrees that all Wholesale Customers shall be subject to and bound by the same provisions regarding priorities of user of water and that, therefore, should

8

there be a shortage in the basic supply of water, from the City of Corpus Christi or otherwise, which requires the restriction or curtailing of any Wholesale Customer of water (alk/a rationing of water), the Authority will limit and restrict all of its Wholesale Customers, to the same extent and on a pro rata basis, and will require all of its Wholesale Customers to treat all of their custmners equally. _. __ U_f.')lU.:S'~.,.~~.inLi.~t: ___ fJl~'~Di.Lfi~~-~- d c. i__<;Il _ _b;_~L ~th~l\':~- ~ \V h ':.}) c:- ~;.tL~ ( _·; ll s l n n1 c ClHll'>_t__j,_e~:SJ.f.

(K) The Authority shall provide to the Wholesale Customer a copy of the Authority's annual audit rep01t within 30 days of its acceptance by the Authority's Board of Directors.

(L) The Authority shall provide the Wholesale Customer with a copy (by electronic copy, if practicable) of each agenda and agenda packet for every Authority Board meeting within 36 hours after posting for such meeting and immediately upon posting of an emergency meeting.

SECTION 10. FORCE MAJEURE

In case by reason of force majeure either patty hereto shall be rendered unable wholly or partially to carry out its obligations under this Contract, other than the obligation of Wholesale Customer to make the payments required under the terms hereof, then if such party shall give notice and full patticulars of such force majeure in writing to the other party within a reasonable time after occurrence of the event or cause relied on, the obligation of the party giving such notice, so far as it is affected by such force majeure, shall be suspended during the continuance of the inability then claimed, but for no longer period, and any such party shall endeavor to remove or overcome such inability with all reasonable dispatch. The term "Force Majeure" as employed herein, shall mean acts of God, strikes, lockouts, or other industrial disturbances, acts of a public enemy, orders of any kind of the Government of the United States or the State of Texas or any civil or military authority, insurrections, riots, epidemics, landslides, lightning, eatthquake, fires, hurricanes, storms, floods, washouts, droughts, arrests, restrain of government and people, civil disturbances, explosions, breakage or accidents to machinery, pipe lines or canals, pattial or entire failure of water supply, or inability on the part of the Authority to delivery water hereunder on account of any other causes not reasonably within the control of the Authority. It is understood and agreed that the settlement of strikes and lockouts may be difficult, and that the above requirement that any Force Majeure shall be remedied with all reasonable dispatch shall not require the settlement of strikes and lockouts by acceding to the demands of the opposing party or parties when such settlement is unfavorable to it in the judgment of the patty having the difficulty.

SECTION 11. LIMITATIONS ON AUTHORITY'S OBLIGATION

This contract is in all things subject to the Corpus Christi Water Supply Agreement. By the execution of this contract the Wholesale Customer acknowledges that it has received and reviewed a true copy of said contract. The Wholesale Customer agrees that it will take no action which would cause a violation of the Corpus Christi Water Supply Agreement and it will comply with such agreement including the following stipulation with regard to the rationing of water:

9

"All water sales agreements between Authority and its customers shall stipulate that should there be a shortage in the basic supply of water which requires the restriction or cmiailing of any customer of water within the City limits of City that coincident with such restriction or limitation within City, Authority will limit and restrict all of its customers, both direct and indirect through resale, to the same extent. Such rationing by City shall be applied uniformly to all water customers of City."

SECTION 12. TERM OF CONTRACT

This Contract shall be in full force and effect for a period of twenty (20) years following the date it is signed by both Parties.

SECTION 13. MODIFICATION

Consent of The Parties - This Contract may be changed or modified only with the consent of the governing bodies of both the Authority and the Wholesale Customer.

SECTION 14. NOTICES

Any notices or communications to a pmiy provided for herein shall be in writing and shall be delivered to the patiy by personal delivery, by facsimile, or by sending said notices by registered or certified mail, return receipt requested, to the address stated below. A notice is effective and shall be deemed given when received by facsimile or by personal delivery, or signed for with the United States Postal Service.

Any such notice mailed to the Authority shall be addressed:

South Texas Water Authority P.O. Box 1701 Kingsville, Texas 78364-1701 Attn: Executive Director Fax: (361) 592-5965

Any such notice mailed to the Wholesale Customer shall be addressed:

City of Kingsville P.O. Box 1458 Kingsville, Texas 78364-1701 Attn: City Manager Fax: (361) 595-8024

Either patiy may change the address or facsimile number for notice to it by giving notice of such change in accordance with the provisions of this paragraph.

SECTION 15. NO THIRD-PARTY BENEFICIARIES

10

Nothing in this Contract will be construed to confer any right, privilege or benefit on any customer, taxpayer, or a citizen of the City of Kingsville or the Authority, or on any other person or entity not a Party hereto, or otherwise create any third-pmiy beneficiary relationship. Nothing in this Contract will be construed as creating any form of partnership or joint venture relationship between the Pmiies, nor shall either Party be authorized to act as an agent for the other Patiy.

