BRUNSWICK SEWER DISTRICT

 

Board of Trustees Regular Monthly Meeting

Approved Minutes

14 December 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 Chair Priest at 6:39 p.m. on Monday, 14 December 2009, in the conference room at District offices. A prepared agenda was noted and the meeting was recorded.

  Members present:  Chair Priest, Trustees Boochever, Green, Barbour, and Schwindt.

            Others present: :  General Manager McVey, Assistant General Manager Blanchette; Deborah L. Gallant, D. Gallant Management Associates (6:39–7:22 p.m.); camera operator Hedy Blauvelt.

Minutes of Previous Meeting(s)

            The Trustees reviewed minutes of the 16 November 2009 regular Board meeting.

            IT WAS MOVED BY TRUSTEE SCHWINDT, SECONDED BY TRUSTEE BOOCHEVER, AND UNANIMOUSLY VOTED BY THE TRUSTEES TO ACCEPT AS AMENDED MINUTES OF THE 16 NOVEMBER 2009 REGULAR MEETING OF THE BOARD OF TRUSTEES.

            The Trustees reviewed minutes of the 30 November 2009 special Board meeting.

            IT WAS MOVED BY TRUSTEE SCHWINDT, SECONDED BY TRUSTEE BARBOUR, AND UNANIMOUSLY VOTED BY THE TRUSTEES TO ACCEPT AS AMENDED MINUTES OF THE 30 NOVEMBER 2009 SPECIAL MEETING OF THE BOARD OF TRUSTEES.

Public Comment:  None was noted.


Treasurer’s Report

            Financial:  Board Treasurer Green reported that he has examined unaudited financial statements at 30 November 2009, prepared by District staff. A copy of the Variance Analysis was adopted by reference and is to be included in minutes of the meeting. Trustee Green noted financial amounts net of contribution of developer-constructed facilities.
             The Trustees reviewed revenues and expenditures. The Trustees observed that the District’s current financial condition continues to be favorable because of reduced capital expenditure to date and Navy flows and revenues in excess of those anticipated by the 2009 budget. The General Manager noted that year-end capital expenditures have been projected in connection with budget development, and several budgeted capital items are being deferred without risk to a more favorable time. Account collection efforts were reported to be current in all respects.

             Disbursements: The Trustees reviewed weekly reports on disbursements for the preceding month. Payroll and payables disbursements have been issued on consecutively numbered instruments, 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.

            Commitments: IT WAS MOVED BY TRUSTEE SCHWINDT, SECONDED BY TRUSTEE BOOCHEVER, AND VOTED BY THE TRUSTEES PRESENT, WITH THE TREASURER ABSTAINING, TO COMMIT TO THE TREASURER FOR COLLECTION RATES FOR THE PERIOD 01 JANUARY 2010 THROUGH 31 MARCH 2010, IN ACCORDANCE WITH PROVISIONS OF THE DISTRICT CHARTER, BY-LAWS, RULES & REGULATIONS, AND SCHEDULE OF RATES, AS COMPUTED AND SET FORTH IN THE ACCOUNTS ON FILE AT THE OFFICES OF THE BRUNSWICK SEWER DISTRICT.

General Manager's Notice

            The General Manager provided notice to the Trustees of his intent to resign from the position. Noting he feels particularly fortunate to have had the opportunity to fill the position for 25 years, he has concluded after much deliberation that it is time for others to bring new ideas and new energy to the mission and business of the District. All responsibilities of the position will continue to be met, over whatever time is needed to select a successor.

            The Trustees thanked the General Manager for his time and effort on behalf of the District and its users.

