Public Meeting Minutes

MINUTES

ST. MARY’S COUNTY METROPOLITAN COMMISSION

REGULAR MEETING

AUGUST 16, 2007

 

The meeting commenced at 1:08 p.m. In attendance were Commissioners Taylor, Werner, Lancaster, St. Clair, Cranford, Owen and Hanson; staff members King, Frederick, Shick, Cullins and Bryan. Also in attendance was Jacki Meiser, General Counsel.

 

Prior to commencing the official Agenda, Commissioner Taylor introduced, and welcomed new Commissioners, Brenda Hanson (2nd/9th Election Districts), and Charles Owen (6th Election District), to the Board.

 

MOTION TO APPROVE AGENDA

 

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

 

APPROVAL OF MINUTES

 

Commissioner St. Clair moved to approve Minutes of Regular Session dated July 26, 2007. Commissioner Werner seconded the motion, and approval was unanimous.

 

DIRECTOR’S REPORT

 

A. Board of County Commissioners (BOCC) Meeting, 8/21/07

 

Primary purpose of the meeting is to: 1) brief the BOCC on the proposed projects recently undertaken by the Commission to eliminate arsenic contamination in several public water systems, and extend public sewer service to property owners suffering uncorrectable failing septic systems; and 2) request their approval to obtain loans through MDE for the long term financing of these improvements, in order to secure the loans by the good faith and credit of the St. Mary’s County Government.

 

As a prerequisite to this action, the Commission will be requested to approve a similar Resolution today.

 

Mr. King noted that BOCC approval of Department of Housing & Community Development (DHCD) loans has been delayed until September/second week in October, at their request.

 

B. Storage, Supply & Capacity Fee – The Gateways

 

Mr. King referred to a recent request received from Denis Nicholson, Executive Director, St. Mary’s County Housing Authority, regarding Board approval for an additional 75-90 day extension for payment of Storage, Supply and Capacity Fees in the amount of $62,370.00.  Following a brief discussion, the Board agreed to a 120-day extension, without a late fee penalty.

 

C. Board of County Commissioners Letter to Senator Dyson

 

Mr. King briefly reviewed a letter sent by the BOCC to Senator Roy Dyson   expressing specific concerns, observations and requests for action relevant to the 2002 Report issued by David Andreas and Maryland Geological Survey indicating that the management level for the Aquia Aquifer in Anne Arundel County has been reached and exceeded. He will advise the Board on the State’s response.

 

D. Board of County Commissioners CWSP Hearing

 

Mr. King reported that the BOCC Comprehensive Water & Sewer Plan Hearing is scheduled for August 28th, at 2:00 p.m.  

 

CHIEF FINANCIAL OFFICER’S REPORT

 

A. Accounts Receivable Report

 

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

 

B. Securities Report

 

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

 

C. New Capital Improvement Contribution/System Improvement Charges Rate

                   Proposal

 

Ms. Shick reviewed the referenced document in detail, a copy of which is attached to the Minutes. The following areas were highlighted:

 

  • Identification of individual projects identified by Service Area Expansion, Capital Facilities Expansion & Upgrade/ Replacement and Other Sources.
  • Debt Amortization Schedule.
  • Equivalent Dwelling Units.
  • System Improvement Charge for Water and Sewer.
  • New Capital Improvement Contribution Charges–one-time charge.
  • System Improvement Charges – continuous charge.
  • Commercial Rates – new charge

 

Ms. Shick reported that a Public Hearing Notice will be included in Friday’s publication of the Enterprise, and that Public Hearing dates and proposed charges will be mailed to individual customers next week. A copy of the Draft Power Point Presentation for the hearings was provided to the Board for their review.

 

Following Ms. Shick’s request for Board approval to take the proposed rates to Public Hearing as presented to them today, Commissioner Lancaster moved to conditionally approve the Capital Contribution & System Improvement Charges as discussed subject to Public Hearings on August 28th, August 29th and August 30th, 2007. Commissioner St. Clair seconded the motion, and approval was unanimous.

 

D. Public Hearing DHCD Local Govt. Infrastructure Loan Resolution.

 

Ms. Shick commenced the Public Hearing at 2:00 p.m., by reading the Public Hearing Notice, as advertised in the Enterprise on August 3, 2007, into the record. She noted that this document is being amended to include $125,000 for Phases 1 & 2 of the Andover Road Sewer Project.

 

Commissioner Taylor invited comments from the floor, noting the lack of attendees.  Staff also reported that no written testimonies have been received.

 

Commissioner Taylor subsequently closed the Hearing at 2:06 p.m.

 

Ms. Shick continued by referring to Resolution 2007-02, and noting the following:

  • A difference in the not-to-exceed amount requested by staff of $11,100,000;
  • Reduction in the amount of the Lexington Park Pump Station, which now totals $825,000; Chancellor’s Run Road Alignment totals $4,422,000. These numbers are included within the Resolution;
  • Inclusion of $125,000 for Phases 1 & 2 of the Andover Road Sewer Project;
  • The difference between the total of the projects and the not-to-exceed amount is the cost to issue the bonds and bond insurance premiums.

