MINUTES

ST. MARY’S COUNTY METROPOLITAN COMMISSION

REGULAR MEETING

FEBRUARY 14, 2008

 The meeting commenced at 1:00 p.m. In attendance were Commissioners Taylor, Werner, Cranford, St. Clair, Hanson, Owen, and Oliver (representing Captain Glen Ives); staff members King, Petty, Shick, Cullins, Sullivan and Bryan. Also in attendance were Jacki Meiser, General Counsel, and Mr. Batts, resident of Barefoot Acres.

MOTION TO APPROVE AGENDA

Commissioner St. Clair moved to approve the Agenda as presented by staff. Commissioner Cranford seconded the motion, and approval was unanimous.

APPROVAL OF MINUTES

Commissioner Cranford moved to approve Minutes of Regular Session dated January 10, 2008. Commissioner Owen seconded the motion, and approval was unanimous.

MR. BATTS PRESENTATION

Commissioner St. Clair introduced Mr. Batts, who requested that the Board consider changing its policy requiring that bills become due by noon on the last working day of the month. He explained that, as a senior citizen, this is a continuing problem since he does not receive his annuity and Social Security payments until the 1st and 3rd of the month, respectively.

Commissioner Taylor thanked Mr. Batts for his presentation and assured him that that the Board will consider this issue very carefully, and will contact him in the near future with the result of its deliberations.

EXECUTIVE SESSION

Commissioner Werner moved to adjourn into Executive Session at 1:13 p.m. to discuss property acquisition and contract negotiations. Commissioner Cranford seconded the motion, and approval was unanimous.

The meeting readjourned into Regular Session at 2:37 p.m.

DIRECTOR’S REPORT

A. Verizon Contract, St. Clements Shores

Mr. King reviewed a drawing illustrating Verizon’s proposed installation of a tower on the Commission’s property at the St. Clements Shores WWTP. He reported that he has negotiated a price with them of $1200/month, to escalate by 3% for each subsequent year; however, this would be contingent upon their obtaining all required permits from the County. He understands that Verizon’s executive management has no problem with his proposal, and requested that the Board allow the Chairman to sign the lease in that amount.

Commissioner St. Clair moved, that the Commission authorize the Chairman to execute a five-year lease with Verizon Wireless for the rental of certain space at the St. Clements Shores WWTP, upon which a cellular communications tower will be constructed and operated by Verizon. The first year rental will be $1,200 per month, with an escalation factor of 3% per year, for the remaining 4 years. The remaining terms and conditions of the lease to be subject to approval by Commission’s General Counsel. Commissioner Werner seconded the motion and approval was unanimous.

CHIEF FINANCIAL’S OFFICER’S REPORT

A. Accounts Receivable Report/Securities Report 

Commissioner Cranford moved to waive oral presentation by the Chief Financial Officer and to accept the routine monthly financial reports as submitted and reviewed by this Commission. Commissioner St. Clair seconded the motion and approval was unanimous.

C. Second Quarter Financial Statement

Miss Shick reviewed the Second Quarter Financial Statement, and reported a currently satisfactory result. A copy of the document is attached to the Minutes.

D. Miss Utility Locates/Cost

As requested by Commissioner St. Clair at the January Board meeting, Ms. Shick presented the Board with additional information on this issue, a copy of which is attached to the Minutes.

E. Budget Amendment/Replacement for Truck 551

Following Ms. Shick’s justification for her request, Commissioner Cranford moved to amend the FY2008 Operating Budget, as recommended by the Commission’s Chief Financial Officer, to re-allocate:

$3,000 from the budget expense line for Water & WW Collection Truck 550;

$4,000 from the budget expense line for New Maintenance Truck; and

$12,000 from the budget expense line for IT for Document Management System for 8 Users

to offset the following unanticipated expense line items:

$19,000 to replace Truck 551.

This budget amendment has no effect on the Net Income from Service Charges.

Commissioner Owen seconded the motion and approval was unanimous.

F. Online Credit Card Bill Payment

Ms. Shick briefly reviewed extensive documentation relating to “Online Credit Card Bill Payment – PayPal Alternative Solution”, including sample on-line fees charged by other water and sewer utilities. A complete copy is attached to the Minutes.

Following further discussion, Commissioner Werner moved to accept the Commission’s Chief Financial Officer’s recommendation to implement on-line bill payment using PayPal with the condition that the PayPal fees will be paid for by the customer when they use the service. Commissioner Cranford seconded the motion and approval was unanimous.

Legal Counsel’s Report

A. MetCom Code Revision, System Improvement Charges

Ms. Meiser referred to the St. Mary’s County Code governing MetCom; specifically Section 113-29-B (1), and Section 113-29-D (3); and reported that they are contradictory to each other. A copy is attached to the Minutes. In order to delete Section 113-29-B (1) from the Code as the incorrect version, staff will request Delegate Bohanan to present it at the next legislative session as an emergency late submittal. Any other proposed changes to the Code will be postponed.

CHIEF ENGINEER’S REPORT

A. Standard Report

Commissioner Owen moved to waive oral presentation by the Chief Engineer and to accept the routine monthly engineering reports as submitted and reviewed by this Commission. Commissioner St. Clair seconded the motion and approval was unanimous.

CHIEF FACILITIES & OPERATIONS MANAGER’S REPORT

A. 4th Quarter 2007 Customer Service Survey Results

Mr. Sullivan reported a 28.2% Customer Service Survey Return for this period, which is currently the highest return to date. There was a 99.4% positive response overall.

B. Open-End Contract for Sulfur Dioxide

Following Mr. Sullivan’s review of the Purchasing Agent’s Memorandum dated February 14, 2008, Commissioner St. Clair moved that the Commission accept and award the proposed Open-End Chemical Purchasing Contract for 15-lb Sulfur Dioxide cylinders to Univar USA, Inc., for the contract price of $0.89 per pound.  Commissioner Cranford seconded the motion and approval was unanimous.

NEW BUSINESS

A. Draft Capital Improvements Budget

Mr. King invited Mr. Petty, Grants Administrator/Special Projects Coordinator, to present the Draft Capital Improvements Budget. He added that staff will not request its approval at today’s meeting, as additional information will first have to be retrieved from the Consultant working on the Facilities Plan.

Mr. Petty subsequently reviewed both the changes and proposed changes from last year’s to this year’s budget; including timing, amount, and new projects. Copies of all documents are attached to the Minutes.

In conclusion, Mr. King noted that the total amount through 2013 of the Capital Improvements Budget, as presented, is approximately $108M. Staff will illustrate the impact on projected System Improvement Charges/Capital Contribution Charges at the March 13 meeting if the Board believes that the projects being presented today are appropriate. He requested, however, that any objections/questions should be addressed prior to this date, as it will influence staff’s calculation of the impact on the Commission’s rates.

COMMISSIONERS’ TIME

In answer to a question from Commissioner Cranford, Mr. King reported that the water inspector impersonator who victimized a MetCom customer was posing as an employee of the American Water Company.  Mr. Sullivan added that it is not normal procedure for MetCom Inspectors to enter the house, as the majority of water meters are located on the exterior. However, in the event that this is not the case, they are encouraged wherever possible to request that the resident accompany them while they read the meter.

Prior to adjournment, Mr. King informed the Board that staff’s proposed legislative function scheduled to be held at the Loews Annapolis Hotel on February 28th has been postponed.

ADJOURNMENT

There being no further business, Commissioner Cranford moved to adjourn at 3:40 p.m. Commissioner St. Clair seconded the motion and approval was unanimous.

Lilian J. Bryan, Secretary