FY OF AUSTI FOUNDED 1839 Austin City Council MINUTES WORKSESSION July 19, 1995 Mayor Pro Tem Garcia called the meeting to order, Mayor Todd and Councilmember Reynolds temporarily absent. PREVIEW OF ITEMS FOR NEXT COUNCIL MEETING 1. Review of Proposed Agenda Items from City Manager for July 27, 1995. 2. Review of Proposed Agenda Items from Council for July 27, 1995. BOARD AND COMMISSION REPORTS 3. Electric Utility Commission Report - Marilyn Jones, Chair Presentation made by Marilyn Jones. 4. Resource Management Commission Report - Glee Ingram, Chair Presentation made by Glee Ingram. 5. M/WBE Advisory Committee Report No report given BRIEFINGS AND DISCUSSIONS 6. WORKFORCE DIVERSITY *Aviation Department Presentation made by Charles Gates, Ruth Ann Edwards, Vince Giles, Linda Beth Brady, Thomas Brown and Eddie Clark. 7. Monthly Electric Utility Report John Moore EXECUTIVE SESSION (No Public Discussion on These Items) Executive session held at 2:30 p.m to 5:40 p.m. on items 8,9,10,11,12,13 and 14. The City Council will announce that it will go into Executive Session, if necessary, pursuant to Chapter 551 of the Texas Government Code to receive advice from Legal Counsel, to discuss matters of land acquisition, litigation and personnel matters. No final action will be taken on any subject or matter unless specifically listed on the agenda for this meeting. Advice of Counsel - Section 551.071 8. Discuss City of San Antonio, Texas et al v. Westinghouse Electric Corp., Cause No. 90-5-00684-C, in the 23rd District Court of Matagorda County, Texas. 9. Discuss Houston Lighting and Power Company v. City of San Antonio, et al, Cause No. 88-923-E, in the 101st District Court of Dallas County, Texas. 10. Discuss City of Austin v. Houston Lighting and Power Company, Cause No. 94-007946, in the 164th District Court of Harris County, Texas. 11. Discuss ownership interest in South Texas Nuclear Plant. 12. Discuss legal issues and potential litigation concerning the proposed Utility Infrastructure Ordinance amending the City Code to add Chapter 18-6. Staff Briefing - Section 551.075 13. Staff briefing on the proposed Infrastructure Ordinance, including its impact on current and future users of City-owned Utility Infrastructure. (No City Council deliberation permitted under Section 551.075) 14. Staff briefing on competitive assessment for Electric Utility Department. (No City Council deliberation permitted under Section 551.075) ITEMS CONTINUED FROM PREVIOUS MEETINGS 15. Approve third reading of an ordinance amending the City Code to add Chapter 18-6, establishing and regulating the use by third parties of City-owned Utility Infrastructure, and establishing a penalty for violation of this ordinance. Postponed one week RESOLUTIONS 16. Approve execution of a contract with CST ENVIRONMENTAL, INC., Houston, Texas, to provide lead-based paint abatement services for the thirty-four (34) columns that support the overhead crane rail at the Decker Power Plant, in the amount of $78,780. (Funding is available in the 1994-95 operating budget of the Electric Utility Department.) Best responsive proposal of two (2). 2% MBE, 0% WBE Subcontractor participation. Approved 17. Approve execution of a twelve (12) month supply agreement with AIR PRODUCTS & CHEMICALS, INC., Irving, Texas, for high quality breathing air, nitrogen, and sulfur hexafluoride (SF6) gases (used to maintain a low dew point and breathable atmosphere when entering substation transformers for maintenance and repair), in the amount of $41,921.90 with the option to extend for two (2) additional twelve (12) month periods in the amount of $41,921.90 per extension, for a total amount of $125,765.70. (Funding in the amount of $6,986.98 is available in the 1994-95 operating budget of the Electric Utility Department. Funding for the remaining ten (10) months and the extension options is contingent upon available funding in future budgets.) Low bid of three (3) meeting specifications. No M/WBE Subcontracting opportunities were identified. Approved 18. Approve execution of a contract with SOUTHWAY ELECTRIC UTILITY SERVICE, INC., Austin, Texas, for the purchase of twelve (12) insulated, vacuum interrupter switches to be installed in transformer vaults to disconnect the transformer without turning off the entire electric circuit, in the amount of $198,840. (Funding was included in the 1994-95 Capital budget of the Electric Utility Department.) Low bid of seven (7) meeting specifications. No M/WBE Subcontracting opportunities were identified. Approved 19. Approve execution of a contract with ROCKFORD BUSINESS INTERIORS, Austin, Texas, for the purchase of ten (10) modular office furniture workstations for the Kramer Lane North Service Center, in the amount of $55,880. (Funding was included in the 1994-95 Capital budget of the Electric Utility Department.) Sole Source. No M/WBE Subcontracting opportunities were identified. Approved 20. Approve execution of a contract with SAFETY STORAGE, INC., Atlanta, Georgia, for the purchase of two (2) portable hazardous materials storage buildings to be located at the Holly and Decker Power Plants, in the amount of $57,036. (Funding was included in the 1994-95 Capital budget of the Electric Utility Department.) Low bid of five (5). No M/WBE Subcontracting opportunities were identified. Approved 21. Approve execution of a contract with CABLE DYNAMICS, INC., Allentown, Pennsylvania, for the purchase of a cable fault locator, in the amount of $48,635. (Funding was included in the 1994-95 Capital budget of the Electric Utility Department.) Low bid of three (3) meeting specifications. No M/WBE Subcontracting opportunities were identified. Approved Items 16 through 21 approved, on Mayor Pro Tem Garcia's motion, Councilmember Goodman's second, 6-0 vote, Councilmember Nofziger absent. 