SECTION 16. DISPUTE RESOLUTION PROCEDURES

If a dispute arises between the parties relating to this Contract or to the performance of the parties hereto, the aggrieved party may have the dispute referred to non-binding mediation. If the non-binding mediation is not successful within sixty (60) days of the referral to it, either party may appeal the rate to the Public Utility Commission ("PUC"). If the PUC for any reason refuses to hear the appeal for want of jmisdiction, or otherwise, the dispute may be resolved by the District Comt ofKleberg County, Texas.

SECTION 17. REMEDIES UPON DEFAULT

(A) Remedies. The parties agree that the Authority's undetiaking to provide water is an obligation, failure in the performance of which cannot be adequately compensated in money damages alone. Accordingly, the Authority agrees, in the event of any default on its pmi, that the Wholesale Customer shall be entitled to specific performance in addition to any other available legal or equitable remedies.

(B) Remedies Cumulative/Not Exclusive. The remedies provided for herein are not exclusive remedies. All other remedies at law or in equity may be availed of by either patiy and shall be cumulative except to the extent otherwise specifically provided, or limited, under this Agreement.

(C) CONSEQUENTIAL DAMAGES. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR SPECIAL, CONSEQUENTIAL, INCIDENTAL, PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES OR LOST PROFITS WHETHER ARISING IN AGREEMENT, TORT, STRICT LIABILITY OR OTHERWISE.

SECTION 18. GUARANTEED PURCHASE

(A) The Wholesale Customer shall initially purchase a minimum volume of water, being the volume of water that can be purchased for $400,000 annually. To assist the Authority in maintaining the chloramine residual in the Authority's 42-inch transmission line near Kingsville, at the level required by the TCEQ, Wholesale Customer agrees to take water on the Daily Usage Schedule attached hereto as Exhibit "A." This Daily Usage Schedule shall be increased at the beginning of each of the Authority's fiscal years by a percentage equal to the percentage increase in the Cost of Water dming the preceding fiscal year.

11

(B) The Authority and the Wholesale Customer shall cooperate to adjust the Daily Usage Schedule to determine what best works to retain the chloramine residual at the level required by the TCEQ regulations. When that minimum Daily Usage Schedule has been determined, Wholesale Customer shall be required to purchase the amount of water required by the Daily Usage Schedule.

(C) This section is subject to other provisions of this Contract which may affect the amount of water available or distributed, such as the provisions dealing with the Corpus Christi Water Supply Agreement, force majeure, drought contingency plans, water rationing, and water conservation.

SECTION 19. CAPTIONS

Captions to sections of this Contract are for convenience and shall not be considered in the interpretation of the provision.

SECTION 20. GENERAL PROVISIONS

(A) Covenant of Good Faith and Fair Dealings. The Authority and the Wholesale Customer agree to cooperate and to deal with one another fairly and in good faith at all times to effectuate the purposes and intent of this Contract. They also agree to execute and deliver such further legal documents or instruments and to perform such further acts as are reasonably necessary to effectuate the purposes and intent ofthis Contract.

(B) Waiver. The failure on the pmt of either party to require performance by the other of any portion of this Contract shall not be deemed a waiver of, or in any way affect that patty's rights to enforce such provision. Any waiver by either pmty or any provision of the Agreement shall not be a waiver of any other provision hereof.

(C) Severability. The invalidity or unenforceability of any provision of this Contract shall not affect the validity or enforceability of any other provision of this Contract.

(D) Tax Exempt Bonds. The Wholesale Customer understands that the Authority has issued or will issue bonds the interest on which is excludable from the gross income of the owners thereof for federal income tax purposes ("Tax-Exempt Bonds") for improvements to the System and that the federal income tax laws impose cettain restrictions on the use of proceeds of any such Tax-Exempt Bonds and on the use of the facilities and property financed by the TaxExempt Bonds and the output produced from such facilities and property. Accordingly, the Wholesale Customer will not enter into a water supply contract or other agreement with a customer of such Wholesale Customer which contains take-or-pay, contract minimums, output requirements, special rates and charges or similar provisions, unless it has notified the Authority in writing of the Wholesale Customer's intent to enter into such contract at least 60 days prior to the execution of such contract or agreement. The parties may rely on the opinion of nationallyrecognized bond counsel to ensure compliance with this Section. This Section shall no longer apply to any Wholesale Customer if any of the outstanding bonds of the Authority allocable to the pmtion of the System used by the Wholesale Customer are not Tax-Exempt Bonds.

12

(E) Time. Time is of the essence. Unless otherwise specified, all references to "days" means calendar days. If the date for performance of any obligation falls on a Saturday, Sunday, or other day on which either Party's offices are not open for business, the date for performance will be the next following regular business day.

