AGENDA ITEM 1.a. - McAllen Public Utility

AGENDA ITEM 1.a. PUBLIC UTILITY BOARD DATE SUBMITTED 04/20/2017 MEETING DATE 04/25/2017

1. Agenda Item: Approval of Minutes for Special Meeting held April 4, 2017. 2. Party Making Request:

Nyla Flatau, Utility Board Secretary 3. Nature of Request: Approval of Minutes as presented. 4. Budgeted:

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

5. Reimbursement: 6. Routing:

Nyla Flatau Created/Initiated - 04/20/2017 7. Staff's Recommendation: Approval of Minutes as presented. 8. City Attorney: Approved - KDP 9. MPU General Manager: Approved - MAV 10. Director of Finance for Utilities: Approved - MDC

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STATE OF TEXAS COUNTY OF HIDALGO CITY OF MCALLEN The McAllen Public Utility Board met in a Special Meeting on Tuesday, April 4, 2017 at 2:15 p.m. at the McAllen Commission Chambers – 3rd Floor:

Ernest Williams Chairman Tony Aguirre, Jr. Vice-Chairman Albert Cardenas Trustee James “Jim” Darling Mayor/Ex-Officio

Absent: Charles Amos Trustee Staff: Marco A. Vega, P.E. General Manager J.J. Rodriguez Assistant General Manager

Nyla L. Flatau Utility Board Secretary Joe Solis Director of Water Systems Melba Carvajal Director of Finance for Utilities Javier Hinojosa Interim Director of Wastewater Systems Carlos Gonzalez, P.E. Utility Engineer Sergio Espinoza, P.E. Utility Engineer Jose Salinas Assistant Director of Water Systems

Carlos Diaz-Limon Assistant to the Utility Board Secretary Rafael Balderas Assistant to the Utility Engineer Terri Uvalle Assistant Director, Utility Billing Pablo Rodriguez Assistant Director, Customer Relations Sonia Resendez Assistant Investment Officer Julio Oviedo Wastewater Collections Manager Kevin Pagan City Attorney CALL TO ORDER: Chairman Ernest Williams called the meeting to order.

1. MINUTES: a) Approval of Minutes for the Workshop and Special Meeting held on March 21,

2017 Tony Aguirre, Trustee, moved to approve Minutes for Workshop and Special Meeting held on March 21, 2017. Albert Cardenas, Trustee, seconded the motion. The motion carried unanimously by those present.

2. BIDS AND CONTRACTS:

a) Consideration and Approval of the Tres Lagos & 29th Street Sports Complex

Wastewater Reuse Project – Amendment #2 to LeFevre Engineering & Management Consulting , LLC’s Professional Services Contract Mr. Carlos Gonzalez presented the Tres Lagos & 29th Street Sports Complex Wastewater Reuse Project – Amendment #2 to LeFevre Engineering & Management

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Consulting, LLC’s Professional Services Contract. Mr. Gonzalez advised that Amendment #2 addresses two phase services: Task 10A includes all work related to design of a temporary pump station that will be placed alongside the existing Hidalgo County Irrigation District #1 Canal and Mile 17 ½. Such task includes coordinating with HCID #1 for permitting as well as coordination with Texas Water Development Board for approval of necessary Change Order in the amount of $31,600. Task 11A includes on-site Construction Inspection Services provided by a LeFevre Engineering & Management Inspector who will spend four (4) hours per day to monitor and inspect contractor for a total cost of $57,000. Staff recommended approval of Task Order 10A in the amount of $31,600. Tony Aguirre, Jr., Vice Chairman, moved to approve the Tres Lagos & 29th Street Sports Complex Wastewater Reuse Project – Amendment #2 to LeFevre Engineering & Management Consulting, LLC’s Professional Services Contract. Albert Cardenas, Trustee, seconded the motion. The motion carried unanimously by those present.

