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HomeMy WebLinkAboutMN-SJC-2020-03-182020.03.18 APPROVED SJC minutes.doc 1 SJC MEETING March 18, 2020 SJC Members Staff Cynthia Brock, Chair Scott Gibson Supervisor Jason Liefer CJ Kilgore Scott Reynolds Donna Fleming Guest Tee-Ann Hunter Ray Burger (Town of Dryden) Bill Goodman David Harrick: TG Miller Rich DePaolo Jason Crane; Edger Enterprises Dave Warden Bill Benniger; Stewart Ave resident Absent Cynthia called the Zoom meeting to order at 1:10 p.m. Donna MOVED to accept the December 20th minutes. Seconded by Bill. Approved 7- 0; 1 abstained. Financial Report – Steve Thayer submitted his 3/18/2020 financial analysis and update in his absence. 12/31/19 Not Final year end activity notes: Bolded items represent the accounts that have changed since our last month report. Most everything is posted now, we will wait one more month to close 2019, just to make sure all payables are recorded. Revenues: Revenues have not changed from last month. Septage revenue collected for 2019 is a bit over $468,000. We have met the 2019 budget. I believe all revenues, including receivables are posted. We have collected all of the 2019 quarterly payments for 2019. Debt service collections are complete for 2019 and this matches our debt expenses. Interest was booked and exceeded budget as we were able to obtain better interest rates from our bank for 2019. Unclassified revenue represents a $9,000 grant that was obtained for 2019 from IC through the Park Foundation to purchase lab equipment to research microplastics in Cayuga Lake. Revenues overall, we have collected $4,203,993. Exceeding budget by $55,000. Expenses: Expenses for 12/31/19 so far are running slightly under budget, overall expense at $4,494,000. We still may have some expenses to post as the final payables come in. The only adjustments since last month are to the expense accounts; Clothing; Gas and Oil; Office Expense; Equipment Parts; Building Maintenance Supplies; Safety Materials; Lab Supplies and Health Insurance. The largest change from last month, out of those expenses that changed, was to Health Insurance. We reduced the Health Insurance Account expense for the 2019 employee 2020.03.18 APPROVED SJC minutes.doc 2 contributions of $44,300. We have talked about the other expenses that are over budget over the course of the last several months. Equipment Parts, Sludge Disposal and Treatment Supplies are the accounts most over budget. We adjusted the 2020 budget to account for most of these increasing costs. We will be paying our outstanding utility bill form NYSEG over the next 6 months as they were willing to allow us to pay the balance from the bad meter over a few months. It looks like an 18 month period of bad gas meter calculations. NYSEG accounts for $60,000 and Direct Energy for another $40,000 or more. Overall for 2019, we have a current deficit of $289,400. Again, we did budget a deficit of $250,000 as we try to slowly work our fund balance down a bit. 2/29/20 Activity: Revenues: Revenues for 2020 are slow to be collected, mainly due to the timing of revenues. On the Septage Service revenues, we have collected $63,000 to-date, of which $58,000 relates to 2019 receivables. We are reminding owners to pay the first quarter payment which is due now. The City has made its payment, but we are still waiting for both the Town’s payment. Both Debt Service revenue and Interest revenue are booked near the end of the year. Expenses: Early expenses for two months through February 2020 are $1,225,000. No real surprises yet, but it’s early. Insurance has come in slightly over budget at $149,451. This one- time payment takes care of most of the insurance costs for the year. We get an estimate of insurance costs in September to put in the budget. We don’t receive final insurance costs until late December. This makes it a bit difficult to project the annual actual costs. We try to be fairly conservative in our September insurance estimate, but for the last two years, costs have come in a bit higher than our early estimates. In addition, many times we are able to increase our insurance coverage at the last minute, at very good rates, but this generally is not anticipated in September. In 2020, our Facility property values increased giving us most of the added costs from our estimates. Even though we estimated an increase in values, the actual carrier value used came in even higher. Other insurance costs, including equipment, general liability and umbrella coverage, also increased slightly from our September estimates. Health Insurance costs reflect three months of activity. Debt service payments come in bunches throughout the year. To-date, we have expended $615,000 in debt service payments. Reminder that the timing of expenses don’t always follow the calendar for payments. Some expenses come in monthly, others come in a lump sum. The deficit is $774,000 to-date. This deficit is a bit higher, mainly due to the fact that we have only received the City’s first quarter payment. On the capital activity, we had no activity over the last month. Lastly, the CSEA Admin contract, which expired at 12/31/2019, is currently in mediation. Most of our Facility employees are under this contract. We are hopeful to get this contract approved by mid-year. End of report. Operations and Engineering Report – CJ Kilgore 1. Plant Maintenance & Operations – 2020.03.18 APPROVED SJC minutes.doc 3 a. Chemical Bulk Storage Tanks – the request for proposal has been finalized and will be going out. This will most likely be a Capital Project b. Boiler System – CJ received a proposal from MRB Group to evaluate the boiler system for $18,500.00. Funding for this