MWRA BOARD OF DIRECTORS’ MEETING
June 25, 2003
A meeting of the Board of Directors of the Massachusetts Water Resources Authority was held on June 25, 2003 at the Charlestown Navy Yard. Present: John Carroll, Andrew Pappastergion and Joseph Foti, Advisory Board Representatives; Vincent Mannering, Kevin Cotter and Antonia Pollak, City of Boston Representatives; Lucile Hicks, Gubernatorial Appointee; Joseph MacRitchie, City of Quincy Representative. Absent: Chair Ellen Roy Herzfelder and Donald Mitchell, Gubernatorial Appointees; Marie Turner, Town of Winthrop Representative.
Report of the Chair
No Report.
Report of the Executive Director
Fred Laskey, MWRA Executive Director, reported that Andrew Pappastergion was re-elected for another three-year term to serve on the MWRA Board of Directors by the Advisory Board at its June meeting; at that meeting, Mr. Laskey provided Advisory Board members with a presentation on MWRA’s accomplishments during FY03.
On the Legislative front, $5 million in debt service assistance was included in both the House and Senate versions of the FY04 budget and is on the Governor’s desk. Other items included in the Legislative budgets include another Early Retirement Program and a change to health benefits: employees who make $35,000 or more will pay 20% of their health benefits; employees who make under $35,000 will remain at 15% and new hires after July 1, 2003 will pay 25% of the health benefits.
Mr. Carroll asked how much savings the Authority would realize if employees are statutorily required to pay more of the health benefits. Mr. Laskey responded that there will be a savings of an estimated $500,000 to the Authority. Mr. Cotter asked how the change in health benefits will affect retirees. Kate Murray responded that any employee who retired prior to July 1, 1994 would pay 10%, while anyone who retired after July 1, 1994 will remain at an 85/15% split.
The Board decided to combine the two summer Board meetings into one meeting on a date yet to be determined.
Approval of FY04 Current Expense Budget and Planning Estimates
The Board voted: 1) to adopt the fiscal year 2004 Current Expense Budget (CEB) with current revenue and expenses of $475.8 million; 2) to adopt the FY04 Operating Budget (Trustee’s Budget); 3) to approve the Response to the Advisory Board’s Comments and Recommendations on MWRA’s Proposed Fiscal Year 2004 CEB.
The final FY04 Current Expense Budget totals $489.1 million (use of $13.3 million in variable rate debt savings reduces the amount to $475.8 million). The $475.8 million expense total is a reduction of $11.1 million from the proposed CEB. This reduction, together with additional non-rate revenue of $1.5 million, allows MWRA to maintain a 3.9% rate increase for FY04 without using $12.6 million in rate stabilization funds included in the proposed CEB. The expense reduction is comprised of a decrease of $0.9 million in direct expenses and a $10.1 million decrease in debt service, largely as a result of reducing the assumed interest rate on variable debt from 4% to 3% based on current rates and updating assumptions for a planned fixed rate debt issue based on market conditions and the final FY04-06 capital budget. These adjustments reflect recommendations made by the Advisory Board and further review by MWRA staff since the proposed budget was developed.
Final FY04 Water and Sewer Assessments
The Board voted to adopt the following, effective July 1, 2003, provided that FY04 water and sewer assessments and the FY04 wholesale water rate shall be reduced to incorporate the impact of any award received by MWRA in FY04 from the Commonwealth Sewer Rate Relief Fund established by Section 2z of Chapter 29 of the Massachusetts General Laws: 1) Water assessments of $123,780,698 and sewer assessments of $312,047,678 for fiscal year 2004 allocated to communities in accordance with "Final FY04 Water And Sewer Assessments; 2) FY04 sewer assessments of $500,000 for the Town Of Clinton and $96,826 for the Lancaster Sewer District; 3) FY04 water assessments of $2,081,340 for Chicopee, $450,719 for South Hadley Fire District #1 and $391,868 for Wilbraham; 4) A wholesale water rate of $1,638.22 per million gallons; and 5) An O&M water rate of $747.45 per million gallons.
