ORANGE WATER AND SEWER AUTHORITY

Transcription

1 ORANGE WATER AND SEWER AUTHORITY A public, non-profit agency providing water, sewer and reclaimed water services to the Carrboro-Chapel Hill community. AGENDA MEETING OF THE OWASA BOARD OF DIRECTORS THURSDAY, DECEMBER 9, 2010, 7:00 P.M. OWASA COMMUNITY ROOM In compliance with the Americans with Disabilities Act, interpreter services are available with five days prior notice. If you need this assistance, please call the Clerk to the Board at or aorbich@owasa.org. 7:00 PM Announcements 1. Announcements by the Chair A. Any Board member who knows of a conflict of interest or potential conflict of interest with respect to any item on the agenda tonight is asked to disclose the same at this time. 2. Announcements by Board Members A. Update on the Finance Committee Meeting held on Thursday, December 9, 2010 (Mac Clarke) 3. Announcements by Staff Petitions and Requests 1. Public 2. Board 3. Staff 7:10 PM CONSENT AGENDA Action 1. Resolution Approving Certification to the Trustee of the Completion of Improvements Related to the Series 2006 Water and Sewer System Revenue Bonds (Stephen Winters) 2. Resolution to Rescind the Capital Reserve Fund Requirement for the Payment of Certain Costs of the Meeting of the Waters Interceptor Upgrade and Rehabilitation Project (Stephen Winters) 3. Approval of the Minutes of the October 28, 2010 Meeting of the Board of Directors (Andrea Orbich) 4. Approval of the Minutes of the November 11, 2010 Meeting of the Board of Directors (Andrea Orbich) REGULAR AGENDA Discussion 7:20 PM 5. Initial Report and Discussion of the November 30, 2010 Community Meeting and Public Comments on the Draft Forestry Management Plan, and Next Steps (Patrick Davis) 400 Jones Ferry Road Carrboro, NC Equal Opportunity Employer Printed on Recycled Paper Voice (919)

2 AGENDA December 9, 2010 Page 2 7:50 PM 6. Draft Statement of Strategic Issues and Policies, Draft Planning Assumptions and Background Information Document and Fiscal Year 2012 Draft Budget Calendar (Stephen Winters) Discussion and Action 8:05 PM 7. Resolution Awarding a Construction Contract for the Bolin Creek Interceptor (Phase III) Sanitary Sewer Pipeline Project (Mason Crum) 8:15 PM 8. Resolution Requesting Clarification of the 2001 Water and Sewer Management, Planning and Boundary Agreement Among Carrboro, Chapel Hill, Hillsborough, Orange County and OWASA (Alan Rimer/Ed Kerwin) 8:30 PM CLOSED SESSION 9. The OWASA Board of Directors will go into Closed Session for the Purpose of Considering an Offer to Purchase Real Property, and to Consider how it wants Staff to Proceed in Negotiations, and May Return to Open Session for the Purpose of Taking Formal Action on this Matter (Ed Holland)

3 AGENDA ITEM PURPOSE RESOLUTION APPROVING CERTIFICATION TO THE TRUSTEE OF THE COMPLETION OF IMPROVEMENTS RELATED TO THE SERIES 2006 WATER AND SEWER SYSTEM REVENUE BONDS To provide certification to the Trustee that improvements funded by the Series 2006 Water and Sewer System Revenue Bonds have been completed. BACKGROUND OWASA issued Series 2006 Water and Sewer System Revenue Bonds to fund the construction of various water and sewer capital projects. Improvements funded by the Series 2006 Water and Sewer System Revenue Bonds were complete as of November 1, Section 4.07 of OWASA s Amended and Restated Bond Order requires certification to the Trustee that the projects are complete. ACTION NEEDED Adoption of the resolution approving the filing of a certificate with the Trustee certifying the completion of the bond funded improvements. December 9,

4 ORANGE WATER AND SEWER AUTHORITY A public, non-profit agency providing water, sewer and reclaimed water services to the Carrboro-Chapel Hill community. MEMORANDUM TO: Board of Directors THROUGH: Ed Kerwin FROM: Stephen Winters, CPA DATE: December 3, 2010 SUBJECT: Resolution approving certification to the Trustee of the completion of improvements related to the Series 2006 Water and Sewer System Revenue Bonds Background On October 26, 2006, OWASA issued $22,285,000 in water and sewer revenue bonds to fund the Stone Quarry Pump Station, the Wastewater Treatment Plant upgrade and expansion, the biosolids dewatering facility, the North Forest Hills pump station phase-out, rehabilitation efforts for the Bolin Creek sewer basin, the Meeting of the Waters sewer interceptor rehabilitation and the purchase of the Ray property. As of November 1, 2010, all issues related to the construction of the improvements were complete and all bond proceeds have been withdrawn from the construction fund established under the Bond Order. Discussion Section 4.07 of the Bond Order requires OWASA to certify to the Trustee that the improvements are complete. The Bond Order specifies the language to be used in the certification and requires the inclusion of an opinion of counsel that the assets are free from material claims. The attached resolution directs the Director of Finance and Customer Service to file such certification. Staff recommends that the Board adopt the attached resolution. Stephen Winters, CPA Director of Finance and Customer Service Attachments 400 Jones Ferry Road Carrboro, NC Equal Opportunity Employer Printed on Recycled Paper Voice (919)

5 RESOLUTION APPROVING CERTIFICATION TO THE TRUSTEE OF THE COMPLETION OF IMPROVEMENTS RELATED TO THE SERIES 2006 WATER AND SEWER SYSTEM REVENUE BONDS WHEREAS, Section 4.07 of the amended and restated Bond Order requires certification to the Trustee that capital projects for which bonds were issued have been completed; WHEREAS, on October 26, 2006, Orange Water and Sewer Authority issued water and sewer system revenue bonds from which proceeds were placed with the Trustee in the Construction Fund; WHEREAS, improvements funded by the Series 2006 Water and Sewer System Revenue Bonds were complete as of November 1, NOW, THEREFORE, BE IT RESOLVED: 1. That the Board of Directors approves the filing of the attached certificate with the Trustee. 2. That the Trustee is instructed to close the Series 2006 Construction Fund in accordance with Section 4.07 of the Bond Order. Adopted this 9 th day of December, Gordon Merklein, Chair ATTEST: Braxton Foushee Secretary 1.3

6 ORANGE WATER AND SEWER AUTHORITY A public, non-profit agency providing water, sewer and reclaimed water services to the Carrboro-Chapel Hill community. December 9, 2010 Mr. Martin P. Henry, Vice President The Bank of New York Mellon Trust Company, N.A. Corporate Trust Division Centurion Parkway Jacksonville, FL Re: Orange Water and Sewer Authority Certification of Completion of Project(s) Funded by Series 2006 Water and Sewer System Revenue Bonds With respect to the Project as described and defined in the Official Statements and Series Resolutions for Orange Water and Sewer Authority s Water and Sewer System Revenue Bonds, Series 2006, Orange Water and Sewer Authority (OWASA) certifies the following as of December 9, 2010: The cost of the Project was $33,810,051. All costs and expenses incurred in connection therewith have been paid. The acquisition, construction and equipping of the Project have been completed substantially in accordance with the plans and specifications therefore. All other facilities necessary in connection with the Project have been acquired, constructed and installed in accordance with the plans and specifications therefore. This certification is given without prejudice to any rights against third parties that exist at the date of such certification or that may come into being. Stephen Winters, CPA Director of Finance and Customer Service Date Further, it is the opinion of counsel to OWASA, that OWASA has acquired title to all property, lands, property rights, rights of way, franchises, easements and other interests in lands necessary for the operation of the Water and Sewer System, free from all liens or encumbrances except liens, encumbrances or other defects of title which do not have a materially adverse effect upon OWASA s right to use such properties for the purpose intended or which have been adequately guarded against by a bond or other form of indemnity, and that there are no uncancelled mechanics, laborers, contractors, or materialmen s liens on the Improvements or on file in any public office where the same should be filed in order to be valid liens against any part of such property, and that the time within which such liens can be filed has expired. Robert Epting, Esquire General Counsel for Orange Water and Sewer Authority Date 400 Jones Ferry Road Carrboro, NC Equal Opportunity Employer Printed on Recycled Paper Voice (919)

7 AGENDA ITEM PURPOSE RESOLUTION TO RESCIND THE CAPITAL RESERVE FUND REQUIREMENT FOR THE PAYMENT OF CERTAIN CONSTRUCTION COSTS OF THE MEETING OF THE WATERS INTERCEPTOR UPGRADE AND REHABILITATION PROJECT To rescind the Capital Reserve Fund requirement related to the Meeting of the Waters sewer interceptor rehabilitation and replacement project. BACKGROUND The Meeting of the Waters sewer interceptor rehabilitation and replacement project (the project) was partially funded from the Series 2006 Water and Sewer System Revenue Bonds. The project was estimated to cost $4.7 million to complete; $3.6 million in debt funding and $1.1 million in equity funding. As a stipulation of the Local Government Commission s (LGC) approval of the Series 2006 bond issue, OWASA was required to designate a Capital Reserve Fund equal to the amount of equity funding for the project. As of November 1, 2010, the Meeting of the Waters sewer interceptor rehabilitation and replacement project was complete and free from material claims. Adoption of the attached resolution rescinds the Capital Reserve Fund requirement and enables the use of the funds for any legal purpose. ACTION NEEDED Adoption of the attached Resolution to rescind the Capital Reserve Fund requirement. December 9,

8 ORANGE WATER AND SEWER AUTHORITY A public, non-profit agency providing water, sewer and reclaimed water services to the Carrboro-Chapel Hill community. MEMORANDUM TO: Board of Directors THROUGH: Ed Kerwin FROM: Stephen Winters, CPA DATE: December 3, 2010 SUBJECT: Resolution to rescind the Capital Reserve Fund requirement for the payment of certain construction costs of the Meeting of the Waters sewer interceptor rehabilitation and replacement project Background On October 26, 2006, OWASA issued bonds to fund the cost of constructing various capital projects including the Meeting of the Waters sewer interceptor rehabilitation and replacement project (the project). Approximately $1.1 million of project cost was funded from available fund balance. In order to receive the Local Government Commission s approval for the issuance of the Series 2006 bonds, OWASA was required to establish and fund a Capital Reserve Fund in the amount of the equity financed portion ($1.1 million) of the project. The balance was to remain in the Reserve until the project was completed. Discussion As of November 1, 2010, the project is complete and free from material claims. Adoption of the attached resolution will reclassify the balance of the Capital Reserve Fund ($1,179,832) to the General Fund. Stephen Winters, CPA Director of Finance and Customer Service 400 Jones Ferry Road Carrboro, NC Equal Opportunity Employer Printed on Recycled Paper Voice (919)

9 RESOLUTION TO RESCIND THE CAPITAL RESERVE FUND REQUIREMENT FOR THE PAYMENT OF CERTAIN CONSTRUCTION COSTS OF THE MEETING OF THE WATERS INTERCEPTOR UPGRADE AND REHABILITATION PROJECT WHEREAS, OWASA issued its Water and Sewer System Revenue Bonds, Series 2006 (the Series 2006 Bonds ) for the purpose of providing funds, together with other available funds, to (i) pay the cost of acquiring certain real property for watershed protection and acquiring and constructing certain improvements to OWASA s water and sewer system (collectively, the 2006 Additional Project ), (ii) provide a reserve for the Series 2006 Bonds by either funding such reserve or by purchasing a municipal bond debt service reserve fund policy, if in the opinion of OWASA at the time of the sale of the Series 2006 Bonds a reserve fund for the Series 2006 Bonds is warranted, and (iii) pay certain costs and expenses incurred in connection with the issuance of the Series 2006 Bonds; and WHEREAS, the Board of Directors deemed it advisable and in the best interest of OWASA to designate available funds for the payment of any cost of constructing the Meeting of the Waters Project in excess of the Series 2006 Bond proceeds available therefore; and WHEREAS, the Meeting of the Waters sewer interceptor rehabilitation and replacement project is complete and free from material claims, which fact shall be evidenced to the Local Government Commission of North Carolina by an Officer s Certificate delivered to the Local Government Commission of North Carolina; NOW, THEREFORE, BE IT RESOLVED: 1. The special account established and designated as the Orange Water and Sewer Authority Capital Reserve Account Meeting of the Waters Project may be closed and any balance remaining shall be transferred to the General Fund. 2. The officers of OWASA are hereby authorized and directed to do all acts and things required of them to give effect to this Resolution. Adopted this 9 th day of December, Gordon Merklein, Chair ATTEST: Braxton Foushee, Secretary 2.3

