Morgantown Utility Board

MINUTES OF THE MORGANTOWN UTILITY BOARD September 9, 2020 Due to the Coronavirus Pandemic, West Virginia Governor Jim Justice issued, on March 23, 2020, restrictions on nonessential business operations and a ‘stay at home order’ across our state. The meeting of the Morgantown Utility Board was held by video conference at 5:30 P.M., Tuesday, September 9, 2020. Present by video conference were Board Chairman Straface and Members Cayton, Kunz, Parsons, and Witt. Staff also present by video conference were General Manager Ball, Assistant General Manager Fetty, Comptroller Osborne, and Attorney Ray. The meeting was broadcast live across several internet-based outlets. Public participation and comments were accommodated by invitation for advance submission of comments by mail, email, and telephone. Chairman Straface called the meeting to order. It was moved by Mr. Witt to approve the minutes for the Regular Meeting of August 11, 2020, as submitted. The motion was seconded by Ms. Kunz and passed unanimously. It was moved by Ms. Cayton to approve the minutes of the Special Meeting of August 27, 2020 as submitted. The motion was seconded by Mr. Witt and passed unanimously. Public Portion: • The public was invited to participate in the meeting with comments submitted in advance to the Morgantown Utility Board, no later than 4:00 P.M., the day of the meeting. Mr. Ball reported that no public comments were received. • Chairman Straface introduced Mike McNulty to the meeting as a candidate for the General Manager position. New Business: • Field Crest Development Sanitary Sewer Project: Chairman Straface stated he is affiliated with Field Crest Development and abstained from participation on the topic. Due to technical difficulties with Ms. Parsons’ audio feed, and due to his abstention, Chairman Straface asked Treasurer Witt to preside over this agenda item. Manager Ball stated bids for this project were received on September 3rd. This project will serve a private residential development near the WVU Farm and Stewartstown Road, and will be performed at the expense of the developer. Manager Ball also stated that MUB has not previously worked with the low bidder and recommends approval of their bid be made subject to confirmation of their qualifications. Staff recommends acceptance of the bid from Landscapes Plus in the amount of $127,137.28. It was moved by Ms. Kunz to approve acceptance of the bid from, and award of a contract to, Landscapes Plus LLC, for the Field Crest Development Sanitary Sewer Project, Contract #8-2020; at a price of $127,137.28; and authorizing the General Manager to execute all documents related to said contract; with this approval and authorization being subject to confirmation by the General Manager of the qualifications of the contractor. The motion was seconded by Ms. Cayton, and was approved 4-0. Treasurer Witt noted that Mr. Straface abstained from the vote, and Ms. Parsons provided video approval because of audio issues with her computer. Treasurer Witt turned the meeting over to Chairman Straface. • Board Resolution – Bond Series 2020A: Manager Ball stated this Board Resolution is a formal expression of the Board’s support for, and explains the purpose of, the proposed bond issue. It was moved by Ms. Kunz to approve the proposed Board Resolution for the Combined Utility Refunding Revenue Bond Series 2020 A, with a copy thereof to be included in the minutes of this meeting; and further authorizing the Chairman, the Secretary, and/or the General Manager to execute all documents related thereto; with these actions being taken in support of the refunding of Bond Series 2010 A. It was seconded by Mr. Witt, with video approval from Ms. Parsons because of audio issues, and the motion passed unanimously. • Sweep Resolution – Series 2020A: Manager Ball stated this resolution allows for automated electronic payments to the Municipal Bond Commission for payment of debt service for the proposed bond issue. It merely adds the Bond Series 2020A debt service payments to the list of other previously authorized automated bond payments. It was moved by Mr. Witt to approve the Sweep Resolution for the Combined Utility Refunding Revenue Bond Series 2020 A, with a copy thereof to be included in the minutes of this meeting; and further authorizing the Chairman, the Secretary, the Comptroller, and/or the General Manager to execute all documents related thereto; with these actions being taken in support of the refunding of Bond Series 2010 A. The motion was seconded by Ms. Cayton, with video approval from Ms. Parsons because of audio issues, and the motion passed unanimously. • Preliminary Official Statement – Bond Series 2020A: Manager Ball stated the Preliminary Official Statement describes the terms of the proposed bonds, and makes certain representations to potential investors regarding MUB’s financial condition, operation and management practices, legal and regulatory environment, etc. It was moved by Ms. Cayton to approve the proposed Preliminary Official Statement for the Combined Utility Refunding Revenue Bond Series 2020 A, with a copy thereof to be included in the minutes of this meeting; and further authorizing the Chairman, the Secretary, and/or the General Manager to execute all documents related thereto; with these actions being taken in support of the refunding of Bond Series 2010 A. The motion was seconded by Mr. Witt, with video approval from Ms. Parsons because of audio issues, and the motion passed unanimously. • Continuing Disclosure Policy – Bond Series 2020A: Manager Ball stated this proposed policy expresses the Board’s intention to inform investors of its financial condition, in a manner consistent with the Disclosure Dissemination Agent Agreement that was approved last month. It was moved by Ms. Kunz to approve the proposed Continuing Disclosure Policy for the Combined Utility Refunding Revenue Bond Series 2020 A, with a copy thereof to be included in the minutes of this meeting; and further authorizing the Chairman, the Secretary, the Comptroller, and/or the General Manager to execute all documents related thereto; with these actions being taken in support of the refunding of Bond Series 2010 A. The motion was seconded by Mr. Witt, with video approval from Ms. Parsons because of audio issues, and the motion passed unanimously. • Approval and Hiring of the Deputy General Manager: General Manager Ball stated it was previously suggested by Ms. Parsons to convene an Executive Session of the Board of Directors at this point in the meeting so that she may report to the Board and respond to any questions prior to acting on this matter.  