ROLL CALL The roll was called by the Clerk. All Trustees were present except Trustee Garrison.
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- Deirdre Gardner
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1 October 23, 2017 As voted by the Board of Trustees and in accordance with the notice of the meeting, the Regular Meeting of the Board of Trustees of the Portland Water District was held at the Jeff P. Nixon Training Center, 225 Douglass Street, Portland, Maine, on Monday, October 23, Attending from staff were Messrs. Kane, Crovo, Firmin, Wallace and Mses. Katsiaficas, Demers, Lewis and Walker. The meeting was convened by President Lunt at 6:01 p.m. with the Pledge of Allegiance and a moment of silence. ROLL CALL The roll was called by the Clerk. All Trustees were present except Trustee Garrison. ACCEPTANCE OF MINUTES It was moved by Trustee Libby, seconded by Trustee Cote. Voted all in favor to waive the reading and accept the minutes of the Regular Meeting of September 25, 2017 and the Workshop Meeting of October 10, INVITATION FOR PUBLIC COMMENT None REPORTS Operations Committee Trustee Siviski provided a summary of the Operations Committee meeting on October 10, Staff discussed the project and provided a recommendation for the method of procurement for the upcoming East End Wastewater Treatment Facility Secondary Clarifier and Return Activated Sludge assessments. A summary of PWD s biosolids management program was presented. Biosolids, generated from the treatment of wastewater at our plants, are dewatered and hauled offsite by our contractor Casella Organics. Staff discussed increased biosolids hauling costs in 2017 due to issues with the dewatering system at the East End Facility. The equipment is currently being rebuilt and should be fully refurbished by the end of November. In 2018, the new dewatering equipment at the Westbrook/Gorham Regional Plant is expected to become operational. Staff also provided an update on a leak on Route 1 in Scarborough, which caused substantial damage to the road. Planning Committee Trustee Levinsky provided a summary of the Planning Committee meeting on October 10, Paul Hunt reviewed with the committee the District s Industrial Pretreatment Programs for Westbrook and Portland. In Westbrook, the District has complete control over the Program. In Portland, there is shared responsibilities for the Program but the City is interested in the District taking back responsibility for all aspects of the Program. Staff will be requesting and budgeting for an additional position as part of the 2018 budget plan. In addition to this new position, 25% of a wastewater systems employee s time would be dedicated to IPT sampling in Portland and this is also reflected in the budget. The City of Portland, through the District s annual sewer assessment, will fund the additional position. 1
2 October 23, 2017 Staff also provided an overview and history of the control and monitoring of the lake level for Sebago Lake. Administration and Finance Committee Trustee Willey (Trustee Garrison was absent) provided a summary of the Administration and Finance Committee meeting on October 10, Mr. David Kane present two amendments to the pension plans. Allowing a Union employee that is currently in the defined benefit plan to continue accruing benefits if they take a non-union position and calculating benefits for the participants for all their years of service. Ms. Michelle Clements reviewed the on-line customer satisfaction survey. She noted the survey would be distributed to customers in the coming months. The survey will be electronic for the first time. She will summarize the results and present the findings at a future Board meeting. Ms. Robin Doiron, Customer Service Manager, presented an amendment to the Terms and Conditions to comply with a recently issued Consumer Assistance & Safety Division (CASD) Rule interpretation. The rule requires a unique separate fee for single-meter, multi-unit buildings. Mr. David Kane noted Clark Insurance was selected to provide insurance for the year beginning October 1, Mr. Kane also presented a summary of the recently completed actuarial valuation reports on the defined benefit plans. He noted the proposed plan contribution for 2018 is $1.4 million, $200,000 less than the current year. The calculation assumed that future investment returns would be 6.5 percent, down from 7.0 percent. The assumption change increased