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| WATER POLLUTION CONTROL AUTHORITY MINUTES |
For minutes prior to January 2004, please
contact Judy Archer of Public Works
at 203-854-7791 or jarcher@norwalkct.org
JANUARY 9, 2006
ATTENDANCE: James McInerney, Chairman; Frederika Bikakis-Hajian; Fred Wilms; Mayor Moccia (5:55 p.m.)
STAFF: Hal Alvord, DPW Director; Lisa Bardon, DPW Operations Manager;
Ralph Kolb, DPW/WPCA Wastewater Systems Manager
OTHER: Thomas Hamilton, Finance Director; Vicktor Hulliew, OMI; Kevin Dahl, OMI
CALL TO ORDER
Chairman McInerney called the meeting to order at 5:36 p.m. He said there is no quorum. He welcomed Mr. Fred Wilms to the WPCA. He then proceeded to review the non-action items on the agenda.
FINANCE DIRECTOR REPORT
a. YTD Revenues/Expenditures Report (MUNIS report included)
Mr. Hamilton said that he had provided them last month with audited results
from last year as well as projections for the end of this year, and there is
no change in the overall projection. They are expecting to end the year with
a small surplus.
b. Draft Capital/Operating Budgets (financial model input request included)
Ms. Bardon said she showed a projected actual number for revenue and expenditures, which is better than what MUNIS projects. Mr. Wilms asked about the negative $850,000 that appeared on the report. Mr. Kolb said that those are adjustments to the sewer use fees. Mr. Hamilton said that this wasn’t entirely unexpected. Ms. Bardon said they can keep better track of these numbers in the future. Mr. Alvord said their goal is to reduce those numbers. An ongoing adjustment can be provided to certain customers, as opposed to having their usage metered, or providing an adjustment at the time of billing. Ms. Bardon said the other revenues are projected to be higher than anticipated, and that is because they are doing better than expected on septage, and the interest investment income is showing a good-sized fund balance right now. The expenditures are projected actuals, and they are on target for most items. They underestimated OMI’s services last year because the CPI was higher than they anticipated, and the cost of electricity is up $110,000. They are looking at the CL&P rate increase of 22%. It is reflected in for what they are proposing for next year. Mr. Hamilton asked if Ms. Bardon had spoken to anyone at the Third Taxing District. She said she hadn’t. She said she assumed 10% for the draft budget, but that would be reviewed before they presented the final budget to the board. Mr. Wilms asked if the 2006-2007 budget shows an increase in the sewer use fees. Ms. Bardon said the 2006-2007 budget shows a $10.00 increase for households/residential, and $15.00 for establishments/commercial, and an increase in consumption of $.10 per thousand gallons, up from $4.95 per thousand gallons currently. The next page of the budget shows a comprehensive rate study, and the preliminary results will be presented to the board prior to adoption of the budget. They are predicting an additional $537,000 in reserves, in addition to $5.1M that was in the fund balance. There is leeway between the rates and the fund balance, and they are exploring that with the consultant that they hired at the last meeting. They will meet before the next board meeting to review the preliminary information. The consultant was provided the information and generated this request. This is what is going into the financial model.
Chairman McInerney asked if the 2006-2007 revenues include any increase to the sewer charges. Ms. Bardon said that it does, and it is going from $195-$205 on residential, from $275-$290 on the commercial flat rate, and from $4.95-$5.05 per thousand gallons. She said that these numbers are just placeholders. The budget is in preliminary draft form now. Chairman McInerney wanted to confirm that these proposed revenue expenditures that are reflective of the increases noted do not fund any of the requested capital budget of 06-07. She said that was correct, that you don’t pay on the first year. Mr. Hamilton said that if you are going to finance, one option would be to fund a portion of the capital program from the existing fund balance. There would be a 12 month grace period, so the first principal and interest payments would be 12 months later. These are some scenarios, with the capital amount to be defined. Ms. Bardon explained that the actual numbers will have to be plugged into the model. Chairman McInerney confirmed that DPW, Mr. Hamilton and the consultant will work on getting preliminary results for the February meeting. Ms. Bardon said the rates get set with them, but then it has to go between the BET and Common Council. If this board approves the budget in April, it would go to the BET for approval in May. Ms. Bardon suggested a subcommittee be formed to review the rate scenarios. Mr. Wilms offered to help review the rate scenarios.