b) Consideration and Approval of Construction Award for the 16th & Beech Sanitary Sewer System Improvements Project. Mr. Sergio Espinoza presented the 16th & Beech Sanitary Sewer System Improvements Project and informed MPUB that a total of four (4) bids were received by the City of McAllen Purchasing Department and the bid opening took place on March 9, 2017. The lowest bidder was Texas Cordia Construction, LLC, which bid included Option “A” – Rehabilitation of Existing Sewer System and Lift Station Replacement in the amount of $3,159,300 or Option “B” – New Gravity Sewer System and Decommission of Existing Lift Station for a total amount of $4,046,415. Further, Texas Cordia Construction, L.L.C. will subcontract the boring, tunneling, abandonment of existing manholes and abandonment of the existing lift station wetwell work. MPU staff conducted evaluation on Texas Cordia Construction LLC projects previously constructed for City of Falfurrias and Mission Texas. References noted that all projects were completed with no major utility installation issues. Staff recommended approval of construction award of Option “B” for the construction of a new gravity sewer system, to the lowest bidder, Texas Cordia Construction, L.L.C., in the amount of $4,046,415. Tony Aguirre, Jr., Vice Chairman, moved to approve Construction Award for the 16th & Beech Sanitary Sewer System Improvements Project to Texas Cordia Construction, L.L.C. Albert Cardenas, Trustee, seconded the motion. The motion carried unanimously by those present.

c.) Consideration and Approval of the 23rd Street/Dicker Road Waterline Project:

TEDSI Professional Services Amendment No. 1. Mr. Carlos Gonzalez presented the 23rd Street/Dicker Road Waterline Project: TEDSI Professional Services Amendment No. 1. Mr. Gonzalez advised MPUB that the original project scope called for the design of a waterline extension along Dicker Road from 23rd Street to McColl Road that would tie-into an existing waterline along Military Highway but after 95% completion, it was put on hold due to funding

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issues. Further, a developer inquired on availability of utility in the locality of 23rd Street and Dicker Road. Staff approached developer about the prospect of MPU extending waterline to the northern limits of his development and having the developer be responsible for continuing utility extension south to Dicker Road along a proposed internal drive. Further, staff also approached developer about the dedication of a Utility Easement and/or ROW for a future lift station within his property, to which he indicated he would not object. Staff recommended that sewer force main be installed to convey sewer flows across the floodway. Since TEDSI already completed survey, permitting and design work along the corridor, staff reached out to them about a professional services change order to include additional survey for the force main crossing the west side of 23rd Street, modify plans to include the sewer force main, assist in amending IBWC permit to include force main and any related bidding and construction administration services. TEDSI provided Professional Services Amendment #1 in the amount of $77,020. Staff recommended approval of proposal of Professional Services Amendment #1 in the amount of $77,020 to the existing TEDSI contract. If approved, MPU staff would initiate an MOU that will speak to the developer’s and MPU’s responsibilities and obligations that will be brought forth for consideration and approval by our Board at a later meeting. Albert Cardenas, Trustee, moved to approve the 23rd Street/Dicker Road Waterline Project: TEDSI Professional Services Amendment No. 1. Jim Darling, Mayor/Ex-Officio Member, seconded the motion. The motion carried unanimously by those present.

ADJOURNMENT There being no other business to come before the Board, the meeting was unanimously adjourned at 2:55 p.m. _______________________ Ernest Williams, Chairman Attest: ________________________ Nyla L. Flatau, TRMC/CMC Utility Board Secretary


1. Agenda Item: Consideration and Approval of Award of Contract for the Regional Waterline Study.

2. Party Making Request:

3. Nature of Request: Consideration and Approval of Award of Contract for the

Regional Waterline Study. Budget Amendment is being considered in same MPUB meeting.

4. Budgeted: No

Bid Amount: $183,500.00 Budgeted Amount: $0.00 Under Budget: $0.00 Over Budget: $183,500.00 Amount Remaining: $0.00

5. Reimbursement: N/A 6. Routing:

Carlos Gonzalez Created/Initiated - 04/19/2017Gerardo Noriega Final Approval - 04/19/2017

7. Staff's Recommendation: Approval of Award of Contract for the Regional

Waterline Study. 8. City Attorney: N/A - KDP 9. MPU General Manager: Approved - MAV 10. Director of Finance for Utilities: Approved - MDC

Memo

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

J.J. Rodriguez, Asst. General Manager

THRU: Carlos Gonzalez, P.E., Utility Engineer

DATE: April 19, 2017

SUBJECT: South McAllen Regional Water Transmission Line Study: Award of Contract

On November 29, 2016, the MPU Board selected S&G Engineers to conduct a study to determine the feasibility of the South McAllen Regional Water Transmission Line Project. The study was intended to look at the viability of extending a Transmission Waterline east along a corridor such as Ridge Road to potentially serve cities such as Pharr, San Juan, Alamo, Weslaco, Donna and potentially other Water Supply entities such as North Alamo WSC and Military Highway WSC.