the contribution by $200,000. He reviewed several benchmarks comparing PWD plans to others. A review of the customer service entry area was completed and several improvements to enhance security will be made. General Manager s Report Ms. Carrie Lewis provided the following update. She noted that she used the monthly report to give an overview of the employee suggestions that were given during the listening sessions this summer. Ms. Lewis then proceeded to give an overview of the proposed budget for Operating Expense: 2.5% Increase Total Budget, Including Capital Bond Costs: 3.8% Increase Staffing: Four Additional Positions Capital: Continue Implementing Plans WW Assessments: Meet Municipal Expectations Water Revenue Adjustment 3.8% (pending further Board review and approval in 2018) Resulting in an Average Water Rate Adjustment of 3.8% 2
3 October 23, 2017 The PowerPoint presentation given by Ms. Lewis is attached hereto. NEW BUSINESS Order , authorizing amendments to the District s Defined Benefit Plans and the Deferred Compensation Plan. Two changes to the Defined Benefit Pension Plan are proposed: Allowing an Union employee that is currently in the defined benefit plan to continue accruing benefits if they take a non-union position, and Calculating benefits for the participants for all their years of service. Union Employees Continue Accruing Benefits if they take a Non-union position Effective December 31, 2011, the non-bargaining defined benefit pension was frozen allowing no new plan participants. With the freezing of the plan, bargaining unit employees accepting a transfer into a non-bargaining unit position starting on January 1, 2012 or later were required to participate in the deferred compensation (457) retirement plan. For some employees, this requirement discouraged them from considering to apply and/or accept a non-bargaining position. Staff recommends such bargaining unit employees be given a one-time irrevocable option to either continue participation in the defined benefit plan OR participate in the deferred compensation (457) plan, with the election being made when the non-bargaining unit position is accepted. Benefits Includes All Years of Service Currently benefits are calculated based on the number of years of service, except it excludes any time before the age of 21. The amendment proposes to include all years of service for participants retiring in the future. Currently, five employees would be impacted. The Trustees asked questions and discussed the changes and the impact it will have on current employees. It was moved by Trustee Libby and seconded by Trustee Beck. It was Voted and unanimously, ORDERED, amendments to the District s Defined Benefit Plans and the Deferred Compensation Plan, as recommended by legal counsel, are hereby authorized to allow bargaining unit employees who accept a non-bargaining unit position the option of electing to receive benefits upon retirement calculated in the same manner as in the bargaining unit pension plan, with this election available to bargaining unit employees employed by the District and covered by the bargaining unit agreement prior to January 1, 2011; and BE IT FURTHER ORDERED, that this election must be a one-time, irrevocable election made by the bargaining unit employee at the time of acceptance of the non-bargaining unit position; and 3
4 October 23, 2017 BE IT FURTHER ORDERED, amendment to the District s Defined Benefit Plans are hereby authorized to amend the definition of credited service to include all of the participants years of service; and BE IT FURTHER ORDERED, that the Plan Amendments shall have an effective date of October 1, 2017; and BE IT FURTHER ORDERED, that the General Manager and the Treasurer, each acting singly, is hereby authorized and directed to take any actions, and to execute any and all documents, as may be necessary or appropriate to carry out the intent of this vote. Resolution , accepting the revisions to the District s Terms and Conditions. On September 22, 2017, the Consumer Assistance & Safety Division (CASD) issued an interpretation of Chapters 815 and 660 of the Rules of the Public Utilities Commission. The interpretation clarified that a utility must charge a fee before the disconnection of service to a single-meter, multi-unit building for non-payment. Currently, the District assesses a fee for all tenant occupied accounts including single-meter, one-unit buildings. CASD