Executive Session: It was moved by Mr. Witt at 5:46 P.M., to convene an Executive Session of the Board of Directors under the provisions of WV Code 6-9A-4(b)(2)(A), to discuss matters related to personnel. The motion was seconded by Ms. Cayton, with video approval from Ms. Parsons because of audio problems, and passed unanimously. Chairman Straface instructed General Manager Ball and General Counsel Ray to participate in the Executive Session. At 6:12 P.M., Chairman Straface Reconvened the Regular Session of the Board of Directors Meeting, stating the Executive Session was limited to the stated purpose and no official action was taken. (The Executive session was conducted using a separate video conference, at which time Ms. Parsons’ audio problem was resolved.) Resume: Approval and Hiring of the Deputy General Manager: Chairman Straface stated that a very extensive nationwide search was performed with the Giddings Group, in which several zoom meetings and interviews were performed reviewing the candidates and their qualifications. Through that process, Mr. Mike McNulty was identified as the best candidate, and the Board is happy to be working with him. Ms. Parsons stated that during this process she found Mr. McNulty to be very enthusiastic and very interested in the Morgantown Utility Board; that he has an excellent background with legislative issues, understands all the rules and regulations regarding water utilities; has an extensive amount of experience working with people and problem solving; and that he manages a very successful water utility. She remarked that she is looking forward to having him on board, and to him providing us with a new perspective and taking us forward into the future. It was moved by Ms. Parsons to select and hire Mr. Michael McNulty to serve as the Deputy General Manager, and that Mr. McNulty shall become the General Manager upon the retirement of current General Manager Ball; and that Mr. McNulty shall be paid a starting annual salary of $170,000, with an adjustment to an annual salary of up to $175,000 after six months of employment, and with an adjustment to an annual salary of up to $180,000 per year, after a total of twelve months of employment, with each such adjustment being subject to a successful review of his performance by the Board. The motion was seconded by Ms. Kunz and passed unanimously. The Board welcomed Mr. McNulty to the team. Mr. McNulty stated he is very excited about joining the MUB Team, and he and his wife are very excited to be part of the community. Old Business: • Cobun Creek Reservoir Project: Manager Ball stated placement of concrete walls for the spillway continues with good progress. Foundation excavation and curtain grouting for the dam are completed. Placement of earthen fill to construct the dam continues. The footprint of the dam is now easily recognized. KS is now 40% complete. They remain approximately 1 year behind schedule. Manager Ball introduced Assistant General Manager / Chief Engineer Jim Fetty who provided the Board with a detailed virtual tour of the ongoing construction at the Cobun Creek Reservoir, as described above by Manager Ball. The Board was very appreciative to view the progress of the reservoir construction.  Regarding construction of the raw water line: the boring sub-contractor has returned and begun the boring of Don Knotts Blvd., already achieving 38% of the 320 ft length. The pipeline contractor is expected to resume this week for the remaining work at the WTP. Reclaim LLC is 35% complete overall with the stream restoration at Fike Run. • WWTP Project: The contractor is 92% complete based on contract price. Major work now underway includes mechanical upgrades to the existing primary clarifiers and activated sludge clarifiers and upgrades to the existing aeration line for the activated sludge basins. Other work underway or about to begin includes: miscellaneous underground piping, continued upgrades to existing clarifiers, cladding and testing of the new digester, primary sludge pumping pipe and pump upgrades, and continue / complete the architectural finishes to the upgraded control building. Manager Ball introduced Assistant General Manager / Chief Engineer Jim Fetty who provided the Board with a detailed virtual tour of the ongoing construction at the Star City Wastewater Treatment Plant, as described above by Manager Ball. The Board was very appreciative to view the progress of the reservoir construction. General Manager’s Report: • Executive Search: Manager Ball congratulated Mike McNulty and the Board for an excellent selection. Mr. Ball remarked that Mike McNulty is widely regarded as one of the best utility managers in the State of West Virginia. Mike has the skills to continue the MUB culture of daily excellence, and to bring fresh ideas that will lead MUB to a new generation of growth and success. • Office Closure: With COVID infections potentially spiking once again in West Virginia and especially the red status here in Morgantown, the offices remain closed. All workers, including Office workers, are now required to wear a mask when proper social distancing cannot be achieved. All of the COVID precautions and protocols will remain in place for the foreseeable future. • Financial Impacts of COVID: Water demand continues to look good, as demand returned to normal in early June and has remained normal for the last 14 weeks. Reimbursements have been received through July with a total reimbursement just over $254,000. Revenue losses are not eligible for reimbursement. • BABs Refinance: The Bond Ordinance has been approved by City Council at its required three formal readings. The Supplemental Parameters Resolution will be considered by Council on September 15th, and sale of the bonds is scheduled to occur in the week of October 12th. Board Issues: • Chairman Straface again welcomed Mike McNulty to the MUB Team, and commented that the Board looks forward to working with him. Mr. McNulty thanked the Board and General Manager Ball for all the kind words, and said that he hopes to report for work around the middle of October. • Ms. Parsons stated how much she appreciates the staff who continue to work under some challenging situations. Working from home, under limited capacity can be pretty stressful. Thank you to the staff for the tolerance they are exhibiting and continuing their professional performance.  • Mr. Witt thanked Chris Dale for all the postings on social media on waterline breaks, construction activity, etc. Mr. Witt added that if you are not following MUB on social media you should. There being no further business to come before the Board, the Board agreed by consensus to skip agenda items 10 (Executive session) and 11 (reconvening the regular meeting). Upon a motion by Mr. Witt, seconded by Ms. Parson and unanimously approved, the meeting adjourned at 6:43 P.M. J. T. Straface, Chairman Karen Kunz, Secretary