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BOARD OF THE METROPOLITAN SEWERAGE DISTRICT
DECEMBER 16, 1998
The regular monthly meeting of the Board of the Metropolitan Sewerage District was held in the Boardroom of MSD's Administration Building at 2:00 p.m., Wednesday, December 16, 1998. Chairman Selby presided with the following members present: Aceto, Blackburn, Bryson, Field, Graham, Kelly, Sobol and Spell. Mr. Joyner and Mr. Pace were absent.
Others present were: W. H. Mull, General Manager, William Clarke, District Attorney, Gary McGill of McGill Associates, Chip Smith of Arcadis, Geraghty & Miller, Don Venable, probable Board appointee from Weaverville, Jim Fatland, Tom Hartye, John Kiviniemi, Stan Boyd, Charles Young and Sondra Honeycutt, MSD.
Mr. Clarke requested that the word "presented", Item 1., paragraph two, be changed to read "present". Also, that Item 8, paragraph a., second sentence, be changed to read: "He further reported that the Attorney advised that should the District waive proper execution of the bid as an informality and award the bid to Hickory Construction (low bidder), it must hold a hearing on the bid protests of Dellinger Construction and Crowder Construction. In the alternative, he advised that the District could reject all bids and re-advertise." With regard to Item 6. (Flow Monitoring Program) Mr. Sobol asked for a clarification on the contract contingency amount and if the contract was signed and forwarded to Arcadis. Mr. Clarke stated that he reviewed the scope of work with Mr. Hartye, which includes a contingency of $35,000.00, and made language modifications to the Proposal Acceptance Sheet. With no further discussion, Ms. Bryson moved that the Minutes of the November 18, 1998 meeting be approved as amended. Mr. Sobol seconded the motion. Voice vote was unanimous in favor of the motion.
Mr. Selby welcomed Mr. Donald Venable, the Town of Weaverville's appointee to the Board beginning January, 1999.
Staff recommends acceptance of developer constructed sewer system. All MSD requirements have been met.
The Finance Committee recommends acceptance of Brown & Wood as the District's Bond Counsel.
The Finance Committee had no recommendation with regard to the selection of a Trustee, since the District cannot remove the current Trustee due to restrictions of the Bond Order.
Minutes
December 16, 1998
Page Two
The Finance Committee recommends approval of the CAFR for year ended June 30, 1998.
The Finance Committee recommends approval of staff's recommendation to retain First Citizens Bank as the official depository.
Presented as information only.
Staff recommends that the Board receive and file the Monthly Treasurer's Report for the month ended October 31, 1998.
The Equipment and Vehicle Committee recommends award of the bid for one (1) dump truck to the lowest responsive bidder, Ken Wilson Ford of Canton, NC in the amount of $68,338.00, subject to legal review.
With no discussion, Mr. Sobol moved that the Board approve the recommendations of the Finance Committee and staff with regard to items a. through h. of the Consolidated Motion Agenda. Ms. Graham seconded the motion. Roll call vote was as follows: 8 Ayes; 0 Nays. Mr. Spell was absent during the vote.
Mr. Mull presented maps showing the location of the Wilmington Street and Druid Drive sewer rehabilitation projects. He reported that the following bids were received December 10, 1998: Wheeler Construction with a total combined bid of $320,773.50; Ronnie Ledford Utilities with a total combined bid of $356,808.10; Hobson Construction, total bid undetermined, and T&K Utilities with a total combined bid of $519,580.00. He further reported that staff recommends awarding the project to Wheeler Construction Company in the amount of $320,773.50, with a 10% contingency to be used for changes in work by approval of the General Manager. Award will be contingent upon attorney review and approval. A discussion followed regarding the "undetermined" bid of Hobson Construction; why the projects were bid together and the total budget for these projects. With no further discussion, Ms. Field moved that the Board approve the recommendation of staff. Mr. Aceto seconded the motion. Roll call vote was as follows: 9 Ayes; 0 Nays.
Mr. Mull presented a map showing the location of the lines included in the preventative maintenance line cleaning and TV inspection project. He reported that the following proposals were received December 10, 1998: Utility Services at a total cost of $493,834.00; Tri-State Utilities at a total cost of $586,691.00;
Minutes
December 16, 1998
Page Three
Southeast Pipe Survey at a total cost of $731,075.00 and McCullough Rehab at a total cost of $899,050.00. He further reported that staff recommends awarding the project to Utility Services of America, Inc. in the amount of $493,834.00, with a 15% contingency to be used for changes in work by approval of the General Manager. Award will be contingent upon attorney review and approval.
