The Minutes of the Regular Meeting of the Parkersburg Utility Board. November 1, 2017 CALL TO ORDER

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1 5238 The Minutes of the Regular Meeting of the Parkersburg Utility Board November 1, 2017 CALL TO ORDER Pursuant to the call of its Chairman, Tom Joyce, the Parkersburg Utility Board met in the Parkersburg Utility Board Administration Building, at th Street on the 1 st day of November, Chairman Joyce called the meeting to order at 9:00 a.m. ROLL CALL Present: Tom Joyce, Chairman John Lutz, Vice Chairman Gregory Herrick, Board Member Paul Hoblitzell, Board Member Robert Wright, Board Member George Zivkovich, Counsel Christopher Pauley, Assistant Comptroller Erin Hall, Comptroller Eric Bumgardner, Assistant Manager Eric Bennett, Manager Others Present: Tad Wilson, Wells Fargo Advisors Marc DeCicco, Wells Fargo Advisors Evan Bevins, Parkersburg New & Sentinel CONSIDERATION OF MINUTES Chairman Joyce requested the Board consider the minutes of the October 18, 2017 regular board meeting for acceptance into the record. Robert Wright moved to approve the minutes of the October 18, 2017 meeting as submitted to the Board. Paul Hoblitzell seconded the motion and it was approved by a unanimous vote of the Board members. CONSIDERATION OF WATERWORKS PENSION ACTUARIAL VALUATION Erin Hall stated Board members had requested a representative from Wells Fargo Advisors attend and introduced Tad Wilson and Marc DeCicco. Tad Wilson explained he acts as head

2 5239 manager of the Waterworks Pension portfolio. Wilson stated he would like to answer some of the questions the Board members mentioned. He noted the first question is related to the interest earned on the account versus the interest in the actuarial valuation. Wilson noted this same question was asked several years ago in about Wilson passed out a packet with information of allowable government investments and Wells Fargo company information. Wilson explained the investment section includes the code a which restricts what type of investments can be made. Wilson stated the investment time limit is currently five years, which also limits the interest rates for CDs, mutual funds and securities. The current return for these investments would be no greater than 1.81%, which is much lower than the actuarial rate of 5%. Wilson stated he was not aware of the source of the 5% used in the actuarial valuation. Wilson stated the second question was related to how the investments were diversified in the portfolio. Wilson explained the fund is diversified with CDs, Treasury Securities and Agency Securities or Mutual Funds. This allows Wells Fargo to manage the payments to the pensioners of around $10,000 per month. Wilson noted the portfolio value is about $875,000 so the typical life of the fund is about seven years without additional investment. Wilson commented that as pensioners pass away the payments would reduce and extend the life of the portfolio. Wilson stated the next question asked was how the funds would be deposited and invested. He stated the plan is to use a ladder strategy where funds are coming due constantly to make the payments to pensioners. He noted the strategy would be to invest for a seven year range to get about 2.3% to 2.6% rate of return and stay within the investment guidelines. He stated CDs won t be used but Agency type securities would be considered. Robert Wright requested the contribution requirement for this year. Hall stated the amount is slightly more than $64,000. Wilson pointed out this is the first year any new investment in the fund has been required since Herrick stated there are six retirees or dependents. Bennett confirmed the number is correct. Wright asked if a pie chart could be provided showing the investment types. Wilson stated he could make one available. Robert Wright asked if there would be a benefit to pay the entire $64,000 now or wait until the end of the year. Wilson responded the investment really depends upon whether PUB is getting more return from the current investment or if the return would be greater in the pension fund. Hall stated the current return is less than 1.0%. Wilson recommended investing soon in the pension fund to get the money working at a higher return. Paul Hoblitzell moved to release the funds to Wells Fargo for the Water Works pension fund in the amount previously approved by the Board. Gregory Herrick seconded the motion and it was approved with a unanimous vote of the Board members.