Succession Planning

             Deborah L. Gallant, President of D. Gallant Management Associates of Portland, Maine, was present to discuss with the Board consultant services for succession planning and recruitment. In a full retained search the consultant would partner with the District for the entire process.
            Consultant services typically include facilitating development of a future vision of the organization, a recruitment strategy, and a description of the ideal candidate based on the current position description. The retained search consultant also performs tasks necessary to advertise the vacancy; collect applications; review, investigate, and rate applicants; and arrange and facilitate interviews and selection of the preferred candidate. Compensation can be fixed, generally as a percentage of the anticipated position salary. In this type of search, consultant involvement continues through the orientation period. The consultant is thus able to warrant the search and selection effort for a one-year period, during which an additional search will be performed, if needed, at limited cost to the client.
             Maintaining pace throughout the process is crucial. A calendar of proposed tasks and Trustee availability was distributed. Ms. Gallant stated that her firm will be able to keep the Trustees informed during periods of travel. She noted that meetings with the Trustees may be held on Saturdays during periods when Trustees are local but involved in other activities. Ms. Gallant suggested a special meeting at which a future vision of the District can be developed. The meeting was tentatively scheduled for 04 January 2010.
              The Trustees reviewed with Ms. Gallant several provisions that would be included in an agreement for her services. Chair Priest appointed Trustees Barbour and Green to a sub-committee to develop the agreement for presentation to the full Board at the special meeting.
              At the conclusion of discussion, the Trustees thanked Ms. Gallant for her assistance and she departed the meeting at 7:22 p.m. Chair Priest declared the meeting in recess from 7:22 p.m. through 7:28 p.m.

Monthly Report of Operations

              Total flow to the Treatment Plant for November 2009 was 81.949 mg, up approximately 18% from the previous month. Flows of 13.2 and 6.7 mg for the month originated with Topsham and the Navy Base, respectively. Average daily flow for the period was 2.73 mgd, 71% of that allowed by permit. Maximum daily flow processed was 4.89 mg, which occurred on 16 November 2009. Rainfall for the month totaled 7.2 inches, with a daily maximum of 4.2 inches on 14 November 2009.
               Septage receiving for the period totaled 191,600 gallons, down 19% from the previous month. Removal rates for BOD and TSS for the period were 93.7% and 93.1%, respectively, in compliance with the minimum 85% required for each parameter by permit. A total of 176 cy of sludge was produced and trucked for future land application. There were no bypasses or spills, all flow to the plant received full treatment, and all permit requirements were met.

Wage & Benefit Plan:  Wage Matrix Modification, Economic Adjustment
               The General Manager reported on his investigation into economic indicators of market conditions over the past year. The Social Security Administration has determined that because there was no increase in the consumer price index from 3rd quarter 2008 through 3rd quarter 2009, no cost-of-living adjustment is being applied to social security benefits. The Maine Public Employees Retirement System has determined that because the cost-of-living decreased as of 30 June 2009 by 1.4%, retirement benefits over the next year will remain the same as benefits paid in the previous year. Calculation of change in the consumer price index using the District formula, which averages CPI values over the past year, reveals that the cost-of-living has decreased by 0.6%.
                With these facts in mind, the General Manager recommended that there be no economic adjustment of the matrix used for employee wages in 2010.

                 IT WAS MOVED BY TRUSTEE GREEN, SECONDED BY TRUSTEE BARBOUR, AND UNANIMOUSLY VOTED BY THE TRUSTEES TO DIRECT THAT NO ECONOMIC ADJUSTMENT BE MADE TO THE MATRIX USED FOR EMPLOYEE WAGES IN 2010.

Adoption of 2010 Budget

                The Trustees considered the 2010 budget proposal. The General Manager reported on several changes made to the budget draft considered at the annual budget meeting. The changes relate principally to revenue projected for the U. S. Government category, the addition of values and schedule for donated assets, and relatively minor changes in operating expenses and capital expenditures. While further changes are anticipated in the budget for donated assets, these changes do not affect either the budget or the operating condition of the District.
                The budget proposal does not anticipate a rate change. The General Manager observed that it will be necessary in 2010, however, to closely monitor revenue receipts in comparison with budgeted amounts.
                The Board members discussed the budget proposal. At the conclusion of their discussion,

                IT WAS MOVED BY TRUSTEE GREEN, SECONDED BY TRUSTEE BOOCHEVER, AND UNANIMOUSLY VOTED BY THE TRUSTEES TO ADOPT THE BUDGET PROPOSAL FOR 2010, WITH ANTICIPATED CHANGES IN THE VALUES AND SCHEDULE OF DONATED ASSETS.

Review Schedules of Rates

                The Trustees took up their annual review of user rates in relation to future needs of the District. Trustee Green expressed his concern with increasing expenses and capital needs in a period of declining revenues. He cited more frequent modest increases in the user rates as preferable to larger increases at a possibly longer interval. The District’s financial future currently hinges on planned closure of Naval Air Station Brunswick and the unknown degree to which this event will affect the District, its operations, and its finances. This uncertainty remains despite a significant downgrade in projections of future revenue.
                Flow and revenue recovery will not occur until substantial redevelopment of Base property has taken place, and the rate and timing of this redevelopment remain unpredictable. The General Manager noted that demonstration of the need for and implementation of a rate change in response to a perceived threat by an otherwise financially sound utility is difficult to justify. Trustee Green also noted that timing of a rate change is critical, both to the utility in terms of its resource needs and to the community in terms of the need to avoid simultaneous rate changes by other utilities.
                Discussion moved to the role of financial reserves in difficult economic times and the extent and availability of District financial reserves. The key question becomes at what point does the level of financial reserves become inadequate. Cost control and the ability to plan use of reserves were also considered.

                IT WAS MOVED BY TRUSTEE GREEN, SECONDED BY TRUSTEE BOOCHEVER, AND UNANIMOUSLY VOTED BY THE TRUSTEES TO DIRECT THE GENERAL MANAGER TO CONTINUE TO CLOSELY MONITOR DISTRICT FINANCIAL CONDITION IN LIGHT OF CLOSURE OF NAVAL AIR STATION BRUNSWICK AND TO TAKE ALL ACTION POSSIBLE TO FACILITATE EARLIEST IMPLEMENTATION OF A RATE CHANGE IF IT IS DETERMINED BY THE BOARD TO BE NEEDED.

The General Manager was further directed to keep the trustees well informed of any developments in this area.

Acceptance of Constructed Wastewater Facilities: Westwood Subdivision

                The Trustees considered a request by the developer to accept sanitary sewer facilities constructed to serve the Westwood subdivision located off McKeen Street. The request was made in a letter dated 03 December 2009, describing approximately 1,589 lf of sewer and 7 associated maintenance holes located along Brian Drive and Marc Drive. Sewers were designed and constructed to District standards, the work was inspected at time of construction by District personnel, and recent inspection of the facilities by the District found the lines and maintenance holes to be acceptable.
                The Trustees discussed the request. An extensive period of operation by the District has revealed no problems. District Rules & Regulations cite the District as the appropriate entity to own and operate facilities located in the public way. The General Manager recommended that the Board consider the following resolution:

 Facilities Acceptance Resolution
 WESTWOOD SUBDIVISION, Brunswick, Maine                                                                                                                               14 DECEMBER 2009
   

WHEREAS Woodard Cove, Inc., of Brunswick, Maine, has constructed and is owner of sanitary sewer facilities within the right-of-ways of Arrowhead Drive, Parsons Farm Road, Cypress Way, and the easement between Parsons Farm Road and Arrowhead Drive, collectively known as Woodside III Subdivision, all in the Town of Brunswick, Maine; which facilities comprise approximately 1,905 linear feet of 8-inch-diameter sewer lines and eleven (11) maintenance holes.

    
         
   

WHEREAS Woodard Cove, Inc., of Brunswick, Maine, has expressed its desire to effect a transfer of ownership of these sanitary sewer facilities from Woodard Cove, Inc., to the Brunswick Sewer District, all as more particularly described in a letter request by Woodard Cove, Inc., president Peter Odell, dated 03 December 2009 and on file at Brunswick Sewer District offices; and

    
         
    WHEREAS the Brunswick Sewer District is the appropriate entity to own and maintain said sanitary sewer facility;    
         
    NOW, THEREFORE, BE IT RESOLVED that the Board of Trustees of the Brunswick Sewer District does hereby accept ownership of the sanitary sewer facility hereinabove described.    

