MINUTES
ANNUAL & REGULAR MEETING
ENGLEWOOD WATER DISTRICT BOARD OF SUPERVISORS
JANUARY 7, 2010 @ 8:30 A.M.

Board of Supervisors:
Steve Samuels, Chair – Seat #1
Taylor Meals – Seat #2
Sydney Crampton – Seat #3
Phyllis Wright – Seat #4
Paul Manke, Vice-Chair – Seat #5

Staff:
Richard L. Rollo, PE – Administrator
Robert H. Berntsson – District Counsel
Maureen A. Cronk – Administrative Assistant

1.     The meeting began with the Pledge of Allegiance and a roll call to establish a quorum.

2.     ANNOUNCEMENTS – Additions & Deletions

3.     ELECTION OF OFFICERS – Attorney Berntsson took over the meeting, calling for nominations.  Mr. Meals nominated Mr. Samuels as Chair; Seconded by Ms Crampton.  Nominations were closed

Unanimous         10-01-07 A

Mr. Samuels resumed the gavel asking for nominations for Vice Chair.  Ms. Wright nominated Mr. Manke; Seconded by Mr. Meals. Nominations were closed.

Unanimous         10-01-07 B

4.     PUBLIC HEARING – Customer Rules & Regulations Section 27; Rates, Fees & Charges -
Mr. Rollo reviewed previous discussions about the charges; increasing miscellaneous fees to coincide with current rates.  The only change which may affect the average customer is the conservation rate.

The meeting was Open for Public Input

There being no one in the audience, Public Input was closed.

Ms. Wright moved, “To accept the proposed changes to Section 27 of the Customer Rules and Regulations as presented” Seconded by Mr. Manke

Unanimous         10-01-07 C

5.     PUBLIC INPUT - None

6.     CONSENT SECTION – Chair Samuels called for comments on the consent items.  Hearing none, Mr. Manke moved “to accept the Minutes of the Regular Meeting of December 3, 2009 and the Attorney’s invoice dated December 1, 2009 as presented” Seconded by Ms. Wright

        a.     Minutes of the Regular Meeting December 3, 2009          10-01-07 CS A
        b.     Attorney’s Invoice dated December 1, 2009        10-01-07 CS B

7.     ACTION ITEM
        a.     ASR Supplemental Reclaimed Water Supply – Mr. Linden introduced the item. Next step to begin the permitting and design process; SWFWMD is funding 50%.  Fee is $60,000, had $50,000 in the budget and transferred $15,000 from the RO expansion project which came in under budget. 

Mr. Meals moved, “To authorize the Administrator to sign Task Order ASRUS-10-002 for the ASR Supplemental Reclaimed Water Supply Well Project in the amount of $60,000 as stipulated in the Scope of Services dated December 3, 2009.  Project costs to be taken from Wastewater Revenue” Seconded by Mr. Manke

Unanimous         10-01-07 D

       b.     CY ’10 Schedule of Meetings – Mr. Rollo introduced the item.  This schedule follows same used the past 2 years; 6 months of 2 meetings; 6 months of 1 meeting.  It seems to have worked well.

Mr. Manke moved, “To accept the Schedule of  Regular Meetings for Calendar year 2010 and the Annual Organizational meeting of 2011 as presented” Seconded by Ms. Crampton

In the discussion Mr. Meals reminded everyone that a meeting can be scheduled at any time if the need arises.

Unanimous         10-01-07 E

       c.     RO WTP DIW #1 Mechanical Integrity Test – Mr. Ray introduced the item.  The permit requires this test every 5 years; with a 2.5 year interim test because this is an older well.  This is the full-blown test; paperwork must be submitted 6 months prior.  Turn key project, in the operating budget, somewhat routine.  In the future we want to combine the testing period and do the two injection wells at the same time; that should significantly lower the costs.

Mr. Manke moved, “To authorize Task Order #PBS&J-10-002 to the General Service Agreement with PBS&J to provide engineering services for the Mechanical Integrity Testing of DIW #1 in the amount of $51,798.00 as specified in the Scope of Services dated November 16, 2009. Funds to come from Operating Revenue” Seconded by Ms. Wright

Unanimous         10-01-07 F

8.       DISCUSSION ITEM
V9A & V9B – Cash Flow & Financing Options – Mr. Rollo reminded the Board of the public hearing scheduled for January 22nd.  Today we are looking at one chart from the draft briefing document; funding options. Timing of assessment collection is a primary factor.  Cash flow will have to be closely monitored to coordinate tax collection and construction payments.  Different scenarios and interests have been reviewed.  (chart attached). 

Ms. Zoeller explained the chart’s bullets and progression (attached).  $391,000 over a six year period is the difference between 6 years @ 0% and 15 years @ 3%. 

Mr. Rollo noted that to make it work we would award the contract in the fall with a notice to proceed in October/November; 1st progress payment 30 days later to coincide with first assessment receipt from County.  Would be very concerned with a 15 year repayment. 

Discussion continued covering actual payment totals by customers, how the 3% interest rate was selected (prime is 3.25), properties in foreclosure, the hardship program, and the fact that the District is not being fully reimbursed for the transmission and plant fees already expended.

Chair Samuels recognized staff’s hard work on this program to accommodate EWD needs and at the same time the needs of the people in the area.  The $8,600 will be much higher as time passes; that’s a real concern.  If we don’t take advantage now….

9.       SELECTION COMMITTEE REPORT – Ms. Zoeller, Committee Chair reviewed the Committee minutes, recommending that the position be open to internal candidates first to see if there are qualified candidates who wish to apply for the position. 

