AGENDA SPARTANBURG SANITARY SEWER DISTRICT COMMISSION REGULAR MEETING. MEETING PLACE: 200 Commerce Street. Tuesday, May 27, 2014, 2:15 p.m.

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1 AGENDA SPARTANBURG SANITARY SEWER DISTRICT COMMISSION REGULAR MEETING MEETING PLACE: 200 Commerce Street, 2:15 p.m. This is a regular meeting of the Spartanburg Sanitary Sewer District Commission. Written notice of the date, time, and place for this meeting, along with the agenda, has been posted on the bulletin board, and copies have been forwarded to local and nearby news media (including Spartanburg Herald-Journal, The Spartan Weekly, Greenville News, The Greer Citizen, Hometown News, WSPA-TV 7, WYFF-TV 4, WLOS-TV 13, WHNS Fox Carolina, WORD News Radio, WOLT-FM Radio, Tribune Times, and the Times Examiner) at least 24 hours prior to this meeting. 1. PRAYER 2. APPROVAL OF MINUTES OF REGULAR MEETING OF APRIL 22, 2014 AND WORK SESSION MEETING OF APRIL 23, MONTHLY FINANCIAL REPORT Newt Pressley will present a financial summary of SSSD expenditures and revenues for the 10-month period ending April 30, PUBLIC HEARING FOR PROPOSED FY OPERATING BUDGET A public hearing will be held by the Commission to allow public input regarding the proposed FY operating budget. 5. DISCUSSION/APPROVAL OF PROPOSED FY OPERATING BUDGET Management requests approval of the proposed FY operating budget. 6. GENERAL OBLIGATION BONDS, SERIES 2014 A. Resolution to authorize issuance of General Obligation Bonds

2 Page 2 At the April budget meeting, management presented the Capital Improvement Plan for the Sewer District. Near term financing needs were identified for the following projects: Amount 1. Solids Master Plan Phase I $3,000, Lower North Tyger River Facility Upgrade: Site Expansion $2,000,000 Engineering Design Services $2,000, Miscellaneous Treatment and Technology Upgrades $1,000,000 $8,000,000 Management recommends financing these project funding needs through available general obligation debt capacity. A resolution to authorize issuance of General Obligation Bonds, Series 2014 will be presented to the Commission for approval. Robert Galloway of Haynsworth Sinkler Boyd, SSSD Bond Counsel, and Lyman Wray of Stephens, Inc., SSSD Financial Advisor, will review this transaction with the Commission. B. Financial Advisory Services Management requested a proposal from Stephens, Inc., to provide financial advisory services for the 2014 General Obligation Bond transaction. As the District s financial advisor, Stephens, Inc., will provide the following types of services applicable to this issue: analysis and structuring; document preparation and review; bid coordination, including the dissemination of offering materials to qualified financed institutions. Management will review the proposed services and applicable fees at the Commission meeting. 7. ESTABLISHMENT OF AUDIT COMMITTEE POLICY For many years, the Commissions of the Spartanburg Water System and Spartanburg Sanitary Sewer District have assigned an audit committee to meet with the independent auditor and review the annual audit process.

3 Page 3 In order to more clearly define the role of the Audit Committee, management recommends that this review process be formalized in the form of the Audit Committee Policy. The proposed policy follows and outlines the authority and responsibilities of the committee. SPARTANBURG SANITARY SEWER DISTRICT Audit Committee Policy The Spartanburg Sanitary Sewer District ( District ) hereby establishes an Audit Committee in accordance with the guidelines described below. The Audit Committee shall have no power to act on behalf of the District, but shall review its findings with the Commission. The Audit Committee s responsibilities shall include: 1. Ensuring a direct line of communications with the organization s auditor. 2. Providing oversight of management s performance with respect to required and recommended financial responsibilities and disclosure. 3. Reviewing and addressing the management letter and auditor s comments. 4. Review any serious difficulties or disputes with management encountered during the course of the audits. 5. Review other matters related to the conduct of the audits that are to be communicated to the Audit Committee under generally accepted auditing standards. 6. Review published documents containing the organization s financial statements and considers whether the information contained in the documents is consistent with the information contained in the financial statements. 7. Make recommendations to the District based on the committee s review activities. 8. Report back to the Commission regarding any matters discussed with the committee. Members(s) of the Audit Committee shall be appointed by the Chair and serve for one year.

