12
KENNEBEC WATER DISTRICT
REGULAR BOARD OF TRUSTEES MEETING
THURSDAY – DECEMBER 1, 2016 at 7:30 AM
The meeting was called to order at 7:30 a.m. by President Hodsdon.
Trustees present: Al Hodsdon, President; Karl Dornish, Vice-President; J. Michael Talbot, Treasurer; Allan Fuller, Clerk; Jeff Earickson, Assistant Treasurer; Joan Sanzenbacher, Trustee; Gary Coull, Trustee; Bill Boucher, Trustee; Patricia Gorman, Trustee; Mark McCluskey, Trustee
Trustees absent: None
Trustee Boucher joined the meeting at 7:40 a.m.
Trustee Talbot left the meeting at 8:40 a.m.
Trustee Elect Frank Richards left the meeting at 8:40 a.m.
Also present: Jeff LaCasse, General Manager; Jefferson Longfellow, KWD Engineer; Benny LaPlante, KWD Distribution Superintendent; Mike O’Brien, KWD Customer Service/Safety Manager; Matt Zetterman, KWD Director of Water Quality; Sue Markatine, Recording Secretary
ITEM 1: INTRODUCTION OF GUESTS
Frank Richards, Trustee-Elect from the Town of Vassalboro, was recognized and introduced to the Board members and KWD staff in attendance at today’s meeting.
ITEM 2: REVIEW AND APPROVE THE MINUTES OF THE REGULAR BOARD OF TRUSTEES’ MEETING OF NOVEMBER 17, 2016.
Motion by Trustee Talbot, “to accept the minutes of the Regular Board of Trustees’ Meeting of November 17, 2016,” seconded by Trustee Sanzenbacher.
Vote: Motion carried unanimously.
ITEM 3: FINANCIALS
A. ACCOUNT WARRANTDecember 1, 2016
CHECKS RELEASED / Check / Dollar
Vendor / Description / Date / Amount
Aramark / Employees Clothing / 11/10/16 / 80.45
BNY Mellon Corporate Trust / 2004 Bond Principal & Interest / 11/10/16 / 38,150.55
BPMS Software / Annual Updates and Technical Support for BFP Program / 11/10/16 / 312.00
Central Maine Power / Monthly Electricity Taylor Avenue / 11/10/16 / 41.41
Central Tire Company Inc. / Two New Studded Snow Tires and Mounting-TK 5 / 11/10/16 / 338.00
Earthlink Business / Monthly Telephone Service / 11/10/16 / 320.43
Hussey Communications Inc. / Monthly Internet Service / 11/10/16 / 212.00
Kennebec Water District / Monthly Petty Cash / 11/10/16 / 48.40
M C Disposal Inc. DBA CMD / Monthly Rubbish Removal / 11/10/16 / 88.00
Gerald MacKenzie Inc. / Pavement Patches-Various Locations / 11/10/16 / 4,073.45
Maine Labor Relations Board / Arbitration Service-Hearing (1/2 the Cost) / 11/10/16 / 418.00
Treasurer, State of Maine / Monthly Sales Tax / 11/10/16 / 2,355.45
Treasurer, State of Maine / Water Operator License Renewals-3 Employees / 11/10/16 / 225.00
Treasurer, State of Maine / Water Tests / 11/10/16 / 120.00
MainePERS / Monthly Employer Pension Contribution / 11/10/16 / 7,290.91
MainePERS / Monthly Group Life Premiums / 11/10/16 / 703.43
Waterville Sewerage District / Quarterly Sewer Bill-Various Locations / 11/10/16 / 137.70
City of Waterville / Excavation Permit / 11/10/16 / 75.00
Postmaster / Bulk Mail Postage-Billing / 11/15/16 / 414.03
City of Waterville / Excavation Permit / 11/16/16 / 75.00
FedEx / Overnight Charges-Chlorate Sampling / 11/16/16 / 85.98
Wex Bank / Monthly Vehicle Fuel Usage / 11/16/16 / 1,382.77
Harcross Chemicals Inc. / Sodium Hypochlorite-WTP / 11/16/16 / 2,064.13
J & S Oil Company Inc. / Diesel Fuel / 11/16/16 / 279.37
Kennebec Auto Service / Repairs-Tk 8 / 11/16/16 / 323.70
Kennebec Equipment-FF / Pressure Washer Wand for Vacuum Unit / 11/16/16 / 79.00
M C Disposal Inc. DBA CMD / Monthly Portapotty Rental / 11/16/16 / 75.00
Maine Central Railroad, Treasurer / Real Estate Taxes-Winslow Pipe / 11/16/16 / 54.00
Maine Environmental Solutions / Survey of China Lake Gravel Roads / 11/16/16 / 3,000.00
Treasurer, State of Maine / Water Tests / 11/16/16 / 1,000.00
MaineToday Media Inc. / Newspaper Notice-Semi-Annual Hydrant Flushing / 11/16/16 / 272.25
Northern Safety Company Inc. / Antibiotic First Aid Ointment / 11/16/16 / 21.61
Fanado Pelotte / Wheeler/Stock Pile Gravel / 11/16/16 / 9,046.50
PRC Industrial Supply / Suction Hose for Vacuum Unit / 11/16/16 / 532.11
Results Engineering Inc. / Configure Existing PLC to Connect to the Internet / 11/16/16 / 1,916.96
David Morin / Lawn Service-Various Locations / 11/16/16 / 940.00
Staples Credit Plan / Battery Backup / 11/16/16 / 64.99
Time Warner Cable / Monthly Internet/Telephone Service / 11/16/16 / 232.57
Tractor Supply Credit Plan / Spotlight/Jump Starter / 11/16/16 / 74.98
USA Blue Book / Distilled Water-WTP / 11/16/16 / 65.00
Utilitronics / Hydrant Pump / 11/16/16 / 488.63