Mayor Moccia arrived at 5:55 p.m., and he apologized for the meeting location change. Mr. McInerney welcomed him to the meeting, and he reviewed the budget discussion for him. He said it revolved around the 2006-2007 budget, with one scenario anticipating an increase in rates. It is only a placeholder budget. Mr. Hamilton confirmed that both his office and the Mayor’s Office had not seen this yet.
APPROVE THE MINUTES FROM THE WPCA MEETING HELD ON DECEMBER 12, 2005 (COPY INCLUDED)
** MS. HAJIAN MOVED TO APPROVE THE MINUTES AS AMENDED.
The corrections to the minutes are as follows:
On page 1, under Attendance, Ms. Bikakis Hajan’s name should read Hajian.
On page 1, under Other, Mayor Moccia’s name should be moved to Attendance.
On page 2, under Appeals Status, the last sentence should read “Mr. Kolb said
a $24k adjustment went to Devine Brothers.”
On page 2, under 2004-05 Audit Report, the 3rd sentence should read $3.9 million
in cash.
On page 2, under 2004-05 Audit Report, the last sentence should read “Overall,
they were in good shape and this provides the WPCA the flexibility of going
forward to fund capital investments.”
On page 2, under Septage Disposal System Issues, 2nd paragraph, “Mr. Atkin left
the meeting at 6:05 p.m.” should be moved to page 4, and inserted at the top
of the page, after “MOTION PASSED UNANIMOUSLY”.
On page 5, under Contract Operations Monitoring, 2nd paragraph, 1st sentence,
change HVC to HVAC.
On page 6, under Monthly Operating Report, the 4th paragraph should read “Mr.
McInerney asked about the nitrogen removal performance.”
On page 6, under Collection System and Pump Station MRR Accounts, the 2nd sentence
should read “Mr. Dahl said that was $125k in expenditures for December.”
** MOTION PASSED UNANIMOUSLY.
c. Billing Other Contract Customers
Mr. Kolb explained that there are two customers on the Westport/Norwalk border that are connected to the Norwalk collection system and have contracts. They haven’t been billed recently. He has information from Aquarion regarding the consumption status from the properties. For fiscal year 2004/2005, and 2005/2006, they will bill for a total of over $33,000. Mayor Moccia confirmed that the homeowners know that they are in the contract. Ms. Bardon said the contracts need to be updated, as they reflect older properties. Mr. McInerney said they are working to create an interlocal agreement with Westport, with Norwalk sending a bill to Westport, and Westport sending a bill to the customer. Mr. McInerney asked about the Wilton bill. Ms. Bardon said the bill for $323,000 had been sent. There were interpretation issues, and they will leave the bill as is for this year. They will revisit it next year with regard to how flow adjustments are made. The bill went out in November and it has not been paid. It had 30 days to be paid. They are expecting to receive the check soon.
Mr. Hamilton asked if the numbers in the capital budget are preliminary, as CDM has just been retained. Ms. Bardon explained that Malcolm Pirnie had come before the board last month and is developing the collection system master plan. It is anticipated as $20M in immediate capital needs to the collection system, with the number growing exponentially beyond that for the next 20 years. They brought a consultant on to help them develop an asset management plan. As part of that, they are doing a financial model which encompasses the entire operating budget and the capital budget to show the effects of that program. CDM was hired for the headworks, the main lift station, projects currently under design. The total project cost of $6.1M is a budget number based on her experience with similar projects and Mr. Kolb’s experience with operations. The preliminary numbers will be refined after concept planning.