The next step, after selection of the Engineer, was to negotiate a Scope of Service along with a corresponding Cost Proposal.

Staff and Engineer have been corresponding to establish the Scope of Service. Note that there was a bit of a delay in establishing the Scope due to a funding opportunity that presented itself. Specifically, the funding opportunity consists of a Bureau of Reclamation WaterSMART Grant. This grant is intended to be used for projects that involve Water Marketing Strategies. In conversation with Bureau of Reclamation Staff, representatives indicated that our project might be a good candidate. The funding opportunity has a $200,000 Project Cost limit that includes a 50% owner match. Consequently, should we be awarded this grant, the Bureau would fund a maximum of $100,000.

The Engineer has submitted a proposed Scope of service for the amount of $ 200,000. A copy of the Scope of Service along with a corresponding cost breakdown is attached.

Staff and consultant will be available for comments.

McAllen Water Feasibility Study Planning_032817 1

McAllen Public Utilities Regional Water Supply - Feasibility Study

Scope of Work March 28, 2017

McAllen Public Utilities (MPU) has available water resources that it wishes to put to productive use by offering potable water (water) to its neighboring communities. This would help these communities potentially meet part of their existing and future water needs. MPU has targeted customers located east of McAllen (Pharr, San Juan, Alamo, Donna, Weslaco, and Mercedes). To accomplish this goal, MPU must quantify the volume of water available for wholesale use, define the infrastructure and associated cost to treat and reliably deliver water (pump stations, transmission mains, and treatment/disinfection), operational constraints, system demands, permitting concerns, and contract terms. Questions MPU must answer include:

How much is available for wholesale use?

What is the potential project cost?

Who are the potential customers? What are their demands (annual and seasonal)? What are their potential water resource needs?

What is the financial risk and carrying costs? How can the risks be mitigated through the structure of the wholesale contracts?

What is the resulting cost of water and what is the City's return on investments?

What are the permitting requirements?

What are the projected revenue versus capital, operational, and maintenance expenses?

The feasibility study will be developed to answer these questions.

Our study is divided in two (2) components. Technical, defines the pumping, transmission, and treatment components as well as capital, operational and maintenance costs. The second, administrative, relates to the business aspect of the project. Coordination with potential customers, identifying their needs and concerns, and securing commitments. Our goal is to provide sufficient information to allow MPU to make an informed decision prior to committing to subsequent phases (Phase 2 and 3). This document defines S&GE, L.L.C. (S&GE) Scope of Work and budget to develop the feasibility study (Phase 1).

Our project includes two (2) sub-consultants: Aranda and Associates, Inc. and Carollo Engineers.

Phase 1

Feasibility Analysis

Phase 2

Develop MOU and preliminary design

Phase 3

Develop interlocal agreements and construct Infrastructue Improvements


PHASE 1

A. Project Management & Quality Control This task consists of project administration, coordination, and supervision of the project team, coordination with other projects, and quality management so that project milestones and deliverables meet schedule and budget constraints.

Project Administration Monthly Invoicing S&GE shall submit invoices monthly for the Owner’s review and approval. Each monthly invoice package shall include an invoice, project status report, and path forward. The Project Status Report will include the following elements:

Summary of work completed to date

Upcoming project activities

Scope elements and added/removed

Outstanding issues/concerns

Delays or suspensions beyond S&GE’s control Sub-Consultant Management S&GE shall manage, coordinate, and be responsible for its sub-consultants participating in the project. This includes, but not limited to, distribution and coordination of work among the sub-consultants, review and payment of monthly progress and billing, quality assurance and control of the work and submittals by the sub-consultants, etc. The following are the sub-consultants involved in the project:

Mechanical/Process- Carollo.