3 5240 CONSIDERATION OF REVISED SALES AGREEMENT WITH MINERAL WELLS PSD Eric Bennett stated Mineral Wells PSD is experiencing some water quality issues in their distribution system and the Bureau of Public Health has become involved. He explained a current trial to provide relief is to divide their system and feed water from PUB to the area of concern while continuing to use Claywood Park as a water supply to the rest of the system. Bennett stated the issue of concern is related to the water being in the line for too long. The trial period should last two or three weeks and then test, if the results are good then a possible long term agreement will be considered. Hoblitzell asked if Mineral Wells is flushing. Bennett confirmed they have but the efforts have not been sufficient to relieve the issue. John Lutz asked if the situation is attributed to the line not being looped. Bennett agreed that is a primary factor. Lutz asked if a water supply from PUB would take care of the issue. Bennett stated the PSD is hoping this will be the best answer and noted this could help PUB with residuals in the Pettyville area where we have a long residence time for water. Paul Hoblitzell asked if there is a requirement to have a hydrant on the end of a line. Bennett responded it is not required, but a blow off should be located at the ends of lines. Bennett stated the PSD is requesting a reasonable resale rate. The current rate from Claywood Park PSD is $3.83 per thousand gallons, so that is what he is recommending. Tom Joyce requested the expected term of the trial. Bennett responded it should require no more than three weeks. Hoblitzell asked if the feed will be down State Route (SR) 21. Bennett stated the connection is at Pettyville just beyond the Coldwater Creek entrance and will feed the line running down SR 21. Lutz asked for the size of the line connecting the systems. Bennett stated the PUB line is eight inch and connects to a six inch Mineral Wells line. Gregory Herrick moved to approve the interim resale rate for the sales agreement with Mineral Wells PSD, as submitted to the Board. John Lutz seconded the motion and it was approved with a unanimous vote of the Board members. CONSIDERATION OF AMENDMENT #3 TO AGREEMENT AND TASK ORDER Eric Bennett stated a memo was provided. The three year Information Technology (IT) upgrade is planned to be spread out over three years rather than try to make the upgrade all at one time. This method allows more flexibility, but will require a little more IT time to the technical services agreement which would be extended from a six year term to a ten year term. The cost to the miscellaneous services agreement would be revised from $115,000 to $156,500 as the anticipated cost for engineering is $41,500 for the three year period. Paul Hoblitzell asked if there are any issues with extending contracts in this manner. Counsel Zivkovich stated he did not believe there are any concerns. Bennett confirmed this method has

4 5241 been used in the past. Hoblitzell asked if there is a bidding issue. Chairman Joyce stated this is more of a change order issue. Bennett agreed. Hoblitzell asked if the issue is the cost all at one time. Bennett stated the typical time frame is every five years, but if drug out longer many issues develop. Hoblitzell asked where the backup is held. Bennett stated the servers back up in the next room and there is a secondary backup tape drive. Bennett commented the backup in the future will likely be cloud based or a similar system. Joyce stated he would like to ensure the cloud agreement is robust as some agreements do not cover some issues that should be included. Hoblitzell asked the frequency of the tape backup. Bennett responded the tape is not replaced as often as it should be. He corrected and stated that the proposed backup would be a disc system and not cloud. Tom Joyce asked who governs retention requirements. Bennett stated retention of records is a state requirement. Hall stated most financial records require seven years retention. Bennett noted some retention requirements are much longer depending upon the type of information. Robert Wright moved to approve amendment #3 to the IT services agreement and Task Order 14-01with Strand Associates, as submitted to the Board. Paul Hoblitzell seconded the motion and it was approved with a unanimous vote of the Board members. CONSIDERATION OF INVOICES IN EXCESS OF $ The following invoices totaling $213, were considered for approval: Atlas Towing 8.95 tons # 57, ton pit run, & tons 1 1/2" limestone - sewer maint. 1, Atlas Towing tons # 57, ton pit run, & tons 1 1/2" limestone - sewer maint. 1, Atlas Towing tons # 57 - sewer maint. 1, Burgess & Niple Professional services thru September 30, Service During Constr - Interceptor Lining 17, Burgess & Niple Professional services thru September 30, Valve Replacement - WTP 6, Burgess & Niple Professional services thru September 30, Water System Evaluation - Update 10, Burgess & Niple Professional services thru September 30, RPR - Sewer Lining 52, Camden Materials tons of base Garfield Ave. - drop box area - work done by Kelly Paving 5, Ferguson 50 - various size stops - water maint. 1, Ferguson 50 - meter pit lids & 50 - meter pits 4, Ferguson 180' of 3/4" copper pipe & 4-14" saw blades - water maint. 1, Frontier Phone services - October Martin Marietta tons # 67, ton #1, 9.09 tons 6x12 limestone, & tons 1 1/2" limestone - sm 1, Mar-Zane, Inc tons of cold mix - water maint. 2, MonPower Agnes St. Pump Station - October , MonPower Sayre Ave. Pump Station - October Pipelines, Inc. 4-4" 2-bolt couplings, 8-6" 2-bolt couplings, & 2-6" x 2" saddles - water maint. 2, Pow-R Mole Sales, LLC 13 - push rods w/coupling for bore machine - shared 1,944.00