22. Approve execution of a contract with LAIDLAW ENVIRONMENTAL SERVICES, San Antonio, Texas, for transportation and disposal services of PCB and petroleum hydrocarbon contaminated materials associated with the remediation of the Magnesium Substation, in the amount of $1,349,995. (Funding is available in the 1994-95 operating budget of the Electric Utility Department.) Low bid of five (5). No M/WBE Subcontracting opportunities were identified. Approved on Mayor Pro Tem Garcia's motion, Councilmember Goodman's second, 5-1 vote, councilmember Mitchell voting "NO". 23. Approve a construction contract award to REMEDIATION SERVICES, INC., Independence, Kansas, for the Magnesium Substation Remediation project, in the amount of $151,412.80. (Funding is available in the 1994-95 operating budget of the Electric Utility.) Low bid of three (3). 18.12% MBE, 6.52% WBE Subcontractor participation. Approved 24. Approve execution of a twelve (12) month supply agreement with HIGH VOLTAGE SUPPLY, INC., Dallas, Texas, for extra low resistance contacts used to regulate voltage transmitted from substations to Electric Utility customers, in the amount of $250,053 with the option to extend for two (2) additional twelve (12) month periods in the amount of $250,053 per extension option, for a total amount of $750,159. (Funding in the amount of $41,675.50 is available in the 1994-95 operating budget of the Electric Utility Department. Funding for the final ten (10) months of the contract and the extension options is contingent upon available funding in future budgets.) Sole Source. No M/WBE Subcontracting opportunities were identified. Approved 25. Approve the exchange of the surface only of a tract of 1.786 acres of land jointly owned by the City of Austin and the Lower Colorado River Authority at the Fayette Power Project for the surface only of a 0.711 acre tract of land owned by Mr. Charles Rose. (No fiscal impact.) Approved 26. Approve execution of a contract with YPS-HILL MECHANICAL, Austin, Texas, to upgrade the cooling system and install a thermal storage system at the Energy Control Center (ECC), in the amount of $259,187. (Funding was included in the 1994-95 Capital budget of the Electric Utility Department.) Low bid of two (2). Approved Items 23 through 26 approved, on Mayor Pro Tem Garcia's motion, Councilmember Goodman's second, 6-0 vote, Councilmember Nofziger absent. 27. Authorize an amendment to the contract with Price Waterhouse LLP to assist the City in developing, soliciting, and evaluating bids for the sale of the Electric Utility System in lieu of a management/operational audit in the amount of $404,057. (Funding is available in the 1994-95 operating budget of the Electric Utility Department.) Postponed for one month, August 17, 1995 28. Approve Change Order No. 3 to LAUREN CONSTRUCTORS, INC., Abilene, Texas, for the increased quantity and quality of enclosures for the abatement of lead paint, for modifying crane size to minimize impact on the Holly Power Plant neighborhood; and for additional scaffolding and air monitoring work as part of the Noise Mitigation Phase II Project at the Holly Power Plant, in the amount of $104, 427, for a total contract amount of $1,505,524.70. (Funding was included in the 1994-95 Capital Budget of the Electric Utility Department.) 25.6% MBE, 0% WBE Subcontractor participation. Approved, Mayor Pro Tem Garcia's motion, Councilmember Goodman's second, 4-0-2 vote, Councilmembers Mitchell and Shea abstaining, Councilmember Nofziger absent. 29. Approve execution of two (2) twelve (12) month contracts with RMT/JONES AND NEUSE (primary), Austin, Texas, and EMTECH ENVIRONMENTAL SERVICES (backup), Corpus Christi, Texas, for transformer spill and hazardous materials spill emergency response and cleanup, in an amount not to exceed $600,000 for both contracts, with the option to extend for four (4) additional twelve (12) month periods in an amount not to exceed $600,000 per extension, for a total amount not to exceed $3,000,000. RMT/Jones and Neuse will be the primary contractor. Emtech will be awareded a backup contract to be used only when the primary is not available. (Funding in the amount of $100,000 is available in the 1994-95 operating budget for the Electric Utility Department; funding for the final ten (10) months of the original contract periods and the extension options is contingent upon available funding in future budgets. Best proposal of six (6). M/WBE Subcontractor participation: RMT/Jones and Neuse: (25% MBE, 5% WBE); EmTech: (7.57% MBE, .08% WBE) Approved, on Mayor Pro Tem Garcia's motion, Councilmember Goodman's second, 6-0 vote, Councilmember Nofziger absent. Energy Conservation (Items 30-31) 30. Approve negotiation and execution of an Interlocal Agreement with the Austin Independent School District (AISD) for electric energy demand-side management (DSM) projects, in the amount of $300,000. Energy conservation measures will be installed in nineteen (19) schools, saving an estimated 1,610 kilowatts at a cost of $186 per kilowatt saved. (Recommended by Resource Management Commission) Motion to sever items 31 and 32 by Councilmember Mitchell Substitute motion to change amount from $300,000 to $150,000, by Councilmember Reynolds. Motion fails for lack of second. Approve original motion on Mayor Pro Tem Garcia's motion, Councilmember Goodman's second, 5-0-1 vote, Councilmember Reynolds abstaining, Councilmember Nofziger absent. 