Mr. Aceto asked for some background information on Utility Services of America, Inc. Mr. Hartye reported that this firm is currently doing the cleaning and TV work on the Pilot Basin for London Road and is doing a good job. Mr. Mull stated that Utility Services of America, Inc. plans to use a subcontractor (Underground Camera) for approximately 100,000 linear feet of TV inspection work on the project. He further stated that the Charlotte-Mecklenburg Utility Department has used Underground Camera and is satisfied with their work. Several questions were asked with regarding whether Utility Services of America, Inc. is a local company; why there is a contingency of 15% instead of 10%; how the work is inspected; the amount budgeted for this project and the amount of line to be cleaned. Mr. Mull reported Utility Services of America, Inc. is out of Tennessee and that the 15% contingency is standard for a project of this size. Mr. Boyd stated that although maps of the sewer system are accurate, additional lines may be located, since only 80% are confirmed. Also, there is a difference in the costs of light and heavy line cleaning. Mr. Mull further reported that the budget for this contract is $4,861,000.00 for approximately 230,000 linear feet of line. Mr. Sobol suggested that staff look at the cost factors of doing line cleaning in-house compared to contracting the work out and bring this information to the CIP Committee for their determination on the pros and cons, since routine cleaning will be done on a continual basis. Ms. Graham moved that the Board approve the recommendation of staff. Ms. Field seconded the motion. Mr. Kelly asked if the District does any line cleaning in-house. Mr. Mull stated that the District has vacuum trucks and TV inspection units that are in constant use. With no further discussion, roll call vote was as follows: 9 Ayes; 0 Nays.
Mr. Mull reported that the following bids were received December 3, 1998 for bar screen replacement at the plant: Ray Smith Construction with a total base bid of $595,000.00 for Alternate "A" and $590,500.00 for Alternate "B"; Crowder Construction with a total base bid of $605,074.00 for Alternate "A" and $596,135.00 for Alternate "B"; Hickory Construction with a total base bid of $611,000.00 for Alternate "A" and $606,000.00 for Alternate "B", and Dellinger, Inc. with a total base bid of $618,530.00 for Alternate "A" and $610,329.00 for Alternate "B". He further reported that the low bid of Ray Smith Construction Company was rejected since a faxed Bid Bond accompanied the bid, which is unacceptable according to information furnished by the Institute of Government. Therefore, staff recommends awarding the bid to Crowder Construction Company based on Alternate "B" in the amount of $596,135.00, with a contingency of $47,365.00 by approval of the General Manager. Also, award should be contingent upon receiving the State permit to construct and attorney review and approval. Mr. Clarke stated that an original Bid Bond must accompany the bid, and that a fax is not an original for purposes of the Statute. Following a discussion regarding the difference in the original and re-advertised bids; the contingency amount, and staff's budget estimate, Ms. Graham moved that the Board approve the recommendation of staff. Mr. Spell seconded the motion. Mr. Mull stated that Alternate "B" includes closing off the by-pass as required by the State. He further stated that the District will proceed with award of the contract, but staff will contact the State for waiver of the by-pass requirement. Mr. Spell questioned the difference in the cost without the permit requirement. Mr. Mull
Minutes
December 16, 1998
Page Four
reported that the cost was included in Alternate "A". With no further discussion, roll call vote was as follows: 9 Ayes; 0 Nays.
Mr. Mull presented a Preliminary Cost Estimate for the Landfill Gas Generator, with a total estimated project budget of $750,000.00. He reported that staff proposes advertisement and bid opening in January, with award of the contract at the February Board meeting. Mr. Sobol questioned the costs associated with site preparation and grading of $7,000 and the concrete slab of $13,000. He also questioned the 15% project contingency. Mr. Mull stated that the contingency is projected at $100,000 in the event that bids for the generator come in over the estimated amount of $575,000. Mr. Aceto asked staff to remind him why the District is purchasing one unit instead of two. Mr. Mull stated that staff wanted time to evaluate the benefits of a second unit, which will be primarily used for stand-by power in the event of a CP&L outage and to prolong the life of the landfill gas. Mr. Selby stated that the overall strategy is that the District needs a gas fired generator that utilizes methane gas and there is also a strong recommendation from the State that the District provide full back-up power should both primary service providers go down during a low water event. Mr. Sobol asked whether the second generator would bring the plant up to full capacity during an outage and if the District has a backup plan to run the plant on one generator. Mr. Kiviniemi stated that the plant could run a minimum amount of equipment; enough to pump water to the intermediate clarifiers and chlorinate it, but would not be able to run the blowers to turn the RBC's.
Mr. Mull presented a chronological outline of the District's request to the State for delegation authority to issue permits for the construction of public sewer systems. He reported that the technical review of the application is complete and was forwarded to the Attorney General's office for legal review. Mr. Clarke stated that the application is still being reviewed by the Attorney General, which will then be sent to the Environmental Management Commission for final approval.
Finance Committee
Mr. Blackburn reported that all of the items considered by the Committee were previously discussed in the Consolidated Motion Agenda.
Personnel Committee
Mr. Sobol reported that the Personnel Committee item would be discussed later in the meeting.