10 ORANGE WATER AND SEWER AUTHORITY MEETING OF THE BOARD OF DIRECTORS OCTOBER 28, 2010 The Board of Directors of the Orange Water and Sewer Authority (OWASA) met in regular session on Thursday, October 28, 2010, at 7:00 P.M., at Chapel Hill Town Hall. Directors present: Gordon Merklein, Chair; Alan Rimer, Vice Chair; Braxton Foushee, Secretary; Fred Battle; Michael A. (Mac) Clarke; Joyce C. Preslar; William Stott; and Amy Witsil. OWASA staff: Ed Kerwin; John Greene; Mason Crum; Stephen Winters; Dan Przybyl; Patrick Davis; Damon Forney; Stephanie Glasgow; Thurman Green; Ed Holland; Heidi Lamay; Kenneth Loflin; Melvin Markley; Andrea Orbich; Kevin Ray; Sonny Tchoi; and Robert Epting, Esq., Epting and Hackney. Others present: Ben Poulson, Associate Director of Energy Services, and Meg Holton, Water, Wastewater, and Stormwater Manager of the University of North Carolina at Chapel Hill; Lauren Hollowell, UNC Journalism Student; Melanie Gower; and John Young, Chapel Hill resident. There being a quorum present, Chair Gordon Merklein called the meeting to order. MOTIONS ACTED UPON Draft ******** 1. BE IT RESOLVED THAT the Orange Water and Sewer Authority adopt the resolution titled Resolution Requesting Cost Share Assistance from the North Carolina Division of Water Resources for Control of Noxious Aquatic Weeds as amended by Robert Epting, OWASA General Counsel, as follows, 5. That OWASA will hold the State harmless from any damages for which the State may be responsible and that may result from the implementation of said project. (Resolution so titled attached hereto and made a part of these minutes. Motion by William Stott, seconded by Mac Clarke, and unanimously approved.) 2. BE IT RESOLVED THAT the Orange Water and Sewer Authority adopt the resolution titled An Order Amending an Order Adopted by the Orange Water and Sewer Authority on September 13, 2001, Entitled Amended and Restated Bond Order Authorizing the Issuance Under the Provisions of the State and Local Government Revenue Bond Act, as Amended, of Water and Sewer System Revenue Bonds of the Orange Water and Sewer Authority to Provide Funds for the Improvement of Said Authority s Water and Sewer System and for the Refunding of Certain Outstanding Bonds of Said Authority, Providing for the Security of Said Bonds, Any Parity Debt and Any Subordinated Indebtedness and Providing for the Incurrence of Additional Indebtedness for Various Purposes, to Modify the Term Current Expenses. (Resolution so titled attached hereto and made a part of these minutes. Motion by William Stott, seconded by Mac Clarke, and unanimously approved.) 3.1

11 Orange Water and Sewer Authority October 28, 2010 Page 2 Draft 3. William Stott made a motion to approve the Minutes of the September 9, 2010, Meeting of the Board of Directors; the motion was seconded by Mac Clarke and unanimously approved. 4. William Stott made a motion to approve the Minutes of the September 23, 2010, Annual Meeting of the Board of Directors; the motion was seconded by Mac Clarke and unanimously approved. 5. Alan Rimer made a motion that OWASA s Policy for Adjustment of Customer Accounts for Emergency Situations Involving Loss of Metered Water be amended and effective July 1, 2010; the motion was seconded by Amy Witsil and unanimous approved. 6. Fred Battle made a motion that the Orange Water and Sewer Authority Board of Directors go into a Closed Session for the purpose of discussing a personnel matter; the motion was seconded by Braxton Foushee and unanimously approved. ITEM ONE: ANNOUNCEMENTS CONFLICT OF INTEREST * * * * * * * * * * Gordon Merklein said any Board Member who knows of a conflict of interest or potential conflict of interest with respect to any item on the agenda tonight is asked to disclose the same at this time. There were none. COMMITTEE MEETINGS Alan Rimer said that the Natural Resources/Technical Systems (NRTS) Committee met on October 19, 2010 to discuss several items. The first item discussed was the first draft of the Water Shortage Response Plan which outlines the actions that will be taken by OWASA during future drought events and notes specific trigger conditions that will be used to determine different stages of mandatory water use restrictions. The Committee requested that the Plan be revised to state that the Board would be consulted when decisions are made to rescind mandatory water use restrictions. The Committees also requested that staff initiate the public review and feedback process for the Plan, prior to it being considered at a future meeting of the full OWASA Board of Directors. Second, the Committee discussed that clarification was needed to the 2001 Water and Sewer Management, Planning and Boundary Agreement to avoid constraints on OWASA s access to its Jordan Lake storage allocation. The Committee directed staff to develop a one-page information paper on the topic for use in future discussions and requested that the item be scheduled for further discussion at an upcoming Board meeting. Third, the NRTS Committee discussed OWASA s outreach efforts in educating the public and key stakeholders about OWASA s biosolids recycling program. The Committee was in agreement with the pending outreach efforts and suggested that in the future various forms of social media be considered to reach citizens and directed staff to solicit feedback from all Board members concerning future biosolids outreach activities. Finally, the Committee received an update on the 3.2

12 Orange Water and Sewer Authority October 28, 2010 Page 3 Draft forest stewardship program that included a brief update on the status of ongoing forestry management activities at the Cane Creek Mitigation Tract and drafting of the overall sustainable forestry plan for all other major OWASA properties. The Committee requested that staff present the draft Forest Stewardship Plan to the full Board at its November 11, 2010 meeting and that a community meeting be scheduled thereafter to ensure the public is aware of the draft Plan and has the opportunity to comment on it before consideration by the OWASA Board. Mac Clarke said the Finance Committee met prior to the Board meeting to review several items, two of which are agenda items (Quarterly Financial Report for Quarter ended September 31, 2010 and the Bond Order Resolution) and both are supported by the Finance Committee. The Finance Committee also supported staff s recommendation to continue collecting and analyzing customer demand and consumption data prior to the next rate study which may be conducted in Fiscal Year Lastly, the Finance Committee reviewed, discussed and expressed support for staff s recommendation to amend OWASA s Policy for Adjustment of Customer Accounts for Emergency Situations Involving Loss of Metered Water. The current policy precludes adjustments for loss of water resulting from leaks in irrigation systems. If the Board of Directors approves the amended policy effective July 1, 2010, it would allow staff to adjust a customer s bill so that the customer pays an amount that is no less than the customer s highest bill during the preceding 24 months and a charge for all gallons used in excess of the customer s highest bill during the preceding 24 months at the irrigation-only rate. William Stott said that the Community Outreach Committee will meet on Wednesday, November 3, 2010 at 8:00 A.M. in the OWASA Boardroom to discuss a staff report on a survey of residential customers earlier this year; 2011 phase of communicating the value and cost of water and the need for rate increases; and the timing of the customer satisfaction survey. OWASA EMPLOYEE SERVICE AWARDS Ed Kerwin said that it is good to acknowledge OWASA s employees who have served for 10, 15, 20, 25, 30 and 35 years at OWASA. The following employees received service awards: 10-Year: 15-Year: Fredrick Alston; LeMarcus Fuller; Nick Rogers; Ronnie Weed Dale Lovely; Greg Monschein; Rachel Monschein; Andrea Orbich*; Sonny Tchoi* Stephanie Glasgow*; Lester Hill; David Moriarty; Maxine Rich Melvin Markley*; Angie Smith; Michael Wolfgang 20-Year: 25-Year: 30 Years: Eric Barnhardt 35 Years: Randy Horton *These employees attended the Board of Directors meeting and were recognized and appreciated by their supervisors and the Board. On behalf of the Board of Directors, Gordon Merklein thanked all the employees for their service and hard work to OWASA and the community. 3.3

13 Orange Water and Sewer Authority October 28, 2010 Page 4 Draft UPDATE ON OWASA S ONLINE CUSTOMER BILL PAYMENT AND ACCOUNT ACCESS Stephen Winters stated that the on-line customer account access program has been well received by customers. Since early September, about 2,300 customers have registered on OWASA s website and over 500 customers have elected to receive their bills electronically. With the recent launch of OWASA s newly redesigned website, staff will promote the use of online customer bill payment and account access. The new payment process improves efficiencies, lowers costs and enhances our customers on-line experience. ITEM TWO: PETITIONS AND REQUESTS Gordon Merklein asked for petitions from the public, Board and staff; there were none. ITEM THREE: QUARTERLY REPORT ON ATTENDANCE AT BOARD OF DIRECTORS MEETINGS The Board received this report as an information item. ITEM FOUR: RESOLUTION REQUESTING COST SHARE ASSISTANCE FROM THE NORTH CAROLINA DIVISION OF WATER RESOURCES FOR CONTROL OF NOXIOUS AQUATIC WEEDS Mac Clarke expressed concern approving the language in the proposed resolution, number 5, That OWASA will hold the State harmless from any damages that may result from the implementation of said project. Robert Epting said that relative risk of the State s contractor is important because the State is protected by the law when hiring an independent contractor rule and is not responsible for the risks of an independent contractor. Because OWASA is a subdivision of the State, neither the State nor OWASA is liable for the contractor. However, OWASA would be responsible for the relative risk of its employees work. Mr. Epting suggested that number 5 in the resolution be reworded as follows: That OWASA will hold the State harmless from any damages for which the State may be responsible and that may result from the implementation of said project. Ed Kerwin said that he strongly requested the Board support staff s recommendation to approve the resolution as amended. William Stott made a motion to approve the resolution be approved as amended by Robert Epting; the motion was seconded by Mac Clarke and unanimously approved. Please see Motion No. 1 above. 3.4

14 Orange Water and Sewer Authority October 28, 2010 Page 5 Draft ITEM FIVE: AN ORDER AMENDING AN ORDER ADOPTED BY THE ORANGE WATER AND SEWER AUTHORITY ON SEPTEMBER 13, 2001, ENTITLED AMENDED AND RESTATED BOND ORDER AUTHORIZING THE ISSUANCE UNDER THE PROVISIONS OF THE STATE AND LOCAL GOVERNMENT REVENUE BOND ACT, AS AMENDED, OF WATER AND SEWER SYSTEM REVENUE BONDS OF THE ORANGE WATER AND SEWER AUTHORITY TO PROVIDE FUNDS FOR THE IMPROVEMENT OF SAID AUTHORITY S WATER AND SEWER SYSTEM AND FOR THE REFUNDING OF CERTAIN OUTSTANDING BONDS OF SAID AUTHORITY, PROVIDING FOR THE SECURITY OF SAID BONDS, ANY PARITY DEBT AND ANY SUBORDINATED INDEBTEDNESS AND PROVIDING FOR THE INCURRENCE OF ADDITIONAL INDEBTEDNESS FOR VARIOUS PURPOSES, TO MODIFY THE TERM CURRENT EXPENSES William Stott made a motion to approve the resolution; the motion was seconded by Mac Clarke and unanimously approved. Please see Motion No. 2 above. ITEM SIX: MINUTES William Stott made a motion to approve the Minutes of the September 9, 2010, Meeting of the Board of Directors; the motion was seconded by Mac Clarke and unanimously approved. Please see Motion No. 3 above. William Stott made a motion to approve the Minutes of the September 23, 2010, Annual Meeting of the Board of Directors; the motion was seconded by Mac Clarke and unanimously approved. Please see Motion No. 4 above. ITEM SEVEN: VERBAL UPDATE ON THE PETITION FROM JOHN A. YOUNG Stephen Winters said it is the recommendation of the Finance Committee and staff to amend OWASA s Policy for Adjustment of Customer Accounts for Emergency Situations Involving Loss of Metered Water. Should the Board approve, by motion, the updated amended Policy (attached), it is recommended that the amended Policy be effective July 1, The new Policy would allow staff to adjust a customer s bill for an irrigation leak so that the customer pays an amount that is no less than the customer s highest bill during the preceding 24 months and a charge for all gallons used in excess of the customer s highest bill during the preceding 24 months at the irrigation-only rate. Alan Rimer made a motion that OWASA s Policy for Adjustment of Customer Accounts for Emergency Situations Involving Loss of Metered Water be amended effective July 1, 2010; the motion was seconded by Amy Witsil and unanimously approved. Please see Motion No. 5 above. 3.5

15 Orange Water and Sewer Authority October 28, 2010 Page 6 Draft ITEM EIGHT: QUARTERLY FINANCIAL REPORT FOR THE QUARTER ENDED SEPTEMBER 30, 2010 The Board received this report as an information item. ITEM NINE: ANNUAL REVIEW AND UPDATE OF STRATEGIC TRENDS AND MASTER PLAN ISSUES The Board received this report as an information item. ITEM TEN: CLOSED SESSION Fred Battle made a motion that the Board convene in a closed session for the purpose of discussing a personnel matter; the motion was seconded by Braxton Foushee and unanimously approved. Please see Motion No. 6 above. There being no further business to come before the Board, the meeting was adjourned at 8:45 P.M. Respectfully submitted, Draft Andrea Orbich Executive Assistant/Clerk to the Board Enclosures 3.6