(F) Authority. Each of the persons signing on behalf of the Wholesale Customer and the Authority hereby confirm that they have the authority to execute this Contract on behalf of the party indicated by their signature and have the authority to bind such patty hereto.

(G) Entire Contract. This Contract contains all agreements between the parties hereto and any agreement not contained herein shall not be recognized by the parties. Words of gender shall be construed to include any other gender, and words in the singular shall include the plural and vice versa unless the context requires otherwise.

(H) Counterpatts. This Contract may be executed by the patties in any number of counterparts, each of which when so executed and delivered shall be deemed an original instrument, but all such counterpatts together shall constitute but one and the same instrument.

(I) Approvals. Whenever the term "approve" or "approval" is used in this Contract, the patty whose approval is required will not umeasonably withhold or delay it. Where approval is necessary, the party seeking approval may request approval in writing. If the party whose approval is requested fails to either approve the submittal or provide written conmtents specifically identifying the required changes within 21 working days, the submittal, as submitted by the requesting patty, will be deemed to have been approved by the patty whose approval is requested.

(J) Attorney's Fees. In the event either party shall become a party to any litigation against the other to enforce or protect any rights or interest under this Contract and shall prevail, the losing party shall reimburse the prevailing patty for all investigative and comt costs and attorney's fees incurred in such litigation.

(K) Governing Law. This Contract shall be governed by the laws of the State of Texas and venue shall lie in the District Court ofKieberg County, Texas.

(L) Binding Effect. The Contract shall be binding upon and inure to the benefit of the patties and their respective successors and assigns.

IN WITNESS WHEREOF, the parties hereto acting under authority of their respective governing bodies have caused this Contract to be duly executed in several counterparts, each of which shall constitute a duplicate original, all as ofthe day and year first written above.

[Signatures to follow.]

13


By ____ ~----~~~------------President, Board of Directors

ATTEST:

Ce1iificate of Secretary

The foregoing Contract was approved by the Boat·d of Directors of the South Texas Water Authority, and the President was authorized to execute it on behalf of the Authority, at a duly called ami posted public meeting on the day of , 2016.

Secretary, Board of Directors

(AUTHORITY'S SEAL)

14

CITY OF KINGSVILLE, TEXAS

By __________________________ __ Mayor Sam R. Fugate

ATTEST:

Certificate of Secretary

The foregoing Contract was presented to and approved by the City Commission of the City of Kingsville, and the Mayor was authorized to execute it on behalf of the City, at a duly called and posted public meeting, on the day of , 2016.

City Secretary Mary Valenzuela

(CITY SEAL)

15

QUITCLAIM

Date:

Grantor: South Texas Water Authority

Grantor's Mailing Address: P.O. Box 1701 Kingsville, Kleberg County, Texas 78364- I 70 I

Grantee: City of Kingsville, Texas

Grantee's Mailing Address: P.O. Box 1458 Kingsville, Kleberg County, Texas 78364

Consideration:

The Grantee's acceptance of the obligation to operate and maintain the Property being conveyed. Grantor and Grantee further agree as additional consideration that the transfer of the Property is to provide more efficient water service to residents within the boundary of Grantor, that Grantee will use the Property to provide water service to residents within the boundary of Grantor and that Grantee will not sell the Property or transfer an interest in the Propetty without Grantor's consent. Should Grantee cease to use the Property for the purposes stated herein, then in such event ownership of the Property shall automatically revert to Grantor.

Propetty (including any improvements): The waterlines and associated facilities described in Exhibit "A" attached hereto.

For the Consideration, Grantor quitclaims to Grantee all of Grantor's right, title, and interest in and to the Propetty, to have and to hold it to Grantee and Grantee's heirs, successors, and assigns forever. Neither Grantor nor Grantor's heirs, successors, or assigns will have, claim, or demand any right or title to the Pro petty or any part of it.

When the context requires, singular nouns and pronouns include the plural.

GRANTOR:

President, South Texas Water Authority

GRANTEE:

Mayor, City of Kingsville, Texas

ACKNOWLEDGMENTS

STATEOFTEXAS § §


This instrument was acknowledged before me on , 2016 by ________ _ President of South Texas Water Authority, a political subdivision, on behalf of said political subdivision.

Notary Public. State of Texas My Commission Expires: ____ _

STATE OF TEXAS § §


This instrument was, acknowledged before me on , 2016 by ________ , Mayor of the City of Kingsville, Texas, a municipality, on behalf of such municipality.