informed us that PWD needed to have a unique separate fee for single-meter, multi-unit buildings. The proposed amendment to the District s Terms and Conditions establishes a $100 fee for those circumstances. It eliminates the fee for single-meter, one-unit buildings since there are only a few instances per month. The Trustees discussed the changes the PUC ruling will have on tenants and property owners. It was noted that the tenants rights are still protected and it is hoped that this charge will help keep the landlords from failing to pay sums owed to the District. It was moved by Trustee Willey and seconded by Trustee Libby. It was Voted and unanimously, RESOLVED, the revisions to the District s Terms and Conditions of water service are hereby adopted in substantial form as attached hereto. Order , authorizing the phased engineering method for the procurement of engineering services for the East End WWTF Secondary Clarifier and Return Activated Sludge Assessments. Pursuant to the District s purchasing policy, staff is seeking approval from the Board of Trustees to procure engineering services (phased method) to perform a condition assessment of the secondary clarifiers and evaluate return sludge withdrawal, pumping and flow split. The phased method for engineering will limit the scope of services of this contract to condition assessment, alternatives analysis, and budget level costing. Staff estimates that the cost for this effort to be $55,000. This project will include assessing the concrete and steel structures as well as the sludge withdrawal mechanisms, which are nearing the end of their service life. This project will also evaluate alternatives to provide an even distribution of return sludge and associated piping and valves nearing the end of their service life. 4
5 October 23, 2017 It was moved by Trustee Siviski and seconded by Trustee Libby. It was Voted and unanimously, ORDERED, that the Phased Engineering Method is authorized for the procurement of engineering services for the East End WWTF Secondary Clarifier and Return Activated Sludge Assessments, pursuant to the District s Purchasing Policy, and that the General Manager and the Treasurer, each acting singly, are authorized to take such other steps as may be necessary to accomplish the intent of this vote. EXECUTIVE SESSION None OTHER BUSINESS President Lunt presented a certificate of appreciation to Mark Curtis, Trustee from Gorham. Mr. Curtis will not be running for re-election, and it was the last meeting he was attending as Trustee. SECOND INVITATION FOR PUBLIC COMMENT None TRUSTEE COMMENTS Trustee Willey thanked all the first responders in the State of Maine for their hard work and dedication. President Lunt urged everyone to get out and vote in November, as there are 3 Trustee seats up for election. Adjournment. Meeting adjourned at 7:12 p.m. Submitted by Donna M. Katsiaficas Clerk 5
6 Portland Water District 2018 Proposed Budget October 23, 2017 Jeff P. Nixon Training Center
7 Who We Are 182 positions in Administration, Engineering, Environmental, Wastewater, Water 59 Non- Union (31%) 36 Female (20%) 123 Union (69%) 146 Male (80%)
8 Who We Are 70's 1% 60's 23% 50's 25% Employees by Age 20's 7% 40's 19% 30's 25% Average Years of Service Administration 10.0 Engineering 16.2 Environmental 11.6 Water 17.2 Wastewater 19.1 Overall 15.3 Age by Department Water Wastewater Environmental Engineering Administration 20's 30's 40's 50's 60's 70's
9 What Employees Like About PWD
10 Strategic Goals Public Health Public Safety Environment Reliability Affordability Employees/Work Environment
11 Protecting the Lake and Watershed Monitoring and Inspecting Providing Security Promoting and Educating
12 Providing Sufficient Quantity of Water Plant Production (in millions of gallons a day) Capacity Average Peak
13 Delivering Quality Water Distribution System Chlorine Residuals Main Flushing Program
14 Reliably Delivering Water PWD Main Breaks per 100 Miles (2017 is YTD) Main Breaks / 100 Miles PfSW Goal Linear (Main Breaks / 100 Miles) WRF Average PWD Goal Main Investments and Operational Improvements Contribute towards Reducing Leaks 53,000 Accounts 210,000 Population Served 1000 Miles of Pipeline 10,500 Valves 4,500 Fire Hydrants 5 Booster Pumping Stations 10 Storage Facilities
15 Receiving and Treating Wastewater Over 21 Million Gallons per Day 10,000 8,000 6,000 4,000 2,000 0 MG Wastewater Treated East End Wastewater Treatment Plant Aeration System Four Treatment Plants 76 Pumping Stations
