175th Meeting of the Board of Directors minutes - DC Water

District of Columbia Water and Sewer AuthorityBoard of DirectorsMEETING MINUTESThursday, April 5, 2012Present DirectorsChairman William Walker, District of ColumbiaAnthony Griffin, Fairfax CountyAdam Clampitt, District of ColumbiaRobert Hoyt, Montgomery CountyHoward Croft, Alternate to Alethia Nancoo, District of ColumbiaBrenda Richardson, Alternate to Alan Roth, District of ColumbiaF. Alexis Roberson, District of ColumbiaBradford Seamon, Prince George’s CountyCarla Reid, Prince George’s CountyAlan Roth, District of Columbia (via telephone)Present Alternate DirectorsJoseph Cotruvo, District of ColumbiaHoward Gibbs, District of ColumbiaDawn Hawkins-Nixon, Prince George’s CountySamuel Wynkoop, Prince George’s CountyDavid Lake, Montgomery CountyDC Water StaffGeorge S. Hawkins, General ManagerRandy Hayman, General CounselLinda R. Manley, Secretary to the Board of DirectorsChairman Walker called the 175 th Meeting of the District of Columbia Water and SewerAuthority’s Board of Directors to order at 9:31 a.m.Chairman Walker asked Linda Manley, Board Secretary, to confirm a quorum.Manley confirmed a quorum.Ms.

Approval of the March 1, 2012 Meeting MinutesChairman Walker asked for a motion to approve the March 1, 2012 minutes.The minutes were moved and seconded with approval by the Board of Directors.Chairman Walker asked for a motion to approve the March 16, 2012 emergencymeeting minutes. The minutes were moved and seconded with approval by the Boardof Directors.Chairman’s RemarksChairman Walker acknowledged Mr. Roth on the phone.Chairman Walker noted that Ms. Manley has copies of a book titled “The Ghost Map” forall members of the Board and the book was sent to him because it is about the 1854cholera outbreak in London, England. During that time it was commonly thought thatcholera was an airborne disease. Thanks to the investigative work of Dr. John Snow inLondon conventional wisdom was changed and it was determined that cholera wasactually a waterborne disease and not an airborne disease. The discovery of cholera asa waterborne disease was what pushed London to create the first modern wastewaterand water supply system which started construction in 1800 around the same time thefirst water pipes were put into Washington, D.C.Chairman Walker thought that Board members would appreciate the way Dr. JohnSnow asked the hard questions and did not just accept conventional wisdom. Toconvince the health authorities in London at that time that cholera was a waterbornedisease and not an airborne disease, it took a lot of time and effort, asking the rightquestions. Chairman Walker asked Board members as they read the book to thinkabout the fact that Dr. Snow asked the hard questions and did not accept conventionalwisdom as just basically fact.Chairman Walker noted that the Inspector General‘s report was issued from the Districtof Columbia two weeks ago. The substance of the report deals with a time period thatfew on the Board were active. Chairman Walker has read the report and discussed itwith the General Manager. The concern was that the report would raise questionsabout the water quality today in the District of Columbia. Chairman Walker stated thatstaff did a wonderful job of making sure that those media sources that covered thesubstance of the Inspector General‘s report made it clear that this is focused on aperiod of time between 2001 and 2004 which is a very distinct period from where theDistrict of Columbia is today. Also, from a water quality standpoint and from a leadstandpoint the water in the District of Columbia far exceeds any Federal requirementsas it relates to a particular matter in the water. DC Water today still maintains itsextremely vigilant testing program well beyond what should be required.2

Chairman Walker gave kudos to staff on the organization’s upgrade of its credit rating atthis time in the economic cycle with many municipalities getting downgraded. It is afantastic accomplishment.Chairman Walker noted that there was a strategic planning meeting prior to the lastBoard meeting and he met with the General Manager and the consultants that facilitatedthe retreat. He also noted that there will be a meeting of the Strategic PlanningCommittee between the Board meeting and the next Board meeting. There will be anupdate on the go forward plan. Chairman Walker stated that he has asked AdamClampitt to serve as Vice Chairman of the Strategic Planning Committee to assist inpulling the consultants’ information together and to guide the work of the consultantsbetween now and the next Board meeting.Chairman Walker noted that the IMA is waiting for the signature of the Mayor of theDistrict of Columbia. A resolution will be on the May agenda authorizing ChairmanWalker to sign the IMA.Chairman Walker stated that Dr. Cotruvo raised a question on DC Water’s ability to sellits nitrogen credits. He is asking staff to explore the possibility of selling the nitrogencredits. This could be a great reward for the organization having been so proactive ingetting its nitrogen levels down.Chairman Walker noted that there was an update from the Retail Rates Committeemeeting as it relates to Howard University and Soldier’s Home. These have beenlingering issues and the Chairman would like to get a resolution.Chairman Walker asked Mr. Seamon to provide the Board an update on the auditcontrolled deficiencies mentioned in the Audit Committee meeting minutes.Chairman Walker asked Mr. Hoyt’s committee to follow-up on unanswered calls comingin to the call center and permits being processed in the amount of time on the servicelevel agreements.In addition, Chairman Walker asked the General Manager to include in his monthlyreport to the Board, the average response time and the length of time it takes to unblocka lateral or main.Chairman Walker announced the reappointments of Robert Hoyt and David Lake. Also,the Mayor’s renomination of Allen Lew, Howard Gibbs and Brenda Richardson.Chairman Walker concluded his remarks by noting that security issues were raised atthe strategic retreat. There was a briefing in the Board materials as it relates to theoverall perimeter security and some other issues as it relates to security around theBryant Street Pumping Station. However, there was nothing specific to the broadersecurity concerns that the Board raised at the strategic retreat and wanted to make surethat those concerns did not fall through the cracks.3

Presentation to Anthony Griffin for His Service to the DC Water BoardChairman Walker noted that at the breakfast held for Mr. Griffin the common themeamong the Board members was that Tony is an example of incredible leadership, poiseunder pressure and somebody that all of us look up to as a true role model forgovernment services. Chairman Walker also noted that when Mr. Griffin spoke hestated that a credit to his success as a Board member at DC Water were thetremendous staff of DC WASUA to DCWASA to now DC Water who have trulytransformed the organization over the last 17-18 years to create truly one of the greatwater utilities in the country and in the world.Chairman Walker highlighted the power point presentation on Mr. Griffin’s tenure andaccomplishments on the Board. He noted that Mr. Griffin is the longest serving Boardmember, starting his service in November 1997 and chairing and serving on severalcommittees.Chairman Walker presented Mr. Griffin with a plaque and several gifts in appreciationfor his outstanding dedication to the DC Water Board of Directors.Governance CommitteeReported by: Alan Roth, ChairpersonThe Committee met on March 14 th and discussed amending the by-laws to change thename of the Human Resources and Labor Relations Committee to Human CapitalManagement Committee. Staff withdrew its request for a change in the Committee’sname. The Committee agreed that a name change was not necessary and that aresolution reflecting such change would not be forwarded to the Board.Will Pickering, Government Relations Manager, provided the Committee a summary ofthe latest appropriations affecting DC Water on Capitol Hill as well as someCongressional hearings that were of interest. He then turned the Committee’s attentionto governmental activities within the District. He noted that a resolution to approve the2012 IMA is expected to be introduced in the Council of the District of Columbia shortly.The resolution would grant the Mayor authority to sign the IMA.The Committee then discussed a draft resolution that intended to deal in a practical waywith some procedural and implementation issues that have been discussed at previousBoard and Governance Committee meetings dealing with issues relating to the BluePlains Regional Committee. At the conclusion of the discussion, the Committee agreedto forward the draft resolution to the Board.4

Human Resources and Labor Relations CommitteeReported by: Anthony Griffin, ChairpersonThe Committee met on Wednesday, March 14, 2012.The Committee received a presentation on communications and the state of LaborRelations at DC Water. The Committee was informed that DC Water’s managementteam adopted the Team Blue PACT pledge – Positive Attitude, Accountability,Communication and Teamwork. It was requested that the presentation be shared withall board members.The Committee went into an executive session to discuss the evaluation of the GeneralManager.Mr. Griffin requested that the Board have an executive session at the conclusion of thismeeting.Environmental Quality and Sewerage Services CommitteeReported by: Robert Hoyt, ChairpersonThe Committee met on Thursday, March 15, 2012The plant performance for February was excellent. Flow was below normal volumes at280 million gallons a day. All permit limits were metThe Committee received a presentation on the use of 3D design for the Biosolids MainProcess Train Project, and the benefits provided.Mr. Hoyt reported that the Committee went into an executive session to discuss theMS4 Permit.Mr. Carlton Ray, Director of the DC Clean Rivers Project, provided an update on theeasements which are on track. It was requested that the report present challengesencountered in addition to successes.Mr. Hawkins updated the Committee on the discussions with EPA regarding theproposed LID Pilot Project.Mr. David McLaughlin, Director of Engineering, updated the Committee on the status ofthe hydraulic modeling effort. Testing has been delayed by two weeks, and the resultsof the work are now expected to be reported in early April.Mr. McLaughlin stated that the approval process continues for the Virginia sites. Theeasement issue at the Fairfax site has been resolved. It is expected that permits toconstruct for both sites will be executed by mid-June 2012.5

The Committee had an executive session regarding the MS4 permit challenges.The Committee is recommending six joint use contracts for Board approval.Water Quality and Water Services CommitteeReported by: Joseph Cotruvo, ChairpersonThe Committee met on March 15, 2012.The Committee received a status on the Total Coliform sampling. There were 245samples collected, with one positive result.Mr. Kiely indicated that LCR compliance monitoring had also begun, and so far the 90 thpercentile value of first draw samples is 3 ppb.Mr. Damion Lampley, Department of Water Services, reported that as of March 1 therewere 33 OOS hydrants that were mechanically defective. This amounts to 0.36 percentof total hydrants, compared with the target of 1 percent.The Committee received a presentation on the water system vulnerability assessment.It was noted that 70-80 percent of the assessment recommendations had beenimplemented.Maureen McGowan of the General Manager’s office gave a briefing on DC Waterobligations under legislation that was enacted a year ago. She noted that the law callsfor the Mayor to negotiate with DC Water a memorandum of understanding on how thelaw would be implemented, specifically on responsibilities for inspection of privatelyowned hydrants.The Committee had a preliminary discussion on monitoring strategy. DC Water iscommitted to a twice per year monitoring schedule for 2012. Later this year, staff willpresent to the Committee an alternate testing strategy based on reduced LCRmonitoring sampling and an increased sampling of other water quality initiatives.The Committee is recommending two non-joint use contracts for Board approval.DC Retail Water and Sewer Rates CommitteeReported by: Howard Gibbs, ChairpersonThe Committee met on Tuesday, March 27, 2012.The Committee received a brief update on the status of Howard University. HowardUniversity is questioning the accuracy of some of DC Water’s meters and DC Waterscheduled meter testing from the end of April through the end of May to verify theaccuracy.6

DC Water received an appraisal report and conveyed the results to the Chief OperatingOfficer of the Soldiers’ Home on March 6, 2012.Ms. Downs gave the Committee a brief history on the Clean Rivers Impervious AreaCharge implemented in May 2009 to recoup the costs of the federally mandated twentyyear$2.6 billion Combined Sewer Overflow-Long Term Control Program. The Boardapproved three resolutions on impervious surface that set forth policy guidelines for thedevelopment and implementation of the new fee. To date, most of the guidance hasbeen fulfilled and many are ongoing or in process.The Committee received a presentation on the Customer Assistance Program (CAP)and the expansion that was done in 2009 to include the pilot and right-of-way fee. DCWater is providing its typical customer about a 48 percent discount from what their billwould be without the CAP. The Committee is committed to looking into ways to keepthe CAP customers’ discounts at a reasonable amount.Audit CommitteeReported by: Bradford Seamon, ChairpersonThe Committee met on Thursday, March 29, 2012.The Committee received a report from the external auditors. All opinions wereunqualified. Five control deficiencies were identified. Three of the deficienciespertained to capitalization, while the other two related to information technology access.In respect to the information technology access, there was a lack of a formal documentto give people access to the system. This has been predominantly done by email andthey suggested that a form be created so that it can be documented what access levelpeople are actually being given and then signed off on to indicate that it was approved.Management accepted that recommendation.The Committee requested that the audit findings identified by the outside auditors beadded to the follow-up list that is being kept within the internal audit report.Mr. Seamon noted that in the payroll audit it was found that there is a possibility forhours to be entered into the payroll system and not be approved by a manager and stillbe paid. DC Water recognizes and understands that there needs to be some type ofaccountability placed upon the managers to make sure that they are approving timesheets in a timely fashion. There was a weakness in the timekeeping system that hadbeen identified in the external audit previously and they said it was resolved. TheCommittee asked that the external auditors go back and check their sample to see if itwas the same issue.The Committee received an update from Mr. Carew on succession planning.7