evaluation will come out of capital reserve. We will establish a Capital Project for the new boilers. c. Actiflo – CJ is waiting for a proposal from Koester Associates for piping evaluation and for the replacement of our existing sand pump and chemical feed pump. CJ added that he visited the Syracuse plant to look at their Actiflo process and to discuss what has worked for them. 2. Facilities Maintenance & Operations a. Grit Removal and Misc. Improvements – Notice to proceed has been given to Bongiavonni – they are on site and setting up to work. b. DEC – March 6th plant visit and inspection went well – no major findings. c. Flow Monitoring – work is continuing – five are up – five others should be up shortly. d. MRB Group – CJ received a proposal to proceed with an I/I study. Rich asked about the BOD and TSS exceedance in February. CJ said that this was a learning experience and that staff is able to address this in the future. Tee-Ann asked if the flow metering data would be real time and available. CJ replied eventually – yes. Chris Kianka has been in touch with the other municipalities. Cynthia added that the Meeting of the Six had an extensive conversation regarding this – as the data comes on line – the City will make it available to the three SJC partners and Cayuga Heights. There will be a portal where all of the data will be shared. There needs to be collaboration for consistent quality control - the monitoring stations must comply with strict parameters to insure accuracy. Rich asked if it were necessary to bring the consultant in prior to having data. CJ responded that they plan to install rain gauges in April in addition to gathering data. The actual analysis will begin later on. We would like to see both extended wet and dry periods to help sort out inflow from infiltration and establish a base flow. He believes the study may continue for a year to a year and a half. Cynthia added that it will take some time to observe trends. 3. Staff Management – 4. Reporting – 5. Business, Long Term development – 6. Energy Production Statistics – provided by CJ. Voting Items – 1. Legal Services - provided by Susan Brock Donna MOVED to accept the SJC Resolution recommending approval of the engagement letter from Susan Brock for legal services. Seconded by Tee-Ann. Passed Unanimously (7- 0). 2020.03.18 APPROVED SJC minutes.doc 4 Rich MOVED to AMEND the RESOLUTION by changing the fourth whereas - to strike the word “reasonable” and replace it with the work “written”. Seconded by Donna. Approved (7-0). Resolution to Recommend Approval of Engagement Letter for Legal Services WHEREAS, Susan H. Brock is the attorney retained by the City of Ithaca, Town of Ithaca and Town of Dryden to provide contractual legal services to the Ithaca Area Wastewater Treatment Facility (IAWWTF), and WHEREAS, Since 2011, Ms. Brock’s hourly rate has remained unchanged at $170.00, and WHEREAS, An Engagement Letter for Legal Services dated January 6, 2020 was received indicating that as of January 1, 2020, Ms. Brock’s hourly rate for legal services would be $225.00, and the Engagement Letter provided detailed information on other rate increases including but not limited to any paralegal time, travel, services, disbursements, fees, and office expenses, and WHEREAS, The Municipal Partners retain the right to terminate Ms. Brock’s representation at any time with or without cause with written notice, now therefore be it RESOLVED, That the Special Joint Committee of the IAWWTF (SJC) finds the rate increases and terms outlined in the letter of January 6, 2020 reasonable and acceptable, and be it further RESOLVED, That the SJC recommends the Municipal Partners adopt and approve the January 6, 2020 Engagement Letter for Legal Services provided by Susan H. Brock. 2. Boiler Evaluation- Tee-Ann MOVED to accept the Resolution to Fund the Engineering Phase for the Boiler Room Evaluation at the Ithaca Area Wastewater Treatment Facility (IAWWTF) contingent upon the establishment of a Capital Project. Seconded by Scott. Approved (7-0). Capital Project Engineering Phase for Boiler Room Evaluation at the Ithaca Area Wastewater Treatment Facility (IAWWTF) WHEREAS, the Ithaca Area Wastewater Treatment Facility is in need of reliable boilers used for comfort heating of indoor spaces and for process heating of the anaerobic digesters, and WHEREAS, the current boilers are reaching the end of their useful service life and are increasingly unreliable and maintenance intensive, and WHEREAS, an evaluation of heating requirements and energy sources for current as well as future anticipated plant and process needs is necessary, and 2020.03.18 APPROVED SJC minutes.doc 5 WHEREAS, an Engineering Evaluation Cost Estimate has been prepared by MRB Group for a lump sum of $18,500 which includes: A. Boiler Evaluation - a. Assess existing boilers. b. Identify replacement boiler options (number, styles, sizes, duel fuel options). B. Energy Evaluation – a. Evaluate Biogas and Natural Gas usage at plant. b. Evaluate redundancy needs. c. Evaluate biogas use in microturbines with heat recovery vs use for heating. d. Consider potential heating needs for future sludge processing projects. e. Check for current grant funding opportunities to see if either the study/design phase or construction phase might be eligible. now, therefore, be it RESOLVED, that the Special Joint Committee (SJC) recommends to the Owners to establish IAWWTF Capital Project 423J Boiler Room Evaluation in an amount not to exceed $18,500, and be it further RESOLVED, That the Special Joint Committee (SJC) recommends to the Owners that this project be authorized and funded from the IAWWTF Capital Reserve fund in an amount not to exceed $18,500 for the Engineering costs required for Ithaca Area Wastewater Treatment Facility Boiler Room Evaluation. 