5 5242 RPM, Inc. Rebuild for #4 high service pump - WTP 16, Service Pump & Supply Co., Inc. 1 - hydromatic pump - #2 pump - Little Bird St Pump Station 6, Smith Concrete 6.25 yds of 9 bag 2% Hi-Early concrete - water maint Smith Concrete 8 yds of 9 bag 2% Hi-Early concrete - water maint. 1, Smith Concrete 6.5 yds of 9 bag 2% Hi-Early concrete - sewer maint Strand Associates, Inc. Professional services thru September 30, Local Limits Update 8, Strand Associates, Inc. Professional services thru September 30, I & I Evaluation Strand Associates, Inc. Professional services thru September 30, SSO Abatement Report 25, TASB, Inc. 1 year subscription to Board Book - Admin. 3, Valley Supply Company 1-2 1/2" union, 1-2 1/2" copper pipe, 2-flanges, 2-gasket kits, 2 1/2" 90-#1 boiler upgrade-wwtp 1, Verizon Wireless 5 - tablets for board members 4, WVPERS Pension expense - October , TOTAL APPROVED 213, Total amount of checks paid from sewer operating fund October 13, October 27, ,378, Check # John Lutz asked if the hydromatic pump was a replacement for an existing pump. Bennett confirmed it was. Lutz asked if the pump could be rebuilt. Bennett acknowledged many of the pumps can be rebuilt and are when possible. Gregory Herrick moved the list of invoices over $750, dated November 1, 2017 in the amount of $213, be approved for payment as submitted to the Board. Paul Hoblitzell seconded the motion and it was approved by a unanimous vote of the Board members. OTHER BUSINESS HIGH CAPACITY PUMP Paul Hoblitzell asked if PUB had a high capacity pump. Bennett stated PUB has a six inch pump in inventory for by-pass pumping in the event of an emergency. Hoblitzell asked if that pump could be used in an event such as the recent fire at the former Ames #1 plant. Bennett stated the pumps used in that event were much larger and PUB would not have events requiring that size of pump to make it feasible to purchase one. Bennett explained PUB contracts out when a large pump is needed. Bennett recommended the County get in contact with a company like Godwin/ITT or Rain-for-Rent.

6 5243 EXPENSES FOR FIRE EVENT AT THE FORMER AMES #1 FACILITY NOW INTERCONTINENTAL EXPORT IMPORT, INC. (IEI) Bennett informed the Board members the recent fire event consumed 7.85 million gallons of water from PUB supplies at a cost of $42,700. Tom Joyce noted the County is requesting all involved parties to provide a summation of costs in order to seek reimbursement. Bennett stated he would work on getting the documents in order for submission to the County. PUB ENGINEERS POSITION Bennett requested the meeting enter into executive session to discuss the Engineers position. Paul Hoblitzell moved to offer the Engineers position to the proposed candidate at a salary to be negotiated within the budget. Robert Wright seconded the motion and it was approved by a unanimous vote of the Board members. NEXT MEETING DATE Erin Hall stated the next regular meeting is scheduled for November 15, Board members agreed to meet in regular session, at the Parkersburg Utility Board Administration Building in the conference room, at 9:00 a.m. on November 15, ADJOURNMENT Robert Wright moved the meeting be adjourned. Paul Hoblitzell seconded the motion and it was approved by a unanimous vote of the Board members. The meeting adjourned at 9:50 a.m. Respectfully Submitted: Eric Bumgardner, Assistant Manager