BRUNSWICK SEWER DISTRICT

 

Board of Trustees Regular Monthly Meeting

Approved Minutes

13 April 2009

 

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Call to Order

        The regular monthly meeting of the Board of Trustees of the Brunswick Sewer District was called to order by Board Treasurer Green at 6:38 p.m. on Monday, 13 April 2009, in the conference room at District offices. A prepared agenda was noted and the meeting was recorded.

        Members present: Chair Priest (7:37 – 9:48 p.m.), Trustees Green and Schwindt.

        Members absent: Trustee Boochever.

        Others present: General Manager McVey; Assistant General Manager Blanchette; Finance Manager Nuttelman; camera operator Hedy Blauvelt.

        It was observed that the Trustees present at the outset of the meeting do not constitute a quorum as defined by the District Charter. The General Manager noted that discussion topics would be confined to informational matters only and that no action would be proposed pending the expected arrival of Trustee Priest, currently attending to pressing business at State Legislature.

Public Comment:  

        A petition for relief from sewer use billing may be forthcoming. No other public comment has been received, and no members of the public were present.

General Manager's Report

            All legally required actions in the process to authorize new bonded debt have been completed. Issuance of the new debt will now await the General Manager’s recommendation and subsequent Board action to authorize issue, if and when circumstances warrant.
            District staff will meet this week to review with its consultant a report detailing improvements to Treatment Plant heating and ventilating systems. The recommended improvements will include replacement of a steam heating boiler installed in 1967 during original construction of the Plant, conversion of the heat distribution system from steam to hydronic, installation of a heat pump that will extract heat from treated wastewater, and conversion from oil to natural gas fuel. The recommended changes will provide significant improvement in energy efficiency and cost of service.
            The District is currently advertising for bids to replace sanitary sewer along School and Franklin Streets. Bids are due on 15 April, with award planned as soon as possible thereafter. Completion of work is anticipated by mid-June.

Monthly Report of Operations

             Total flow to the Treatment Plant during March 2009 was 90.948 mg, up approximately 49% from the previous month. Flows of 15.3 and 9.5 mg for the month originated with Topsham and the Navy Base, respectively. Average daily flow for the period was 2.93 mgd, 76% of that allowed by permit. Maximum daily flow processed was 4.11 mg, which occurred on 31 March 2009. Rainfall for the month totaled 2.3 inches, with a daily maximum of 0.70 inches on 29 March 2009.
            Septage receiving for the period totaled 39,750 gallons, up 69% from the previous month. Removal rates for BOD and TSS for the period were 90.9% and 87.2%, respectively, in compliance with the minimum 85% required for each parameter by permit. A total of 177 cy of sludge was produced and trucked for commercial composting. There were no bypasses or spills of plant flow. All flow received at the plant received full treatment, and all permit requirements were met.

User Rate Survey

            The Trustees reviewed a report on a survey conducted by the Maine Rural Water Association of wastewater user rates in Maine in 2008. The survey is performed every two years and reports on approximately 120 organizations. District staff has re-sorted report data based on organization type, number of customers, age of user rate, minimum charge, and annual user charge. A statistical abstract has also been compiled, noting maximum, average, minimum, median, and mode for most of the data sorts. District values for these criteria are favorable in comparison with statistical values.

Report on Planning for NASB Closure

            Steve Levesque, Executive Director of the Midcoast Regional Redevelopment Authority, was present to report to the Trustees on progress of planning for Navy Base closure. He reviewed a redevelopment timeline of Navy and MRRA activities. Navy activities include squadron departure; an Environmental Impact Assessment due in May of 2010 and required before any property can be transferred; public benefits and economic development conveyance; and Base closure. MRRA activities include a renewable energy feasibility study, application for public benefits conveyance and economic development conveyance, and development of a Base housing strategy, an operations master plan, and an airport master plan.
             Three methods of property disposal are available under federal law: public benefit conveyance, at no cost; economic development conveyance, at market value; and public sale by auction. Given the critical importance of rapid redevelopment, MRRA’s principal focus is getting into position to take over systems and facilities as soon as the Base closes in May 2011, thereby reducing time lag. MRRA will apply to begin local management of airport operations in April 2010. A housing strategy is also being formulated, to optimize the introduction of 702 units of military family housing located on the Base and as many as 1,500 additional units of housing located off Base and occupied by Base-involved families.
            Chair Priest joined the meeting at 7:37 p.m. following a commitment at State Legislature. He assumed the Chair and, with a quorum now present, called the meeting to order for purposes of any action the Board may wish to take.
            MRRA and similar organizations from other states are promoting federal support for full funding of environmental remediation, funding of municipal services and infrastructure for military and BRAC communities, and no-cost economic development conveyance to BRAC communities. The State is proposing a bond issue to make approximately $5 million available to MRRA for use in offsetting the cost of some activities associated with closure, with the expectation of leveraging additional federal funds.
            The means of future utility services management is being looked at.  MRRA is considering taking responsibility for wastewater infrastructure and support services. The General Manager expressed the District’s desire to provide support to MRRA for future re-development wastewater needs.
            With the conclusion of his report and Board discussion, the Trustees thanked Mr. Levesque for his assistance and he left the meeting at 8:14 p.m.:

Minutes of Previous Meeting(s)

            The Trustees reviewed minutes of the 16 March and 30 March 2009 Board meetings.

            IT WAS MOVED BY TRUSTEE GREEN, SECONDED BY TRUSTEE SCHWINDT, AND UNANIMOUSLY VOTED BY THE TRUSTEES PRESENT TO ACCEPT AS PRESENTED MINUTES OF THE 16 MARCH AND 30 MARCH 2009 MEETINGS OF THE BOARD OF TRUSTEES.

