COMMISSIONERS OF PUBLIC WORKS Minutes of March 22, 2012

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1 COMMISSIONERS OF PUBLIC WORKS The regular meeting of the Board of Commissioners of Public Works was held on Thursday, March 22, 2012 at 10:00 a.m., in the Boardroom at 121 West Court Avenue. In attendance: Gene P. Hancock Steve Reeves Vickie Gorham Lee Roper Michael G. Monaghan Ken Barnett Jeff Auman Stacia May Henry O. Watts Richard Gentry Chris Lindley David Tuck George Petersen Jeff Meredith Jody Patterson Jerry Smith Jeff Chapman Charles Clinemyer Eduardo Noriega Carlos Cometto William Hawkins Teresa Lake Vicki Knott Matt McCoy I. Chairman Monaghan called the meeting to order. The invocation was given by Commissioner Watts. II. III. Chairman Monaghan gave the statement of compliance with the notification provision of the Freedom of Information Act. Approval of Minutes: A motion was made by Commissioner Hancock and seconded by Commissioner Watts to approve the minutes of the regular meetings on February 9, 2012 and February 23, 2012; the motion was unanimously approved. IV. Financial Statement: Commissioner Watts asked about collection of bad debt through the collection agency. Ms. Gorham responded that not much is being collected at this point; another file is ready to be turned over for collection. Only one set-off debt payment has been received so far this year, but another larger payment is anticipated at any time from tax refunds. Chairman Monaghan referred to the transfer to the City of Greenwood of $100,000 shown on page 13, and asked why that was being done at this point in the year. Mr. Barnett responded that it is accruing $100,000 each month for the twelve months. He noted there are some accruals as well as actual, and this is set up to basically take 1/12 each month and show it. Chairman Monaghan stated that he was not aware that it was reported on an accrual basis. Mr. Barnett responded that it really a modified accrual; some things are accrued, and some are actual, and has always been done that way. Chairman Monaghan then referred to page 29, and asked about the difference in

2 Page 2 earned and unearned interest with the Bond Construction Fund reimbursement. He questioned why that would be done if you are reimbursed the cash, and would not be earning any interest. Mr. Barnett responded that it would move from the Bond Construction Fund Account over to the Operating Account. Then from there it moves into the Investment Account so no investment is lost. Chairman Monaghan asked about arbitrage; Mr. Barnett responded there is none at this time. With no further questions, the report was accepted as information. V. Business: A. Manager Reeves recognized the CPW tapping team consisting of William Hawkins, Matt McCoy, Charles Clinemyer, and Jody Patterson, who had recently competed and received the State Championship Tapping Award for the fourth consecutive year. He added that this automatically qualifies the team for the nationals coming up in Dallas, TX in June, adding that he would like to see them attend if possible. Manager Reeves then acknowledged David Tuck and staff for receiving the Best Tasting Water Contest Award this year. B. Manager Reeves stated that it had been some time since a request was made to transfer funds from the Bond Construction Fund to the General Operating Fund to reimburse for bond projects. At this point, the request is to transfer the amount of $1,518, from the 2007 Bond Construction Fund; and $491, from the 2010 Bond Construction Fund. Chairman Monaghan asked how long the transfer takes; Mr. Barnett responded that after talking with Michael Nix to be sure we don t lose anything on our investments, it would take a couple of days. A motion approving the transfer of funds was made by Commissioner Watts, seconded by Commissioner C. Manager Reeves commented on ongoing HVAC problems at the COC for quite some time. He recommended hiring an engineering firm that specializes in HVAC work, at a not-to-exceed fee cost of $40,500. He added that this represents about 4 ½% of the expected contract cost, and is well below typical engineering costs. Chairman Monaghan asked exactly what the engineer would do; Manager Reeves responded that it would include inspections, but the main thing is to assess what we have and designed properly in the beginning. There may be duct work needing to be pulled out, dampers may have to be moved, eliminated, or added. They would also assist with the bid process and inspection. Mr. Cometto added that the contract also includes the upgrades to the HVAC at the water treatment plant. They conducted a study last year to identify the repairs needed and made the recommendation

3 Page 3 for both buildings, whose systems are between 25 to 35 years old and are falling apart. He noted that they would put together a set of contract documents that would allow us to go out and separately bid the water plant and the COC, and do the improvements. It will include the construction drawings and specifications to be able to put the project out on the street, and partial inspection of the project. Staff will handle project biddings, award of contract, project management, and some inspections. A motion to approve the bid was made by Commissioner Hancock, seconded by Commissioner Watts, and unanimously approved. D. Manager Reeves presented a recommendation to approve an upgrade to the gas SCADA system, in the amount of $14, He noted that this is a sole source procurement through the authorized GE software distributor, Advantage Industrial Automation. E. Mr. Smith provided a presentation on a request to extend the contract with CGT for firm gas transportation, with the current contract term ending on February 1, He reported that if we wish to extend our firm contract, we must notify CGT by April 30. If a shorter term or lower price is requested, CGT may accept the shorter term, or may post our capacity for bidding, and we would have right of first refusal. He further explained that if we do not provide notice by April 30, it would result in automatic five-year extension. He noted that we have actually not used this capacity yet, except for yesterday when they managed to get gas through on an experimental basis. Mr. Smith reported that the cost impact of annual cost for CGT capacity is $41,770, mitigated by the reduced summer capacity of 325 Dth/day versus winter capacity of 500, which reduces demand charge cost. He noted that cost impact is also offset by releases of unneeded capacity that can be sold. Average recovery has been approximately 70%; actual cost over the last twelve months was $12,000. Mr. Smith provided benefits that include diversity of supply by providing an additional source of gas supply from SONAT; our primary source of gas is off Transco. He showed two primary connection points with Transco on the north end of the system; the primary one is the main line used. We rely entirely on capacity from the north from Transco. CGT is at the opposite end of the system and closer to our territory, so having that capacity is handy. Mr. Smith continued with benefits that include providing pressure/flow support at the south end of the system. In an emergency we would have 500 Dth firm, but if there was an emergency and