       IT WAS MOVED BY TRUSTEE GREEN, SECONDED BY TRUSTEE BARBOUR, AND UNANIMOUSLY VOTED BY THE TRUSTEES TO ADOPT THE PROPOSED RESOLUTION FOR ACCEPTANCE OF CONSTRUCTED FACILITIES SERVING WESTWOOD SUBDIVISION, CONTINGENT ON SECURING EASEMENT RIGHTS SATISFACTORY TO THE DISTRICT FOR LINES NOT LOCATED IN THE PUBLIC WAY.

Acceptance of Constructed Wastewater Facilities:  Woodside III Subdivision

            The Trustees considered a request by the developer to accept sanitary sewer facilities constructed to serve the Woodside III subdivision located off Church Road. The request was made in a letter dated 03 December 2009 describing approximately 1,905 lf of sewer and 11 associated maintenance holes located along Arrowhead Drive, Parson Farm Road, and Cypress Way. Sewers were designed and constructed to District standards, the work was inspected at time of construction by District personnel, and recent inspection of the facilities by the District found the lines and maintenance holes to be acceptable.

            The Trustees discussed the request. An extensive period of operation by the District has revealed no problems. District Rules & Regulations cite the District as the appropriate entity to own and operate facilities located in the public way. At the conclusion of Trustee discussion, the General Manager recommended that the Board consider the following resolution:

Facilities Acceptance Resolution
WOODSIDE III SUBDIVISION, Brunswick, Maine                                                                                                                               14 DECEMBER 2009
    WHEREAS Marc Theberge Builder, Inc., of Brunswick, Maine, has constructed and is owner of sanitary sewer facilities within the right-of-ways of Brian Drive, Marc Drive, and the utility easement from Brian Drive to Country Lane, collectively known as Westwood Subdivision, all in the Town of Brunswick, Maine; which facilities comprise approximately 1,589 linear feet of 8-inch-diameter sewer lines and seven (7) maintenance holes.    
         
    WHEREAS Marc Theberge Builder, Inc., of Brunswick, Maine, has expressed its desire to effect a transfer of ownership of these sanitary sewer facilities from Marc Theberge Builder, Inc., to the Brunswick Sewer District, all as more particularly described in a letter request by Marc Theberge Builder, Inc., president Marc Theberge, dated 03 December 2009 and on file at Brunswick Sewer District offices; and    
         
    WHEREAS the Brunswick Sewer District is the appropriate entity to own and maintain said sanitary sewer facility;    
         
    NOW, THEREFORE, BE IT RESOLVED that the Board of Trustees of the Brunswick Sewer District does hereby accept ownership of the sanitary sewer facility hereinabove described.    

        IT WAS MOVED BY TRUSTEE BARBOUR, SECONDED BY TRUSTEE GREEN, AND UNANIMOUSLY VOTED BY THE TRUSTEES TO ADOPT THE PROPOSED RESOLUTION FOR ACCEPTANCE OF CONSTRUCTED FACILITIES SERVING WOODSIDE III SUBDIVISION, CONTINGENT ON SECURING EASEMENT RIGHTS SATISFACTORY TO THE DISTRICT FOR LINES NOT LOCATED IN THE PUBLIC WAY.

Investment Policy Revisions

        The Trustees returned to their consideration of proposed revisions to the District Investment Policy. The proposed change relates to management of concentration risk by the addition of language to incorporate U. S. Government Agency obligations in addition to the currently referenced U. S. Treasury obligations, within the exemption to limits imposed under Policy section 6.A.2.b.ii. The proposed revisions are in keeping with recommendations of the external investments managers and, in the opinion of the General Manager and the Finance Manager, consistent with the intent of policy revisions most recently adopted in November 2007.
            The proposed policy was noted to be unchanged from that considered and voted on at the November regular Board meeting. Following Board discussion,

            IT WAS MOVED BY TRUSTEE BOOCHEVER, SECONDED BY TRUSTEE GREEN, AND UNANIMOUSLY VOTED BY THE TRUSTEES, IN THE SECOND AND FINAL OF TWO VOTES TO BE TAKEN, TO ADOPT PROPOSED REVISIONS TO THE DISTRICT INVESTMENT POLICY DATED 14 DECEMBER 2009.

