• City of Cambridge Maryland
  • City of Cambridge Maryland
  • City of Cambridge Maryland
  • City of Cambridge Maryland
  • City of Cambridge Maryland
  • City of Cambridge Maryland
  • City of Cambridge Maryland
  • City of Cambridge Maryland
  • City of Cambridge Maryland
  • City of Cambridge Maryland
  • City of Cambridge Maryland
  • City of Cambridge Maryland
  • City of Cambridge Maryland
  • City of Cambridge Maryland
  • City of Cambridge Maryland
  • City of Cambridge Maryland
  • City of Cambridge Maryland
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muc meeting minutes

April 23, 2009
  

Municipal Utilities Commission

Minutes

April 23, 2009

The Municipal Utilities Commission met on Thursday, April 23, 2009 at the Council Chambers, 305 Gay St., Cambridge, Md.  Mayor Jackson-Stanley convened the meeting at 6:30pm.

Present:            Mayor Jackson-Stanley

                         Andy Pasden-MUC Commissioner

                         Glen Ford-MUC Commissioner

                         Charles Prahl-MUC Commissioner

                          Rex Marxhall-MUC Commissioner

                          Norma Alschbach-MUC Commissioner

                          Gary Newcomb-MUC Manager

                          Carrie Hall-MUC-Asst. Manager

                          Sylvester Molock-MUC Superintendent

                          Kevin Johnson-MUC Asst. superintendent             

Expenses

Mayor Jackson-Stanley asked for the approval of expenses for the month of February 2009 in the amount of  $154,940.69.

Mr. Newcomb mentioned Ck# 19574 in the amount of $50,530.14 is an annual amount for employee retirement based on salaries. Ck#19594 in the amount of $2,365.79 is for repairs to truck#54 for the superintendent's truck which was involved in an accident.  We were reimbursed all but $500.00 for our deductible. Ck#19598 in the amount of  $2,267.00 to Water Testing Labs for special sampling because we were selected by the EPA to do testing for fire retardent byproducts.  This is a two part testing.  This is the first sampling, the second was picked up this past week

Mr. Pasden asked if we get reimbursement from this since we were selected?

Mr. Newcomb responded no.

Mayor Jackson-Stanley asked to explain Ck#19602 to Fleet Services.

Mr. Newcomb said that is for fuel for our trucks as part of the City Contract.

Motion to approve expenses for February was made by Mr. Pasden, seconded by Mr. Ford and approved.

Expenses for the month of March 2009 were submitted for approval in the amount of $91,137.45.

Motion to approve expenses was made by Mr. Marshall, seconded by Mr. Prahl, approved.

Minutes

Minutes of the February 26th, 2009 meeting were submitted for approval.

Mr. Newcomb stated that the petty cash total of $130.00 should actually be $150.00.

With no other corrections, motion to approve with one correction was made by Mr. Marshall, seconded by Mr. Prahl.

West Side by-pass water main

Mr. Newcomb stated thus far for this year we are under budget so we have started some work on the by-pass road from funds from our maintenance budget of the current year.  In next years budget we have $150,000 assigned to the completion of the by-pass water main. Today the first tap was made and we have had some pipe delivered. Fortunately our leaks are down and we were under spent.  We will take advantage of good weather and time.  Hopefully by the end of June we will be purchasing the balance of the pipe that would be required.

Mayor Jackson-Stanley said the Council has been inquiring about the by-pass road so she will be happy to inform them of this fabulous news.  We all want to be on the same page.

Mr. Newcomb stated that he knows the council has been under some public pressure to get the by pass road open.  We will get this main in and it will greatly improve the water flow to that area.

Truck 59

We did receive the budgeted truck which was approved by MUC Commission and is now is service. 

Mr. Newcomb wanted to mention that this year vehicle maintenance was down due to the fact that we have relatively new vehicles which require just general maintenance.

Fletcher Ave Tank

Mr. Newcomb stated there has been some activity over to the tank.   Utility Services has started their maintenance on this tank. It has been 9 years since it was last painted.  We pay $14,000 a year for this service.  They will be painting the exterior of the tank. 

Monday, April 20th, with the rain and wind, Utility Service decided to pressure wash the tank.  We had several calls and complaints about the paint chips in Deep Harbor and also   property owned by Mr. Stivers (old Dorset Laundry Bldg.). They also filed a complaint with MDE.  They were afraid of the chips of paint to contain lead.  Mr. Newcomb said he notified our MDE inspector. She understood and reaffirmed me that there is no lead issue. 

Utility Service is aware that they are responsible for cleanup and spent a good deal of time sweeping.  The pressure washing is now done and they should begin painting and be done by next week.  Because this is a congested area, they will apply the paint by roller. 

Utility Service is a reputable company and are liable for any issues.

Mr. Prahl asked if the Verizon Antennae is their responsibility as well?

Mr. Newcomb said no. Verizon is responsible for their own maintenance.  The Antennae was installed with the approval of Utility Service so as not to affect our maintenance contract.