16 Returning Wastewater Safely to the Environment 2,500 East End Sludge (wet tons) 2,000 1,500 1, Digested Composted Landfilled Westbrook Sludge (wet tons) Removal BOD and TSS 100% 0% ,200 1, BOD TSS Digested Composted Landfilled
17 Monitoring Water and Wastewater Quality Environmental Laboratories Industrial Pretreatment
18 Planning and Implementation: Plan and design developer-installed projects Long range planning for water mains and vertical assets Engineering Services Oversee facilities Support of SCADA system
19 Keeping Everything Running Administration Customer Service, Information Services, Financial Services Corporate Counsel Employee Services Recruitment Safety Employee Benefits Public Relations Project ABC
20 Providing Affordable Service: Water $600 $500 Massachusetts $400 National $300 $200 $100 Portland Water District vs Other Utilities National: Massachusetts: $ 121 or 26% lower $253 or 43% lower $
21 Annual Budget Goals Operating Budget Increase Not to Exceed Inflation Rate Wastewater Assessments Meet Municipal Expectations Number of Positions Optimized for Workload Capital Budget: Continue Implementation of W/WW Master Plans
22 2018 Operating/Capital Budget (in millions) $50.0 $40.0 $42.0 $43.6 $30.0 $20.0 $18.7 $19.3 $10.0 $0.0 Operating Capital
23 2018 Operating Budget $43.6 million, increase of 3.8% All Other Expense 30.8% 2018 Operating Expense Debt Service 20.8% Contracted Services 6.8% Employee Benefits 9.3% Renewal & Replacement 13.1% Salaries & Wages 19.2%
24 Goal: Operating Budget Expense Increase Not to Exceed Inflation Rate $45.0 $43.0 $ Budget 2018 Guideline 2018 Proposed Operating Expense 1.6% 2.5% 2.3% Municipal/Regulatory 0.7% 0.4% 0.5% Water Capital Reserve 0.6% 0.7% 0.5% Mains/Other Capital (net) 0.9% 1.4% 0.5% Total 3.8% 5.0% 3.8% $42.0 $43.6 $39.0 $39.8 $37.0 $35.0 $35.2 $35.8 $35.9 $36.2 $36.5 $36.3 $37.1 $38.3 $33.0 $32.9 $32.3 $31.0 $31.7 $31.2 $30.2 $ Actual 2006 Actual 2009 Actual 2012 Actual 2015 Actual 2018 Budget
25 Goal: Wastewater Assessments Meet Municipal Expectations $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 Assessment Change Actual Goal Proposed Cape 1.8% 6.4% 4.8% Cumberland 2.6% 7.0% 7.2% Falmouth 632.0% 17.8% 17.6% Gorham 0.0% 2.0% 0.0% Portland 4.7% 5.2% 3.4% Westbrook 0.0% 5.0% 0.0% Windham 2.5% 1.5% 0.0% 3.4% $4,000, % 7.2% 17.6% 0.0% 0.0% 0.0% $2,000,000 $- Cape Cum Falmouth Gor Port West Win 2017 Actual 2018 Board/Municipal Expectation 2018 Budget
26 Goal: Optimize Number of Employees for Workload Goal Budget Request Head Count (Added Industrial Pretreatment position at the request of the City of Portland) Full-time Equivalent Head Count Full-time Equivalent
27 Goal: Capital Budget Continues the Implementation of Water /Wastewater Plans Water $13.8 million Wastewater $5.5 million Facilities 3% Water Supply 0% Water Distribution System 63% SCADA and Technology 30% Vehicle and Equipment 4% Collection System, 36% Treatment Plant, 64%
28 Water Rate Increase Annual Surplus: Without Increase: Deficit of $365, % Increase: Surplus of $224,043 Operating Reserve: $6.4M or 27%, 2% better than target Customer Class Impact: 3.8% Residential 3.6% ($ 0.79/mo.) Commercial 4.6% ($ 7.69/mo.) Fire Protection 3.8% Rate Increase Stability: Rising expenses, primarily debt service, estimated to need 5% 6% increases in future years.
29 Budget Process and Document
30 Recap of Goals Operating Expense: 2.5% Increase Total Budget, Including Capital Bond Costs: 3.8% Increase Staffing: Four Additional Positions Capital: Continue Implementing Plans WW Assessments: Meet Municipal Expectations Water Revenue Adjustment 3.8% (pending further Board review and approval in 2018) Resulting in an Average Water Rate Adjustment of 3.8%
31 Budget Timeline Board Committees review individual department budgets in detail in November Board will review the Capital Improvement Plan at the November workshop Municipal visits to discuss Assessments in October/November; Trustees invited to join us
32 Discussion Board Input Questions and Comments
ROLL CALL The roll was called by the Clerk. All Trustees were present except Trustee Garrison.
As voted by the Board of Trustees and in accordance with the notice of the meeting, the Regular Meeting of the Board of Trustees of the Portland Water District was held at the Jeff P. Nixon Training Center,
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