3. I/I Study – MRB Group Rich MOVED to accept the Resolution for MRB Group to perform an I/I Study. Seconded by Donna. Approved (7-0). Cynthia clarified that we received a grant the MRB Group secured for $30,000.00 of which we must contribute $6,000.00 At the request of Scott R. clarification was made by Scott Gibson that MRB Group will be reviewing the data collected by the meters and recommend where the necessary actions should be taken in the system. (We will be able to include the results of the study when application is made for the implementation grant in 2021). Resolution for Professional Services MRB Group & Ithaca Area Wastewater Treatment Plant Inflow and Infiltration (I/I) Study 2020.03.18 APPROVED SJC minutes.doc 6 WHEREAS, MRB Group of Rochester, NY, prepared and the City of Ithaca submitted an Engineering Planning Grant (EPG) to study the effects of inflow and infiltration (I/I) using data collected from fourteen refurbished flow meters in the Ithaca Area Wastewater Treatment Plant (IAWWTP) collection system; and WHEREAS, the IAWWTP was selected for EPG approval and funding of which, $30,000 is available in combination with a required IAWWTP match of $6,000, for a total project cost of $36,000; and WHEREAS, resolutions were passed by the City of Ithaca City Administration Committee on February 19, 2020 and City of Ithaca Common Council on March 4, 2020 to accept EPG funding; and WHEREAS, as part of the EPG understanding, a portion of the project cost will be paid for a qualified consultant to evaluate flow meter data and prepare a written report, with a separate portion of the grant being paid to the existing data collection and programming consultant, LECTRE Incorporated; and WHEREAS, MRB Consultants has prepared a February 7, 2020 proposal for said services in the lump sum amount of $24,900.00; now therefore be it RESOLVED, the Special Joint Committee (SJC) authorizes acceptance of MRB’s proposal for an I/I study; and be it further RESOLVED, that the amount will be applied to Capital Project #414J. 4. Release of Sewer Easement - Cynthia reached out to staff and Susan Brock. Scott briefed the members that the original City wastewater treatment plant was located at the intersection of First Street and Franklin Street. The easement for the pipe in question is an abandoned outfall pipe of the former wastewater plant. The original SPDES permit (for the old plant) was abandoned and a new SPDES permit was developed for the current plant. City Harbor has plans to construct in the running area of the former outfall and has requested to have the easement formally abandoned. Scott stated that we will never use it again – that he cannot foresee any use for it in the future. He added that even if there were a catastrophic event we would bypass into our existing outfall. Scott cannot see any use or need for the easement. He recommended keeping the sleeve under the railroad. Cynthia said there is a question concerning who has authority over the original easement. Susan is researching with the City Attorney’s office if it is held solely by the City or by the City on behalf of the three owners – to determine how to proceed. Dave Harrick said that there will be no physical impact on the Guthrie Project. Foundation construction of two of the City Harbor Project buildings is impacted. Susan Brock asked when SEQRA might be complete – David Harrick is looking at April. Cynthia felt that it would be inappropriate for the members to vote at this time. This request will be presented at the April SJC meeting so that legal advice can be sought prior to proceeding with a recommendation. 2020.03.18 APPROVED SJC minutes.doc 7 Land issues need approval by the three municipal owners. (If the SJC recommends to abandon - Common Council and the two Town Boards would need to approve the proposed actions by resolution at one of their meetings). Scott Reynolds requested an actual map showing the proposed area of conveyance. David Harrick will make their existing survey map of the project available to Cynthia for distribution. Cynthia asked that David Harrick also share any materials (proposed amendments to the existing easements) related to the proposed resolution. 5. Annual Election of Chairperson – Rich Nominated Cynthia to continue her role as Chairperson; Seconded by Bill. Approved 8-0. Cynthia asked the board to consider a Vice-Chair. She typically meets with staff the Thursday prior to the meeting to discuss open items/ongoing projects and puts together the agenda. She gathers all of the materials from staff, converts to a pdf and posts to the City website. Rich nominated Tee-Ann as Vice-Chair and offered to serve if she declined. Rich withdrew the nomination of Tee-Ann. Bill nominated Rich as Vice-Chair. Because this position does not formally exist it will be acted upon at a future meeting. Rich offered to attend the pre-SJC and related meetings going forward. Presentation/Discussion Items – Donna briefed the members that starting in July the City Council is readjusting the City Planning and Economic Development meeting schedule and asked that the members consider moving the SJC meeting from the third Wednesday of each month. The members agreed to move the meeting to the second Wednesday of each month beginning July 8th. Announcements / Other Business – Bill MOVED to adjourn. Seconded by Tee-Ann. All were in favor. Approved 8 - 0. The meeting was adjourned @ 2:24 p.m. Thanks was given to Lisa and the Town of Ithaca for all of their help with this Zoom meeting. The Next Meeting will be April 18th, 2020, 1:00 pm.