16 Draft ORANGE WATER AND SEWER AUTHORITY MEETING OF THE BOARD OF DIRECTORS NOVEMBER 11, 2010 The Board of Directors of the Orange Water and Sewer Authority (OWASA) held a regular Business Meeting on Thursday, November 11, 2010, at 7:00 P.M., in OWASA s Community Room. Directors present: Alan Rimer, Vice Chair; Braxton Foushee, Secretary; Fred Battle; Michael A. (Mac) Clarke; Joyce C. Preslar; William Stott; and Amy Witsil. Directors absent: Gordon Merklein, Chair. OWASA staff: Ed Kerwin; John Greene; Mason Crum; Patrick Davis; Greg Feller; Ed Holland; Andrea Orbich; Stephen Winters; and Robert Epting, Esq., Epting and Hackney. Others present: Ben Poulson, Associate Director of Energy Services and Meg Holton, Water, Wastewater, and Stormwater Manager of the University of North Carolina at Chapel Hill; David Halley, True North Forest Management Services; and Lauren Hollowell, Carolina Journalism Network. There being a quorum present, Vice Chair Alan Rimer called the meeting to order. MOTIONS ACTED UPON ******** 1. Braxton Foushee made a motion to approve the Minutes of the September 23, 2010, Closed Session of the Board of Directors for the purpose of evaluating the annual performance of OWASA s Executive Director for the prior fiscal year; the motion was seconded by William Stott and unanimously approved. 2. Braxton Foushee made a motion to approve the Minutes of the October 28, 2010, Closed Session of the Board of Directors for the purpose of evaluating the annual performance of OWASA s Executive Director for the prior fiscal year; the motion was seconded by William Stott and unanimously approved. 3. BE IT RESOLVED THAT the Orange Water and Sewer Authority adopt the resolution titled Resolution Approving OWASA s Water Shortage Response Plan. (Resolution so titled attached hereto and made a part of these minutes. Motion by Mac Clarke, seconded by Fred Battle, and unanimously approved.) 4.1

17 Orange Water and Sewer Authority November 11, 2010 Page 2 Draft 4. Braxton Foushee made a motion to increase the Executive Director s salary by 2.5 percent effective October 26, The motion was seconded by Mac Clarke and unanimously approved. ITEM ONE: ANNOUNCEMENTS CONFLICT OF INTEREST * * * * * * * * * * Alan Rimer said any Board Member who knows of a conflict of interest or potential conflict of interest with respect to any item on the agenda tonight is asked to disclose the same at this time. There were none. COMMITTEE MEETING William Stott said the Community Outreach Committee met on November 3, 2010 to discuss the results of OWASA s survey of more than 250 residential customers conducted earlier this year. A customer satisfaction survey is planned for 2011, after the budget process in the spring. The Committee agreed to meet prior to the budget process to discuss in more detail the outreach and communication process regarding the value and true cost of water. Finally, the Committee concurred that it is important to discuss its relationship to other Board Committees and how to best assist them. ITEM TWO: PETITIONS AND REQUESTS Alan Rimer asked for petitions from the public, Board and staff; there were none. ITEM THREE: MINUTES Mac Clarke suggested that the closed session minutes be modified to refer to the prior fiscal year rather than current fiscal year. (This change is reflected in the motions below.) Braxton Foushee made a motion to approve the Minutes of the September 23, 2010, Closed Session of the Board of Directors for the purpose of evaluating the annual performance of OWASA s Executive Director for the prior fiscal year; the motion was seconded by William Stott and unanimously approved. Please see Motion No. 1 above. Braxton Foushee made a motion to approve the Minutes of the October 28, 2010, Closed Session of the Board of Directors for the purpose of evaluating the annual performance of OWASA s Executive Director for the prior fiscal year; the motion was seconded by William Stott and unanimously approved. Please see Motion No. 2 above. 4.2

18 Orange Water and Sewer Authority November 11, 2010 Page 3 Draft ITEM FOUR: CONSIDERATION OF APPROVAL OF OWASA S WATER SHORTAGE RESPONSE PLAN Mac Clarke made a motion to approve the Resolution Approving OWASA s Water Shortage Response Plan; the motion was seconded by Fred Battle and unanimously approved. Please see Motion No. 3 above. ITEM FIVE: DISCUSSION OF FORESTRY MANAGEMENT EFFORTS INCLUDING: A. UPDATE ON ACTIVE FOREST MANAGEMENT WORK AT CANE CREEK WILDLIFE MITIGATION TRACT B. PRESENTATION OF DRAFT SUSTAINABLE FORESTRY MANAGEMENT PLAN FOR OWASA S MAJOR FOREST LANDS Patrick Davis provided a verbal update on recent forestry management activities at the Cane Creek Wildlife Mitigation Tract. David Halley, True North Forest Management Services, stated that he would like OWASA to be a sustainable forest management model for the community and that water quality protection is the highest priority. Mr. Halley then provided a presentation on the draft Sustainable Forestry Management Plan he prepared for OWASA. The objectives of the plan include protecting water quality (including stream buffers), enhancing the diversity and health of OWASA s 2,400 acres of forest lands, improving wildlife habitat, and minimizing impacts on adjacent properties. If and when forestry operations are undertaken, regular site inspections are conducted by the North Carolina Division of Forest Resources to ensure compliance with Forestry Best Management Practices. The Board concurred with the Natural Resources/Technical Systems Committee and staff recommendation to hold a community meeting on November 30, 2010 at 7:00 P.M. at the Maple View Agricultural Center on Dairyland Road west of Carrboro to present information and receive comments on the draft plan for sustainable management of OWASA s forest lands as well as receive a status report on recently-completed forestry management work. Mac Clarke requested that future forestry reports include cost and revenue information for the program. William Stott requested consideration of potential educational opportunities that may be available to inform our customers and the community regarding forest management especially as it pertains to protecting water quality. ITEM SIX: EXECUTIVE DIRECTOR COMPENSATION Braxton Foushee made a motion to increase the Executive Director s salary by 2.5 percent effective October 26, The motion was seconded by Mac Clarke, and carried by unanimous vote. Please see Motion No. 4 above. 4.3

19 Orange Water and Sewer Authority November 11, 2010 Page 4 Draft There being no further business to come before the Board, the meeting was adjourned at 8:15 P.M. Respectfully submitted, Draft Andrea Orbich Executive Assistant/Clerk to the Board Enclosures 4.4

20 AGENDA ITEM PURPOSE INITIAL REPORT AND DISCUSSION OF THE NOVEMBER 30, 2010 COMMUNITY MEETING AND PUBLIC COMMENTS ON THE DRAFT FORESTRY MANAGEMENT PLAN, AND NEXT STEPS Provide a brief report on the November 30, 2010 Community Meeting and public comments on the draft Forestry Management Plan, and receive the Board s guidance. BACKGROUND The Board of Directors previously concurred with the NC Division of Forest Resources (NCDFR), NC Wildlife Resources Commission (NCWRC) staff s, and OWASA staff s recommendation that we draft a plan for sustainable management of our forest lands. OWASA s forestry consultant, True North Forest Management Services, drafted a Forestry Management Plan for 17 parcels comprising about 1,900 acres. The draft plan includes recommendations and a general timetable. The draft plan has been reviewed by staff of NCDFR and NCWRC, and the Duke Forest Resource Manager, and their comments have been considered in the development of the draft plan. The Natural Resources and Technical Systems Committee discussed the draft plan on October 19, On November 30, 2010 OWASA held a Community Meeting to provide information and receive questions and comments from nearby landowners and other interested citizens regarding the draft plan. More than 150 people attended, and about 40 people spoke. We will draft a report addressing all of the questions, comments, concerns, and recommendations we received at the meeting and through , regular mail, and telephone calls. OWASA staff initially requested public comments on this matter by December 2, We will continue to receive and welcome comments from the public until the Board takes action on a final plan for OWASA s forest lands. ACTION NEEDED Discussion and guidance; no formal action is requested. December 9,

21 ORANGE WATER AND SEWER AUTHORITY A public, non-profit agency providing water, sewer and reclaimed water services to the Carrboro-Chapel Hill community. MEMORANDUM TO: THROUGH: FROM: Board of Directors Ed Kerwin Patrick Davis DATE: December 3, 2010 SUBJECT: Initial Report and Discussion of the November 30, 2010 Community Meeting and Public Comments on the Draft Forestry Management Plan, and Next Steps Purpose: Provide a brief report on the November 30, 2010 Community Meeting and public comments on the draft Forestry Management Plan, and receive the Board s guidance. Overview of Community Meeting: On November 30, 2010 we held a Community Meeting to present and receive questions and comments from citizens on our draft Forestry Management Plan. OWASA staff, True North Forest Management Services (our forestry consultant), and forestry and wildlife experts from the NC Division of Forestry Services, NC Wildlife Resources Commission, and Duke Forest participated in the presentation and in responding to comments and questions. The meeting was held at the Maple View Agricultural Center on Dairyland Road. It started at 7:00 p.m. and concluded around 11:00 p.m. More than 150 people attended, and more than 40 people provided comments, questions, suggestions, and concerns regarding the draft plan. We received very helpful feedback from the public. Some of the key themes of the comments include: (a) There are substantial concerns about impacts on water quality, the width of riparian buffers, proposed use of herbicides, etc.; (b) There appears to be an emphasis on timber harvesting rather than promoting a diverse mix of forest stands and habitats; (c) Additional baseline studies and inventories (wildlife, cultural and historic resources) are needed; (d) OWASA should include additional agencies and a citizens advisory group in developing the final version of the plan; (e) The initially announced time period for public review and comment was too short; and (f) A projection of revenues and expenditures needs to be prepared and made public. 400 Jones Ferry Road Carrboro, NC Equal Opportunity Employer Printed on Recycled Paper Voice (919)

22 Initial Report on November 30, 2010 Community Meeting, Public Comments and Discussion of Next Steps December 3, 2010 Page 2 Next Steps: In the weeks ahead, staff will draft a detailed report addressing all of the questions, comments, recommendations, and concerns received at the meeting and through , regular mail, and telephone. The draft report on the feedback and our responses will be provided to you for discussion at a future meeting. When it is distributed in your meeting agenda materials, we would also make it available to the public (including but not limited to citizens who attended the Community Meeting and gave us contact information on the sign-up sheet), the Town and County Managers, etc. We will inform the public of the date and time at which this matter will be discussed by the Board of Directors (and Board committees, as applicable). We look forward to the Board s questions, discussion, and guidance. Thank you very much. Patrick Davis Sustainability Manager 5.3

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24 AGENDA ITEM DRAFT STATEMENT OF STRATEGIC ISSUES AND POLICIES, DRAFT PLANNING ASSUMPTIONS AND BACKGROUND INFORMATION DOCUMENT AND FISCAL YEAR 2012 DRAFT BUDGET CALENDAR BACKGROUND OWASA s Financial Management Policy requires a review by Staff, the Finance Committee and Board of Directors of the strategic issues, policies, and economic assumptions that are expected to impact the preparation of budgets (Operations and Maintenance and Capital Improvements Program) and rates. The identification of these key issues is intended to guide the Board and staff in the preparation of the annual budgets. The planning assumptions and background information reflect both internal and external constraints that define various financial and operating parameters within which OWASA must operate. The budget calendar includes the proposed dates of Board and Committee meetings at which budget matters are to be discussed and lists the dates by which major budget tasks are to be completed. The attached documents have been prepared by staff and will be discussed with the Finance Committee at its meeting on December 9, ACTION NEEDED Provide guidance to the Finance Committee and staff as appropriate on the strategic issues and planning assumptions for Fiscal Year December 9,