Mr. Wilms said that everyone puts in their wishes for the capital budget, and thought that once it’s refined, priorities could be established. Ms. Bardon said the total asset value for WPCA is $270M, and the investment reflected here is at the 3-4% per year range. A lot of work has not been done for many years. OMI just completed assessing the sewer lines, and there is either about $20M worth of collapsed pipe already, or $20M of about-to-collapse pipe. They determined the items to be absolute necessities. Many of them are regulatory requirements and an attempt to get the infrastructure in good shape. Mayor Moccia asked how much was requested. Ms. Bardon said they asked for $1.6M the first year, and they received $1.35M. Mayor Moccia questioned how they were approved for $1.35M last year, and this year they are asking $8M. Ms. Bardon said it’s for construction and for projects currently under design. Mayor Moccia asked if these same projects were under design, or known about, in previous years. Mr. Kolb said yes, and Ms. Bardon said not prior to all of them joining the staff. Mr. Alvord said that until OMI cleaned out the collection system, they had no idea how much pipe they needed. All of the capital budget dollars for this year were engineering dollars, and then there would be construction budgeted for work. The sanitary system is on a bow wave of needs. Mayor Moccia said that he had inquired into this previously, before he was elected Mayor, and was told that it was unnecessary. Now it appears that the budget is going from $1M to 8M. Ms. Bardon said that one thing that attributed to the huge jump was the unexpected nitrogen removal at the plant. The last major upgrade at the facility was in 1998. The new permit for nitrogen removal is in the package, and the rate of the permit dropped more than what they anticipated for 2007/2008. Mr. Kolb said that in 2006, the permit is 1,044 lbs per day and continues to drop each year thereafter, until the year 2014, when they are at 718. Ms. Bardon said they will be borderline at buying credits from the state in 2008. The project could cost $6M, so she suggested putting money away in anticipation of that. Mr. Kolb confirmed that for 2005, the 12 month long average was 817 lbs emitted per day. They have the option to buy credits. Mr. Wilms asked why Norwalk appeared different from Stamford. Ms. Bardon said the equivalency factor, depending on where you are located on Long Island Sound, is in place and that’s why it goes up or down.
APPROVE SANITARY SEWER EXTENSION TO CONNECT 127, 129, 130 AND 135 SILVERMINE
AVENUE.
SEWER LATERALS TO PROPERTY LINE ONLY FOR 122, 125, 131, AND 133 SILVERMINE AVENUE.
(DRAWING INCLUDED).
Mr. Kolb said that he included in everyone’s packet an 11x17 drawing of the sanitary sewer main extension plan for Silvermine Avenue. Engineering has reviewed the drawings. The developer, Andrew Cote, will pay for it, along with the homeowners, at no cost to the City or the WPCA. There will be four homes that will connect, and four homes will have sewer lateral stubs to the property line. Mr. Kolb said it is his recommendation for the WPCA to approve this. Upon approval, they should require the developer to have an engineer do the sewer inspection, and overview the testing of the sewer system and manholes per City specs. Grumman Engineering did the drawings. Mr. Alvord said the only cost to the city is the engineering review and the permitting oversight. These are existing homes and they have requested to be part of it. If they don’t want to connect, they can drop it at the property line. Mr. Hamilton confirmed that this would not be a levying of sewer assessments.
Mayor Moccia wanted to be sure that they know
** MR. WILMS MOVED TO AUTHORIZE THE WPCA TO REQUIRE THE DEVELOPER TO HIRE AN OUTSIDE ENGINEER TO CONDUCT AN INSPECTION OF THE SEWER LINES AND MANHOLES, AND ALSO OVERSEE THE TESTING OF THE SEWER LINES AND MANHOLES PER CITY SPECIFICATIONS, AND PROVIDE A PROFESSIONAL ENGINEERING REPORT THAT THE CONSTRUCTION WAS DONE IN ACCORDANCE WITH CITY SPECIFICATIONS.
Mr. Alvord said the contractor will have to get a permit and meet the insurance and bonding requirements. He will be assessed a patch fee. He will do a temporary restoration; the permanent restoration will be done under the city’s patch contracts using his fees.
** MOTION PASSED UNANIMOUSLY.
PUBLIC WORKS DIRECTOR REPORT
a. Collection System Issues – General:
1) North Main Street - Completed
Mr. Kolb said that North Main Street is completed. He will have pictures at the next meeting. They had a sewer collapse in the Shady Beach pump station. AJ Penna, a company under contract with the city for emergency repairs, will do the work. No one is affected by the service. It is low flow.