The rate revenue requirement assumes no use of rate stabilization funds resulting in a rate increase of 3.9% for FY04 and average increases of 5.8% over the next three years. Staff estimates that the average impact of MWRA’s FY04 assessments for a household in a fully served MWRA community is an increase of approximately $18. In addition to MWRA’s increase, household customers may also see increases due to higher charges from local communities to cover the cost of operating and maintaining local systems. Staff estimates the impact of local charges to be $15 per household.
MWRA Statutory Insurance Renewals
The Board voted to authorize the Executive Director, on behalf of the Authority, to approve the annual renewal of required insurance policies and bonds under the Authority’s Alternative Risk Transfer Insurance Program for FY2004 in an amount not to exceed $250,645.
In May 2001, the Board approved a three-year Alternative Risk Transfer Program (ARTP), which combined property, general liability and automobile liability coverages into a single $200,000,000 policy, with a $2,500,000 per occurrence deductible and annual aggregate retentions. The program also included broker services for a three-year period from July 1, 2001 to July 1, 2004. This program, which was initially implemented in 1998, was renewed based upon favorable prior experience and substantial cost savings to the MWRA.
In addition, the ARTP includes other insurance components including an Excess Workers Compensation Policy (required by state statute), a Commercial Crime Policy (including Public Officials and Employees Dishonesty coverage) and a Treasurer’s Bond (both required by the Authority’s Enabling Act). These additional components are only written on an annual basis and are the basis for this renewal. The FY04 CEB contains sufficient funds to cover these insurance premiums.
Mr. Mannering asked if staff had any thoughts on bonding insurance and getting quotes. Paul Whalen stated that the ARTP was a bonding approach to bond liability policies and provided an excellent cost savings and higher limits. The current policy expires in 2004 and staff does not know if the bonding option will be available at that time. With any approach, the Authority is likely to see significant increases in cost as the MWRA’s rates are still based on the 1998 agreement.
Ms. Hicks asked if staff, provided there are no major acts of terrorism, expects to see the costs for insurance level off. Mr. Wissman responded that markets will level off or may even move lower as they absorb losses already incurred. However, there are other pressures pushing premiums up including lower fixed rate investment earnings for the insurance companies due to the low-interest rate environment. Mr. Whalen stated that because of the low 1998 pricing, some costs can be expected to increase; however, other components will not increase significantly.
Memorandum of Agreement with the Town of Framingham; Contract 6129, Amendment 1
The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Amendment 1 to the Memorandum of Agreement (MOA) and Mitigation Agreement with the Town of Framingham extending the term from June 30, 2003 to December 31, 2003, with no increase in the Agreement amount.
In February 1996, the Board of Directors approved the execution of a MOA with the Town of Framingham to provide tunnel rescue services, fire safety, permit support and construction mitigation related to the entire MetroWest Water Supply Tunnel Project. The term provisions of the MOA noted that the Agreement "shall terminate upon completion of construction of the project, now estimated to be June 30, 2003. If tunnel construction extends past June 30, 2003, the term of the MOA may be extended in writing by mutual agreement of the parties."
At this time, each of the main tunnel contracts have reached substantial completion; however, the Disinfection and Declorination Contract is not expected to reach substantial completion until October 2003. Amendment 1 provides for the MOA term to terminate upon completion of the Disinfection and Dechlorination Contract, but no later than December 31, 2003.
Renewal of Memoranda of Agreements with the Massachusetts Department of Public Health and the Boston Public Health Commission
The Board voted to authorize the Executive Director, on behalf of the Authority, to renew the Memorandum of Agreement with the Massachusetts Department of Public Health (MDPH) for two years in an amount not to exceed $151,000 for the first year and $155,000 for the second year and to renew the Memorandum of Agreement with the Boston Public Health Commission (BPHC) for two years in an amount not to exceed $120,000 per year for the purposes of implementing programs for waterborne disease surveillance and outbreak monitoring activities.