Surveying- Aranda & Associates Surveying Coordination with Owner S&GE shall attend additional coordination meetings as necessary to obtain decisions and input from Owner to achieve the meeting objectives. Quality Assurance and Control Reviews S&GE shall manage and be responsible for the quality of all its deliverables, which includes following an established QA/QC program with a Technical Review Committee (TRC) comprised of high-level staff. The program will include TRC reviews at each milestone.

Task A - Project Management & Quality Control Fees:

S&GE $ 18,547.35 Aranda $ 2,084.63 Carollo $ 11,067.05


B. Technical Evaluation/Conceptual Design This section covers all technical or engineering analysis required to develop several options to define the project. S&GE will need to establish the available water for wholesale and projected demands to properly support our engineering evaluation.

1. Data Collection.

2. Define MPU’s available water for wholesale purposes and source. S&GE will compare MPU’s Demand Projections to water availability.

3. Define the system demands from potential customers. The system demands may not exceed MPU’s water availability.

4. Project Planning- Develop conceptual level plan to include source, treatment/disinfection, and conveyance (pumping and transmission). A water distribution model will be developed to evaluate multiple design scenarios.

a. Source- Identify supply/source location.

b. Treatment/Disinfection. This project presents very unique challenges. Water age will be considered in our model to ensure that adequate disinfection is maintained throughout the distribution system. The need to include multiple points of disinfection may be necessary resulting in additional chemical and operation expenses.

c. Blending constraints; it will be necessary to review and compare finished water

quality for each customer and identify any potential water blending issues.

d. Transmission Main Route Evaluation. This will account for customer locations, minimizing length of transmission main, and major/challenging obstructions (electrical easements, Railroad Crossings, Irrigation District, Gas, Major drainage structures, etc.).

e. Evaluation of Water Main Pipe Material (PVC, DIP, Steel, etc).

f. Booster Pump Stations. Booster PS location and sizing.

g. Storage (ground, elevated, etc.)

Two (2) different options will be developed and presented in a workshop type setting. Ultimately one option will be selected and form the basis of our feasibility study. Consideration will be made to phase project to reduce costs.


Task B- Technical Evaluation/Conceptual Design Fees:


C. Financial Analysis S&GE will develop a life cycle cost to include capital investment, operation and maintenance expenses, and potential revenue. The financial analysis will allow MPU to assess the viability of the project. How long will take to payback MPU’s Capital Investment? Certain intangible elements of the project cannot be factored in the financial analysis but will be summarized in our report. In summary we will define the following:

a. Capital Costs b. Operational and Maintenance Expenses c. Life Cycle Analysis d. Revenue Forecast

Revenue model will take into account potential fluctuations in revenue to identify worst and best case scenarios. Depending on the final inter local agreements (take or pay, etc) the impact to MPU’s Revenue Stream will be significant. It’s important to identify these risks in our analysis. S&GE will assist in identifying potential funding sources and meet with these agencies. This would include the Texas Water Development Board (TWDB). Task C - Financial Analysis Fees:

S&GE $ 9,838.80 Aranda $ 0.00 Carollo $ 13,193.81

D. Administrative This project presents unique challenges. Commitments should be in place with potential customers to secure a reliable stream of revenue prior to making any major capital investments. This task will include assisting MPU develop a marketing strategy targeted to each potential customer.

1. Identify potential customers (Pharr, Alamo, San Juan, Donna, Weslaco, Mercedes, local rural water supply corporation, and other smaller communities along Military Highway).


a. Meet with the various communities along the proposed project service area to discuss participation.

b. Assess each community’s water needs. It is critical to understand where each community is in its planning stage and develop a custom approach for each potential customer. This would consist of meeting with the City Leaders and staff to help develop inter-local agreements.

c. Research each customer’s infrastructure to select optimal service interconnection

point. This would consist of reviewing each communities existing infrastructure plans (block maps) and identify line sizes, valves, etc. to identify potential tie-in points/interconnections.

d. Develop price point for each community ($/1,000) gallons. Assess potential for

take or pay agreements.

2. Permitting

a. CCN/TCEQ Permitting Requirements

b. Inter-local Agreements

c. ROW Agreements with neighboring communities

d. Identification of Easements or special permits (TxDOT, Union Pacific Railroad, etc.).