Notary Public. State of Texas My Commission Expires: ____ _

EXHIBIT "A" TO QUITCLAIM

The Property consists of the following:

ATTACHMENT 14

Water Supply Contract - City of Bishop

Memorandum

To: From:

South Texas Water Authority Board ofDirectors Carola G. Serrato, Executive Director

Date: October 21,2016 Re: City of Bishop- Revised Wholesale Water Supply Contract

Background:

As with the City of Kingsville negotiations, I have discussed this matter with Bill Flickinger, Willatt and Flickinger, on several occasions including in person on Wednesday, October 19111 and again this morning. He has indicated that his follow-up on the matter is a priority item and he is working on the responses to Mayor Joe Morales' and Mr. Gerald Benadum's comments, questions and concerns.

Analysis:

Staff continues to inquire and remind Mr. Flickinger about this matter. Staff believes it is in STWA's best interest to continue negotiating with the City of Bishop on the long-term contract. I believe, based on my conversations with legal counsel, that the responses and proposed changes to the contract are reasonable and should be favorably received.

Staff Reconnnendation:

Keep the Board updated on the matter.

Board Action:

Provided feedback to staff and legal counsel. In the event the information is received by the Board meeting, determine whether to forward legal counsel's responses to the City of Bishop.

Summarization:

Staff recognizes that there has been a delay in the follow-up on these negotiations. As the Board is aware, with the passing of Mr. Mike Willatt, the Authority's legal counsel firm is now staffed by only one attorney. However, Mr. Flickinger has reported that he is in the process of hiring a second and possibly third attorney.

ATTACHMENT 15

Board Meeting Schedule

Memorandum

To: From:


Date: October 18, 2016 Re: STWA Board of Directors Meeting Schedule for 2017

Background:

At this time, staff is requesting that the Board review the meeting dates for 2017.

Analysis:

For Fiscal Year 2017, the appraisal districts' July 25'' deadline falls on a Tuesday-the exact same day as the regular meeting would ordinarily be held. Staff requests that the meeting be postponed by a week to August l ". According to contract language the Authority will need to provide time for our wholesale customers to review and comment on the budget. Therefore, the August l" agenda would include several items related to sending the proposed budget to the Wholesale Customers, a review and consideration of the calculated effective tax rate as well as publishing of the public hearing notice to consider the proposed tax rate.

By sending the budget on August 2"d, the public hearing could be held on September 5'' and the budget and tax rates could be adopted within the Nueces County Tax Office's deadline which is typically the second week of September.


Enclosed is a calendar with the recommended dates for January 2017 through December 2017-using a rectangle to mark those dates. The circled dates are STW A observed holidays. The dates attempt to comply with the fourth Tuesday of the month schedule. As in the past, the November and December meeting has been combined.

Board Action:

Determine whether the following schedule is acceptable: • January 24, 2017 • February 28, 2017 • March 28, 2017 • April25, 2017 • May23,2017 • June27,2017 • August l, 2017 • September 5, 2017 • September 26, 2017 • October 24, 2017 • December 5, 2017

Summarization:

Staff appreciates the Board's consideration of this schedule and hopes it will assist the Board Members and staff in establishing quorums.

January S M T IV

I 0 3 4 8 9 IO 11

I5 I6 I7 I8

22 230 25 29 30 3I

April S M T IV

2 3 4 5

9 IO 11 I2

I6 17 I8 I9

23 240 26

30

T F S

5 6 7 12 I3 I4

I9 20 2I

26 27 28

T F S

I

6 7 8

13@ I5 20 2I 22

27 28 29

July SMTIVTFS

I

2305678

9 10 11 12 13 14 I5

I6 17 18 I9 20 21 22

23 24 25 26 27 28 29

30 3I

October S M T IV

I 2 3 4

8 9 10 11

15 16 17 18

22 23 025 29 30 31

T F S

5 6 7 I2 13 14

19 20 2I

26 27 28

2017

February S M T IV

I

5 6 7 8

I2 I3 I4 I5

I9 20 2I 22

26 270

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I 2 3

7 8 9 IO

I4 I5 I6 I7

2I nj3 24

28 ® 30 3I

T F S

2 3 4

9 10 11

16 17 I8

23 24 25

T F S

4 5 6

11 I2 I3

I8 I9 20

25 26 27

August SMTWTFS

0 2 3 4 5

6 7 8 9 IO II 12

13 14 15 16 17 18 19

20 2I 22 23 24 25 26

27 28 29 30 31

November S M T IV

I

5 6 7 8

12 13 14 15

19 20 21 22

26 27 28 29

T F S

2 3 4

9 10 II

I6 17 18

~®25

March S M T IV

5 6

I2 I3

I

7 8

I4 I5

19 20 2I 22

26 27 QD 29

June S M T IV

4 5 6 7 11 I2 I3 I4

I8 I9 20 2I

25 260 28

T F S

2 3 4

9 IO 11

I6 I7 I8

23 24 25

30 3I

T F S I 2 3

8 9 IO

15 16 17

22 23 24

29 30

September SMTIVTFS

I 2

3 ~6 7 8 9 10 II 12 13 14 15 16

17 18 19 20 21 22 23

24 25 0 27 28 29 30

December S M T IV

3 4 0 6 10 II 12 13

17 18 19 20

24 @0 27 3I

T F S

I 2

7 8 9

14 15 16

2I 22 23

28 29 30

ATTACHMENT 16

Request to Close Office for Christmas Luncheon

Memorandum

To: South Texas Water Authority Board of Directors From: Carola G. Serrato, Executive Director Date: October 18,2016 Re: Christmas Luncheon and Gift Exchange

Background:

In the past, the Board has authorized staffto close the office for a couple of hours to have a C1n·istmas luncheon and gift exchange. Enclosed is a sample notice for this year with the date of Wednesday, December 14111 filled in and the hours left blank. That Wednesday appears to work with everyone's schedule.