Executive Session

At the request of the Chair,

            IT WAS MOVED BY TRUSTEE BOOCHEVER, SECONDED BY TRUSTEE GREEN, AND UNANIMOUSLY VOTED BY THE TRUSTEES TO ADJOURN THE MEETING TO EXECUTIVE SESSION AT 9:08 P.M. TO DISCUSS A PERSONNEL MATTER UNDER M.R.S.A. TITLE 1, CHAPTER 13.1.405.6.A.

            The meeting returned from executive session at 9:33 p.m. No action was taken during the executive session.

District General Manager, 2010

            The Board members considered appointment of a General Manager for 2010. Following discussion,

            IT WAS MOVED BY TRUSTEE GREEN, SECONDED BY TRUSTEE BARBOUR, AND UNANIMOUSLY VOTED BY THE TRUSTEES TO APPOINT THE CURRENT GENERAL MANAGER TO THE POSITION FOR THE PERIOD 01 JANUARY 2010 THROUGH 01 JULY 2010 AT THE RATE OF NINETY-ONE THOUSAND NINE HUNDRED AND TWENTY-FIVE DOLLARS ($91,925) PER YEAR, WITH CURRENT BENEFITS TO REMAIN UNCHANGED, AND WITH THE TERM OF APPOINTMENT SUBJECT TO CHANGE IN THE DISCRETION OF THE BOARD OF TRUSTEES.

Request for Waiver of Vacation Accrual Policy     
            The General Manager reviewed for the Board District policy on exempt employee vacation accrual, noting that year-end amounts of accrued vacation in excess of the policy-stated limit are eliminated. Reflecting this practice, the General Manger’s earned vacation balance has for many years been reduced at year-end. The General Manager has been informed by MainePERS that the employee’s earned vacation time balance is one of the factors used in determining the employee’s retirement benefit.
            Factors of interest to the District that occur to the General Manager when making this request include some additional cost to the District at time of employee separation and the potential burden of precedent in addressing future claims of a similar or related type. The General Manager inquired as to whether the Board may wish to entertain a motion to grant a one-time waiver to provisions of the District Personnel & Benefits Policy on maximum carryover of earned vacation time allowed as these provisions would otherwise apply to the General Manager’s earned vacation time balance at year-end 2009.
            The Trustees discussed details of the General Manager’s request. On conclusion of their discussion,

            IT WAS MOVED BY TRUSTEE BARBOUR, SECONDED BY TRUSTEE E BOOCHEVER, AND UNANIMOUSLY VOTED BY THE TRUSTEES TO GRANT A ONE-TIME WAIVER TO PROVISIONS OF THE DISTRICT EXEMPT EMPLOYEE PERSONNEL & BENEFITS POLICY ON MAXIMUM CARRYOVER OF EARNED VACATION TIME ALLOWED AS THESE PROVISIONS WOULD OTHERWISE APPLY TO THE GENERAL MANAGER’S EARNED VACATION TIME BALANCE AT YEAR-END 2009.

General Manager's Report: None forthcoming.

Schedule of Upcoming Meetings, Events, etc.

  Trustees Regular Thursday 14 January 2010 6:30 p.m.    
  Trustees Regular Tuesday 16 February 2010 6:30 p.m    
  Trustees Regular Monday 145March 2010 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 BOOCHEVER, AND UNANIMOUSLY VOTED BY THE TRUSTEES TO ADJOURN THE MEETING AT 9:47 P.M.

 

 

Attest,

         Peter F. Schwindt
         Trustee Clerk, Board of Trustees
 

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