31. Approve the issuance of a Letter of Intent and a rebate to Advanced Micro Devices for the installation of premium efficiency motors, fluorescent lighting system, building envelope, water-cooled centrifugal chillers and variable speed drives which operate the electric motors, in the amount of $467,795.25. Installation of this equipment will save an estimated 3,078 kW at a cost of $152 per kilowatt saved. (Funding in the amount of $233,897.62 is available in the 1994-95 operating budget of the Conservation Rebates and Incentives Fund. The remaining $233,897.63 is contingent upon available funding in future budgets.) (Recommended by Resource Management Commission) Approved, on Mayor Pro Tem Garcia's motion, Councilmember Goodman's second, 4-2 vote, Councilmembers Mitchell and Reynolds voting "NO", Councilmember Nofziger absent. 32. Approve execution of a contract with LONGHORN INTERNATIONAL EQUIPMENT, INC., Austin, Texas, for the purchase of one (1) truck/tractor, in the amount of $77,700. (Funding was included in the 1994-95 Capital budget of the Electric Utility Department.) Low bid of two (2). No M/WBE Subcontracting opportunities were identified. Approved 33. Approve execution of a contract with BABCOCK & WILCOX, Houston, Texas, for the upgrade of the burner impeller and air register drives on the Decker Power Plant Unit 2 Boiler, in the amount of $272,800. (Funding was included in the 1994-95 Capital budget of the Electric Utility Department.) Sole Source. No MWBE Subcontracting opportunities were identified. Approved 34. Approve execution of a twelve (12) month service agreement with ANALYSYS, INC., Austin, Texas, for environmental sampling and analytical services of industrial waste produced during the generation and distribution of electricity, in an amount not to exceed $196,529 with the option to extend for two (2) additional twelve (12) month periods in an amount not to exceed $196,529 per extension, for a total amount not to exceed $589,587. (Funding in the amount of $32,754.83 is available in the 1994-95 operating budget of the Electric Utility Department. Funding for the final ten (10) months of the contract and the extension options is contingent upon available funding in future budgets.) Low bid of twelve (12) meeting specifications. 9.98% MBE, 4.99% WBE Subcontractor participation. Approved 35. Approve execution of a contract with COMMERCIAL BODY CORPORATION, San Antonio, Texas, for the purchase of one (1) telescopic aerial device, line body, and truck chassis for use in the construction and maintenance of electrical transmission lines, distribution lines, and streetlighting systems, in the amount of $125,701. (Funding was included in the 1994-95 Capital budget of the Electric Utility Department.) Low bid of two (2). No M/WBE Subcontracting opportunities were identified. Approved 36. Approve execution of a contract with TECHLINE, INC., Austin, Texas, for the purchase of a transmission line conductor which will be used in the voltage conversion of the Burleson Substation to Bergstrom Substation transmission line, and the Seaholm Substation to Burleson Substation transmission line, in the amount of $375,676.75. (Funding was included in the 1994-95 Capital budget of the Electric Utility Department.) Low bid of ten (10). No MWBE Subcontracting opportunities were identified. Approved 37. Approve execution of a twelve (12) month contract with EMTECH ENVIRONMENTAL SERVICES, Corpus Christi, Texas, for emergency oil response and cleanup in power plants, in an amount not to exceed $400,000 with the option to extend for four (4) additional twelve month periods in an amount not to exceed $400,000 per extension, for a total amount not to exceed $2,000,000. (Funding in the amount of $66,667 is available in the 1994-95 operating budget of the Electric Utility Department. Funding for the final ten (10) months and the extension options is contingent upon available funding in future budgets.) Sole proposal. 7.50% MBE, 1.00% WBE Subcontractor participation. Approved Items 32 through 37 approved on Mayor Pro Tem Garcia's motion, Councilmember Goodman's second, 6-0 vote, Councilmember Nofziger absent. CITIZEN COMMUNICATIONS (A maximum of 10 citizens to speak on posted items. Each citizen will be given 3 minutes to speak.) Speaker cards on file at City Clerk's Office. ADJOURNED at 6:40 p.m. on Councilmember Mitchell's motion, Councilmember Shea's second, 6-0 vote, Councilmember Nofziger absent. Approved on this the 27th day of July, 1995, on Mayor Pro Tem Garcia's motion, Mayor Todd's second, 7-0 vote.