Analysis:

As the flyer indicates, the event is voluntary, which means the employees cannot interpret the time as overtime. Signs are posted in advance in the front office and drive-through window to let customers know that the office will be closed. Previously, on the day of the event, the front gate is closed and a sign is posted to let water supply corporation customers and any visitors know that the office is temporarily closed. The answering service is notified as well that the office will be closed for those hours and calls are forwarded to that service during the authorized hours.

During the lunch, staff is provided with a $50 gift card from South Texas Water Authority. Also, I personally provide gift packages that are randomly received by playing various types of games.


Consider allowing the office to temporarily close for a Christmas luncheon and gift exchange.

Board Action:

Determine whether to allow the office to be temporarily closed for a Christmas luncheon and gift exchange.

Summarization:

This event has always been a great experience. It allows employees time to enjoy each other's company. They have viewed the time and gift card as a show of appreciation directly from South Texas Water Authority. It also gives me the opportunity to show my personal gratitude for staffs hard work.

The Lunch & Gift Exchange is from a.m. to _

__ p.m. on Wednesday, December 14.

Below is the menu.

For the gift swap bring an item that costs around $25. This a voluntary event.

Spiral Ham - Carola

Smoked Turkey, Gravy & Cranberry- Carola Stuffing/Dressing -

Sweet Potatoes -

Potato Dish -

Green Bean Dish -

Vegetable Dish

Vegetable Tray

Pasta Salad -

~"'""'-=· 0. Rolls -Dessert/Cake -

Dessert/Pie -

Dessert/Cookies

Chips & Dip

Drinks (sodas/tea) & cups -Ialc:;:,, Napkins & Utensils -

FOR YOUR INFORMATION

Carola Serrato

From: Sent: To: Subject:

Attachments:

Good afternoon-

Norris, Karolina < [email protected]> Tuesday, October 04, 2016 1:58 PM Carola Serrato; [email protected]; [email protected] RE: Pre-Publication Notice: South Texas Wtr Auth- S&P Global Ratings pre-publication document attached for your review RatingsDi rect_Analysis_1729989 _Oct -04-2016 _14_5 S.pdf

Attached is a copy of the published report.

Thank you and have a great afternoon, Karolina

Karolina Norris Associate Director

S&P Global - Ratings 500 North Akard, Suite 3200 Dallas, TX 75201 T: 972.367.3341 I C: 469.993.5955 [email protected] wwvrspglobal.com

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From: Carola Serrato [mailto:[email protected]] Sent: Monday, October 03, 2016 11:17 AM To: Norris, Karolina (Analytical); [email protected]; [email protected] Subject: RE: Pre-Publication Notice: South Texas Wtr Auth - S&P Global Ratings pre-publication document attached for your review

Good Morning Ms. Norris:

Jo Ella and I have reviewed the draft report and offer two (2) corrections. The Authority serves seven (7) entities. The Ricardo Water Supply Corporation needs to be added to the list in the 1 ' 1 paragraph under the "Economy" heading. Also, the adopted Tax Year 2016/Fiscal Year 2017 M&O rate is 6.1067 cents per $100 valuation which is listed as a flat 6-cent rate in the last sentence of the 1'1 paragraph under the "Finances" heading.

Please let us know if we need to provide any additional information.

Sincerely,

1

Carola G. Serrato Executive Director South Texas Water Authority P.O. Box 1701 Kingsville, Texas 78364 [email protected] 361-592-9323 x12 361-592-5965 fax

From: [email protected] [mailto:[email protected]] Sent: Friday, September 30, 2016 3:34 PM To: [email protected]; [email protected]; [email protected] Cc: [email protected] · Subject: Pre-Publication Notice: South Texas Wtr Auth- S&P Global Ratings pre-publication document attached for your review

S&P Global Ratings is sending you this draft so that you can call our attention to any factual errors or the inadvertent inclusion of confidential information in the draft. If you have any questions or comments on the analysis that are not factual in nature, we ask that you discuss these matters with us. We will use our sole discretion in making editorial changes to the document, which represents our independent opinion. We will finalize and release our report as soon as practicable from the time we have sent this email regardless of whether we have received a reply. The report will supersede the information in the draft; the information in the draft is confidential and remains confidential after the issuance of a report, and the draft should not be disclosed or released at any time before or after the report is published.