4 Page 4 Management requests approval of the Audit Committee Policy. 8. COWPENS RECLAIMED WATER TREATMENT FACILITY SPLITTER BOX The Commission approved the construction bid for the Cowpens Splitter Box Project on January 22, The Cowpens Reclaimed Water Treatment Facility Splitter Box replacement project is now complete. The project was completed by the Harper Corporation from Greenville, SC. The project consisted of installing a new splitter box which enhances operations at the facility and allows for more operational flexibility. The scope of work called for the contractor to furnish and install a new splitter box and all appurtenances necessary to connect the two existing aeration basins with the two existing clarifiers. Change Order #1 was an increase of $10,900 to replace all of the electrical feeder lines and junction boxes to the existing basin aerators. Change Order #2 was a Summary Change Order for a $1,350 decrease to the contract price for reimbursement to a damaged electrical cable. The financial summary of the project is as follows: Project Contract $ 182,000 Change Order #1 $ 10,900 Change Order #2 (decrease) $< 1,350> Final Contract Amount $ 191,550 Staff has executed the Summary Change Order in accordance with current Spartanburg Sanitary Sewer District policy. The above is provided to the Commission for information. 9. PREVENTATIVE MAINTENANCE AGREEMENT FOR LABORATORY SERVICES SECTION Laboratory Services maintains Preventative Maintenance Agreements (PMA s) for select laboratory instruments and software programs. The proposed contract is an annual agreement and includes service for routine preventative maintenance, troubleshooting, repairs (parts and labor),

5 Page 5 software support, certain upgrades, and priority emergency repair service. The PMA is provided by the manufacturer, who is the sole source of the laboratory service. A. Perkin Elmer (Laboratory Information Management System) LIMS This database system is used to assign identification codes and store or retrieve data for samples. In addition, this system generates both regulatory and process control reports for samples associated with the Safe Drinking Water Act (SDWA) and the Clean Water Act (CWA) programs. Perkin Elmer has quoted and annual PMA for services described above for a total cost of $20,331. The total cost for the renewal of this annual Preventive Maintenance Agreement is $20,331. Funding will be provided through the Laboratory Services operating budget, with costs shared 50% between Spartanburg Sanitary Sewer District and Spartanburg Water System. Management recommends the approval of the renewal of the Perkin Elmer LIMS Preventive Maintenance Agreement for an amount not to exceed $10, DEFOAMER/ANTIFOAM CHEMICALS Bids were received on February 25, 2014, for water-based defoamer/antifoam products used by the Fairforest Reclaimed Water Treatment Facility. There were two separate products bid. One is for effluent mitigation from the facility to the Pacolet River Outfall and the other is for the aeration basin at the facility. All products were tested and had to be approved in order to be eligible to bid. The pricing submitted is for the contract term June 1, 2014 May 31, The results of the bid are tabulated below.

6 Page 6 Vendor Effluent Defoamer Product Est Usage of 60,000-80,000lbs annually Cost per Pound (LB) SC Tax Delivery Total Delivery Lead Time (shortest number of days) Delivery Lead Time (longest number of days) Atlanco $0.400 $ $0.00 $ Environmental Specialties $0.415 $ $0.00 $ Deeks Chemical Company $0.445 $ $0.00 $ Siovation $0.440 $ $0.00 $ Sterling Water Tech $0.835 $ $0.00 $ Brenntag $0.445 $ $0.00 $ SNF Polydyne NO BID Vendor Basin Defoamer Product Est Usage of 20,000-40,000lbs annually Cost per Pound (LB) SC Tax Delivery Total Delivery Lead Time (shortest number of days) Delivery Lead Time (longest number of days) Atlanco $2.020 $ $0.00 $ Environmental Specialties $1.887 $ $0.00 $ Deeks Chemical Company $1.790 $ $0.00 $ Siovation $0.600 $ $0.00 $ Sterling Water Tech $1.515 $ $0.00 $ Brenntag Southeast $1.690 $ $0.00 $ SNF Polydyne NO BID Management recommends the effluent defoamer be awarded to Atlanco out of Inman, SC at $0.424 per pound and the basin defoamer be awarded to Siovation out of Lawrenceville, GA at $0.636 per pound. Atlanco is an MWBE supplier. Funding will be provided through SSSD operating budget.