25 ORANGE WATER AND SEWER AUTHORITY A public, non-profit agency providing water, sewer and reclaimed water services to the Carrboro-Chapel Hill community. MEMORANDUM TO: Board of Directors THROUGH: Ed Kerwin FROM: Stephen Winters, CPA DATE: December 3, 2010 SUBJECT: Draft Summary of Strategic Issues, Draft Planning Assumptions and Background Information, and Fiscal Year 2012 Draft Budget Calendar As part of the annual budgeting process, OWASA s Financial Management Policy requires a review by Staff, the Finance Committee and the Board of Directors of the strategic issues, policies, and economic assumptions that are expected to impact the preparation of budgets (Operations and Maintenance and Capital Improvements Program) and rates. The preparation of an annual budget calendar is also a key component of OWASA s annual budgeting and rate setting process. The attached documents have been prepared by staff and will be discussed with the Finance Committee at its meeting just prior to the Board Meeting on December 9, The identification of critical and strategic issues is intended to guide staff and the Board of Directors in the preparation of the annual budget and capital improvement plan, as well as set the stage for long-term comprehensive financial planning. The planning assumptions and background information reflect primarily the legal, regulatory and contractual constraints to which we are obligated, and also provide various economic and operational assumptions. The budget calendar includes the proposed dates of Board and Committee meetings at which budget matters are to be discussed and the dates by which major budget tasks are to be completed. 400 Jones Ferry Road Carrboro, NC Equal Opportunity Employer Printed on Recycled Paper Voice (919)

26 Strategic Issues December 3, 2010 Page 2 Staff looks forward to working with the Finance Committee and the Board of Directors to develop our annual budgets. Stephen Winters, CPA Director of Finance and Customer Service Attachments: Draft Summary of Strategic Issues Draft Planning Assumptions and Planning Background Document Fiscal Year 2012 Draft Budget Calendar 6.3

27 ATTACHMENT 1 Fiscal Year 2012 Budget Preparation Draft Summary of Strategic Issues and Policies According to OWASA s Financial Management Document (March 26, 2009), the Statement of Strategic Issues and Policies shall identify the major issues, policies, and concerns that should be addressed in the upcoming annual budget and capital improvements deliberations. OWASA must maintain an operating and maintenance budget and capital improvements budget that continue to ensure high quality and reliable services to our customers while minimizing any necessary rate increase to limit the impacts of such rate increase on our customer base. Specific budgetary factors include: 1. Drinking water and reclaimed water sales in FY 2012 are expected to be approximately and MGD, respectively. 2. System growth is expected to remain well below historical levels; further contributing to a decline in expected revenue. 3. The existing seasonal and increasing block rate fee structures will remain in place for FY Data from our experience with the current block rate structure is influenced by unusual factors such as the 2008 drought. More time is necessary in order to accumulate clean customer experience data before we consider any potential changes to the current structure. During FY 2011, we plan to continue our efforts to analyze customer data which may lead us to decide to conduct a rate study in FY Results of studies conducted at the wastewater treatment plant (WWTP) have allowed us to reduce planned CIP expenditures over the 15-year planning period and have also identified potential reductions in WWTP operating expenses, primarily resulting from reduced chemical usage. 5. Although general inflation remains low, prices for specific products vital to the treatment of water and wastewater have proven to be extremely volatile. Chemical costs stabilized in FY 2010 but price volatility remains a concern. 6. Our 15-year financial planning model is based on achieving the goals established in our Financial Management Policy. Currently, the model projects the need to increase rates by 8.75% as of October 1, However, financial results for FY 2010 and for the first quarter of FY 2011 were better than expected which may provide the opportunity to recommend lower rate increases than originally anticipated. We remain committed to achieving the Financial Management Policy goals. 7. Continued focus on reducing costs and improving efficiency is critical to minimizing any necessary rate increase. Our challenge is to continue to reduce costs where possible while maintaining the ability to deliver high quality, reliable water, wastewater and reclaimed water services. 6.4

28 Draft Summary of Strategic Issues and Policies December 3, 2010 Page 2 8. OWASA has recently developed a draft plan for the sustainable, long-term management of its forest lands. The primary objectives of the plan are to protect water quality, enhance forest conditions for wildlife and improve and restore the overall quality of OWASA woodlands through a long-range program of managing our forest resources in accordance with sound, science-based silvicultural practices. Another primary objective of this plan is to ensure that adequate revenues are generated through the sustainable harvesting of timber resources so that OWASA s forest management objectives can be met while ensuring that revenues equal or exceed the costs associated with implementing the program. 9. OWASA is currently participating with other Triangle Area entities in the Jordan Lake Partnership. The goal of the Partnership is to coordinate planning for further development of the Jordan Lake water supply. OWASA s principle objectives are to maintain our existing water supply storage allocation and to obtain formal commitments that assure the permanent and cost-effective access to that allocation. If we are unable to access our Jordan Lake allocation for any reason, the future costs of providing an equivalent level of water supply reliability will be substantially higher than estimated in our 2010 Long- Range Water Supply Plan. 10. To help ensure that our employee classifications, compensation and benefits are appropriate and in-line with market conditions, we periodically conduct a study to benchmark our practices. If a study takes place in FY 2012, its results may have an impact on our overall human resources cost. 11. As of October 2010, we have 15 vacant positions, 11 of which are unfunded in the FY 2011 Budget. In planning for the FY 2012 Budget, we will conduct an assessment to determine whether we need to reinstate any of our unfunded vacant positions. Meeting the financial management objectives set forth in OWASA s Financial Management Policy requires OWASA to continue to focus on core, mission-critical services; greater operational efficiency; accurate and sustainable asset management and capital improvement priorities; and opportunities for further permanent reductions in operating expenditures. 6.5

29 ATTACHMENT 2 FISCAL YEAR 2012 BUDGET PREPARATIONDRAFT PLANNING ASSUMPTIONS AND BACKGROUND INFORMATION DOCUMENT OWASA s Financial Management Policy (FMP) states that staff, the Finance Committee and the Board of Directors shall review the economic assumptions that are expected to impact the preparation of budgets (O&M and CIP) and rates. Included in this document are the major assumptions and governing constraints upon which the Annual Budget for FY 2012 and the 15- year financial plan will be based. The planning assumptions summarized in this draft Planning Assumptions and Background Information Document are derived from the following categories of influence and obligation. Legal and Regulatory Intergovernmental Bond Order Organizational Economic Legal/Regulatory Assumptions Federal, State, Local and Judicial OWASA must adopt a balanced budget in accordance with the Local Government Budget and Fiscal Control Act (N.C. General Statute 159). OWASA s primary source of income is through customer rates and fees. The OWASA Board has sole authority to set and revise rates, fees and other charges for our services. Our rates, fees and charges are not subject to supervision or regulation by any bureau, board, commission or other agency of the State or by any political subdivision (N.C. General Statute 162A-9). Rates, fees and charges shall be set so that our revenues, together with any other available funds, shall be sufficient at all times to pay (1) the cost of maintaining, repairing and operating the water and sewer systems including reserves for such purposes, and (2) all of the principal and interest on bonds issued by OWASA. Fees shall be made applicable throughout the service area, but fees and charges may vary by customer class when discernable cost factors can be attributed to the varying classes. Intergovernmental Agreements of Sale and Purchase with the University of North Carolina at Chapel Hill (UNC) and the Towns of Chapel Hill and Carrboro state: OWASA shall charge reasonable rates, based on cost of service, to all classes of users, serving all users within each class impartially and without unjust discrimination, with no differential in rates based on the location of a customer. 6.6

30 Draft Planning Assumptions and Background Information Document December 3, 2010 Page 2 Bond Order OWASA shall operate the water and sewer system at the lowest rates possible consistent with its obligation to provide proper and efficient service. OWASA will furnish, for as long as UNC shall desire, water, meeting acceptable purity standards, in such quantity as may be required to meet UNC s needs. UNC will purchase all its water requirements from OWASA, unless OWASA is unable to supply sufficient water. UNC will be provided, now and hereafter, reliable and adequate sewer services to meet its needs. If five-year cumulative rate revisions exceed 20%, then UNC may request that a rate study be prepared by a qualified consultant and its results shared. OWASA agrees to meet the reasonable water and sewer needs of Carrboro and Chapel Hill. Chapel Hill, Carrboro and Orange County have adopted local water conservation ordinances as recommended by OWASA. The requirements of those ordinances have short and long-term demand and revenue implications. Interest earnings on any debt service reserve fund may be included in the debt service ratio calculation. OWASA shall not provide free service, and shall charge all users including public bodies based on established rates, except for water used in fire protection, street-washing, and the flushing and testing of water lines. While the FMP reflects a targeted 2.0 debt service coverage ratio, the Bond Order requires a minimum ratio of 1.2. Rate adjustments shall be made as often as necessary to ensure that annual gross receipts will be sufficient to provide for the payment of current expenses and proposed debt service in each subsequent year. Failure in this requirement could preclude the issuance of new debt until the requirement is met. 6.7

31 Draft Planning Assumptions and Background Information Document December 3, 2010 Page 3 Organizational Assumptions Mission Statement - OWASA s mission, values and departmental goals and objectives will be reflected in the budgeting process. Financial Goals and Objectives The FMP specifies that the working capital reserve balance be at least equal to the greater of four months of the Operations & Maintenance Budget or 20% of the total estimated cost of capital improvements projects identified for the succeeding three years. The FMP stipulates that OWASA maintain a debt service coverage ratio of 2.0. For developing our CIP, we assume an annual construction cost escalation factor of 5%. This escalation factor is reviewed periodically. The FMP stipulates cash funding of at least 30% for capital improvements. We will use 100% equity funding for the FY 2012 CIP. The most recent projection for potable water sales for FY 2012 is MGD. Reclaimed water sales are currently projected to be MGD. The FY 2011 financial planning model assumed the following rate adjustments for the next three years: Demand and Growth Projections Projected Water and Sewer Year Rate Adjustments FY % FY % FY % FY 2012 revenue projections for potable water and new connections are affected most significantly by the following factors: Potable water sales will continue to remain near current levels in FY 2012 and beyond. We anticipate customer conservation patterns to continue and UNC is expected to marginally increase its use of reclaimed water (RCW). Current and near term development trends do not indicate any significant rebound of development activity in our service area in FY

32 Draft Planning Assumptions and Background Information Document December 3, 2010 Page 4 Based on these factors, staff expects average daily potable water demand in FY 2012 to be approximately MGD (compared to the current FY 2011 estimate of 6.1 MGD). We expect that new service connection activity in FY 2012 will be only slightly above FY Economic Assumptions Real gross domestic product (the output of goods and services produced by labor and property located in the United States) increased at an annual rate of 2 percent in the third quarter of The increase in real GDP in the third quarter primarily reflected a smaller decrease in net exports, an acceleration in inventory investment, and a pickup in consumer spending for services. Although these contributions were partly offset by a downturn in residential housing and a slowdown in business investment in equipment and software, this may indicate a slowly improving economy. The CPI-U increased 1.1 percent for the 12-month period ending in September The index for all items less food and energy increased 0.8 percent over the same period. The energy index rose 3.8 percent for the 12-month period ending in September The index for energy commodities rose 5.8 percent, with the gasoline index increasing 5.1 percent. The index for fuel oil rose 11.8 percent. The electricity index increased 1.1 percent while the index for natural gas rose 3.1 percent. We expect an increase in the employer contribution to the Local Government Employee Retirement System of.53 points to approximately 7%. Proposals for renewing property, liability and health insurance coverage are not yet available but an increase in health coverage premiums is probable. Key interest rates are at historical lows, resulting in expectations for return on investment in FY 2011 of 1.0% or less. 6.9

33 ORANGE WATER AND SEWER AUTHORITY FISCAL YEAR 2011 DRAFT BUDGET CALENDAR ATTACHMENT 3 December 6, 2010 December 9, 2010 December 31, 2010 January 24 28, 2011 January 27, 2011 January 27, 2011 February 24, 2011 March 24, 2011 April 22, 2011 April 28, 2011 May 6, 2011 May 12, 2011 May 26, 2011 June 3, 2011 June 9, 2011 June 30, 2011 (On or About) Distribute templates for the preparation of operating and maintenance appropriations, Capital Equipment Request Forms and Departmental Budget Narratives. Board of Directors Meeting presentation of draft Strategic Issues and Policies and Financial Planning Assumptions and Background Information Document, and presentation of draft Budget Calendar for FY Submission of Capital Equipment Request Forms, Budget Narratives and Departmental Operations and Maintenance Budget Requests to Budget Officer. Departmental budget request and cost containment review with the Executive Director, Director of Finance and Customer Service and Budget Officer. Finance Committee review 2 nd quarter financial report and discussion of strategic issues, planning assumptions and budget process calendar. Board of Directors Meeting presentation of 2 nd quarter financial report and report by Finance Committee on refinement of strategic issues, planning assumptions and budget process calendar. Finance Committee discussion of Draft Preliminary Annual Budget and staff recommendation of rate adjustment. Board of Directors and Finance Committee Meetings discussion of Draft Preliminary Annual Budget and staff recommendation of rate adjustment. Deliver Draft Preliminary Annual Budget to the Board of Directors. Board of Directors Meeting adoption of the Preliminary Annual Budget. Deliver First Draft Final Annual Budget and Draft Schedule of Rates, Fees and Charges to the Board of Directors. Board of Directors Meeting presentation of the First Draft Final Annual Budget and Draft Schedule of Rates, Fees and Charges. Board of Directors Meeting Public Hearing on the Draft Final Annual Budget, Capital Improvements Budget and Public Hearing on the proposed adjustments to rates, fees, and charges. Deliver Annual Budget to the Board of Directors. Board of Directors Meeting adoption of FY 2012 Annual Budget and adoption of Schedule of Rates, Fees and Other Charges. Distribution of FY 2012 Annual Budget. 6.10

