Central Oklahoma Master Conservancy District Meeting

MINUTES OF THE REGULAR BOARD MEETING CENTRAL OKLAHOMA MASTER CONSERVANCY DISTRICT Thursday, December 5, 2024 6:30 P.M. Location: 12500 Alameda Dr. Norman, OK 73026 A. Call to Order President Amanda Nairn called the meeting to Order at 6:30 pm. Roll Call Board Members Present: Amanda Nairn Michael Dean Dave Ballew Espaniola Bowen Edgar O’Rear Steve Carano Bryan Hapke Board Members Absent: None Staff Present: Kelley Metcalf, Office Manager Tim Carr, Operations & Maintenance Supervisor David Carpenter, O&M Senior Tech Others Present: Dean Couch Rachel Camp, Norman Carrie Evenson, Midwest City Paul Cunnigham, Worth Hydrochem Robert Lockard, LPL Financial Alan Swartz, HDR Engineering Marjorie Allert, Jenks, Oklahoma Virtual Kyle Arthur, General Manager Mike Bernard, Specific Energy Ms. Nairn had the guests introduce themselves. Ms. Nairn announced that Mr. Arthur is joining virtually, due to him being under the weather. Additionally, she added that Mr. Bernard, with Specific Energy, is also joining virtually. Page 1 of 6 B. Statement of Compliance with Open Meeting Act Kelley Metcalf, Office Manager, stated the notice of the monthly board meeting had been posted in compliance with the Open Meeting Act. C. Administrative 1. Public Comment None 2. COMCD SCADA/Telemetry System and Upgrades Ms. Nairn stated this item is part of our ongoing educational series. Please see document titled “SCADA/Telemetry Upgrade Project” in the packet. Mr. Arthur explained that there will be 3 parts to the discussion, (1) introductory, given by him, (2) specific details on our current upgrade project, given by Mr. Cunningham, (3) a presentation on the Dynamic Pump Optimizing Software (DPO) the District will be installing, given by Mr. Bernard. Mr. Arthur thanked Mr. Carr, Mr. Carpenter, and Mr. Cunningham for their hard work. Mr. Arthur shared a slide show. The purpose of the presentation was to provide a baseline understanding of SCADA and telemetry systems, including commonly used terms, a brief description and orientation to the District’s system. Mr. Arthur also provided an overview of the SCADA software platform, Ignition, including some of the main screens, data monitored and collected, as well as the reporting capabilities. Mr. Arthur then reminded the Board that Worth Hydrochem was awarded the SCADA/Telemetry upgrade contract, and all work must be completed by the end of March 2025. The American Resue Plan Act (ARPA) helped fund this project. Mr. Cunnigham provided a status report for the project. He told the Board that he is finishing up the schematics and drawings (95% complete), and the next step would be to build the cabinets. The project is on schedule. Discussion then ensued about the sequencing and speed variation of the pumps and how the current system handles that. Mr. Cunningham said that the logic that regulates whether the pumps start or stop and adjust the speed is very rudimentary, and the pumps are probably starting and stopping more often than they should. Furthermore, he stated the pumps are not running as close to optimal efficiency as they could. Currently the system’s main function is to provide the correct quantities to keep the tanks satisfied. Mr. Cunnigham said this is where usage of the Dynamic Pump Optimizer (DPO) software would help. Also, the programmable logic controller (PLC) is obsolete. Page 2 of 6 Mr. O’Rear asked if pressure was measured before and after the pumps as part of the telemetry. Mr. Cunningham said no, but the upgrade will include a pressure monitor on each header exiting the pumping plant. Mr. Arthur stated that installation of DPO software would require additional data inputs and outputs (I/O’s) the District currently does not obtain or analyze. While installation of such software would be a project separate from the SCADA/Telemetry System, the District desires that the capability exist within the new system to handle these additional I/O’s. A presentation on the DPO software and proposed services was then given by Mr. Bernard. He described that the software obtains and utilizes a layer of analytics that does not exist in the current SCADA system and turns it into meaningful information and provides ease of finding the preferred operating range. The DPO calculates the combination of pumps and speeds that satisfies current flow demand while maximizing energy efficiency. As system conditions change throughout the day, the DPO recomputes the solution to ensure the station continues to operate at minimum specific energy. Additionally, Specific Energy’s DPO enables routine operator-initiated pump testing for comparison of current pump condition to ideal factory pump curves. The DPO calculates Pump Health Index (PHI), continually recalculates annualized excess energy costs due to worn pumps and recommends pumps for repair or replacement. Mr. Dean stated he loved what was presented and asked what the costs would be. Mr. Arthur explained that the Norman line was chosen as the pilot because pricing is based on horsepower (HP). Norman’s HP is 250 per pump while the Relift HP is 350 per pump. If the District likes what they see with the pilot, it would be installed on the Relift line as well. Mr. Bernard said the one-time configuration and installation fee is $16,290.63, and the annual service fee is $7,338.68 and onsite training fee is $4,128.00. Mr. Bernard was asked what savings related to power were expected. Mr. Bernard stated pumps are nonlinear, but the company has an average of 13.5% energy reduction for customers. Mr. Dean asked what needs to be done to move forward. Mr. Arthur responded, the District will enter into an agreement with Specific Energy and the expense was already in the budget for the pilot phase. Given that fact, and the total cost, no further action is required by the Board. Ms. Nairn thanked Mr. Bernard and stated it was a very useful conversation. 