Mr. Meals acknowledged it makes sense to look internally; someone from the outside knows nothing about us. We’re not in a massive growth position; it’s more maintenance and operation with few capital projects.  Someone from outside will need 2 years to understand how we operate; until things dramatically turn around.

After further discussion of the committee’s recommendation, Mr. Manke moved “to accept the Committee recommendation, then dismiss the Committee” Seconded by Mr. Meals

Unanimous         10-01-07 G

Discussion continued regarding potential candidates, the lack of a requirement to advertise publically before filling the position.  The qualifications and criteria are at the discretion of the Board.  Select the person you have the most faith and confidence in, and trust. Selection should be based on performance. You’ve all been here for many years; for the last 9 years there have been 4 people running the District.  Selection can be by knowledge rather than a 10 minute resume or interview.  Look at your senior management; what is in the best interest of the District at this point in time.  Attorney Berntsson agreed.  Ms. Zoeller stated that the committee had discussed this; it was a consensus to go internally first rather than waste the time and money on a nation-wide or even local search when we have qualified candidates on staff.

The board has a choice between two people; Jay Linden and Mike Ray; base a selection on performance and personal knowledge.     

Chair Samuels added it has always been a proponent of promotion from within; sends a strong message of confidence and makes for a stronger organization.  Can’t see a down-side; we have 2 people with strong proven record.  We know what we’re getting; a strong history.  Feel confident going forward.

Recess 9:41 – 9:48 (recording did not restart)

The internal posting document was distributed. Mr. Meals found the posting describes both candidates.  Mr. Meals made a motion “to appoint Mike Ray Acting Administrator”.

Ms. Crampton questioned the need for a PE; only Jay has that.  So we do need to know that that would still be part of the position that Jay would continue.  He would be the PE for the District.  Mr. Rollo noted that because of the construction program it is more cost effective to have a PE on staff.  Optimistic that V-9 -10 -11 would move forward and is still a wise decision to have on staff. 

Ms. Crampton questioned the procedure.  Mr. Rollo stated with a consensus of the Board someone could be selected today, negotiations can begin to bring a contract to the February meeting.  Terms to be negotiated by Chair and Attorney; should they fail to agree, move on to next candidate.  Over the next two months could have an interim deputy administrator to give an opportunity to get into the flow. 

Mr. Meals amended his motion “To nominate Mike Ray as candidate for Administrator” Seconded by Mr. Manke

In discussion, Ms. Crampton asked if the candidate would like to speak.

Ms. Wright expressed having trouble with this process.  They’re both qualified.

Chair Samuels called the question

Unanimous         10-01-07 H

Mike stated that he and Jay have talked and will support each other either way.  We can make it work; look forward to the challenges. 

Mr. Rollo thanked the Board for a timely decision. 

Rob Berntsson – The Chair and I will negotiate making Mike Administrator effective March 6. 

10.    ADMINISTRATOR’S REPORT – Richard L. Rollo PE
        a.     OPERATIONS MANAGER’S REPORT – Michael J. Ray
                1)     Looking at telemetry for the valve pits; may have a 40-pit pilot study.  Same software can provide water meter readings.
                2)     Collections – some issues with private lift stations.
                3)     Distribution – line broke under 776 near Englewood Bank; 2” crossing.
                4)     WRF – modification of ASR permit underway.  Allows additional storage; formality. 
                5)     Production – membranes delivered; scheduling installation.  Roger Quick, Chief Water Plant Operator advised that several manufacturers are interested in doing some testing because of our aggressive water. 

       b.     TECHNICAL SUPPORT MANAGER’S REPORT – Jarl “Jay” D. Linden, PE
               1)     RO expansion closed; $60,000 under budget.
               2)     WF #5 – progressing with County.  Draft license agreement received for 2 more monitor wells.
               3)     I & I at Boca Royale – complete, $40,000 under budget.  Meeting with five condo associations to review easements etc.  We need to let them know what we will maintain and what their responsibility is.
               4)    South Manasota Key drainage – pre-construction meeting January 5.  Start date 1/26; complete 6/25.  2-week progress meetings.  Many utilities will be affected.  Storage of material is a problem.
               5)    Many yearend reports starting.
               6)    Dearborn Street drainage. New design; DMK is lead and we will coordinate with them.
               7)    Meeting with Sarasota County to discuss an interconnect.  Will show them what we constructed for the CCU interconnect.
               8)    Manasota Gardens Club meeting 1/11 with Mike.
               9)    PRMRWSA meeting 1/15 ‘water conservation summit’ with Mike. 
             10)    Representatives from PRMRWSA 1/19 to discuss the ‘gap plan’.  We’re part of the plan and they need a facilities management plan.  Mr. Ray added that the draft sets out several items to be followed in case of an emergency/shortage.  Nothing we need to be concerned about.

       c.     FINANCE DIRECTOR’S REPORT – Sonia R. Zoeller
               1)    Auditors returning on Tuesday for 2 weeks.
               2)    Lots of training going on; good decisions and moves were made.

11.     ATTORNEY’S REPORT – Robert H. Berntsson
               1)   Looking forward to contract negotiations

12.     OLD BUSINESS - None

13.     PUBLIC COMMENT - None

14.     NEW BUSINESS - None

15.     BOARD MEMBER COMMENTS – None

ADJOURN 10:22 a.m.

 

 

___________________________
Paul F. Manke, Vice-Chair
/mac