Karolina Norris

S&P Global Ratings T: 972.367.3341 [email protected] www.spglobal.com

S&PGlobal S&P Global maintains a separation of commercial and analytical activities. Please note that our ratings analysts are not permitted to engage in discussions about fees or receive fee information. Any questions about fees should be directed to a Relationship Manager. For fee quotes or more information, please email [email protected] or call 877.299.2569.

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2

S&P Global Ratings

RatingsDirect®

Summary:

South Texas Water Authority; General Obligation Primary Credit Analyst: Karolina Norris, Dallas 972-367-3341; [email protected]

Secondary Contact: Jim Tchou, New York (l) 212-438-3821;[email protected]

Table Of Contents

Rationale

Outlook

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT OCTOBER 4, 2016 1

1729989 1 302523526

Summary:

South Texas Water Authority; General Obligation Credit llrofile " "

South Texas Wtr Auth GO

Long Term Rating

Rationale

A/Stable Affirmed

S&P Global Ratings has affirmed its 'A' long-term rating on the South Texas Water Authority's (STWA) general

obligation (GO) bonds. The outlook is stable.

The rating reflects our view of the authority's:

• Very strong financial position; and

• Moderate overall net debt burden on a per capita basis, coupled with limited future capital needs requiring the

issuance of additional debt.

We believe these strengths are somewhat offset by the authority's somewhat limited local economy characterized by

adequate wealth and incomes, along with some oil and gas sector concentration in its property tax base.

The bonds are secured by a limited ad valorem tax not to exceed $0.20 per $100 of assessed valuation (AV). The

authority currently levies $0.021 of the maximum allowed.

Economy With a population of approximately 37,000, the STWA is in Kleberg and Nueces counties and encompasses

approximately 415 square miles. The authority operates a regional water supply system and currently provides water

to seven retail public water systems: Nueces County Water Control & improvement District No. 5; Nueces Water

Supply Corp.; Ricardo Supply Water Corp.; and the cities of Agua Dulce, Kingsville, Driscoll, and Bishop. The authority

purchases treated water from Corpus Christi. The local area economy is largely based on oil and gas, as well as

agriculture and ranching.

The authority's taxable AV increased by 9.2% in fiscal2016 to $1.7 billion. While there is some residential and

commercial development, values remained essentially flat in fiscal 2017, due largely to a drop in oil and gas values.

Market value per capita, an indication of wealth, is adequate, in our view, at approximately $46,126. The tax base is

diverse, in our opinion, with the 10 leading taxpayers accounting for about 15.7% of AV in fiscal2015; six of the top 10

taxpayers are oil and gas entities. income levels are adequate, in our view, with median household effective buying

income at 83% of the national average.

Finances In our view, the STWA's financial position is very strong. It ended fiscal2015 with an available general fund balance of

approximately $1.9 million, or 68.4% of operational expenditures, which we consider very strong. General fund

WWW,STANDARDANDPOORS.COM/RATINGSDIRECT OCTOBER 4, 2016 2

1729989 1 302523526

Summary: South Texas Water Authority; General Obligation

revenues consist primarily of water service revenues (49% of fiscal 2015 revenues) and property tax collections (35%).

The adopted fiscal 2016 budget projected a $147,000 deficit, but officials currently anticipate ending the year with

break-even operations. The authority adopted a $142,000 deficit budget for fiscal2017.lts property tax rate for

maintenance purposes is 6.19 cents per $100 of AV in fiscal 2016 and 6.11 cents in fiscal 2017.

The authority purchases water from Corpus Christi and then passes this cost along to its customers, plus a handling

charge of nearly 43 cents per 1,000 gallons (except for Nueces County Water Control & Improvement District No.5,

which pays an additional in lieu of taxes rate of$686.20 per month). The authority is currently negotiating new

contracts with three of its customers, but continues to provide water to these entities and they are still operating under

the terms of the expired contracts.

Debt The STWA's overall net debt burden is moderate on a per capita basis, at $3,150, and moderately high as a percent of

market value, at 6.8%, in our view. The vast majority of its overall net debt burden is due to overlapping debt. The debt

amortization schedule is average, with about 49% of principal retiring during the next 10 years. We understand that

officials currently have no plans to issue additional debt for the next two years.

Pension and other postemployment benefit liabilities All full-time employees are covered under the South Texas Water Authority Thrift Plan and Trust, a

defined-contribution pension plan, established Oct. 1, 1983. Therefore, STWA has no pension liability.

Outlook

The stable outlook reflects our anticipation that the STWA will continue to serve its wholesale water customers despite

the expiration of its contracts. We also anticipate that it will maintain its very strong financial position due to its

conservative budgeting practices and healthy property tax collections. We do not expect to change the rating over the

two-year outlook horizon.