Task D- Administrative Fees:


E. Feasibility Report (Table of Contents) Upon conclusion of our study, S&GE will prepare a feasibility report that will generally include the following: Table of Contents Executive Summary Introduction Project Background Data Collection MPU Water Availability System Demands Customers/Water Needs Conceptual System Improvements Water source


Booster Pump Station Treatment/Disinfection Transmission Main Modeling Results Financial Analysis Permitting Conclusion Task E- Feasibility Report Fees:


F. Grant Application (Bureau of Reclamation) Develop and prepare grant application. Task F– Grant Application Fees:

S&GE $ 0.00 Aranda $ 0.00 Carollo $ 8,500.00 Note that if a grant is awarded by the Bureau of Reclamation they require additional scope items that are currently above and beyond those included in this proposal. An additional fee of $25,000 may be required to cover these additional scope items.

Schedule Preliminary Project Time Line Phase I- Feasibility Study (6 Months) Start: May 1, 2017 End: November 1, 2017 Phase II- Design (12 Months) Start: January 1, 2018 End: December 1, 2018 Phase III- Construction (18 Months) Start: April 2019 End: October 2021


Basis of Compensation Fee Breakdown (Items A to E)

Phase S&GE Aranda Carollo Total

A. Project Mgt & QC $ 18,547.35 $ 2,084.63 $ 11,067.05 $ 31,699.03

B. Technical Evaluation $ 30,137.39 $ 16,691.70 $ 22,063.56 $ 68,892.65

C. Financial Analysis $ 9,838.80 $ - $ 13,193.81 $ 23,032.61

D. Administrative $ 14,960.62 $ 12,701.04 $ 3,926.54 $ 31,588.20

E. Report $ 9,728.89 $ 3,251.51 $ 6,807.11 $ 19,787.51

Total $ 83,213.04 $ 34,728.89 $ 57,058.07 $ 175,000.00

Fee Breakdown (Item F)

Phase S&GE Aranda Carollo

F. Bureau of Reclamation Application $ 8,500.00 F(1). Bureau Coordination Tasks $ 16,500.00

Total $ 25,000.00

Note that should the Grant Application be successful, the Scope of Services may have to be revisited depending on feedback from Bureau of Reclamation.

Fee Summary Task A to E $175,000.00 Task F $ 25,000.00

Total

200,000.00


1. Agenda Item: Order amending the budget of the McAllen Public Utility Board of Trustees for fiscal year 2016-2017 for an increase in expenditures within the Water Capital Improvement Fund.


3. Nature of Request: Order amending the budget of the McAllen Public Utility

Board of Trustees for fiscal year2016-2017 for an increase in expenditures of $200,000 within the Water Capital Improvement Fund for the South McAllen Regional Water Feasibility Study

4. Budgeted:



Melba Carvajal Created/Initiated - 04/19/2017 7. Staff's Recommendation: Approval of budget amendment as presented 8. City Attorney: Approved - KDP 9. MPU General Manager: Approved - MAV 10. Director of Finance for Utilities: Approved - MDC

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ORDER NO. 2017 -______

AN ORDER AMENDING THE BUDGET OF THE McALLEN PUBLIC UTILITY BOARD OF TRUSTEES FOR THE FISCAL YEAR 2016/2017 EFFECTIVE OCTOBER 1, 2016, BY PROVIDING FOR AN INCREASE IN EXPENDITURES TO-WIT: $200,000 FOR THE SOUTH McALLEN REGIONAL WATER FEASIBILITY STUDY WITHIN THE WATER CAPITAL IMPROVEMENT FUND; AND PROVIDING FOR AN EFFECTIVE DATE.

WHEREAS, the McAllen Public Utility Board of Trustees of the City of McAllen,

Texas annually adopts its budget and submits to the City Commission which

incorporates such budget in the overall budget for the City by ordinance.

WHEREAS, McAllen Public Utility Board of Trustees by ordinance of the City

Commission providing for the creation of the McAllen Public Utility Board of Trustees,

has the authority to manage and control the McAllen Public Utility, including control

over fiscal matters of the Public Utility Board and therefore, it is not necessary that

the City Commission approve the budget of the McAllen Public Utility Board of

Trustees, and henceforth the McAllen Public Utility Board of Trustees will approve its

budget and all amendments thereto by order which shall be filed along with the City

Budget under the provisions of the Local Government Code.