 

Commissioner St. Clair moved that the Commission adopt Resolution 2007-02 authorizing the Commission to borrow funds in an amount not to exceed $11,100,000 through participation in the Community Development Administration Local Government Infrastructure Financing Loan Program, to finance the projects referenced within the said Resolution. Commissioner Cranford seconded the motion, and approval was unanimous.

 

At this point, Ms. Shick read Resolution of Prior Intent 2007-03 into the record, and requested its approval. A copy is attached to the Minutes.

 

Commissioner St. Clair moved that the Commission adopt Resolution 2007-03 authorizing MetCom to be reimbursed from DHCD loan proceeds for in-house funds expended for the planning, design, construction and administrative costs of the projects discussed prior to the receipt of any DHCD loan proceeds. Commissioner Cranford seconded the motion, and approval was unanimous.

 

E. MDE Loan Resolution

 

Ms. Shick further requested approval for the Commission to adopt Resolution 2007-04 authorizing the Commission to borrow funds in an amount not to exceed $1,429,800, through participation in the Maryland Department of the Environment Water Quality Financing Administration Loan Program, to finance

the Andover Estate Sewer Project, Phases 1 & 11 and the Arsenic Replacement Well Project, as referenced within the said Resolution.

 

Commissioner St. Clair so moved, seconded by Commissioner Lancaster, and approval was unanimous.

 

EXECUTIVE SESSION

 

Commissioner Cranford moved to adjourn into Executive Session to discuss potential litigation at 2:11 p.m. Commissioner St. Clair seconded the motion, and approval was unanimous.

 

The meeting readjourned into Regular Session at 2:45 p.m.

 

Commissioner Cranford moved to approve Minutes of Executive Session dated June 26, 2007. Commissioner St. Clair seconded the motion, and approval was unanimous.

 

CHIEF ENGINEER’S REPORT

 

Prior to commencement of the standard Chief Engineer’s Report, Mr. Frederick reported that the Public Hearing for Proposed Review of Engineering Rates is scheduled for 2:00 p.m. at the Petty Building on Wednesday, July 27, 2007. The Development Review Forum has already been made aware of these proposed changes, as have all developers who have conducted business with the Commission.

 

He subsequently reviewed the Chief Engineer’s Report, a copy of which is attached to the Minutes.

 

NEW BUSINESS

 

A. Billing Discrepancies:

          Proposed Revision: Design/Billing Table of EDU’s

 

Mr. King reported that over the past year, the Commission’s new GIS system has made it easier for staff to compare billing records connected to properties on MetCom’s systems. During the development stage of this technology, the sewer system in the Piney Point area was carefully scrutinized because of its limited capacity. This revealed a number of buildings that were connected but not billed; in addition to uncovering properties that were not being billed for the correct number of EDU’s. This created the concern that the discrepancies might be typical to the rest of the system.

 

Staff has also only recently discovered that new office buildings in the County have exceeded the initial number of EDU’s allocated to them. This obviously creates problems with the Commission’s current Table of Equivalent Dwelling Units if the Commission is not informed of specific changes. Mr. King stressed that this can create a significant difference with billing and allocations issues if it occurs often enough over a period of time. The problem is further compounded by property owners modifying buildings, sometimes years later.

 

Following staff’s review of all non-residential accounts; both electronically and physically, a number of discrepancies were found: (1) 267 properties that are connected, do not appear to be billed sufficiently and, (2) 144 properties that are abutting, but not connected, do not appear to be adequately billed.

 

He noted that the total number of discrepancies have been reduced from 244 to 25 over the past two weeks. Staff anticipates reducing the numbers further by the September meeting, although he expects that there will be between 50-100 commercial properties that will eventually have to be adjusted.

 

Mr. King also noted the existence of properties along the Commission’s water and sewer lines that are simply not being billed. In order to deal with these properties, he stressed the need to set more specific guidelines than currently exists in the law, on more precisely when property owners have to connect, and when payment of the System Improvement Charges is due.

 

To this end, he has drafted a Memorandum of Understanding, which will be reviewed by Counsel. It will also be reviewed by Denis Canavan to ensure that this process of determining: (1) what conditions will be considered servable, (2) what is considered as being within the intended service area; and (3) when it is considered not to be within the service area, is clear and consistent throughout the County.

 

Mr. King assured the Board that these properties do not adversely affect the rates referenced previously by Ms. Shick.

 

In conclusion, Mr. King reviewed a Discussion paper relating to the Commission’s Table of Equivalent Dwelling Units. A copy is attached to the Minutes.

 

Following a brief discussion, Commissioner St. Clair moved that the Commission tentatively approve the August 16, 2007, Proposal to Revise the Table of Equivalent Dwelling Units, subject to further consideration after submission to Public Hearing and receipt of public comment. Commissioner Cranford seconded the motion, and approval was unanimous.                                                                                                

 

ADJOURNMENT

 

Commissioner St. Clair moved to adjourn at 3:23 p.m. Commissioner Cranford seconded the motion, and approval was unanimous.