BRUNSWICK SEWER DISTRICT

Board of Trustees Regular Monthly Meeting

Approved Minutes

16 November 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 6:44 p.m. on Monday, 16 November 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 (6:55-9:12 p.m.), and Schwindt.

            Others present: :  General Manager McVey, Assistant General Manager Blanchette, Finance Manager Nuttelman (6:44-6:55 p.m.); LeeAnn Hanson, Joint Environmental Training Coordinating Committee (6:44-6:54 p.m.); Donald H. Gerrish, Eaton Peabody Consulting Group (6:44-8:12 p.m.); camera operator Hedy Blauvelt.

Minutes of Previous Meeting(s)

              The Trustees reviewed minutes of the 13 October 2009 regular Board meeting.

            IT WAS MOVED BY TRUSTEE GREEN, SECONDED BY TRUSTEE BOOCHEVER, AND UNANIMOUSLY VOTED BY THE TRUSTEES PRESENT, TO ACCEPT AS AMENDED MINUTES OF THE 13 OCTOBER 2009 REGULAR MEETING OF THE BOARD OF TRUSTEES.

            The Trustees reviewed minutes of the 05 November 2009 special Board meeting.

            IT WAS MOVED BY TRUSTEE BOOCHEVER, SECONDED BY TRUSTEE GREEN, AND UNANIMOUSLY VOTED BY THE TRUSTEES PRESENT, TO ACCEPT AS AMENDED MINUTES OF THE 05 NOVEMBER 2009 SPECIAL MEETING OF THE BOARD OF TRUSTEES.

Public Comment:  None was noted.

Joint Environmental Training Coordination Committee

            The Trustees welcomed LeeAnn Hanson, Executive Director of the Joint Environmental Training Coordinating Committee, to the meeting. Ms. Hanson provided a brief description of JETCC, which included the purpose, organization, funding sources, and history of the organization. JETCC was founded in 1985 to meet the training needs of Maine’s environmental professionals. Originally funded by the Maine Legislature, JETCC is today virtually self-supporting through fees charged for a wide array of courses offered.
            At the conclusion of her presentation, Ms. Hanson presented Assistant General Manager Blanchette with a plaque recognizing his service to the Committee over seven years as a member of JETCC’s Board of Directors, three years of which were spent as chair of that board. The Trustees commended Assistant General Manager Blanchette for his efforts on behalf of the profession, and thanked Ms. Hanson for her time and participation. She departed the meeting at 6:54 p.m.

Executive Session

            At the request of the General Manager,

            IT WAS MOVED BY TRUSTEE GREEN, SECONDED BY TRUSTEE BOOCHEVER, AND UNANIMOUSLY VOTED BY THE TRUSTEES PRESENT TO ADJOURN THE MEETING TO EXECUTIVE SESSION AT 6:55 P.M., FOR DISCUSSION OF A PERSONNEL MATTER UNDER M.R.S.A. TITLE I, CHAPTER 13.1.405.6.A.

Treasurer’s Report

            Financial:  Board Treasurer Green reported that he has examined unaudited financial statements at 31 October 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 also reviewed financial amounts net of contribution of developer-constructed facilities.
            The Trustees reviewed revenues and expenditures, particularly in reference to Navy revenue, and discussed receivables aging, budget management, and liens maturing. Capital budget implementation was also discussed. The Treasurer reiterated his earlier observations that the District’s current financial condition is as favorable as it is only 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 several budgeted capital items will be 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 were noted to 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.

Gurnet Road Force Main

            The Trustees heard a report by the Assistant General Manager on the discovery of a leak in a District force main serving the Gurnet Road Pump Station. Details of the leak and the District’s response are documented in initial and final reports to the Maine Department of Environmental Protection. Emergency excavation by District personnel and its contractor revealed that the leak occurred as a consequence of damage to the force main, which resulted from replacement of the potable water service to an adjacent property. The quantity of wastewater spilled was minimal, due principally to the size and location of the leak on the force main.
            The replacement water service was installed in 1995 by the Brunswick Topsham Water District using a modern trenchless installation technique known as horizontal directional drilling. The technique offers many advantages over conventional open-cut excavation but does not allow the installer to visually monitor the route and progress of the installation below grade. The Assistant General Manager reported that dig-safe regulations and procedures in effect at the time of the replacement installation were followed. While more precise data on existing utility location is now available, there is still some degree of risk associated with installations of this type.
            Repair and cleanup work is now complete, and disturbed areas have been restored

Monthly Report of Operations

             Total flow to the Treatment Plant for October 2009 was 69.486 mg, down approximately 5% from the previous month. Flows of 9.9 and 7.7 mg for the month originated with Topsham and the Navy Base, respectively. Average daily flow for the period was 2.24 mgd, 58% of that allowed by permit. Maximum daily flow processed was 2.53 mg, which occurred on 08 October 2009. Rainfall for the month totaled 5.2 inches, with a daily maximum of 1.4 inches on 03 October 2009.          
            Septage receiving for the period totaled 236,300 gallons, up 11% from the previous month. Removal rates for BOD and TSS for the period were 94.5% and 93.7%, respectively, in compliance with the minimum 85% required for each parameter by permit. A total of 192 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.

Five-Year Comprehensive Financial Projection

            The Trustees reviewed the report of a 5-year comprehensive financial projection prepared by District staff. The report lists each of the District’s income and expenditure centers and estimates values for each of these over the next five years and is provided annually. In completing the model a number of assumptions are necessary, and these assumptions are generally listed in the model. They include forecast of changes in flow, user rates, expense acceleration, interest earnings, etc.
            With these assumptions, the model foresees a deficit of approximately $300,000 at the end of 2014. The report provides some insight into projected year-end financial condition and the adequacy of the user rate structure and values currently in place over a five-year period. The General Manager emphasized that the model is intended solely to provide a very general picture of the District’s financial condition after five years. Due to the nature of the assumptions, the model is not intended to be viewed or used as a budget or a plan.

Investment Policy: Proposed Revisions

            At a recent workshop held to permit discussion of the District investment policy and program, it was consensus of the Board members that language of the District Investment Policy be amended. Contemplated amendments relate directly to management of concentration risk. Specifically it is desired to include 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 adopted in November 2007.
             The Trustees considered proposed revisions to the policy. Following discussion,

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

            The proposed revisions will be submitted for consideration by the Board for a second and final vote to adopt at the December regular meeting.

General Manager's Report

            Changes to certain provisions of the federal Base Realignment and Closure Act recently signed into law will allow the Midcoast Regional Redevelopment Authority to petition the Department of the Navy for a no-cost economic development conveyance of NAS Brunswick property to MRRA. The change is a potentially important step in expediting timely redevelopment of the property, which could shorten the period of reduced operating revenues and economic uncertainty for several area utilities and businesses.

Schedule of Upcoming Meetings, Events, etc.

            A tentative schedule of Board meeting in 2010 was distributed

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 BARBOUR, SECONDED BY TRUSTEE GREEN, AND UNANIMOUSLY VOTED BY THE TRUSTEES TO ADJOURN THE MEETING AT 9:12 P.M.

Attest,

         Peter F. Schwindt
         Trustee Clerk, Board of Trustees
 

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