NOW, THEREFORE, BE IT ORDAINED BY THE MCALLEN PUBLIC UTILITY

BOARD OF TRUSTEES OF THE CITY OF McALLEN, TEXAS, THAT:

SECTION I: The Budget for the McAllen Public Utility Board of Trustees for

the Fiscal Year 2016/2017 which became effective October 1, 2016, on file with the

Board’s Secretary, is hereby amended in the following particulars as shown on Exhibit

"A" attached hereto and incorporated herein for all purposes.

SECTION II: The General Manager as Budget Officer shall provide for the filing

of a true copy of this Budget Amendment in the office of the County Clerk, Hidalgo

2 of 2

County, Texas.

SECTION III: This Order shall be effective after its passage and execution in

accordance with the law.

SECTION VI: If any part or parts of this Order are found to be invalid or

unconstitutional by a court having competent jurisdiction, then such invalidity or

unconstitutionality shall not affect the remaining parts hereof and such remaining

parts shall remain in full force and effect, and to that extent this Order is considered

severable.

CONSIDERED, PASSED and APPROVED this 25th day of April, 2017, at a

regular meeting of the of the McAllen Public Utility Board of Trustees of the City of

McAllen, Texas, at which a quorum was present and which was held in accordance

with Chapter 551 of the Texas Government Code.

SIGNED this _____ day of April, 2017.

McALLEN PUBLIC UTILITY BOARD OF TRUSTEES

By: Ernest R. Williams, Chairman ATTEST:

By: Nyla L. Flatau, Utility Board Secretary APPROVED AS TO FORM: Kevin D. Pagan, City Attorney

CITY OF McALLENBUDGET AMENDMENT

REF.NO.

FUND: Water Capital Improvement To be assigned by Finance Dept.

DEPARTMEN Capital Outlay

Dept. & Element & Project Beginning RevisedFund Division Activity Object Code Description Budget Debit Credit Budget

430 8708 446 66-36 IU1703 Capital Outlay / Infrastructure (South McAllen Regional Waterline -$ 200,000$ -$ 200,000$

-$

-$

"Information Only" - DO NOT POST Water CIP Fund - Fund Balance 5,045,883$ 200,000$ 4,845,883$

TOTALS 5,045,883$ 200,000$ 200,000$ 5,045,883$

(Round up all amounts to the nearest hundred dollars)

Justification: Department Head Approval

McAllen in conjunction with other municipalities Signature Date

Director of Finance for Utilities

Signature Date

General Manager's approval is necessary for transfers to

purchase Capital Outlay.

General Manager

Signature Date

Feasibility study for constructing a regional waterline that can potentially serve users east of

AGENDA ITEM 3.b. PUBLIC UTILITY BOARD DATE SUBMITTED 04/19/2017 MEETING DATE 04/25/2017

1. Agenda Item: Order amending the budget of the McAllen Public Utility Board of Trustees for fiscal year 2016-2017 for an increase in expenditures within the Sewer Capital Improvement Fund.


3. Nature of Request: Order amending the budget of the McAllen Public Utility

Board of Trustees for fiscal year2016-2017 for an increase in expenditures of $833,791 within the Sewer Capital Improvement Fund for the Tres Lagos/Sports Complex Reuse Project

4. Budgeted:



Melba Carvajal Created/Initiated - 04/19/2017 7. Staff's Recommendation: Approval of budget amendment as presented 8. City Attorney: Approved - KDP 9. MPU General Manager:

Approved - MAV 10. Director of Finance for Utilities: Approved - MDC

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ORDER NO. 2017 -______

AN ORDER AMENDING THE BUDGET OF THE McALLEN PUBLIC UTILITY BOARD OF TRUSTEES FOR THE FISCAL YEAR 2016/2017 EFFECTIVE OCTOBER 1, 2016, BY PROVIDING FOR AN INCREASE IN EXPENDITURES TO-WIT: $833,791 FOR THE TRES LAGOS/SPORTS COMPLEX REUSE PROJECT WITHIN THE SEWER CAPITAL IMPROVEMENT FUND; AND PROVIDING FOR AN EFFECTIVE DATE.

WHEREAS, the McAllen Public Utility Board of Trustees of the City of McAllen,

Texas annually adopts its budget and submits to the City Commission which

incorporates such budget in the overall budget for the City by ordinance.