34 AGENDA ITEM RESOLUTION AWARDING A CONSTRUCTION CONTRACT FOR THE BOLIN CREEK INTERCEPTOR (PHASE III) SANITARY SEWER PIPELINE PROJECT PURPOSE To request the Board s approval to enter into a construction contract for the Bolin Creek Interceptor (Phase III) Sanitary Sewer Pipeline Project. BACKGROUND Six bids were received and opened on October 20, The apparent low bidder was Park Construction of NC, Inc. (Park Construction) with a bid of $4,849, A comparison between the FY 2011 and FY 2012 CIP construction budgets, the engineer s estimate, and Park Construction s bid price is shown in the table below. FY 2011 and FY 2012 CIP Construction Budget 1 Engineer s Estimate 2 Park Construction s Bid $3,874,000 $4,500,000 $4,849, The current construction budget (as reflected in the FY 2011 CIP) is based upon a September 2008 engineer s estimate provided by HDR, Inc. (HDR) escalated 5% annually.. 2 The most recent engineer s estimate was provided by Hazen & Sawyer in October 2009 as part of a constructability (peer) review of HDR s design. The engineering consultant, HDR, subsequently made a Recommendation of Award to Park Construction on November 9, This project involves installation of approximately 6,200 linear feet of 30-inch diameter ductile iron pipe (DIP) gravity sewer line and approximately 2,300 linear feet of 8-inch diameter DIP potable water line. There have been significant increases in DIP unit prices since the engineer s estimate was completed (in October 2009) that account for approximately $200,000 of the difference between the engineer s estimate and Park Construction s bid. We believe the remaining difference is attributable to changes made to the design as a result of Hazen &Sawyer s constructability (peer) review, and current market conditions. There are sufficient funds available in the FY 2011 CIP budget to cover the higher than expected costs for this project. The FY 2012 CIP budget will also be updated to accurately reflect the costs to be incurred in FY 2012 (although work will begin on this project this FY, it will not be completed until next FY). STAFF RECOMMENDATION Staff recommends that the Board of Directors adopt the attached resolution awarding the construction contract for the Bolin Creek Interceptor (Phase III) Sanitary Sewer Pipeline Project to Park Construction. December 9,

35 ORANGE WATER AND SEWER AUTHORITY A public, non-profit agency providing water, sewer and reclaimed water services to the Carrboro-Chapel Hill community. M E M O R A N D U M TO: Board of Directors THROUGH: Ed Kerwin FROM: Stuart Carson, P. E. DATE: December 2, 2010 SUBJECT: Bolin Creek Interceptor (Phase III) Sanitary Sewer Pipeline Project (CIP Project No ) Purpose The purpose of this memorandum is to provide information and recommend to the Board that OWASA enter into a construction contract with Park Construction of North Carolina, Inc. (Park Construction) for the construction of the Bolin Creek Interceptor (Phase III) Sanitary Sewer Pipeline Project. Background The Bolin Creek Interceptor (Phase III) Sanitary Sewer pipeline project consists of the installation of approximately 6,200 linear feet of 30-inch diameter ductile iron pipe (DIP) gravity sewer line as shown on the attached map (Attachment 1). The new 30-inch diameter DIP line will replace existing 15-inch and 18-inch diameter gravity sewer lines that will (mostly) be abandoned in place. The project is needed to provide additional capacity to eliminate current surcharging conditions and significantly reduce the potential for future wastewater overflows. The existing gravity sewer mains also have documented structural damage that allows groundwater infiltration into the pipeline that unnecessarily increases flows to the Mason Farm Wastewater Treatment Plant resulting in additional, avoidable treatment expenses. This project also includes replacement of approximately 2,300 linear feet of an existing 8-inch diameter asbestos cement (AC) water main located in Umstead Drive between Bradley Road and Umstead Park with a new 8-inch diameter DIP water main. Advertising and Bidding Because of the complexity of this project all of the contractors that eventually competed for this project were prequalified. This involved having interested contractors submit a 400 Jones Ferry Road Carrboro, NC Equal Opportunity Employer Printed on Recycled Paper Voice (919)

36 BCI (Phase III) Project December 2, 2010 Page 2 package outlining their qualifications, including past performance on similar projects, credentials of their management team, safety record, etc., and only those firms that clearly demonstrated the capability to adequately perform the work under the project were invited to submit bids. Requests for prequalification submittals were published on the OWASA web site and in the Greater Diversity News of Wilmington, North Carolina on July 15, Thirteen submittals were received on or before August 17, 2010 and after an extensive review by OWASA staff and our consultant, HDR, eight contractors were pre-qualified to bid on the project. The bid advertisement was also published on the OWASA web site and in the Greater Diversity News of Wilmington, North Carolina on September 13, A mandatory pre-bid meeting and site visit was held on September 29, Seven of the eight pre-qualified contractors attended. Six bids were received, opened and read aloud on October 20, The low, responsive and responsible bidder for the project was Park Construction of Morrisville, North Carolina with a bid of $4,849, A copy of the certified bid tabulation is attached (Attachment 2). OWASA has significant (recent) experience with Park Construction. Park Construction successfully completed the Meeting of the Waters Interceptor (MWI) and the Reclaimed Water (RCW) Transmission Main Project for OWASA in 2009 and received a superlative evaluation from OWASA staff upon completion of the project (scoring 5.0, the highest possible score, which has seldom been achieved by contractors working for OWASA). This rating is particularly noteworthy because, like this project, the MWI/RCW project was extremely complex (congested and environmentally sensitive construction area, extensive coordination with customers, significant rock was encountered, involved boring under a major thoroughfare, etc.). Reference checks on Park Construction (calls made to other utilities to check performance on other similar projects) were also superb. Minority and Women Business Enterprise (MWBE) Participation OWASA is required to follow the procurement and contracting policies and regulations of the State of North Carolina and, as such, is required to have a formal program that encourages minority participation in contracts for certain (building) construction projects and contracts for architectural, engineering, and surveying services. The State s minority outreach requirements apply only to building projects (usually associated with projects that require plumbing, electrical, and heating or air conditioning contractors). Although most jurisdictions interpret this to mean that the requirements do not apply to other types of projects (like road and utility projects), because the State s statute does not define the term building and there appears to be some latitude in deciding whether the requirements can be applied to utilities projects, OWASA practice is to apply the requirements to all types of projects (even those that are 100% utilities projects such as this project). OWASA s Minority Business Participation Outreach Plan and Guidelines include all of the State s statutory requirements, and specifies a 10% verifiable goal for participation by minority businesses. 7.3

37 BCI (Phase III) Project December 2, 2010 Page 3 Park Construction s bid for this project includes MWBE participation of 10.3% of the total bid amount, and Park Construction has provided OWASA with a signed affidavit committing to achievement of this goal. Budget vs. Recommended Award Amount Comparison The engineer s estimate for the construction cost for this project was $4,500,000. The latest cost estimate was prepared by Hazen & Sawyer in October 2009 as part of a constructability (peer) review of HDR s original design. The amount shown in OWASA s current (FY 2011) CIP budget is based upon HDR s September 2008 engineer s estimate escalated 5% annually. A comparison between the CIP construction budget, the engineer s estimate, and Park Construction s bid price is shown in the table below. FY 2011 and FY 2012 Engineer s Estimate Park Construction s Bid CIP Construction Budget 1 $3,874,000 $4,500,000 $4,849, Construction costs only; does not include construction administration, inspection costs and contingencies. Please note that the CIP budget (inadvertently) did not reflect the most recent engineer s estimate, as is OWASA s standard practice. Because we had Hazen & Sawyer s revised estimate in hand at the time the FY 2011 CIP was developed, on page 100 of the FY 2011 CIP the line item for Construction (5-YR TOTAL) should have read $4,500,000 vice $3,874,000. Because the low bid received exceeded the engineer s estimate (although by only 7.8%) and because most of the bids significantly exceeded the engineer s estimate, OWASA staff met with both consultant for the project (HDR and the consultant that developed the latest cost estimate for the project, Hazen & Sawyer) to discuss why under current market conditions the bids were higher than expected. From these discussions, we speculate that the differences can be attributed to the following: - This project involves installation of approximately 8,500 feet of DIP. There have been significant increases in DIP unit prices since the engineer s estimate was completed. We estimate this accounts for approximately $200,000 of the difference between the engineer s estimate and Park Construction s bid. - Some portion of the difference is attributable to changes made to the design as a result of Hazen &Sawyer s constructability (peer) review of the project. These relatively minor design changes were made after the last estimate was completed. - Based on discussions with our consultants and others in this business, we also believe the bidding climate has changed since the last estimate was completed. A year ago many contractors were submitting bids at or below cost just to maintain cash flow. Many in the business now believe that recovery of the economy is not imminent and as a result contractors have begun submitting more realistic (higher, but still extremely competitive) bids in order to ensure their future viability. There are sufficient funds in the FY 2011 CIP budget to cover the higher than expected costs for this project due to cost savings realized on several FY 2011 CIP projects and unanticipated 7.4

38 BCI (Phase III) Project December 2, 2010 Page 4 delays of others. The FY 2012 CIP budget will also be updated to accurately reflect the costs to be incurred in FY 2012 (although work will begin on this project this FY, it will not be completed until next FY). Recommendation HDR s recommendation that the construction contract for this project be awarded to Park Construction is attached (Attachment 3). OWASA staff strongly concurs with this recommendation and requests the Board s adoption of the attached resolution (Attachment 4) awarding the construction contract to Park Construction. Please let me know if you have any questions or need additional information. Thank you. Stuart Carson, P.E. Engineering Manager Capital Improvements Program Attachment 1 Site Map Attachment 2 Certified Bid Tabulation Attachment 3 Engineer s Recommendation for Award Attachment 4 Resolution 7.5