Mr. Mull presented a resolution regarding disposal of the Thompson Street property, appraised at $930,000.00. He reported that the current plan is to vacate the property the second week in January, so he is requesting the Board
Minutes
December 16, 1998
Page Five
give approval to proceed with sale of the property. Mr. Clarke stated that the Statute says the District can acquire and dispose of real property. However, it must make a finding that the property is no longer needed or useful in connection with the sewerage system, or it's disposal will not adversely affect the operating efficiency of, or reduce the net revenues of the sewerage system, which the resolution addresses. He further stated that once the resolution is adopted, the District can proceed to sell. Also, the District can use the procedures that municipalities have at their disposal to sell property, but is not required to. Mr. Blackburn moved that the Board approve the resolution as presented. Ms. Bryson seconded the motion. Ms. Graham asked when the appraisal was done and requested a copy. Mr. Selby asked why the Consultant of Record must approve the sale. Mr. Clarke stated that because the property has a value in excess of $100,000.00 the findings of the District must be approved in writing by an appropriate consultant. With no further discussion, roll call vote was as follows: 9 Ayes; 0 Nays.
Regarding sale of the property, Mr. Kelly requested that a committee of the District oversee its disposal. He stated that the District could advertise for sealed bids with the right to reject all bids without going through a broker. Mr. Clarke stated that as long as everything is done openly, there are no requirements. Mr. Selby suggested that this issue be referred to the Finance Committee for a recommendation.
Mr. Sobol stated that recently the District lost an employee to a consulting firm and questioned whether this is legal. Also, when drawing up a contractual agreement, could the District add a clause preventing a firm from soliciting MSD employees. Mr. Clarke stated that as long as the agreement is contractual, a clause can be added, but there is a limit, particularly to time and scope and that the District needs to be careful about limiting employee opportunities. Mr. Aceto stated that he has seen this done in technical service contracts and did not see a problem with it. Mr. Kelly stated that this issue deserves a lot of discussion before a policy is adopted. Mr. Spell stated that in his opinion, the District would be penalizing the employee and is not necessary. No action was taken on this issue.
Regarding Mr. Sobol's questions on the Flow Monitoring Program, Mr. Hartye reported that he went over the specifics of the contract with Mr. Clarke and amended the contract; removing the 10 permanent and 59 temporary meters and replacing with 69 temporary meters. Also, the contract includes a $35,000.00 contingency. Mr. Selby stated that the contingency is a fund that is available to handle cost overruns. Mr. Hartye stated that in the event there is a need to extend the monitoring period because of dry weather, it may be necessary to use some of the contingency fund. Mr. Selby briefly discussed a question raised at the November meeting with regard to whether the bid laws should be considered in the purchase of the 10 permanent meters. He stated that since the contract has been amended, this issue is resolved. As requested by Mr. Sobol, Mr. Mull presented the Estimated Expenditures/Encumbrances and an Outline of Services for Phase II of the Major Rehabilitation Program.
Mr. Selby announced that the Buncombe County Board of Commissioners has re-appointed him to serve another term on the District Board.
Minutes
December 16, 1998
Page Six
At 3:10 p.m., Ms. Field moved that the Board go into closed session to discuss a personnel matter. Mr. Spell seconded the motion. Voice vote was unanimous in favor of the motion.
At 3:27 p.m., the Board went into open session.
Mr. Blackburn moved that the District enter into a contract with the General Manager, with the General Manager's compensation to be fixed at the rate of $105,000.00 for a period of one (1) year beginning January 1, 1999 and ending December 31, 1999. Ms. Bryson seconded the motion. Roll call vote was as follows: 9 Ayes; 0 Nays. Mr. Selby expressed the Board's appreciation to Mr. Mull for his performance and tenure as General Manager. Mr. Mull stated that he looks forward to working for the District.
At the request of Ms. Field, Mr. Blackburn stated that the Finance Committee will do a basic review of the District's CAFR.
Ms. Field asked how the Regional Water Authority's request that commercial users reduce water usage by 20% will affect District revenues. Mr. Mull stated that if everyone abides by the 20% reduction, the District will lose approximately $300,000.00 a month in revenue. He reported that in talking with industry representatives, they have indicated that they are prepared to pay a penalty, since they are currently using as little water as possible and that he does not see a substantial impact on the domestic user. Ms. Field stated that she is concerned that there is only between 80 to 90 days of water left, and at some point, unless we get rain, major rationing will occur. Therefore, businesses need to decide how they will conserve. Mr. Selby suggested that the Finance Committee discuss this issue and determine what the District's strategy will be if significant rainfall does not happen.
At 3:45 p.m., Ms. Graham moved for adjournment. Mr. Kelly seconded the motion. Voice vote was unanimous in favor of the motion.
Jackie W. Bryson, Secretary/Treasurer
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Metropolitan Sewerage District of Buncombe County 2028 Riverside Drive Asheville NC 28804 |
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