WHEREAS, McAllen Public Utility Board of Trustees by ordinance of the City

Commission providing for the creation of the McAllen Public Utility Board of Trustees,

has the authority to manage and control the McAllen Public Utility, including control

over fiscal matters of the Public Utility Board and therefore, it is not necessary that

the City Commission approve the budget of the McAllen Public Utility Board of

Trustees, and henceforth the McAllen Public Utility Board of Trustees will approve its

budget and all amendments thereto by order which shall be filed along with the City

Budget under the provisions of the Local Government Code.

NOW, THEREFORE, BE IT ORDAINED BY THE MCALLEN PUBLIC UTILITY

BOARD OF TRUSTEES OF THE CITY OF McALLEN, TEXAS, THAT:

SECTION I: The Budget for the McAllen Public Utility Board of Trustees for

the Fiscal Year 2016/2017 which became effective October 1, 2016, on file with the

Board’s Secretary, is hereby amended in the following particulars as shown on Exhibit

"A" attached hereto and incorporated herein for all purposes.

SECTION II: The General Manager as Budget Officer shall provide for the filing

of a true copy of this Budget Amendment in the office of the County Clerk, Hidalgo

2 of 2

County, Texas.

SECTION III: This Order shall be effective after its passage and execution in

accordance with the law.

SECTION VI: If any part or parts of this Order are found to be invalid or

unconstitutional by a court having competent jurisdiction, then such invalidity or

unconstitutionality shall not affect the remaining parts hereof and such remaining

parts shall remain in full force and effect, and to that extent this Order is considered

severable.

CONSIDERED, PASSED and APPROVED this 25th day of April, 2017, at a

regular meeting of the of the McAllen Public Utility Board of Trustees of the City of

McAllen, Texas, at which a quorum was present and which was held in accordance

with Chapter 551 of the Texas Government Code.

SIGNED this _____ day of April, 2017.

McALLEN PUBLIC UTILITY BOARD OF TRUSTEES

By: Ernest R. Williams, Chairman ATTEST:

By: Nyla L. Flatau, Utility Board Secretary APPROVED AS TO FORM: Kevin D. Pagan, City Attorney

CITY OF McALLENBUDGET AMENDMENT

REF.NO.

FUND: Sewer Capital Improvement To be assigned by Finance Dept.

DEPARTMENTCapital Outlay / Building and structures

Dept. & Element & Project Beginning RevisedFund Division Activity Object Code Description Budget Debit Credit Budget

480 8708 446 66-36 IS1602 Capital Outlay / Infrastructure (Tres Lagos/Sports Complex Reuse T 150,000$ 833,791$ -$ 983,791$

-$

-$

"Information Only" - DO NOT POST Sewer CIP Fund - Fund Balance 7,601,163$ 833,791$ 6,767,372$

TOTALS 7,751,163$ 833,791$ 833,791$ 7,751,163$

(Round up all amounts to the nearest hundred dollars)

Justification: Department Head Approval

in anticipation of a $1.5 million dollar commitment from the City of McAllen through the Development Corp. Signature Date

Additional funds to cover construction administration and geotechnical testing have also been added. Director of Finance for Utilities

Signature Date

General Manager's approval is necessary for transfers to

purchase Capital Outlay.

General Manager

Signature Date

Funds were not disbursed as anticipated in fy 15-16; Project was purposefully underfunded this fy


1. Agenda Item: Consideration and Approval of the Resolution for the Bureau of Reclamation Water Marketing Grant Application.


3. Nature of Request: Consideration and Approval of the Resolution for the

Bureau of Reclamation Water Marketing Grant Application. 4. Budgeted:


5. Reimbursement: N/A 6. Routing:

Carlos Gonzalez Created/Initiated - 04/19/2017 7. Staff's Recommendation: Approval of the Resolution for the Bureau of

Reclamation Water Marketing Grant Application. 8. City Attorney: Approved - KDP 9. MPU General Manager: Approved - MAV 10. Director of Finance for Utilities: Approved - MDC

Memo

TO: Marco A. Vega, P.E., MPU General Manager

Roel Rodriguez, P.E., City of McAllen, City Manager

J.J. Rodriguez, MPU Asst. General Manager

THRU: Carlos Gonzalez, P.E., Utility Engineer

DATE: April 19, 2017

SUBJECT: South McAllen Regional Water Study: Resolution Authorizing the Submittal of an Application for a Bureau of Reclamation Water Marketing Strategy Grant

MPU Staff is requesting Board of Trustees/City Commission consideration and approval of a Resolution authorizing the submittal of a Bureau of Reclamation WaterSMART Grant Application for the South McAllen Regional Waterline Project.