Treasurer’s Report

            Financial:  Board Treasurer Green reported that he has examined unaudited financial statements at 31 March 2009, prepared by District staff. A copy of the Variance Analysis is to be included in minutes of the meeting. The Finance Manager observed that period reports include an estimate of billing for other municipalities and no allowance for billing of U. S. Government accounts.
            The Trustees requested further discussion of the means by which developer-constructed facilities later accepted by the District are accounted for in financial reports. Revenues and expenditures, aged receivables, and liens in place were considered. It was noted that interest earned continued to be in decline, reflecting economic conditions nationally. Collection efforts were reported to be current.
            Disbursements:  The Trustees reviewed weekly reports on disbursements for the preceding month. Payroll and payables disbursements were noted to have been issued on consecutively numbered checks, and all vendors receiving payment were identified. Disbursements unusual in amount or purpose were discussed. Weekly warrants for general disbursements have been signed by the General Manager.

Election of Board Officers

            In keeping with provisions of the District Charter, the Trustees considered election of Board officers. Following brief discussion,

            IT WAS MOVED BY TRUSTEE SCHWINDT, SECONDED BY TRUSTEE GREEN, AND UNANIMOUSLY VOTED BY THE TRUSTEES PRESENT TO ELECT THE FOLLOWING SLATE OF OFFICERS:

  CHAIR Trustee Priest  
  VICE‑CHAIR Trustee Boochever  
  TREASURER Trustee Green  
  ASSISTANT TREASURER (vacant pending appointment to Board  
  TRUSTEE CLERK Trustee Schwindt  

Draft Audited Financial Statements at 31 December 2008

           The Finance Manager reviewed draft reports of the audit of financial operations at 31 December 2008, performed by Runyon Kersteen Ouellette, auditors to the District. Documents include the Auditors’ Report to the Board of Trustees and Financial Statements at 31 December 2008 and 2007, which are made up of reports on Net Assets, Revenues and Expenses, Changes in Net Assets, Cash Flows, and Notes on significant accounting policies for the audit period and the year prior.

            The Finance Manager reported that no unusual problems were encountered during or following the audit, and that she has no concerns with either the audit or the financial statements. The statements include the auditors’ opinion that the financial statements present fairly, in all material respects, the financial position of the District, in conformity with generally accepted accounting principles.
            The Trustees discussed operating and non-operating revenues, accounts receivable in relation to timing of payment, changes in cash, and entrance charge and other reserve amounts. It was consensus of the Board members that the draft audited financial statements were satisfactory.
             Management’s discussion and analysis is being prepared and will be provided at the May Board meeting with final statements and auditors’ reports on internal controls, compliance, and management.


Financial Reserves

            The Trustees reviewed reports prepared by District staff on purposes and amounts as well as the history of District financial reserves. Financial reserves are based on guidelines provided by the Maine Municipal Bond Bank. The guidelines recommend reserves for debt service, capital projects and depreciation, and operations. The District has since 1998 maintained reserves for these categories, as well as a fourth reserve for the Entrance Charge Program.
            Board members reviewed a report entitled Financial Reserves: Purposes & Amounts, prepared by District staff, and dated 09 April 2009. The report provides current and recommended reserves and amounts. The recommended reserve for debt service is taken from amortization schedules, based on the total principal and interest due for the coming year. District Rules & Regulations require allocation of Entrance Charge Program receipts to the Entrance Charge Program Reserve for facilities upgrades due to growth.
            The reserve for capital projects and depreciation is intended to provide resources for routine and emergency replacement of operations facilities and equipment, essentially as recommended by the Bond Bank. The reserve for operations provides cash-flow needs in the event revenue for any reason cannot be collected and used to meet operating costs. This reserve has historically been funded taking into account the amount on deposit in the disbursement checking account.

            Following discussion,

            IT WAS MOVED BY TRUSTEE GREEN, SECONDED BY TRUSTEE SCHWINDT, AND UNANIMOUSLY VOTED BY THE TRUSTEES PRESENT TO SET DISTRICT FINANCIAL RESERVES AT 31 DECEMBER 2008 AS FOLLOWS:
RESERVE PURPOSE

AMOUNT

  
DEBT SERVICE  $ 940,000  
ENTRANCE CHARGE PROGRAM  1,046,062  
CAPITAL PROJECTS      1,158,000  
OPERATIONS     250,000  

           The Finance Manager will direct the Auditors to make requested changes to reserve amounts listed in the financial statements for presentation at the May Board meeting.

Lien-Acquired Property Policy:  Proposed Revisions on Use of Proceeds

           It was consensus of the Trustees that consideration of proposed revisions to the Lien-Acquired Property Policy be deferred to the May Board meeting.

District Goals 2009        

            The Trustees reviewed a compilation of organization goals for 2009 discussed during the March Board meeting. Topics being considered include compensation plan development, energy efficiency improvements, NASB and Capehart infrastructure planning, and inflow removal. In their discussion, the Board members expressed satisfaction with the goals presented. The General Manager was directed to finalize the listing and take measures to pursue these goals during 2009.

Schedule of Upcoming Meetings, Events, etc.

  Trustees Regular Monday 11 May 2009 6:30 p.m.    
  Trustees Regular Monday 15 June 2009 6:30 p.m.    
  Trustees Regular Monday 13 July 2009 6:30 p.m.    

Remarks from the Chair:

         Chair Priest thanked the Trustees for their assistance.

Adjournment

         There being no further business before the Board,

        IT WAS MOVED BY TRUSTEE GREEN, SECONDED BY TRUSTEE SCHWINDT, AND UNANIMOUSLY VOTED BY THE TRUSTEES PRESENT TO ADJOURN THE MEETING AT 9:48 P.M.

Attest,

         Peter F. Schwindt
         Trustee Clerk, Board of Trustees
 

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