Upside scenario

We could take a positive rating action if the authority enters into long-term contracts with its water customers, thereby

providing additional security for its revenues.

Downside scenario

Conversely, a substantial decline in the authority's financial position or a loss of its primary customers could place

downward pressure on the rating.

Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors,

have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria.

Please see Ratings Criteria at www.standardandpoors.com for further information. Complete ratings information is

available to subscribers of Ratings Direct at www.globalcreditportal.com. All ratings affected by this rating action can

be found on the S&P Global Ratings' public website at www.standardandpoors.com. Use the Ratings search box

located in the left column.


1729989 1 302523526

WWW.STANDARDANDPOORS.COM/RATINGSDIRECT

Summary: South Texas \Vater Authority; General Obligation

OCTOBER 4, 2016 4

1729989 1 302523526

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1729989 1 302523526

Costly NPRR Rejected

Peak Usage Record

Ancillary Services Redesign

2

3

Chris Brewster, an attorney

with Lloyd Gosselink,

represents cities at ERCOT on a daily basis and

participates in ERCOT matters on your behalf.

If you have questions or

would like to discuss any

ERCOT matter, or any

communication from ERCOT regarding your ERCOT

membership, please feel

free to contact Chris at (512) 322-5831 or email

[email protected].

He will be happy to answer

your questions or assist you

in anyway.

The ERCOT process recently considered and rejected a Nodal Protocol Revision Request {"NPRR") which would have increased the costs customers pay for Reliability Must Run ("RMR") generation units. ERCOT executes RMR agreements with generators that seek to retire older power plants, but for which ERCOT has determined those plants should remain temporarily operational in order to prevent transmission system problems.

Recently, NRG Texas Power ("N RG")-the dominant generator in the Houston area-sought authority to shut down its Greens Bayou Unit 5, located in the Houston region. ERCOT determined that the Greens Bayou 5 unit is needed for transmission stability and executed a 25-month RMR contract with NRG so the unit

can operate during summer peak periods through June 2018. The contract provides a stand-by payment of $3,185/hour for on-peak periods during the months of the agreement. The standby payment would total almost $21 million. In addition to the standby payment, NRG would be paid its mitigated offer cap-roughly $50/

MWh-because it is in a noncompetitive, transmission-constrained pocket of customers. Grid congestion in the Houston area is a wellknown problem for ERCOT -one that has been addressed by adding new planned transmission lines to relieve the congestion through the Houston

Import Project, which will be completed by 2018.

In response to the RMR contract, NRG proposed NPRR 784 to ensure that RMR units are directed to generate power only after the dispatch of all other relevant generation units

{ContJnued c.npage 1)

ATTORNEY-CLIENT COMMUNICATION This memorandum is intended for cities/political subdivisions (and their employees,

contractors, or elected officials) that are clients of lloyd Gosselink. If you are not the intended recipient, please discard this document. Any use, dissemination, or reproduction of this transmission by an unintended recipient is prohibited.

Lloyd Gosse link Rochelle & Townsend, P.C. II 816 Congress Ave., Suite 1900 Austin, TX 7870111 512.322.SBOO II www.lglawftrm.com

ERGOT Monitoring Report September 29, 2016

to

transmission system overloads at the spot. Essentially, Greens Bayou 5 would have only entered the market at an artificially high price. Ultimately, higher wholesale costs are passed on to customers in the Houston region.

And because Houston does have grid congestion issues, NRG would have almost assuredly reaped the benefits of those higher prices. Greens Bayou 5 RMR units will very likely be dispatched during summer peak periods in order to relieve transmission system overloads.

Page2

We opposed the NPRR because it would have let generators collect artificially high prices from captive customers. It is particularly problematic in the Houston region where NRG (who owns a majority of the generation in the region) opposed the Houston Import Project, a large transmission line project that will relieve the "bottleneck" going into the Houston area. The Technical Advisory Committee {"TAC") rejected NPRR 784 and NRG appealed the TAC's decision to the full board. The board rejected that appeal on August 9.

ERCC>tr Breaks Peak Demand Record Six trimes in Seven E>ay-s

ERCOT reached record levels of energy demand six separate times in just one week of August, ultimately exceeding 70,000 MW for the first time in the grid operator's history.

ERCOT first set a new hourly demand record on August 5, when triple-digit temperatures pushed the demand to 68,459 MW, breaking the previous record set in 2011, during the hottest summer in Texas history. For context, one MW is enough to power about 200 homes during periods of peak demand. This record was short-lived, as the following day demand reached an even higher 68,912 MW level between 4 and 5 p.m. On August 8, ERCOT set a new hourly demand record yet again when demand reached 70,169 MW between 4 and 5 p.m., setting the new all-time record for peak demand.

However, on August 10, demand reached 70,531 MW between 3 and 4 p.m., once again

blowing past the record set just two days earlier. On August 11, demand rose to 71,197 MW from 4 to 5 p.m. For now, this record holds steady as the system-wide record hourly peak demand.