3. Investment Portfolio Ms. Nairn stated Mr. Lockard is here, from LPL Financial, to give an update on the District investment portfolio. Please see document titled “COMCD Investment Portfolio” in the packet. Mr. Lockard stated the corporate bonds are yielding a 3.278% return. The bonds were purchased 7 to 8 years ago when rates were low. Three of the bonds are maturing in the first quarter and can be repositioned yielding higher rates. Mr. Lockard thinks the strategy is to keep things in short-term investments. Mr. Arthur asked if there are circumstances when it would be beneficial to sell a corporate bond earlier than the maturity date. Mr. Lockard stated if the maturity date was within a year or so, and a gain was possible, he would advise selling. Mr. Arthur then asked what the recommended investment would be for Page 3 of 6 our maturing bonds. Mr. Lockard stated certificates of deposits (CD’s) or treasury bills (T-Bills) would be his recommendation. Mr. Dean asked if the District should consider T-Bills with a longer term than 6 months. Mr. Lockard stated 6 months is his recommendation currently. Mr. Arthur reminded the Board that the T-bills are not managed by LPL Financial. Mr. Ballew asked if everyone was comfortable with receiving the LPL report quarterly. Everyone said yes. Mr. Ballew said if requested the report would be provided at any time. Ms. Nairn thanked Mr. Lockard for attending. 4. Treasurer Report- October 2024 financials Mr. Ballew provided an overview of the October Profit and Loss statement. He stated that there had not been a material change in the profit and loss from last month. He asked if anyone had any questions. Mr. Dean noted that the District enjoys a healthy balance between the investment accounts and the operating account. He asked if there was a plan to get the balance in the operating account in line with the budgeting policy. Mr. Arthur stated several projects and planned purchases are earmarked for the majority of those funds, such as finishing the SCADA project, forebay cleanout, purchase of the backhoe and track loader and funding the Large Equipment Asset Fund. Mr. Arthur further stated that after all those expenditures he anticipates a carryover of approximately $1.25 million in the operating account, which is the maximum amount allowed under the purchasing policy. Mr. Ballew provided a brief summary of the Budget vs. Actual report. He then asked if anyone had questions. Hearing none Ms. Nairn moved to the action portion of the meeting. D. Action: Pursuant to 82 OKLA. STATUTES, SECTION 541 (D) (10), the Board of Directors shall perform official actions by resolution and all official actions including final passage and enactment of all resolutions must be approved by a majority of the Board of Directors, a quorum being present, at a regular or special meeting. The following items may be discussed, considered, and approved, disapproved, amended, tabled or other action taken: 5. Minutes of the regular board meeting held on Thursday, November 7, 2024, and corresponding Resolution Ms. Nairn asked if there were any questions, comments, or edits, hearing none she entertained a motion. Dave Ballew made a motion seconded by Michael Dean to approve the minutes and corresponding Resolution. Roll call vote: Amanda Nairn Yes Michael Dean Yes Dave Ballew Yes Page 4 of 6 Edgar O’Rear Yes Espaniola Bowen Yes Steve Carano Yes Bryan Hapke Yes Motion Passed 6. Declaration of certain property as surplus, and corresponding Resolution Mr. Arthur apologized for not including these two items in the last request for surplus (11-7-24 Board meeting). Mr. Arthur said he is recommending the declaration of two items (pipe threader, and Versa- Handler) for surplus. Mr. Arthur mentioned these additional items will be auctioned at the same time as the previously declared surplus items. Michael Dean made a motion seconded by Steve Carano to approve the Declaration of certain property as surplus, and corresponding Resolution. Roll call vote: Amanda Nairn Yes Michael Dean Yes Dave Ballew Yes Edgar O’Rear Yes Espaniola Bowen Yes Steve Carano Yes Bryan Hapke Yes Motion Passed E. Discussion 9. Legal Counsel’s Report Ms. Nairn stated before Mr. Couch presents his legal report, she wanted to sincerely congratulate Mr. Couch for being one of 3 recipients to receive the Oklahoma Water Pioneer Award. November 5 Communicate with Bonnie Moats of Oklahoma Water Resources Board about the District’s term permit application and follow up about request for additional information November 7 Prepare and provide Legal Counsel report to Kelley Metcalf and attend monthly Board meeting November 15 Follow up communication to Bonnie Moats of Oklahoma Water Resources Board staff about term permit application November 20 Review and provide feedback to Kelley Metcalf about draft minutes of November meeting concerning policy on minutes of executive sessions November 26 Initiate review of draft contract with Plummer concerning Phase 2 of CEC sampling and wetland’s locations Page 5 of 6 Mr. Couch said he was happy to answer any questions. Hearing no further questions, Ms. Nairn proceeded to the General Manager’s Report. 10. General Manager’s Report Please see document titled “Manager’s Report” in the packet. Mr. Arthur highlighted a couple of things. He thanked Mr. Carr for leading the “quad” project. The new building has now officially been named “Equipment Building” and the other barn is now called “Maintenance Barn”. Mr. Arthur stated, after the board authorized the purchase of a backhoe and track loader, staff evaluated and ranked the John Deere products highest. A 335 P track loader and a 320 P backhoe have been ordered. 11. President’s Report None 12. New business (any matter not known prior to the meeting, and which could not have been reasonably foreseen prior to the posting of the agenda) Ms. Nairn stated it is likely that the January 9th meeting will be cancelled, but a definitive decision will be forth coming in a couple weeks. F. Adjourn There being no further business, President Nairn adjourned the meeting at 9:04 P.M. Page 6 of 6