39 7.6

40 ORANGE WATER AND SEWER AUTHORIW BOLIN CREEK INTERCEPTOR. PHASE III BID TABULATION SUMMARY nllù NO. rfl.ì.\{ DI]SCRIIYfION SURETY LICENSE NO. UNIT QU^NTrlY MEASURE Park Constmction Of NC Inc. Travelers Casualty UNTT PRICE TOT^r- PIIICI] Haren Construction Co., Inc. Travelers Casualty UNTf PRICL I'OT.{L PIìICE Triangle Grading and Paving, Inc. Safeco Insurancc t7456 UNTl' 'l'o'ti\i- PRICI] PIIICIi Ìlfobilization (max. 3'14, of total bid) IJ s144,000.0c s ( s250,000.0( s c s ( s1ó l.()00.(x 2 Ductilc Iron Pioc - Watcrlincs a. ( -inch ìvatcrlinc t-f 40 s30.63 sl,225.2( s40.0( s1,600.0( s60.0( s ( b. lì-inch Watcrünc LF 2,500 s45.0 sr 12.ó00.0( s53.0( s ( só0.0( s ().(x 3 L)uctilc lron l)inc - Sanitary Scrvcr a. 8-inch Sanitary Scs'cr (û( Foot Dcpth) Llì 91 s346.7( s31,555.1 ( só0.0( s ( s140.0t s ( b. tì-inch Sanitary Scrvcr (ó-8 lroot Dcpth) LF 15 s3.+6.7( s s75.00 s ( s1 50.0( s2,250.0( 1(r-inclr Sanitary Scrvc (6-8 lìoot Dcpth) LF 30 s s1 1,1ó3.3C s s4,500.0{ s1 80.0( s ( d. 18-inch Sanitary Scrvcr (0-ó lìoot Dcpdr) LF 14 s s s s3,1 50.0( s2't 0.0( s2,94{).0( 3O-inclr Sanitan'Scrvc f(r-tì fi'oot Dcothl Ltr 126 S3( 9.8i s120,5ó4.58 s s97.tì00.0( s260.0( s84.7ó0.0( f. 3O-inch Sanitrl' 5s1t.r (tì-10 Iroot Dcpth) LF ))< s s c s320.0c s ( s280.0( s3.+3,000.0(. 30-inch Sanitary Scrvcr (10-12 Foot Dcpth) LF,ó51 s s628, s s553,085.0( s300.0( s ( h. 3O-inch Sanitary Scrvcr (12-14 l;oot Dcprh) LF,073 s10, ôf s s s ( s31 0.0t s ( i. 30-inch Sanitary Scrvcr (i4-1(r Foot Dcpth) I-F,152 s405.0( s46ó.5ó0.0c s375.0c s432,000.0( s330.0( s380,1 60.0( 3O-inch Sanitm'Scrvcr lìoot Deoth) T,F 280 s420.o7 s1 r7,ó19.6c s s ( S1l'tO f sr ( k.30-inch Sanitary Scrvcr (18-20 Foot Dcpth) LF 277 s s1 20.ó52.89 s450.0c s ( s400.0( sl l0,tì00.0( l. 3O-inch Sani ry Scrvcr (20-22 lìoot Dcpth) I,F 17 s s7,690.2t s500.0c s8,500.0( s430.0( s ( m. 30-inch Slnitary Scrvcr (22-24 fìoot Dcpth) Llì 19 s s : s600.0( S11.,m0.0( s470.0r sß 9i0 0t n. 3()-inch Sanitary Scrvcr (24+ Foot Dcpth) LÌì 8 s ,91tì.(r s750.0( só,000.0( s500.0( s4,000.0( 4 Standard lunction and IJcnd-tvoc ìlfanholc a..l.foot f)iamctcr ìvlanholc EA s3.ó25.0( S3.ó25.01 s ( s (. sl,ó00.0( s1,600.0( l. \ddition l Dcpth -.l-1,-i'dia. ìlfanholc VF s S1 02.0r s100.0c s100.0( s200.0( s200.0( (r- foor l)iamctcr Manholc IìA 25 s5,800.0( s s c s1 10.ó25.0C s ( s ( l. Ädditionrl Dcnth - 6-lrf Dia. ìtfanholc VF ló1 sl26.26 s s s33,81 0.0( s3, s483,000.0( ) Droo Nfanhoìc r. ó-foot Diamctcr Manholc EA 8 s ( s c s c s s8.000.()c só4,000.0( b. Âdditional Dcpth - 6-foot Dia. Manholc VF 79 s s1 (),405.rìtì s s24,885.0( s400.0c s31,ó00.0( c. 8-foot Diamctcr Manholc EA s26,000.0( s2ó,000.0c s c s ( S1 (r.000.0c s1ó.000.0( l. \dditìonal Dcorh - u-foot Diamctcr Manholc VF 22 Sl 38.7t s s2.800.cìc ( s500.(xi s1 1,000.0( ( L)oghousc ìtfanholc a. 4-foot l)iamctcr Manholc DA,) S3.1,25.0( s c s s ( s (] s4.0(n).0( b. Àdditional Dcpth - 4-foor Diamctcr Manholc VF s s30ó.1 s s300.0( s200.0(j s600.0( 7 Watcr Scn'icc'l'ransfcr E,\ ló s1,225.0( s19,600.0c s4,300.0c s ( s c s4rì.000.0( I ienirary Scrvcr Scn'icc'l'ransfcr E, t7 s ( s c s s85,000.0( s9,000.0(j s153,0()0.0( Vah'c rvith llox I 6-inch Gatc V lvcs E. 4 s1.ó04.0i s s s ( s900.0c s3,ó00.(x b. 8-rnch Gatc Vah'cs E,{. 10 s1.872.ó( s1 8,72ó.0C s4, ( s c s1 2,000.0( 0 lìirc I'Ivdrants EÄ 3 s2,642.0! s7, s s ( s c s c loncrctc - ìtfi sccllancous Unformcd CY 10 s217.1 s2.l 71.3C s S4250:0( s s3,000.0( ) ìock lìxcavadon CY 10,000 s25.0( s250,000.0c s1 05.0( s1,050,000.0( s130.0c s (. 3 lìcmoval :rnd t)isposal of Âsbcstos Ccmcnt Pifrc ts I s ( s37.3ó8.0c s ( s75,000.0( s50,000.0c s50,000.0c l loadrvav lìcmor.al and lìcol ccmcnt SY 6,025 s41.2f s248, s30.0( s180,750.0( s40.0c s (, ) Rcmovc and lìcplacc Drir.crvays and Parking ht r. Concrctc SY 80 s56.5, s4,525.ó( s70.0( s ( s50.0c s4, Äsohalt SY 550 s45.1 r s24,849.0c s55.0t s ( s37.0c s Gr r'cl SY 55 s18.7: s c s8.0( S.140.0( s10.0c s (t ìidct'alk lìcolaccmcn SY 137 s.14.0t s49,854.4f s140.0( s158,340.0( s40.0c s lurb & Guttcr lìcdlâccmcnt LF 235 s22.8( s c s70.00 sl ( s30.0c s7.050.(xl I.andscaDc Rcsroration LS I s ( s c s s35,000.0( s20,000.0c s20,000.0(, I ['rcc P otccúon Fcncc LF 8,000 s2.11 s1 6,880.0C s2.00 s1 ó.000.0( s2.0c s c 20 ttmporary Chain Link lìcncc LF sl 0.5( s óc s11.00 s ( s8.0c s16,2rì0.0(i 21 lrosion Control r. Silt lincc LF s2.8 s14,768.0c s2.50 s ( s3.0c s1 5.ó00.0( Inlct P otcction EA 4 s1 81.7( s s s900.0( s200.0c s800.0( lìock Chcck Dam EA 7 si 81.7( <1 )1) 1) s s1,925.0( s200.0c s ( L Scdimcnt l-os LF 700 ss..1( s c s5.50 s ( S?.OC s4,90().0( 22 Soddinr ô( s23, S1 1,7( 1.2C s2, s1,125.0( s c s ( ^,c 23 Culvcrt Srylc Stream Crossing E \ s i s s s ( s c s ( 24 4tì-inch l)iamctcr Stccl Casing Pipc Gua antccd LF 195 sl.899.tì( s370,472.7c s2, s395,850.0( s c s (l?5 l'ic-in Existins Scrvc Lincs at ì{l-i lìc-01 ts s2,173.0( s s c s ( s c s (!l\ 'l'ic-in Uxistins Sct'er Linc at MI I IIC-05 \ IJ S5.39(.0( s c s s1,500.0( s5,000.0c s5,000.0( 27 f ic-in Exisrins Scrvcr l-inc at MI-l llc-17^ LS s3,942.0( s3,942.0( s10, s ( c ( l'ic-in F,xistins Scrvcr Linc at MI-l llc-21 l^\ s ( s c só só.500.0( S c 5,000.0( 29 l'ic-in llxistins Scrvcr I.inc at MI I ßC-22 ts s ( sl,124.0c s6,500.0( s6,500.0( 5,000.0c 5,000.0( 3C) l'ic-in Existins Scrvcr Linc ât MI-l llc-23 LS s1,124.0( s1,124.0c s9,000.0( s ( c S ( 31 l'ic-in Dxistins Scrvcr Linc at MI I llc-24 \ ß S ( s c s ( s2,000.0( 5,000.0c s 5,000.0( 32 l'ic-in Existing Scrvcr Linc at MI'I BC-27^ LS s ( s1,270.0c s4,500.0( s4,500.0( s5,000.0c s ( 33 I'ic-in Ilxistins Scrvcr Linc ât ùfi-i BC-30 ß s ( s c s ( s ( s1 5,000.0( s 5,000.0( 34 l'ic-in llxisting Scrvcr Linc at MFi BC-32 ts s ( s c s7,500.0( s7,500.0( s15,000.0c 5,000.0( 35 fic-in Existins Scrver Linc ât Mi{ rs s5,764.0( S5.7( 4.0( s ( s ( sl c s ( 36 Dcmolish and rcmovc SS \criel Crossinq EA s i s l.l s10,000.0( s10,000.0( s10,000.0c 0,000.0( 37 r\bandon and Fill Existins Manholcs EÌ\ 28 s485.6{ s1 3, s900.0( s ( s c s ( Jð \brndon rnd Fill F,xistins Sanirut' Scrvcr Linc LF 5,455 <1) ). sóó s12.0( só5,4ó0.0( s10.0c s54,550.0c 39 ìah'aqc lllxistins lìirc I h'dranrs E.A 2 s1 43.9( s s650.0( s ( s c s l'raffic Control rs s10,800.0( s t s ( s ( s ( s50, I'cmDoran' Watcrlinc Insrallation t-s s19.53ó.0c s19.53ó.0( s20,000.0( s20,000.0( só0,000.0c só0,000.0( +z l'cm :orary llydass PumDing rs s302, s302,334.0: s ( s ( s c s llc rins and Grubbins nc s5,.r00.0c s ( s ( s c s10,000.0( si 0, ìnccial 'lrcc Rcmoval on Umstcad ProDcrry I-S s s2,1 ó0.0( s25,000.0( s25, s ( s ( 45 Ncs'Sanita y Scvcr Scn'icc on Umstcad Propcrry ts s4,920.0c s4,920.0( s5,000.0( s c sl ( s () l'rcc Srump Rcmoval on rcsidcntial Scn'iccs, lnc. Propcrty ts s s270.0( s ( s1,000.0c s5,000.0( s5, ì\,f aintain Crccksidc I-lomcorvncrs Seçcr Sen'ices ts s1 5, S1 5,225.(rl s ( s c s ( s ùtindins Crcck Lânc Ârca Conc ctc Rcolaccmcnt ts s s50.42ó.51 s s c s30,000.0( s30, f-inch x 6-inch 'far:oins Slccvc and Vah'c E,\ s4, s4,072.2( s4, s4, s ( s ( ìubtotal (Itcms 1thru 49) lontingencv Allowance (3o/o of Item 50) s4,708,653.5: s :i. 9sfq47,82q.o( s775.4t6.7( ss,883j40.0( IOTAL BID FOR PROTECT lltems 50 * 51 $ Ít i...: s s c [: t-] Sn"a.a ârcâs wcrc mathcmâdcâlly correctcd. Unit Priccs far o cd ovcr 'fotal Priccs. ---è =-ft).. -'l.g;,!, --'4fi''tt'$S / 11\\\\ tt lq,/to 3ioìS \\\-ùj ORANGE WATER AND SEWER AUTHORITY BOLIN CREEK INTERCEPTOR - PHASE III 1oÍ2 BID TABULTAION SUMMARY 7.7

