Public Meeting Minutes

MINUTES

REGULAR MEETING

ST. MARY’S COUNTY METROPOLITAN COMMISSION

JUNE 08, 2006

The meeting commenced at 1:03 p.m. In attendance were Commissioners Taylor, Gant, Murphy, Werner and Wood; staff members King, Shreve, Frederick, Shick, Cullins, Sullivan and Bryan. Also in attendance were Mike Rubala and Sonja Cox of SMECO; and Jacquelyn Meiser, General Counsel.

MOTION TO APPROVE AGENDA

Commissioner Werner moved to approve the Agenda as presented by staff. Commissioner Wood seconded the motion and approval was unanimous.

APPROVAL OF MINUTES

Commissioner Wood moved to approve Minutes of Regular Session dated May 11, 2006. Commissioner Murphy seconded the motion and approval was unanimous.

EXECUTIVE SESSION

Commissioner Gant moved to adjourn into Executive Session at 1:05 p.m. to discuss potential litigation and acquisition of property. Commissioner Werner seconded the motion and approval was unanimous.

The meeting readjourned into Regular Session at 1:56 p.m.

Commissioner Wood moved to approve Minutes of Executive Session dated May 11, 2006 as submitted. Commissioner Gant seconded the motion and approval was unanimous.

DIRECTOR’S REPORT

A. Patuxent Park Sewer Line Replacement

Mr. King was pleased to report that, of the anticipated total cost of $489,000 for this project, the Commission has received a State grant from EPA for $200,000. This will assist with a portion of the cost of constructing replacement sewer lines from Midway Drive to the vicinity of Nicolet Park. Staff will apply for a State loan in the amount of $289,000 to make up the deficit.

It is proposed to commence this work immediately so that the County’s impending road construction work will not be needlessly disturbed. Staff will very shortly schedule a Public Meeting in this area to brief property owners on the proposed project.

SMECO GENERAL POWER RATES PRESENTATION

Mr. King invited Mr. Mike Rubala, Energy Technology Programs Manager/Accounts Representative for MetCom, and Ms. Sonja Cox, Vice-President/Chief Financial Officer of SMECO to address the Board at this point. He noted that they were invited to do so because of the significant increase in power costs the Commission has experienced in the recent past.

Ms. Cox offered a Power Point general overview presentation of SMECO’s purchase power and rates in general, during which she highlighted the following areas:

  • General Rate Component Review
  • Purchased Power Costs
  • Purchased Power Costs Breakdown
  • Managing Purchased Power Costs
  • Forecast of Natural Gas Prices
  • Counterparties
  • Deregulation and Retail Choice
  • Future Outlook – Maryland & Washington, D.C.
  • SMECO Residential Bill Changes
  • Maryland Utilities Residential SOS Comparison
  • Maryland Utilities Small Commercial SOS Comparison
  • MetCom Projected Costs for Selected Accounts

In summary, Ms. Cox noted that the electric power industry is challenged by unprecedented fuel cost increases and regulatory changes. However, SMECO continues to successfully manage the wholesale portfolio with APM, and she is glad to report that the 2006 rates are stabilizing. A copy of the complete Power Point presentation is attached to the Minutes.

Mr. Rubala concluded the presentation by briefly discussing the flared gas issue at the Marley-Taylor WRF, and noted that a meeting to discuss this with staff is scheduled for June 14th.

ASSISTANT DIRECTOR’S REPORT

A. Tri-County Purchasing Cooperative

Mr. Shreve reported that, in an effort to negotiate better rates with SMECO, an attempt to join with County government and the County school systems to form a consortium was made. However, the County is already part of a Tri-County Purchasing Cooperative. Staff is currently investigating the possibility of becoming a part of this entity, and will update the Board further on this issue.

HUMAN RESOURCES MANAGER’S REPORT

A. Acceptable Use Policy for Internet & Network Computing Systems.

Ms. Cullins requested approval of the Policy which was distributed to the Board at the May 11, 2006 meeting.