The project consists of the performance of a Study to evaluate the feasibility of constructing a Regional Potable Water Transmission Line that could potentially serve a number of municipalities located east of McAllen.

This particular funding opportunity consists of a potential 50% match up to a Project Contract Total Cost amount not to exceed $200,000. MPU is requesting to utilize the full $200,000 amount in order to maximize the Bureau of Reclamation Grant contribution of $100,000.

Staff will be available for any comments or questions.

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RESOLUTION NO 2017 - _____

AUTHORIZING THE SUBMISSION OF A GRANT APPLICATION REQUESTING FINANCIAL ASSISTANCE FROM THE UNITED STATES DEPARTMENT OF INTERIOR, BUREAU OF RECLAMATION, POLICY AND ADMINISTRATION: WATERSMART GRANTS PROGRAM – WATER MARKETING SMART GRANTS FOR FY 2017 AND DESIGNATING AN AUTHORIZED REPRESENTATIVE TO ACT ON BEHALF OF THE CITY OF MCALLEN AND/OR MCALLEN PUBLIC UTILITY TO CARRY OUT THE IMPLEMENTATION OF THIS PROJECT

STATE OF TEXAS COUNTY OF HIDALGO CITY OF MCALLEN

WHEREAS the United States Department of Interior, Bureau of Reclamation has made available a funding opportunity for a Water Marketing Strategy Study under the WaterSMART Grants Program that includes a potential Grant award of an amount up to 50% of project costs and not to exceed $100,000.

WHEREAS the City of McAllen and/or McAllen Public Utility have identified a project currently named “South McAllen Regional Transmission Line Project” which is believed to be a good candidate for this study.

WHEREAS if awarded this funding opportunity through the Water SMART Grants Program, the City of McAllen and/or McAllen Public Utility is required to provide fifty percent of the project costs as a local match.

NOW THEREFORE BE IT RESOLVED BY THE MCALLEN PUBLIC UTILITY BOARD OF TRUSTEES THAT

1. McAllen Public Utility is hereby authorized and instructed to develop and submit a grant application to Bureau of Reclamation WaterSmart Program for funding in an amount not to exceed $200,000 to provide funding for the performance of a study to evaluate the feasibility of a Regional Waterline Project that could potentially serve a number of water users east of McAllen.

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

3. Upon the approval of this application, the General Manager of McAllen Public Utility is authorized to execute all legal documents necessary and to perform any acts necessary to implement the Project. McAllen Public Utility is requesting an award of $100,000 from the Bureau of Reclamation WaterSMART program.

4

CONSIDERED PASSED APPROVED AND SIGNED this 25th day of April 2017 at a regular meeting of the Board of Trustees of the McAllen Public Utility at which a quorum was present and which was held in accordance with Chapter 551 Texas Government Code.

Attest McAllen Public Utility Ernest R. Williams Marco A. Vega, P. E. Chairman Board of Trustees General Manager

Approved as to form: Nyla L. Flatau, TRMC, CPM Kevin D. Pagan Utility Board Secretary City Attorney


1. Agenda Item: Discussion and Approval of Redwood No. 1 Subdivision. 2. Party Making Request:

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


5. Reimbursement: Sewer line Reimbursement for participation to the MPU: Datepalm-McColl Sewer Project in the amount of $1,228.28.

6. Routing:

Carlos Gonzalez Created/Initiated - 04/19/2017 7. Staff's Recommendation: Approval of subdivision as conditions set forth. 8. City Attorney: Approved - KDP 9. MPU General Manager: Approved - MAV 10. Director of Finance for Utilities: Approved - MDC

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CONNECT TO EXISTING 8" WATERLINE

CONNECT TO EXISTING 12" WATERLINE

Documents

AGENDA ITEM 1.a. - McAllen Public Utility