b. 3rd Taxing District Generator Proposal Status (letter from Mayor included)
Mr. Alvord said that there was a meeting with the 3rd Taxing District about the generator replacement. Mayor Moccia supports it, and the letter is in the packet. Mr. Alvord said they get about $1.5M in savings to the WPCA for the investment costs on the two new generators and the installation. There are two, 35-year-old kerosene driven turbine generators at the treatment plant. They will have to replace them in the near future. Connecticut Municipal Electric Energy Cooperative (CMEC), and the 3rd Taxing District, a member of CMEC, have offered the WPCA two, slightly used 2,000 kilowatt machines to replace two 9,000 machines. That gives the WPCA the opportunity to have all the plant process equipment on one generator, with full redundancy to another. They would use those machines for shaving peak loads during the summer months. It is a win-win situation for the WPCA. One of the two criteria left is the space concerns at the treatment plant. The machines need to be inside the existing generator building, which is not the cheapest way for CMEC. They might have a concept that works. Financially, it has to work for CMEC. They are running financial alternatives to see if they can make the investment work and not lose money on it. Mayor Moccia said that after the meeting with the 3rd Taxing District, it was a win-win situation. Now that there is a positive indication, CMEC is motivated to do their analysis and move forward. The LICAP program, from which CMEC gets the shaved peak, has been extended to October. CMEC would like to shave peak this coming summer, so the machines need to be ready for June.
c. Underground Storage Tank Removal Project Status
Mr. Kolb said there are 6 pump stations. Each of them has an underground storage tank. They are in negotiation with Conestoga Rovers and Associates (CRA) to come out and oversee the removal of the tanks, which contain diesel fuel. Four of the tanks are empty, and two are in use. They have to replace the two underground, in use tanks with two new, above-ground storage tanks. The price from CRA is $72,000. The Legal Department drafted a contract. The $72,000 was approved, with a $10,000 contingency. The contract is written in a way that requires CRA to have additional costs. Mr. Kolb confirmed with CRA that the additional costs won’t exceed $10,000. Once the final contract is drafted, he will have CRA sign it. Ms. Bardon said the additional costs are related to insurance requirements. The maintenance bond was the only bond not able to be lowered. The $72,000 came out of the replacement reserve from last year’s $5.1M fund balance.
d. Information Copies:
1) Re-Issued General Permit for Nitrogen Discharges
The permit is in the packet, and it has already been reviewed.
CONTRACT OPERATIONS REPORT
a. Public Works Director Report
1) Contract Operations Monitoring
Ms. Bardon reported that they had a kickoff meeting for this year’s services on December 1 with Malcolm Pirnie and OMI, and the minutes will be provided shortly. Mr. Alvord confirmed that as a result of that meeting, they agreed to have quarterly working meetings, the first of which is scheduled for January 23.
b. OMI Report
1) Monthly Operating Report – November 2005 (copy included)
Mr. Dahl said the three major items completed were the drive shaft repair
at the Fort Point station, the rebuilding and replacing of MLP #2, and the replacement
of the mixer for the lakeside septage receiving unit. They completed 112 workorders
and have 148 backlogged. There were no permit violations. There is a performance
guarantee of 28.4 mg/l. Each day surrounding that was well within limits. There
were three safety tailgates. They had ethics training, NPDES training, generator
SOP training, and a review of winter hydrant operations. The Devil’s Garden
pump station is on-going, and it the rebuild should start soon. There were four
collection system bypass reports. The Keeler Brook rehabilitation is on-going.
Ms. Bardon said they received a claim from the homeowner at 41 Douglas Drive
regarding the line/MRR repairs. For CCTV, the current month footage is 2,300
feet. There were no personnel changes. There was one reportable safety incident
for the month, and one lost time incident. Total nitrogen performance was 566,
and the goal was 757, which puts them in performance band D. Under Miscellaneous,
they had an interstate sanitation commission inspection/sampling on November
1, 2005. The chart page reflects overall good performance. The 12 month rolling
average was 812. The monthly average flow dropped down from October.
For February, in accordance with the 2nd Amendment requirements, they will have
information available for the year showing monthly performance and sharing in
the nitrogen credits. It will then be reported on a monthly basis. This year
it is in summary form by year.
2) Collection System and Pump Station MRR Accounts (copy included)
Mr. Kolb said the last handout is the update on the MRR accounts. The collection system has a balance of just under $200,000. That includes a recent invoice for $104,000 for All State Power Vac for the Keeler Brook Project.
ACTION ON ANY ITEM DISCUSSED HEREIN
None.
ADJOURNMENT
** MS. HAJIAN MOVED TO ADJOURN.
** MOTION PASSED UNANIMOUSLY.
The meeting was adjourned at 6:40 p.m.
Respectfully submitted,
Carolyn Marr
Telesco Secretarial Services
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