Mr. Prahl said when they install those antennaes, there is welding involved and this may cause rust, etc.

Mr. Newcomb said Verizon paid Utility Service after the installation to do repair to the inside and outside the tank.

Revenue Projections

Mr. Newcomb asked the Commission to look at the copies of the General ledger as it pertains to revenue projections.

At the end of March we should be at 75% of projected sales. Sales are generally down during the winter months, but he said he is hesitant to say they would meet the projected amounts. Sales are down $20,000, commercial is down $60,000, residential  is down  approximately $50,000, municipal is down $15,000.  With this we could be $145,000 shy of the projected budget amount.

The good thing is the budget as submitted was to have a surplus of $150,000 as submitted.  We may not have a surplus but we should still be able to operate within our income. The thing that concerns him is the projected income for next year is based on the income from this year.  Hopefully we will see an upward trend in sales.

Our Expenditures with the overtime freeze, salaries will be under spent by  $7,583.00, 

Transportation & equip expense we should be under budget by $4,000. Maintenance of vehicle should be under budget for year.  Maintenance of physical plant we should be under budget by $6,000. maintenance of mains even though we are showing a surplus, we talked earlier that we would use the remainder of this for the by pass road,  maintenance of services should be under budget by $3,000 to $4,000.  Small Tools is currently under budget but we will be purchasing some of the tools budgeted around this time of year.  Utilities for pumping stations, we may have a surplus of as much as $30,000 to $40,000.  The purification chemicals will be close.  Street repair costs will be under budget.  Uniforms should be $3,000 under budget.  General insurance and education should be under budget.    Office supplies should be under budget even after we order our new bills.  Office utilities is under budget. 

Even though our revenue is down, we have kept our expenditures down as well and will not be at the level that was projected.

Mrs. Alschbach questioned why group insurance will be over budget?

Mr. Newcomb said the previous Council approved the amounts after the budgets were submitted and approved.

Mr. Newcomb said interest income was up because the auditors recommended we move money to get more interest.

Mr. Newcomb summarized the G/L accounts for the Commission.  As long as we have enough revenue to pay our bills, we will be okay.  If we had to go into reserves, then he would have to go before the commission for approval.

Mr. Pasden asked for a brief description of the reserve accounts.

Mr. Newcomb explained each one.

The only totally restricted reserve acct would be Acct#1400.

Mr. Newcomb said he brought this up because all money used is through the revenue account.  It goes up and down.  The first part of the year was very tight.

Overall we are still in good shape.  We have to keep expenditures down. 

Misc. income breakdown

We had some duplicate charges which would result in a difference of $3,000.

He said he will go over it at the next meeting.

Superintendent's report

Mr. Molock briefly went over the leaks and new services.

Mr. Newcomb said the pumpage report for February shows a 28% unaccountable usage which he says something is still going on.

The Month of March 2009 shows an unaccountable is 25.9%. 

The billed consumption is down.

Mr. Newcomb mentioned in years past we had commercial customers  using as much water as we bill in a month currently.

Mayor Jackson-Stanley stated the point is that we don't have the businesses we use to have to draw on the water system.

Mr. Newcomb asked if anyone had any questions. 

Mr. Prahl asked if we had any streams to cross in the Jenkins Creek area when we connect the line to Washington St?

Mr. Newcomb said we have one area which we will get a proposal to do directional drilling.  By using directional drilling we do not have to get a permit because we would not be disturbing the wetland area.

Other

Mr. Newcomb said there is one other item he wanted to bring up. He wanted to update the board on the Stimulus package of items he submitted to the State.  A letter came back from the State stating the items were received and they are being taken into consideration.  However, he felt it was not looking too promising that we will receive any money.

There was a yes/no question that stated if loans were available would we be interested with no commitment at this time. He felt it wouldn't hurt to say yes because they stressed there is no commitment. He would not agree to anything without the board approval.

He did sent it back that we may entertain the idea.  The letter indicated the interest could be as low as 0%.

Mayor Jackson-Stanley stated she was happy that they started the High Street repair.

She is glad she did not have to contact Chesapeake Utilities.

Mr. Newcomb said we have two small areas we will be repairing in front of the old MUC office and one in front of 103 High St.  Hughes Masonry  is doing our repair.

She also wanted to following up on what happened to the money with the Bank of New York.

Mr. Newcomb stated he went to Mr. Kinnamon  and  the letter has been sent and we are waiting a response.   It stated we need verification of expenses or the money back.

Mr. Newcomb handed a copy of  the final draft of the new water postcard bills for the Commission to look over. 

Mayor Jackson-Stanley stated it looks great and meets all of our needs.  Same postage etc.

With no further business, motion to adjourn the meeting was made by Ms. Alschbach, seconded by Mr. Ford, at approximately 7.44pm.

I hereby certify that the foregoing  is a true and exact accounting of the business of the MUC during  the regular meeting held on April 23, 2009. In so far as I am personally aware.

Jane W. Dorman