Despite the record-breaking demand, ERCOT had no problem meeting the system's needs. ERCOT Director of System Operations Dan Woodfin reported that ERCOT is "pleased that the system continues to perform well as the need for air conditioning drives up demand."

Indeed, as demand continued to increase through that week in August, ERCOT managed the high demand, while also maintaining system reliability.

Additionally, during this period, prices remained unremarkable and did not spike in response to the multiple record-breaking peaks in demand. The current record will likely stand as August is typically the hottest month in Texas.

Lloyd Gosse link Rochelle & Townsend, P.C. II 816 Congress Ave., Suite 1900 Austin, TX 78701 II S12.322.5800 II www.lglawfirm.com

ERCOT Monitoring Report September 29, 2016

Beginning in early 2014, ERCOT staff began considering what changes need to be made to a set of power products known as "ancillary services." The numerous types of ancillary services vary in their details, but the basic idea behind all of them is the same: generators (and some consumers} are paid a particular amount to stand ready to either produce energy or curtail their energy usage. The ancillary services are essentially tools that permit ERCOT to respond to unforeseen events on the grid and serve as a daily backup reserve that ERCOT can rely upon. Ancillary services are bought and sold in an ERCOT-administered market; , ERCOT procures a particular amount for each day, and the '· resulting cost is charged to consumers.

With the exception of some small modifications, the ancillary services have changed little since the ERCOT market opened. Since that time, new technologies have arisen and the makeup of the ERCOT grid has changed considerably. ERCOT is now a system with vast amounts of installed wind capacity, increasing amounts of batteries and other forms of storage, and new control and metering systems that permit more customers to participate in demand response. To reflect these changes, ERCOT proposed a complete overhaul of its ancillary service products.

We expressed cautious optimism about the consumer impact of this overhaul; in our view, giving ERCOT a set of ancillary services that more

Page3

closely aligns with the current characteristics of the grid could permit ERCOT to control the system more reliability, and potentially at a lower cost.

After several delays, ERCOT finally released its cost-benefit study on the merits of the transition in December 2015. ERCOT released revisions to the study in March and again in April after receiving stakeholder comments received January.

However, the NPRR was rejected by ERCOT's Protocol Revision Committee ("PRS"} on May 12, and was rejected again when staff appealed to the

Technical Advisory Committee ("TAC"} on May26.

Ultimately, ERCOT staff was unable to convince stakeholders that the

ii!Mit*''"' revisions were ready for • implementation. Stakeholders expressed concerns over market liquidity for the proposed

new services and a desire to see ERCOT focusing on other alternatives to NPRR 667. ERCOT spokesperson Robbie Searcy said that "ERCOT continues to believe the concepts set forth in" in the NPRR and "as grid characteristics evolve, it is important that we are planning ahead to ensure we have appropriate market tools to maintain system frequency and overall reliability."

Lloyd Gosselink Rochelle & Townsend, P.C. II 816 Congress Ave., Suite 1900 Austin, TX 78701 II 512.322.5800 II www.lglawfirm.com

ERCOT Monitoring Report September 29, 2016

CDR Report

COPS

CREZ

CRR

EDS

EECP

ElLS

EMS

ERCOT

FERC

IMM

LAAR

MW

MCPE

MMS

NATF

NERC

NPRR

NOV

NSRS

ORDC

PRR

PRS

QSE

REP

RMS

ROS

RRS

RUC

SEM

SCED

SOAH

TAC

TPTF

VFT

WMS

Capacity, Demand, and Reserves Report

Commercial Operations Subcommittee

Competitive Renewable Energy Zones

Congestion Revenue Rights

Early Delivery System

Emergency Electric Curtailment Plan

Emergency Interruptible Load Service

Energy Management System

Electric Reliability Council of Texas

Federal Energy Regulatory Commission

Independent Market Monitor

Load Acting as a Resource

Megawatt

Marginal Clearing Price for Energy

Market Management System

Nodal Advisory Task Force

North American Reliability Corporation

Nodal Protocol Revision Request

Notice of Violation

Non-Spin Reserve Service

Operating Reserve Demand Curve

Protocol Revision Request

Protocol Revision Subcommittee

Qualified Scheduling Entity

Retail Electric Provider

Retail Market Subcommittee

Reliability Operations Subcommittee

Responsive Reserve Service

Reliability Unit Commitment

Single Entry Model

Security-Constrained Economic Dispatch

State Office of Administrative Hearings

Technical Advisory Committee

Texas Nodal Transition Plan Task Force

Variable Frequency Transformer

Wholesale Market Subcommittee

Page4

lloyd Gosse link Rochelle & Townsend, P.C. II 816 Congress Ave., Suite 1900 Austin, TX 78701 II 512.322.5800 II www.lglawfirm.com

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