4 Page 4 more was needed, we could move more on an interruptible basis. That reduces the need for peaking service, and also provides additional capacity in case of system expansion. Mr. Smith recommended moving ahead with the five-year term for the CGT capacity agreement, at the current terms. This allows us to maintain capacity in case we need it over the five-year term, which is like using it as insurance and backup in case Transco fails for some reason. If and when we do need it, we would need it desperately. Chairman Monaghan asked how this ties with storage facilities; Mr. Smith responded that this is transportation and source because if there was a problem with Transco such as a hurricane, we would be able to get gas and transport out of CGT. It gives a little more flexibility when it comes to storage. A motion to approve the contract extension was made by Commissioner Hancock, seconded by Commissioner Watts, and unanimously approved. F. Manager Reeves presented a recommendation to accept the low bid meeting specifications, in the amount of $45,025, from Dick Smith Ford for a 2012 F350 extended cab truck. G. Manager Reeves presented a recommendation to reject all bids for an enclosed service body truck. He noted that $44,000 was budgeted for this vehicle; all but the low bidder came in $7,000 higher, making it necessary to look at alternatives. A motion to reject all bids was made by Commissioner Hancock, seconded by Commissioner Watts, and unanimously approved. H. Manager Reeves presented a recommendation to accept the low bid meeting all specifications for a crew cab truck from Dick Smith Ford, in the amount of $52,001, plus an additional amount of $3,285 for warranty coverage, for a total of $55,286. A motion was made by Commissioner Hancock, seconded by Commissioner Watts, and unanimously approved. I. Manager Reeves presented a recommendation to accept the low bid from Resource Electric LLC, in the amount of $56,803.26, for a SCADA software upgrade at the water treatment plant.

5 Page 5 J. Manager Reeves presented a recommendation to accept the low bid meeting specifications from Dick Smith Ford, in the amount of $47,970, for a super cab truck. A motion was made by Commissioner Hancock, seconded by Commissioner Watts, and unanimously approved. K. Manager Reeves presented a recommendation to accept the low bid meeting specifications from Love Chevrolet, in the amount of $55,755, for a closed body service truck. VI. Other Business: 1. Manager Reeves reminded the Commissioners of a pre-bid meeting later that day at 1:30 p.m., at the main office building. 2. Manager Reeves informed the Commissioners of a pre-bid meeting on Wednesday, April 25, at 1:00 p.m., at the main office, for roof repairs to the main office building. 3. Manager Reeves noted nothing had been budgeted to send the tapping team to Dallas, TX. A $5,000 grant is provided to the winning team by the AWWA; however, there will be some additional costs. Manager Reeves requested that the additional cost be covered by CPW. A motion was made by Commissioner Hancock, seconded by Commissioner Watts, and unanimously approved. 4. Manager Reeves requested authorization of additional water extension projects to be included in the bond projects as follows: Clark Avenue, at $43,000; Boles Avenue at $33,000; Fairview at $12,500; and Merrywood at $30,000. Commissioner Hancock asked is these water lines were being replaced; Mr. Chapman responded that they would be rerouting some lines that are on 12-in. cast iron and bringing it over to Laurel to feed off new ductile iron pipe.

6 Page 6 A motion to approve the projects was made by Commissioner Watts, seconded by Commissioner 5. Chairman Monaghan commented on receiving a call from the Pucketts Ferry Homeowners Association asking about trees being cut down along the road to the water plant; Mr. Chapman responded that it was being done by residents of Pucketts Ferry. 6. Mr. Noriega reported that they are finishing up a side road at Promised Land, but there is gas under the railroad tracks now. There are a few people interested, especially since propane prices continue to go up. 7. Chairman Monaghan welcomed Teresa Lake, the new Chief Financial Officer. VII. Executive Session: A motion was made by Commissioner Hancock and seconded by Commissioner Watts to go into Executive Session for personnel and contractual matters; the motion was unanimously approved. VIII. With no further business, the meeting was adjourned. Approved:, 2012 Secretary

COMMISSIONERS OF PUBLIC WORKS Minutes of July 25, 2013

COMMISSIONERS OF PUBLIC WORKS The regular meeting of the Board of Commissioners of Public Works was held on Thursday, July 25, 2013 at 10:00 a.m., in the Boardroom at 121 West Court Avenue. In attendance: