1 2 3 4 5 6 7 8 KERR COUNTY COMMISSIONERS COURT 9 Special Session 10 Monday, August 6, 2012 11 9:00 a.m. 12 Commissioners' Courtroom 13 Kerr County Courthouse 14 Kerrville, Texas 15 16 17 18 19 20 21 22 23 PRESENT: PAT TINLEY, Kerr County Judge H. A. "BUSTER" BALDWIN, Commissioner Pct. 1 24 GUY R. OVERBY, Commissioner Pct. 2 JONATHAN LETZ, Commissioner Pct. 3 25 BRUCE OEHLER, Commissioner Pct. 4 2 1 I N D E X August 6, 2012 2 PAGE 3 1.1 Consider/discuss, take appropriate action on contract with Tetra-Tech for East Kerr County 4 Wastewater project 3 5 --- Adjourned 12 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 3 1 On Monday, August 6, 2012, at 9:00 a.m., a special 2 meeting of the Kerr County Commissioners Court was held in 3 the Commissioners' Courtroom, Kerr County Courthouse, 4 Kerrville, Texas, and the following proceedings were had in 5 open court: 6 P R O C E E D I N G S 7 JUDGE TINLEY: Good morning, ladies and gentlemen. 8 Let me call to order this special meeting of the Kerr County 9 Commissioners Court posted and scheduled for this date and 10 time, Monday, August 6th, 2012, at 9 a.m. It is that time 11 now. The agenda item posted for the special Commissioners 12 Court meeting is to consider, discuss, and take appropriate 13 action on contract with Tetra Tech for the East Kerr County 14 Wastewater project. Commissioner Letz? 15 COMMISSIONER LETZ: Yes. Jody's running -- I'm not 16 sure the attachment is the most recent version; it was 17 changed a couple times slightly over the weekend, so Jody's 18 running a copy of that. But I'll just -- while we're waiting 19 for those new copies to come in, make sure we're talking 20 about the correct version, I will make a -- kind of a general 21 comment just to update the Court a little bit as to where 22 we're going with the -- the contract. This contract pretty 23 much is called an amendment, because in April, I believe, we 24 executed an original -- a contract so we could get the aerial 25 surveys done before we actually had the approval, so that's 8-6-12 4 1 why this is actually referred to as an amendment to that. 2 But the contract covers the balance of the work that will be 3 done under the EDAP grant and the Clean Water grant for the 4 East Kerr County project. Total amount of those are 1.9 5 million, something near that. 6 And the reason this is on the -- as a special item 7 is that we need this contract in place before we can close 8 with the Water Development Board, and that closing is -- I 9 think we all understand it now, meaning everyone in the 10 county and everyone in Austin and Tetra Tech. There will be 11 three separate closings. The first closing will be for the 12 $570,000, which is the loan that we took out from the Water 13 Development Board that we authorized as part of the capital 14 improvement items. That closing is first, and that will be 15 done A.S.A.P. After that, there will be a second closing for 16 1.29 million, I believe is the amount. That is a loan 17 forgiveness -- I presume it's called loan forgiveness because 18 of some federal reason. I have no idea, actually. It seems 19 it's a grant. It is actually -- it's not a -- a contingent; 20 it's in the actual agreement that that loan is forgiven by 21 the Water Development Board. That will be a second closing. 22 The third closing will be for $128,000, which will 23 be the EDAP portion of the grant, which is used for the 24 right-of-way and easement acquisition, some of that stuff. 25 So, there's three different things we're working on. The 8-6-12 5 1 first one is the $570,000 loan. The agreement that you have, 2 the County Attorney -- is Rob -- Rob, you're on the phone? 3 Is he on the phone? 4 MR. HENNEKE: (via telephone) Yes, I am. Good 5 morning. 6 COMMISSIONER LETZ: Morning. Rob has gone through 7 the agreement, and the version I handed out has some scribble 8 on it, and Rob is going to e-mail a -- a clean version this 9 morning that the Judge can execute. The language in here is 10 as-is, except as I will note under -- there has been some 11 issue and discussion on Page 2 of 8. Under Item 1, Permits, 12 there's some language added about the middle of the page, so 13 that paragraph reads, "The engineer will prepare the 14 applications, including supporting documentation for all 15 permits necessary for the planning/design phase of this 16 project under this amendment, including, but not limited to, 17 those identified above." There has been a little bit of 18 contention on this paragraph; I'll just bring it out. Tetra 19 Tech is concerned that there may be some permit that they're 20 not aware of, or that maybe had changed or some modification 21 or, you know, Indian burial mound. Who knows what could come 22 up? Rather than have it open-ended, Rob has been pretty 23 adamant, and I agree with Rob that this language needs to be 24 very clear. I mean, we're paying Tetra Tech 1.9 million to 25 get us through the planning/design phase, and in our mind, 8-6-12 6 1 that should be all permits. Tetra Tech has graciously agreed 2 with that language. The other modification is -- where is 3 that fee language, Keller? 4 COMMISSIONER OVERBY: Page 6. 5 COMMISSIONER OEHLER: It's on Page 6. 6 JUDGE TINLEY: What about the difference between 7 the -- the number of linear feet that's indicated toward the 8 bottom of Page 2? 9 COMMISSIONER OEHLER: I noticed that, too. 10 144,000. 11 COMMISSIONER LETZ: I noted those. Keller says 12 those numbers as written are correct. There's two different 13 numbers. It's just by coincidence that they're -- I was 14 afraid there was a typo on that, and I circled them to make 15 sure they were -- there was not a typo. It's 14,000, 14,000, 16 and then the third time it's 144,000. They're different 17 linear feet. 18 JUDGE TINLEY: Okay. 19 COMMISSIONER LETZ: The -- the big number, the 20 144,000 is the estimated total footage of pipe that will be 21 put in the ground, and the other is actual easements we're 22 going to be required. And the question that I had was, what 23 about Highway 27? And that's technically not an easement; 24 that will be handled as a permit going along the highway, 25 that real long stretch. So, those numbers are correct. 8-6-12 7 1 COMMISSIONER OEHLER: So, the 144 includes all the 2 connections and all the pipe that goes to everything? 3 COMMISSIONER LETZ: Not the connections to the 4 house. It's all of the -- 5 COMMISSIONER OVERBY: Up to the residence. 6 COMMISSIONER LETZ: -- lines themselves. There's a 7 separate grant that we're going to have to probably go 8 through to get the connections to the houses, similar to what 9 we did in Kerrville South. 10 COMMISSIONER OVERBY: Right. 11 COMMISSIONER LETZ: Page 6, Keller? 12 MR. DROZDICK: Yes. 13 COMMISSIONER BALDWIN: While you're going there, 14 can I ask a question? 15 COMMISSIONER LETZ: Sure. 16 COMMISSIONER BALDWIN: You brought up an old issue, 17 Kerrville South. I remember, it seems there was -- Keller, 18 it seems like there was a -- it was against the rules to use 19 these moneys to hook up actually to the house. 20 COMMISSIONER LETZ: Correct. 21 MR. DROZDICK: Correct. 22 COMMISSIONER BALDWIN: Isn't that correct? 23 MR. DROZDICK: Yes. 24 COMMISSIONER BALDWIN: Is it still that -- 25 MR. DROZDICK: Yeah. 8-6-12 8 1 COMMISSIONER BALDWIN: So, everyone -- all those 2 homes and residents out there are clear that we're not going 3 to go in and hook up to their house? 4 MR. DROZDICK: Well, the current project doesn't 5 include that. The plan is -- what usually happens on these 6 is just 'cause funding limitations doesn't let you do any 7 improvements on private property, so we have to stop at the 8 property line. What typically happens is you go for a 9 separate grant. Usually it's a C.D.B.G. grant from the 10 U.S.D.A. through Texas Rural Development. And that lets you 11 do that last 20 feet of pipe, essentially, and decommission 12 the septic systems. 13 COMMISSIONER BALDWIN: Do these folks have to 14 qualify? 15 MR. DROZDICK: There are income requirements, yeah. 16 I don't know what those are exactly. 17 COMMISSIONER OEHLER: That's how Ingram did it with 18 the sewer -- 19 COMMISSIONER BALDWIN: Huh? 20 COMMISSIONER OEHLER: That's how Ingram had to do 21 it in their project. 22 JUDGE TINLEY: Yeah. Several phases in Kerrville 23 South, also. We put in the lines with one, and then you did 24 the hookups with -- under another grant, the remediation and 25 the hookups. 8-6-12 9 1 COMMISSIONER LETZ: Yeah, all right. On Page 6, 2 middle of the page is a paragraph that says, "If engineer 3 fails...," that paragraph. Towards the end of that, it says, 4 "T.W.D.B.," period and dash, "work products will comply..." 