Commissioner Wood moved to approve the Acceptable Use Policy for the Internet & Network Computing Systems as presented by the Human Resources Manager at the last meeting on 11 May, 2006. Commissioner Murphy seconded the motion and approval was unanimous.

B. Salary & Compensation Study.

Ms. Cullins reported that the Singer Group has taken initial steps to perform the Salary & Compensation Study. Expected completion date of the project is September 9, 2006.

C. Personnel Issue.

Ms. Cathy Sheehan, originally employed in the Field Services Division, has been selected to replace Ms. Hamlet in the position of Fiscal Technician.

FISCAL OFFICER’S REPORT

A. Accounts Receivable Report

Ms. Shick reviewed the Accounts Receivable Report, a copy of which is attached to the Minutes.

B. Securities Report

Ms. Shick reviewed the Securities Report, a copy of which is attached to the Minutes.

C. Water & Sewer Energy Surcharges Approval

Ms. Shick reported that there were no attendees at a recently scheduled Public Hearing on this issue. She subsequently read the new rates into the record and requested approval to implement them, effective July 1, 2006. A copy is attached to the Minutes.

Commissioner Murphy moved that the Commission approve the assessment of an energy surcharge at the rate set forth at the Public Hearing dated June 6, 2006, as specified by the Fiscal Officer, to offset the recently increased energy cost incurred by the Commission. Commissioner  Gant seconded the motion and approval was unanimous.

D. FY07 Operating Budget Approval

Ms. Shick reported that today’s document is basically the same as that presented to the Board at the May 11, 2006 meeting. She noted that the major impact to the FY07 budget is the increase in power costs which staff is currently addressing. A complete copy of the budget is attached to the Minutes. 

Commissioner Wood moved to approve the FY2007 Operating Budget as recommended and presented by the Commission’s Fiscal Officer. Commissioner Werner seconded the motion and approval was unanimous.

ENGINEER’S REPORT

A. Engineer’s Report

Mr. Frederick presented the standard Engineer’s Report, a copy of which is attached to the Minutes.

B. Open-End Aggregate and Pavement Material Contract

Mr. Frederick requested approval to approve award of purchasing contracts to the lowest responsive and responsible bidder for each of the individual line items in the Aggregate Contract, as specifically listed on the Bid Results tabulation document.

Commissioner Gant so moved. Commissioner Werner seconded the motion and approval was unanimous.

B. Open-End Purchase Contract for Construction Materials

Mr. Frederick requested approval to approve award of purchasing contracts to the lowest responsive and responsible bidder for each of the individual line items in the Construction Materials Contract, as specifically listed on the Bid Results tabulation document.

Commissioner Werner so moved. Commissioner Gant seconded the motion and approval was unanimous.

FACILITIES MANAGER’S REPORT

A. Open-End Contract for Vehicle Maintenance and Repair Services

Mr. Sullivan requested approval to accept and award the proposed Open-End Contract for Vehicle Maintenance and Repair Services to Cheseldine Tire and Auto for the contract prices as listed on the proposal.

Commissioner Murphy so moved. Commissioner Wood seconded the motion, and approval was unanimous.

NEW BUSINESS

A. Election of Officers

Commissioner Taylor invited nominations for the position of Chairman.

Commissioner Wood moved to nominate Commissioner Frank Taylor as Chairman. Commissioner Murphy seconded the motion. No further nominations were received. Four votes were counted in support of Commissioner Taylor’s nomination.

Commissioner Taylor subsequently invited nominations for the position of Vice-Chairman.

Commissioner Gant moved to nominate Commissioner Kevin Suggs as Vice-Chairman. Commissioner Werner seconded the motion. There were no further nominations. Four votes were counted in support of Commissioner Suggs nomination.

ADJOURNMENT

There being no further business, Commissioner Werner moved to adjourn at 2:55 p.m. Commissioner Wood seconded the motion and approval was unanimous.

                                                                  

Lilian J. Bryan, Secretary