Walmart Community/GEMB / Hip Waders/Paper Goods/Beverages / 11/16/16 / 98.90
City of Waterville / Permits-Various Locations / 11/16/16 / 418.30
G H Berlin Windward / Mobil Heavy/Medium Oil-M-4 / 11/16/16 / 397.28
WP Waterville Associates / Refund-Fire Svc Billed in Adv. & Pd. For-Property Sold / 11/16/16 / 343.49
Joseph's Sporting Goods / Employees Clothing / 11/16/16 / 404.46
Postmaster / Bulk Mail Postage-Billing / 11/18/16 / 339.00
Postmaster / Bulk Mail Postage-Billing / 11/23/16 / 309.17
TOTAL WARRANT / $79,789.36
Motion by Trustee Earickson “to ratify the total warrant of checks released for $79,789.36,” seconded by Trustee Talbot.
Trustee Earickson asked for a further explanation of the payment made to Maine Environmental Solutions for $3,000. Mr. LaCasse explained that as stewards of the China Lake water shed, KWD has partnered with the Kennebec County Soil and Water Conservation District (KCSWCD) in connection with this project. This survey was conducted in order to determine the various points of phosphorus run-off contributed by the gravel roads leading to China Lake, and the areas in which to focus in order to impede and control this run-off. Trustee Hodsdon added that phosphorus is a leading promotor of the growth of algal blooms. Trustee Coull mentioned that there are typically big plumes in the lake in the areas in which there is soil infiltration. Mr. Zetterman informed the Board that the cost of this survey will be reimbursed from the Maine Drinking Water Source-Water Protection Grant Program.
Vote: Motion carried unanimously.
B. Corrected Health Plan Spreadsheet Review
At the November 17th meeting, Mr. LaCasse informed the Board that he had received notification from the Maine Municipal Association (MMA) that the health insurance rates for the plan KWD is enrolled, PPO 1500 ($1,500/$3,000 deductible), will increase by 11.25 percent in 2017. During the November 17th meeting, the Trustees were provided with several spreadsheets and various options were reviewed. At today’s meeting, updated spreadsheets were given to the Board members. Although the PPO 2500 plan ($2,500/$5,000 deductible) would result in some KWD savings, the potential added cost impacts on the KWD employees would be significantly greater. At this time, Mr. LaCasse recommended remaining with the PPO 1500 plan under the current conditions. The three-year unit contract does expire at the end of 2017. At that time the Board can review and propose a change if desired to the present KWD employee health insurance plan agreement.
Motion by Trustee Sanzenbacher, “to accept the 11.25 percent increase and to retain the current MMA PPO 1500 insurance plan through 2017 with KWD funding the employee deductible portion of the plan,” seconded by Trustee Earickson.
Vote: Motion carried unanimously.
C. Schedule for Rate Increase Implementation
As part of their packet, the Trustees were provided with documents composed by Mr. LaCasse entitled Proposed Schedule for Rate Increase Implementation – Schedule Option 1 and Schedule Option 2 and, as governed by Maine Statute, Comparison Between Rate Increase Processes – Standard Chapter 6104 and Streamlined Chapter 6104-A (based on a water utility with annual total revenues similar to KWD) with the timeline involved in rate filings for both chapters. Mr. LaCasse explained that for the 6104, there is no limit on the percentage increase as long as it is justified and approved by the KWD Board and the Maine Public Utilities Commission (MPUC). For the 6104-A, the maximum increase is 3 percent with a cumulative total not to exceed 10 percent over a 5-year period. The overall process for the two chapters is very similar except for a couple of respects. For the 6104-A, a “Public Meeting” is required with public comment and minutes taken. For the 6104, a formal “Public Hearing” is required with public comment, minutes, and notice of right to petition. For the 6104 there is a petition process available requiring 1,000 customers’ signatures. The customers are informed of the availability to petition through the customer required notification process and during the formal public hearing. Mr. LaCasse mentioned that during the last public hearing in 2013 for a 5-percent increase no one from the public attended the public hearing. Because the proposed increase is above 3 percent, Maine Statute – Standard Chapter 6104 will be the process required for the KWD rate filing.