5 The portion says, "Engineer's work products will comply with 6 the requirements under T.W.D.B. contracts." That portion is 7 deleted, and it is replaced with a comma after T.W.D.B., "or 8 engineer shall correct work products as necessary to comply 9 with T.W.D.B. contracts." Here's the language that's being 10 added, Judge. I'll just read it again so it will be -- 11 MR. HENNEKE: I've e-mailed you and Jody the final 12 cleaned-up version. 13 COMMISSIONER LETZ: Okay. 14 MR. HENNEKE: Should be in your in-box; it has all 15 the changes. 16 COMMISSIONER LETZ: Okay. I think it's there, but 17 I just haven't -- all my in-box hasn't cleaned out yet. 18 COMMISSIONER OVERBY: Read that one more time. 19 COMMISSIONER LETZ: It says -- so, after "T.W.D.B." 20 it will say, "or engineer shall correct work products as 21 necessary to comply with T.W.D.B. contracts." And then I 22 believe the final change on Page 7, towards the top of the 23 page, there's an address for Tetra Tech, and there's a 24 sentence after that that says, "Work outside the above scope 25 shall be billed either as additional engineering services or 8-6-12 10 1 time and materials, and negotiated for that work." That 2 sentence is deleted. And with that, I believe -- I think the 3 contract looks good. Tetra Tech's happy, sort of. We're 4 happy. Rob is happy. You're happy, right, Rob? 5 MR. HENNEKE: Yes, looks fine to me. 6 COMMISSIONER LETZ: All right. With that, I'll 7 make a motion that we approve the Amendment 1 to the 8 agreement for engineering services between Kerr County and 9 Tetra Tech concerning the Center Point Wastewater Improvement 10 project. 11 COMMISSIONER OVERBY: I'll second that. 12 COMMISSIONER LETZ: And authorize County Judge to 13 sign same. 14 JUDGE TINLEY: I have a motion and a second as 15 indicated. Further question or discussion on the motion? 16 All in favor of that motion, signify by raising your right 17 hand. 18 (The motion carried by unanimous vote.) 19 JUDGE TINLEY: All opposed, same sign. 20 (No response.) 21 JUDGE TINLEY: The motion does carry. Any more 22 action to be taken with respect to the special Commissioners 23 Court meeting in connection with this agenda? 24 COMMISSIONER LETZ: Just for informational 25 purposes -- and I don't think that Keller will need to be 8-6-12 11 1 here, but there will be, on our next regular agenda -- we're 2 having a -- Commissioner Overby and myself, Rob, and Jeannie 3 have discussed that a little bit, and we want to -- because 4 this is a large project, we want to put on the agenda kind of 5 a -- I guess a procedure for the Court to handle it, how 6 often the Court wants to have updates to itself. There's 7 going to obviously be invoices to approve, work products 8 along the way, and we want to make sure that the -- the Court 9 is engaged, understands where we are in the whole project, 10 but at the same time, not be bogged down with having to meet 11 on and on, on a weekly or more basis. So, we're going to put 12 that on the agenda so we can kind of go through that and make 13 that real clear. Commissioner Overby and I are -- and 14 Jeannie and Rob are all in agreement that we need to have a 15 good system on this, and that needs to be, you know, at least 16 two Commissioners or two members from the Court that are 17 involved with it. This is largely because of the -- 18 COMMISSIONER OVERBY: Size and the scope. 19 COMMISSIONER LETZ: -- the size of it, and also a 20 lot of -- it was very difficult catch up after Commissioner 21 Williams passed away. He was kind of the lead person on the 22 last one, and we need to make sure we do not get in that 23 situation again of only having one Commissioner fully up to 24 speed on a project. So, that will be on our next agenda to 25 discuss. 8-6-12 12 1 JUDGE TINLEY: Anything further in connection with 2 the special Commissioners Court meeting? Hearing nothing 3 further, the special Commissioners Court meeting is 4 adjourned. 5 (Commissioners Court adjourned at 9:28 a.m.) 6 - - - - - - - - - - 7 8 STATE OF TEXAS | 9 COUNTY OF KERR | 10 The above and foregoing is a true and complete 11 transcription of my stenotype notes taken in my capacity as 12 official reporter for the Commissioners Court of Kerr County, 13 Texas, at the time and place heretofore set forth. 14 DATED at Kerrville, Texas, this 6th day of August, 2012. 15 16 JANNETT PIEPER, Kerr County Clerk 17 BY: _________________________________ Kathy Banik, Deputy County Clerk 18 Certified Shorthand Reporter 19 20 21 22 23 24 25 8-6-12