Finance and Budget CommitteeReported by: Bradford Seamon for Timothy FirestineMr. Seamon reported that the revenues and expenditures were on track with budgetaryexpectations.Mr. Seamon noted the very successful bond sale for DC Water with the lowest longtermfinancing cost of any bond issuance in DC Water’s history. The refundingcomponent of the 203 bonds will save DC Water approximately $1.3 million annually.Mr. Kiely provided the Committee with a historical background and feedback regardingcollection tools from a credit and collections campaign which began in 2003. Hedescribed the different tools such as Tax Sale, Reminder Notices, Liens and Shut-offNotices.The Committee is recommending three contracts for Board approval.General Manager’s ReportReported by: George Hawkins, General ManagerThe General Manager reported to the Board that the water main break at the WhiteHouse on April 4 th was not due to old pipes. It was due to some construction work goingon and the contractor hitting a water line.The General Manager recognized the financial accomplishments of DC Water. Henoted that the measure of success of the Bond Issuance was about $300 million of newfinancing. To refinance past debt at a lower interest rate will save DC Water cashoperating costs of $1.2 million a year for the next 20 years.He gave kudos to Olu Adebo and his staff and to Randy Haman and Laveeta Garlingtonwho actually did the day to day work with the rating agencies.The General Manager presented Mr. Griffin with a certificate noting that staffunanimously elected Mr. Griffin as an honorary member of DC Water.The General Manager noted that he is not sure when DC Council will be reviewing theresolution to authorize the Mayor to sign the IMA. The Mayor is fully supportive of theIMA and wants to bring it to a vote as quickly as possible. There were a series oftechnical issues raised by the OCFO that had to be resolved before delivery of theresolution to Council.The General Manager reported that DC Water met with the directors of the Departmentof Transportation and Department of the Environment on issues pertaining to low impact8

development installations around the City. All of the issues were not resolved at themeeting and there is a lot of serious technical questions about how this is doneproperly.The General Manager informed the Board that DC Water is doing a series of town hallmeetings around the City. DC Water met last night in Ward 8. He noted that some ofthe meetings are well attended, while at others no one shows up. The meetings consistof presenting DC Water's budget to the proposed rate increases and any other citizensconcerns.The General Manager noted that the drop lift cartoon that DC Water produceddescribing the giant billion dollar project received a Bronze Telly Award in the categoryof Animation and ,Education. In addition, DC Water won the EnvironmentalCommunications Award grand prize for its communications on the Clean Rivers Projectfrom the American Academy of Environmental Engineers.Consent ltems (Joint Use)Mr. Griffin moved the approval of Resolutions No. 12-37 through 12-44. Ms.Richardson seconded the motion. The motion to approve Resolutions No. 12-37through 12-44 were unanimously approved by the Board.Gonsent ltems (Non-Joint UselMr. Gibbs moved the approval of Resolutions No. 12-45 to 12-47 and Ms. Richardsonseconded the motion. The motion to approve Resolutions No. 12-45 and 12-47 wasunanimously approved by the District members of the Board.Chairman Walker stated that the Board will go into an executive session to discusslegal, confidential and privileged matters pursuant to Section 2 of the Open MeetingsAmendment Act of 2ü0.The Board reconvened into open session at 11:51 a.m.The 175th meeting of the DC Water Board adjourned at11:52a.m.Secretary to the Board of Di