41 ORANGE WATER AND SEWER AUTHORIW BOLIN CREEK INTERCEPTOR. PHASE III BID TABULATION SUMMARY n.eñ NO ITEM DESCTìnvftoN contr-ô.cto SURET LICENSE N( UNIT QUANTITY ME \SUilE UNIT PRICE Ruby-Collins, Inc, Travelers Casualty 66l:t 1'OT^r- PRICE Moorhead Construction Westfield fnsurance UNTI' PIìICE 'fot \L PRICE Rockdale Pipcline, Inc. Liberty Mutuâl UNIT PIìICE 2s0s0 l'o1' \1. PIìICE I Mobilizadon (mtx.1"l, of total bid) t5 s { s C s c s90,000.0( s250,000.0( s250,000.0( ) Ductilc Iron Pipc - Watcdincs a. 6-inch Watcrlinc LF 40 s275.0( s c s45.00 s ( s1 37.0(] s5,480.0( b. 8-inch Watcrlinc LF 2,500 s27ó.0( só c s54.00 s135,000.0( s142.0c s355,000.0( 3 Ductilc Iron Pioc - Sanirarv Scrvcr 8-inch Sanitm Scrvcr l0-(r f;oot Dcoth) LF 91 s307.0( s c s s10,010.0( s384.0c s34,944.0(i 8-inch Senitarv Scrvcr (ó-8 Foot Dcoth) LF 15 s312.0( s4,ó80.0c s s ( s384.0c s c 1 6-inch Sanitary Scrvcr (6-8 Foot Dcpth) LF 30 s358.0( s c s s ( s42ó.0c s1 2,780.0C i. 18-inch Sanitary Scrvcr (0-6 Foot Dcpth) LF t4 s3ó3.0( s5,082.0c s s2,310.0( s431.0c s c 30-inch Sanitary Scrvcr (ó-8 Foot Dcpth) LF 326 s.165.0(!!ì.irü;i'+.r,3151 s s ( s492.0c sr ó0,392.0c 3O-inch Sanitm'Servcr Foot Dcothl LF,)q s477.0( s584,325.0{ só00.00 s735,000.0( s502.0c só14,950.0c 3O-inch Sanitan'Scrvcr (10-12 Foot Dcprh) LF,ó51 s494.0( s c s s ( s511.0c s843.óó1.0( h. 3O-inch Sanita v Scrvcr (12-14 Foot Der:th) LF.o73 s50ó.0( s c s s665,260.0( s520.0c s557,960.0c 3O-inch Sanitary Scrvcr (1,t1ó Foot Dcpth) LF 152 s510.0( s587,520.0c S(r30.00 s ( s520.0c s ( i. 3O-inch Sanitarv Server (16-18 Foot Dcoth) LF 280 s52ó.0( s c só40.00 s ( s529.0c s1 48,1 20.0C k. 3Ginch Sanitary Servcr Foot Deoth) LF 277 s551.0( s152,627.0c s s1 80,050.0( s538.0c s149.02ó.0( l. 30-inch Sanitarv Scrvcr (20-22 Foot Dcoth) LF t7 s576.0( s c s s ( s547.0c s ( m. 30-inch Sanitm Server Foot Dcothl LF 19 s590.0( s11,210.0c s s13,1 10.0( s547.0c s10,393.0( n. 3O-inch Sanitary Scrv'cr (24+ Foot Dcpth) LF 8 S(r21.0( s c s s ( s547.0c s4.37ó.0( 4 Standa d lunction and lìcnd-rvpc Manholc a. 4-foot Diamctcr Manholc EA 1 s ( s3,088.0c s1,800.0c s1,800.0( s1,373.0c s ( \dditional Dcoth - 4-FT Dia. Manholc VF s91.0( s91.0c s s100.0( s95.0c s95.0( ó-foot Diamctcr Manhole E.A 25 só.608.0( s c s c s70,000.0( s3,444.0c s86,100.0c l. \dditional Depth - 6-Irf Dia. Manholc VF t61 s93.0( s14,973.0c s s37,030.0( s120.0c s ( 5 Droo Manholc r. (rfoot Diamctcr Manholc EÂ 8 s ( s C só.800.0c s54,400.0( s c s45, >. \ddidonal Dcoth - ó-foot Dia. Manholc VF 79 s828.0( s65,412.0c s sl 8,170.0( sr20.00 s c. 8-foot Diameter Manhole EA I s25.14ó.0( s25.14ó.0c s sr ( s c só l. ;\dditional Dcoth - 8-foot l)iamctcr Manholc wi 22 s939.0( s20,658.0c S)UU.UU s1 1,000.0( s390.0c s8,580.0(i ( )oshouse Manholc r. 4-foot Diamctcr Manhole EA 2 s4.89ó.0( s c s272.0( s544.0( S4,.+3ó.0C s8,r172.0( o. \ddiúonal Dcoth - 4-foot Diamctcr Manholc 'r'f -) s91.0( s273.0c s52.00 s156.0( s95.0c s285.0c 7 Watcr Scryice'.fransfcr E.A ló s1.1ó8.0( s C s925.0( s1 4,800.0( s317.0c s5, janitary Scrvcr Scruicc'fransfcr EA 11 s2,1 55.0( s36,635.0c s s16,575.0( S,144.0C s c Valvc rvith llox I 6-inch Gatc V lvcs E^, 4 S1,,109.0( s5,636.0c s900.0( s3,ó00.0( s602.0c s2,40rì.0c 8-inch Gatc Valvcs EA r0 s ( s1ó.820.0c s c sl ( s951.0c s ìi c I-lvdrants EÀ 3 s6,361.0( s c s ( s1 2,750.0( s3,802.0c s1 1,40ó.0(, 11 loncrctc - M.iscellancous Unformcd LY r0 s1 87.0( s1,870.0c s,{00.0( s ( s1 39.0C sr.390.0c 12 lock Excavation CY 10,000 s51.0( s ( só9.5( só ( s1 13.0c s lìcmoval and Disposal of Âsbcstos Cemcnt Pipc ts I s63,ó10.0( só3,ó10.0( s94,000.0( s ( s c s C 14 loadrvay lìcmoval and Rcolaccmcnt SY s21.0( s c s38.0( s ( s148.0c srì l5 Removc and Rcolace Drivervavs and Prkinp l t r. Concrctc SY 80 s45.0( s3,600.0( s200.0( s1ó.000.0( s77.0c s Àsphalt SY 550 s47.0( s ( s62.0( s ( s59.0c s Gravcl SY 55 s19.0( s1,045.0( s20.0( s1,100.0( s30.0c s1, jidcrvalk lìcolaccmcnt SY r3l s60.0( s c s35.0( s ( s89.0( S100.f, lurb & Gutter Rcolaceme nt LF 235 s1ó.0( s3,760.0c s30.0( s7,050.0( s21.0c s4,935.0( 18 -andscepc Rcstoradon ß I s50,000.0( s50,000.0c s18,000.0( sl ( s c s licc Protcction Fcncc LF 8,000 s1.5( s c s2.0( s1 ó.000.0( s2.0c s1 ó, lcmoorrv Chain Link Fcncc LF 2,035 s10.0( s20,350.0c s16.0( S32,5(r0.0( s18.0c s36, lrosion Conuol Silt lèncc LF 5,200 s2.0( sl c s3.0( s ( s2.0c s1 0, Inler Protccúon EA 4 s250.0( s1,000.0c s750.0( s ( s296.0c sl.l :. lìock Chcck Dam E^ 7 s100.0( s700.0c s400.0( s ( s592.0c s i. Scdiment l s LF 700 s5.0( s c s7.5( s5,250.0( s8.0c s5,ó00.0c 22 ìodding ^c 0.5 s ( s c s ( s ( s c s c 23 lulvert Srvle St eam Crossinq EÂ. 1 s13.75ó.0( s13.75ó.0c s ( s12,500.0( s29,ó1 3.0C s29,ó13.0c 24 [8-inch Diamctcr Stccl Casins Pioc Guarantccd LF r95 s1,467.0( s286,065.0c s1,750.0( s ( s c só ( 25 lie-in Existins Scrvcr Lines at MI'l BC-01 ts s ( s c s ( s ( s34,1 73.0C s34,l73.cl( 26 fie-in Existins Servcr Line at MII BC-05.4 ß s3,601.0( s3,601.0c s14,000.0( s ( s34,173.0c s ( 27 lic-in Exisdns Server Linc at MI{ BC-17Â ts s ( s (. s ( s ( s c s ( 28 ic-in Existins Scrvcr Linc at MH BC-21 ts s3.ó01.0( s3,601.0t S,10,000.0( s40,000.0( s34,173.0c s34,173.0( 29 l'ic-in Existins Server Linc ât MI{ BC-22 ts s ( s c s ( s ( s c s34.r 73.0( 30 l'ic-in Existins Servcr Line at MI-I BC-23 ts s ( s3.ó01.0( s, ( s40,000.0( s34,173.0c s (; 31 fic-in Existins Scrver f,ine a MII llc-244 ß s3,601.0( s3,601.0c s1 8,000.0( s ( s c s c 32 lic-in Existins Scrvcr Linc at MFI BC-27Â ß s ( s3.ó0'1.0( s ( s ( s34.i 73.0C s i'ie-in [,xistins Scrvcr Linc at MH l]c-30 LS s ( s3.ó0r.0( s52,500.0( s52,500.0( s34,173.0( s34, lic-in Existins Scrvcr Linc at MIJ BC-32 rs s3,ó01.0( s3,ó01.0( s ( s ( s ( s Iie-in Existine Servcr Line at MI{ ts s3.ó01.0( s ( s ( s ( s ( s34,1 73.0( 36 Dcmolish and rcmovc SS.Aerial Crossins EA s ( s ( s12,000.0( s12,000.0( s ( s ( 3"1 Âbandon and Fill Exisdnr Manholcs EA 28 s ( s32.5ó4.0( s750.0( s ( s ( S85.5.+,0.00 -)õ Âbandon and Fill Existins Sanitm Scrvcr Linc LF 5,455 s13.0( s70,91 5.0( s32.0( s174,560.0( s99.0c s540,045.0c 39 ialvasc Existins Fi c l{vdmnts EÂ 2 s ( s ( s ( s { s592.0c s1.l 84.0c 40 l'raffic Conuol ß s ( s ( s ( s ( s ( s59,225.0c 41 lcmoor v Watedinc Installation ß s5ó,539.0c s56,539.0( s15,000.0( s1 5,000.0c s c s fcmpora v Btoass PumÞins rs s c s ( s ( s50,000.0c s725,50ó.0( s725, llcrins and Grubbino AC s c s12,000.0( s c s7,500.0c s7,699.0( s7,ó99.0( 44 jpccial Trcc Rcmoval on Umstcad ProDcrw ts s s ( s c s s ( s ( 45 Nerv Sanitæ Scrvcr Scn'icc on Umstcad Proocrtv ts s s ( s c s7,500.0( s1,521.0( s1,521.0( 46 l'rcc Srump Rcmoval on rcsidcndal Scn'iccs, Inc. Propcrry ts s5,000.0c s5,000.0( s2,250.0c s c s ( s ( 47 Maintain Crccksidc I-lomeorvncrs Scrvcr Scn'iccs ts s28.,102.0c s ( s c s7,500.0c s ( s2,369.0( 48 üindins Crcck Lanc.A e Concre te Rcolaccmcnt ts s c s33,292.0( s20, s20,000.0i s59,225.0( s59,225.0( 49 8-inch x 6-inch'I'aooinq Slccvc and Valve E \ s c s ( s c s s ( s ( fij$ ìubtotal (Items 1thru 49) 'ßl;-' :r{ (:: :i.- só,568, s9,298,19ó.00 siálè?.ié Ìt Sontingencv,{llowance (3% of Item 50) llrlil j:isl '& s s IOTAL BID FOR PROIECT lltems ) ['. 1:r ri;;.s6 495i ] $6,765, s9.5?? Sn"a"a arcas wcrc mâthcmâricâlly corrccrcd. Unit Prices favorcd ovcr Total Priccs ORANGE WATER AND SEWER AUTHOR W BOLIN CREEK INTERCEPTOR - PHASE III 2ol 2 BID TABULTAION SUMMARY 7.8

42 ENGINEERING REPORT FOR BIDS ON ORANGE V/ATER AND SEWER AUTHORITY (OV/ASA) BOLIN CREEK INTERCEPTOR, PHASE III November 3,2010 I. DATE AND TIME OF BID OPENING: November 3,2070, at 2:00 p.m. il. LOCATION OF BID OPENING: OWASA Administration Building ili, DESCRIPTION OF PROJECT: The Project includes the installation of approximately 6,220 linear feet of 3O-inch diameter gravity se\trer, 37 manholes, and approximately 2,500 linear feet of 8-inch diameter waterline. Installation of these lines will necessitate approximately 6,025 square yards of asphalt roadway replacement, two non-aerial open cut stream crossings, 195 linear feet of 48-inch diameter steel encasement pipe guaranteed crossing, and water/sewer service transfers. Nearly 5,455 linear feet of l5-inch and l8-inch gravity sewer, including 28 manholes, will be removed, abandoned and/or sluny filled, and approximately 2,300 linear feet of 8-inch asbestos cement waterline will be removed. IV. PREOUALIFICATION The project required all bidders to be pre-qualified. Qualification applications were accepted from interested contractors on or before August 17, 2010 and reviewed. The review process resulted in eight (8) contractors being prequalified to submit a bid for the project. The prequalified contractors were: l. Don Moorhead Construction, Inc. (Belton, SC) 2. Gary's Grading & Pipeline Co., Inc. (Monroe, GA) 3. Haren Construction Co., Inc. (Etowah, TN) 4. Park Construction Corp. (Monisville, NC) 5. Rockdale Pipeline, Inc. (Conyers, GA) 6. Ruby-Collins, inc. (Smyrna, GA) 7. S.J. Louis Construction Co., Inc. (Rockville, MN) 8. Triangle Grading and paving, Inc. (Burlington, NC) -l- 7.9

43 V. INVITATION TO BID: The "lnvitation to Bid" for the project was placed in the following publications: l. Orange Water and Sewer Authority website ( 2. Greater Diversity News, Wilmington, North Carolina Drawings and specifications were available for public review during the advertisement period at the following locations: l. A.G.C. Offices, Charlotte and Raleigh, NC 2. F.W. Dodge Offices, Charlotte and Raleigh, NC 3. OWASA Administration Building,400 Jones Ferry Road, Carrboro, NC 4. HDR Engineering, Inc. Offrce,440 South Church St, Ste 1000, Charlotte, NC In response to the Invitation to Bid, all eight (8) prequalified contractors requested and received drawings and specifications. Six (6) bids were received, publicly opened, and read aloud at the date, time, and place indicated above. VI. SUMMARY OF BID OPENINGS The Total Bid for each Bidder for the Project is listed below in the order from lowest bid to highest bid: BIDDER ADDRESS STATED BID MATHEMATICALLY CORRECTED BID Park Construction of NC, lnc. Haren Construction Company, lnc. Triangle Grading and Paving, lnc, Ruby-Collins, lnc. Moorhead Construction, lnc, Rockdale Pipeline, lnc. P.O. Box 500 Morrisville, NC Highway 411 North Etowah, TN P.O. Drawer 2570 Burlington, NC Wright Drive Smyrna, GA Anderson Street Belton, SC Old Covington Hwy Conyers, GA $4,849, $4,849,913,13 $5,989, $6,023, $5,612, $6,060, $6,509, $6,495, $6,765, $6,765, $9,577, $9,577, L- 7.10