7 Page LARGE LINE CLEANING PROJECT Proposals were received on May 5, 2014, for the contract cleaning and CCTV inspection of a 7,800 LF section of 18" sewer line along Forest Street and extending from just north of West St. John Street to just south of Crescent Avenue. The scope of work calls for the contractor to provide cleaning, disposal, and inspection services. Removal of 100% of loose debris and 95% of hardened debris is required of the contractor. Disposal fees will be paid by SSSD at pre-established contract rates. In the past, there have been issues with sanitary sewer overflows (SSO s) along several sections of this 18" sewer line. Based on staff observation, a primary contributor to the SSO s is debris build up along various sections of the collection line. The debris found has been a combination of rocks, broken bricks, and sand. Proposals were solicited from suppliers requiring them to address submittal requirements pertinent to the scope of work. These requirements were scored as part of the evaluation criteria by an evaluation team. Requirements included the contractor s approach and strategy to the project; technical competency and experience; cost; MWBE utilization; and work schedule. Invitations were forwarded to five prospective contractors, with three submitting proposals. A tabulation of the costs is listed below. Terra Contracting, LLC $45,006 Romulus, MI Hydrostructures $70,350 Pittsboro, NC Compliance EnviroSystems, Inc. $134,950 Baton Rouge, LA Sunbelt Rentals Charlotte, NC No Bid

8 Page 8 Bio Nomic Services, Inc. Charlotte, NC No Bid Management recommends an award to Terra Contracting, LLC at a cost of $45,006 based on their highest scoring proposal. The project will be funded from the SSSD collection system rehabilitation fund. 12. RECEIPT OF BIDS I-85/HIGHWAY 110 PUMP STATION REHABILITATION PROJECT Bids were received on May 15, 2014, for the I-85/Highway 110 Pump Station Rehabilitation Project. This is a former Town of Cowpens pump station, which was placed in service in The existing pumps and related hardware have exceeded their useful life. This project will include the replacement of the pumps and related hardware, including several safetyrelated improvements, and will bring the pump station into compliance with current Sewer District standards. Bidder Construction Resource Group Union, SC Capital Construction and Grading Chesnee, SC Amount of Bid $149,900 $159,155 Engineer s Estimate $170,106 Management recommends awarding the contract to the lowest responsive bidder, Construction Resource Group, of Union, SC for the amount of $149,900. This project will be funded by depreciation funds. 13. FERNWOOD-GLENDALE PUMP STATION REHABILITATION PROJECT Bids were received on May 16, 2014, for the Fernwood-Glendale Pump Station Rehabilitation Project. This is a former City of Spartanburg wastewater pump station, which was placed in service in The

9 Page 9 existing pumps and related hardware have exceeded their useful life. This project will include the replacement of the pumps and related hardware, and will bring the pump station into compliance with current Sewer District standards. Bidder Construction Resource Group Union, SC Amount of Bid $119,800 Capital Construction and Grading $135,360 Chesnee, SC Engineer s Estimate $130,577 Management recommends awarding the contract to the lowest responsive bidder, Construction Resource Group, of Union, SC for the amount of $119,800. This project will be funded by depreciation funds. 14. NEGOTIATIONS AND MISCELLANEOUS ADMINISTRATIVE MATTERS