The next item discussed was the schedule options in order to meet the timeline for the numerous notifications and filings. Under option one, the tentative timeline for a few of the tasks are as follows: 1) Published notice and customer notification by the end of December; 2) Public hearing the middle of January; 3) Trustee review of the public hearing minutes and the making of the motion for the formal filing the following Board meeting. After some discussion, the Trustees suggested holding the public hearing on January 17th with an alternate date of January 18th in the event of a snowstorm and with the venue yet to be determined. At the January 19th meeting, the Board can then make the motion for the formal filing of the rate increase. The formal filing to the MPUC starts the official timeline as to when the rate can become effective, with the planned effective date of April 1, 2017.
Mr. LaCasse explained that he will conduct a Powerpoint presentation at the public hearing explaining and providing supporting financial documentation for the proposed rate increase. During and following the presentation, the forum will be opened for a question and answer session. Mr. LaCasse invited and suggested that the Trustees attend this hearing. In addition, KWD’s legal counsel will be in attendance to officially pronounce the meeting opened and to serve as advisor. Mr. LaCasse added that hearings normally have been audio recorded and transcribed to written form.
The next item reviewed was the financial impact for the municipalities and customers if a 5 percent increase is approved. The approximate annual increase for the public fire protection for the municipalities will be as follows: Waterville $16,800; Winslow $7,200; Fairfield $6,200; Benton $1,600; and Vassalboro $880. Because the rate increase is not slated to be in effect until April 1st, in 2017 the financial impact for the municipalities will be as follows: Waterville $12,600; Winslow $5,400; Fairfield $4,650; Benton $1,200; and Vassalboro $660. For an average customer who typically uses 1200 cubic feet per quarter, the increase will be $3.81per quarter, which is $1.27 per month or $0.04 per day.
D. 2017 Operating and Capital Budget Plan (Narrative)
Mr. LaCasse is in the process of compiling the 2017 Operating Budget and 2017 Capital Budget plan. He intends to present the Operating Budget at the December 15th meeting, and the Capital Budget early 2017.
E. Other
None
ITEM 4: MOTION ISSUES
A. Other
None
ITEM 5: TRUSTEES
A. Comments, Concerns, Ideas
Trustee Gorman mentioned that she was approached by a customer inquiring if KWD had an on-line payment system. Mr. LaCasse answered that in addition to check and cash payments, KWD offers payment options of a Visa or MasterCard debit or credit card either in person, by telephone, or via the on-line payment system accessed thru the KWD website. He further explained that customers can not view their bill on-line; therefore, when paying on-line, they need to either have the bill they have received via U. S. mail available or to know the dollar amount due and their account number. After the payment has been completed, the customer receives an e-mail receipt. Trustee Gorman asked the number of customers who utilize the credit/debit card service. Mr. LaCasse replied that there are hundreds per month who pay via credit/debit card either in person or by calling the business office. In addition, as customers learn of the on-line option, this is becoming a more popular payment method. Trustee Fuller asked if KWD also offers automatic payment withdrawal. Mr. LaCasse responded that KWD is not set up for this type of transaction; however, many customers have set up automatic payment through their financial institute. Trustee Coull asked and Mr. LaCasse confirmed that there is no charge to customers to use their credit/debit card, but there is a cost to KWD. The fees are dependent on which card is used and the amount of the payment. Trustee McCluskey stated that he would be interested to know the approximate monthly cost to KWD. Mr. LaCasse will report this figure to the Board at a future meeting. Overall, because customers are able to make payments by this method, there have been fewer water disconnections due to non-payment of bills saving KWD a considerable amount in labor and transportation costs which aids in balancing out the fees charged to KWD.
On a different subject, Trustee Dornish brought to today’s meeting a newspaper article from the Morning Sentinel dating back to 1943 regarding a clash between KWD and the Waterville City Council over water availability for the Kiwanis swimming pool. The Board thanked him for bringing in this bit of interesting and rather humorous history.
B. Maine Rural Water Annual Conference
The Trustees were provided with the registration form for the Maine Rural Water Association annual conference scheduled for December 6th, 7th, and 8th at the Cross Center in Bangor. Any Trustees who are interested and have not yet signed up for a session(s) can inform Mr. LaCasse if they are interested in attending.
C. Other
None
ITEM 6: DEPARTMENT OPERATIONAL REPORTS
A. Operations and Maintenance Update December 1, 2016
The O+M Department has now completed the first round of hydrant checks. We found six hydrants in need of maintenance ranging from an hour repair with a two person crew to replacing a hydrant with five people, Pelotte’s excavator, and Pelotte’s dump truck to help, which took all day. Some minor maintenance and some seem to have been hit by a vehicle with no reporting. Obviously this task is crucial to keeping the hydrants working properly so there are no issues when they are needed by the fire departments for emergency purposes. We will continue checking the hydrants to verify they are dry for the winter on a monthly basis until they are deemed dry two times in a row.