44 Several bid inegularities were found in the stated bids, and are listed below: BIDDER DESCRIPTION OF IRREGULARITIES Haren Construction Company, lnc, o o Total Price for Line ltem 9b calculated incorrectly, Total Price for Line ltem 11 calculated inconectly, Triangle Grading and Paving, lnc. o Total Price for Line ltem 4d calculated inconectly. Ruby-Collins, lnc,. Total Price for Line ltem 3e calculated incorrectly. VII. RECOMMENDATIONS HDR recommends that OWASA waive the minor bid irregularities and award the Project to Park Construction of NC. Inc.. the lowest, responsible, responsive bidder, in the amount of $4,849,9 I 3. I 3. Should you have any questions concerning the bids received or our recommendations, please do not hesitate to contact us. We look forward to continued work on this important project for w OWASA. Respectfully submitted, -.'Lq" t= sê,alþ:. HDR Engineering,Inc. of the Carolinas úo Eza Michael Benchich, PE Project Engineer Enclosures =s ; 'r,,w\,,:'pr st. Ir/1/lo -J- 7.11

45 RESOLUTION AWARDING A CONSTRUCTION CONTRACT FOR THE BOLIN CREEK INTERCEPTOR (PHASE III) PIPELINE PROJECT WHEREAS, there is a need for the replacement of the portion of the Bolin Creek Interceptor (Phase III); and WHEREAS, plans and specifications for the construction of this project have been prepared by HDR; and WHEREAS, advertisement for bids were published on the OWASA website and in the Greater Diversity News (Wilmington, NC) on September 13, 2010, and six bids were received on October 20, 2010; and WHEREAS, on June 10, 2010 the Board approved a resolution authorizing funds for Capital Improvement Projects, including funds for this project; NOW, THEREFORE, BE IT RESOLVED: 1. That the Orange Water and Sewer Authority Board of Directors awards the construction contract to Park Construction of NC, Inc., the low responsive, responsible bidder for the Bolin Creek Interceptor (Phase III) Pipeline Project, in accordance with the approved plans and specifications, in the amount of $4,849,913.13, subject to such change orders as may apply. 2. That the Executive Director be, and hereby is, authorized to execute said contract, subject to prior approval of legal counsel, and to approve and execute change orders and such documents as may be required in connection with the construction contract. Adopted this 9th day of December Gordon Merklein, Chair ATTEST: Braxton Foushee, Secretary 7.12

46 AGENDA ITEM PURPOSE RESOLUTION REQUESTING CLARIFICATION OF THE 2001 WATER AND SEWER MANAGEMENT, PLANNING AND BOUNDARY AGREEMENT AMONG CARRBORO, CHAPEL HILL, HILLSBOROUGH, ORANGE COUNTY, AND OWASA Consideration of a resolution to clarify certain language in the 2001 Water and Sewer Management, Planning and Boundary Agreement (WSMPBA) so that the Agreement cannot be interpreted as a constraint on access to OWASA s Jordan Lake water supply storage allocation. BACKGROUND OWASA is a party to the 2001 Agreement along with the Towns of Carrboro, Chapel Hill, and Hillsborough, and Orange County. Any changes must be approved by all signatory parties. Since 1989, OWASA has paid more than $200,000 to retain a Level II (future use) allocation of 5% of Jordan Lake s water supply storage capacity. Although we do not believe that it was originally intended to do so, the WSMPBA can be interpreted as restricting or preventing access to that Jordan Lake allocation. A key recommendation of OWASA s 2010 Long-Range Water Supply Plan was to develop water purchase/sale agreements with neighboring utilities that will secure the permanent ability to cost-effectively purchase water under appropriate conditions of supply and demand, and to work cooperatively with the elected boards of the Towns and County to amend the WSMPBA only as needed to resolve any unnecessary constraints on access to our Jordan Lake allocation in order to ensure a reliable and sustainable water supply for the future. At its October 19, 2010 meeting, the Board s Natural Resources and Technical Systems (NRTS) Committee directed staff to draft a resolution requesting approval of a clarification of the WSMPBA. The Committee also requested staff to prepare a letter to local elected leaders formally requesting that the other WSMPBA parties approve OWASA s proposed clarifying language. ACTION NEEDED Consideration of attached resolution requesting clarification of the 2001 WSMPBA. STAFF RECOMMENDATION Staff supports the NRTS Committee recommendation to approve the attached resolution and to authorize the Chair to submit the attached letter to local elected leaders formally requesting their respective board s approval of the clarification to the specified language in the WSMPBA. December 9,

47 ORANGE WATER AND SEWER AUTHORITY A public, non-profit agency providing water, sewer and reclaimed water services to the Carrboro-Chapel Hill community. MEMORANDUM TO: THROUGH: FROM: Board of Directors Ed Kerwin Ed Holland DATE: December 2, 2010 SUBJECT: Proposed Clarification of the Water and Sewer Management, Planning and Boundary Agreement Purpose Request the Board s approval to pursue clarifying language in the 2001 Water and Sewer Management, Planning and Boundary Agreement (WSMPBA or Agreement) so that the Agreement cannot be interpreted as a constraint on OWASA s access to our Jordan Lake water supply storage allocation. Background on the WSMPBA OWASA is a party to the Agreement along with the Towns of Carrboro, Chapel Hill, and Hillsborough, and Orange County. The purpose is outlined in detail in the attached copy (Attachment A), but the Agreement s basic intent is to provide a County-wide system of service areas to guide future utility development; outline procedures for dealing with future problems in areas without public water and sewer service; complement growth management objectives and land use/annexation plans in other existing agreements; and, to preclude future conflicts and provide limitations on the provision of public water and sewer service in certain areas. The term of the WSMPBA is ten years (beginning December 3, 2001), but it renews automatically unless a signatory party provides written notice of its intent to withdraw. Any change requires approval by all parties to the Agreement. Any party that desires to withdraw must hold a public hearing and notify the other parties of its intent within 30 days of the public hearing. The withdrawal is effective one year following notice to the other parties. The Agreement allows for emergency water transfers, subject to various notification procedures after 30 days, at 60 days, and between 60 and 90 days if the transfer is expected to extend beyond 90 days. The Agreement also stipulates a maximum water 400 Jones Ferry Road Carrboro, NC Equal Opportunity Employer Printed on Recycled Paper Voice (919)

48 Proposed Clarification of WSMPBA December 2, 2010 Page 2 transfer duration of one year, and that emergency transfers shall not be used to serve new growth. Other Applicable Agreements/Documents OWASA has mutual aid agreements in place with Durham, Cary, and Hillsborough that allow for emergency and non-emergency water transfers. The Durham and Cary agreements explicitly note that OWASA s obligations are subject to the WSMPBA. OWASA s original Water Utility Sale and Purchase Agreement with the University clearly outlines our overall responsibility to furnish, for as long as the University shall desire, potable water in such quantity as may be required to meet its needs. And the corresponding Water Utility Sale and Purchase Agreement with the Town of Carrboro includes a commitment to operate and maintain the water system as required... to meet the reasonable water needs of the Town as presently and hereafter constituted. (No corresponding agreement exists with Chapel Hill, because the University, rather than the Town of Chapel, originally owned and subsequently conveyed that portion of the water system to OWASA.) OWASA s Mission Statement says: We will manage our responsibilities in a manner consistent and compatible with the adopted growth management policies and land use plans of the Town of Carrboro, the Town of Chapel Hill, and Orange County. We will maintain open and positive communications with our local governments. We will also maintain open and positive communications with neighboring water utilities and cooperate in regional initiatives where appropriate and consistent with OWASA s commitment to its member governments. OWASA s Jordan Lake Water Supply Storage Allocation OWASA holds a Level II (future use) allocation of 5% of Jordan Lake s water supply storage capacity, which may provide a yield of 6.2 million gallons per day (mgd) as described in our April 2010 Long-Range Water Supply Plan (LRWSP). We have paid more than $10,000 per year since 1989 to the State of North Carolina to retain that allocation. The LRWSP recommends that we develop water purchase/sale agreements with neighboring utilities that will secure the permanent ability to cost-effectively purchase water under appropriate conditions of supply and demand consistent with the long-term performance objectives of: 1. Avoiding future Water Shortage declarations through temporary purchases of treated water from neighboring utilities. This offers the most cost-effective way to supplement our local supply during the infrequent times of severe drought, equipment failure, natural or manmade disaster, or other unforeseen circumstance. Purchasing water also reduces (unbudgeted) revenue losses that result from a declared Water Shortage and 8.3

49 Proposed Clarification of WSMPBA December 2, 2010 Page 3 would have to be recovered through subsequent rate increases; avoids higher customer bills from surcharges imposed during a declared Water Shortage; and lessens the hardship and inconvenience to customers who have already reduced their water use through diligent and ongoing conservation efforts; and 2. Providing additional flexibility and redundancy in the event of critical facility failure, extreme weather, or other unforeseen/emergency circumstances. The LRWSP also recommends that OWASA work cooperatively with the elected boards of Carrboro, Chapel Hill, and Orange County to amend the WSMPBA only as needed to resolve any unnecessary constraints on access to OWASA s Jordan Lake allocation and to ensure a reliable and sustainable water supply for the future. Discussion Although we do not believe that the original WSMPBA was intended to prevent or restrict access to our Jordan Lake allocation, it could be interpreted that way in its present form. OWASA is currently active in the Jordan Lake Partnership, which is facilitating coordinated applications to the NC Environmental Management Commission (EMC) by Triangle Area utilities who must justify their need to increase or retain their Jordan Lake water supply storage allocations. We believe that unimpeded access to OWASA s existing allocation with the support of Carrboro, Chapel Hill, Orange County and the University will be a key consideration in obtaining the EMC s approval to retain our allocation. Access to that allocation is essential for our ability to reliably and responsibly serve present and future OWASA customers. It is increasingly important that we maintain a diverse portfolio of water supply options to meet the community s long-term needs, including our contractual commitments to the University and others, especially in light of climatic change and other uncertainties. (We have experienced the two worst droughts on record since the WSMPBA was adopted in 2001.) Also since that time, the necessary infrastructure is now in place to treat and deliver water from OWASA s Jordan Lake allocation via Cary and Durham. Full access to our allocation is essential to OWASA s mission. We recommend that the WSMPBA be clarified with the addition of the following language as a new Subsection 3 to Section VII.A (Emergency Water Transfers), and that the same language be added to the existing text of Section VII.B (Non-Emergency Water Transfers): These provisions do not apply to the treatment of and transfer of water available through OWASA s Jordan Lake water supply storage allocation for use by OWASA customers. Nothing herein shall be construed to prevent 8.4

50 Proposed Clarification of WSMPBA December 2, 2010 Page 4 OWASA from entering into agreements as necessary to provide for water transfers to afford OWASA access to its Jordan Lake allocation. Additionally, we believe it is important to continue discussions with neighboring utilities about agreements that will secure our permanent ability to purchase water under appropriate conditions of supply and demand. OWASA s continued participation in the Jordan Lake Partnership is vital to making such arrangements a reality and to supporting our ability to ensure a reliable, cost-effective, and sustainable water supply. Further discussion is provided in Attachment B: Potential Questions About OWASA s Proposed Clarifying Language to the WSMPBA Natural Resources and Technical Systems (NRTS) Committee Recommendation At its October 19, 2010 meeting, the NRTS Committee discussed this matter at length and directed staff to present a draft resolution to the full Board of Directors expressing the Board s intention to a pursue a clarification to the WSMPBA. The Committee also requested that staff prepare a draft letter from the OWASA Board Chair to local elected leaders formally requesting that the other WSMPBA parties approve the proposed clarifying language. Board Action Requested Staff recommends that the Board approve the attached resolution (Attachment C) and authorize the Chair to sign the draft letter to local elected leaders (Attachment D) formally requesting their approval to clarify the specified language in the WSMPBA. Edward A. Holland, AICP Planning Director Attachments: A 2001 WSMPBA B Potential Questions About OWASA s Proposed Clarifying Language to the WSMPBA C Draft Resolution D Draft Letter to Local Elected Leaders 8.5

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