In July 1999, the Board authorized staff to enter into MOAs to design programs of waterborne disease surveillance and outbreak monitoring activities with the MDPH and the BPHC for $120,000 each, totaling $240,000. These Agreements were renewed in August 2001 for two years for $145,000 per year for MDPH and $120,000 per year for BPHC to begin implementation of a waterborne illness surveillance system. Both agencies have provided monthly and annual reports and the Agreements have increased communication between MWRA and the agencies, with any unusual disease outbreak potentially related to water or water quality issues immediately discussed between MWRA and the public health agencies. The program has also established a baseline of disease rates both within and outside MWRA’s service area.
Extension of One Employment Contract, Operations Division
The Board voted to approve the extension of the employment contract for Paul DiLuca, Hazardous Waste Specialist, Field Operations Department, Operations Division, for a period of 13 weeks, from July 1, 2003 through September 30, 2003 at an hourly rate of $36.77, for a total compensation amount not to exceed $17,925.38.
The Field Operations Department has a short-term need for skilled staff to assist with development of an Emergency Response Plan to meet the requirements of the Public Health Security and Bioterrorism Preparedness Act of 2002. The necessary Emergency Response Plan, which must be completed by September 30, 2003, is intended to focus on the results of the recently completed MWRA Vulnerability Assessment and to guide MWRA response to such threats as terrorist attacks using explosives or serious contaminants. The Emergency Response Plan is intended to be modeled on the Integrated Contingency Plan model used for Deer Island. Mr. DiLuca’s experience and expertise with this type of plan development will be invaluable.
Insurance Consultant Services: Kevin F. Donoghue & Associates, Contract F163
The Board voted to approve the recommendation of the Consultant Selection Panel to select Kevin F. Donoghue & Associates to provide Insurance Consultant Services and to authorize the Executive Director, on behalf of the Authority, to execute Contract F163 with Kevin F. Donoghue & Associates in an amount not to exceed $75,000 for a term of three years from July 1, 2003 through June 30, 2006.
This procurement involves the selection of an Insurance Consultant to provide services on an as-needed task order basis for items such as review, evaluation and report preparation on the adequacy of the MWRA Insurance Reserve Fund and overall Risk Assessment as required by the General Bond Resolution. The Insurance Consultant will also serve as an advisor to the MWRA to determine the appropriate level and alternatives to replace the Authority’s Alternative Risk Transfer Program, which expires on July 1, 2004. Additionally, this Insurance Consultant will serve as an advisor for the on-going MetroWest and Walnut Hill Owner Controlled Insurance Programs and advise the MWRA on other general questions relating to insurance matters, including requirements for construction contracts, policy renewals and surety bond issues.
The FY04 CEB contains sufficient funds to support this contract.
Legal Services for Debt Financing Program: Ropes & Gray LLP, Bond Counsel and Palmer & Dodge, LLC, Disclosure Counsel
The Board voted to approve the recommendation of the Consultant Selection Panel to: 1) select Ropes & Gray LLP to serve as Bond Counsel and to authorize the Executive Director, on behalf of the Authority, to execute a Contract with Ropes & Gray LLP in an amount not to exceed $940,000 from July 1, 2003 through June 30, 2007; and 2) select Palmer & Dodge, LLC to serve as Disclosure Counsel and to authorize the Executive Director, on behalf of the Authority, to execute a Contract with Palmer & Dodge, LLC in an amount not to exceed $296,075 from July 1, 2003 through June 30, 2007.
Over the next four years, the MWRA will issue bonds, notes and other financial instruments to support the ongoing capital improvement program, which will require the services of both Bond Counsel and Disclosure Counsel. Bond Counsel is responsible for assuring that federal and state legal requirements are met so that the bonds are lawful and binding obligations of the Authority and interest payments to bondholders will be exempt from taxation. The Bond Counsel is also responsible for determining that the MWRA has complied with the contractual requirements for its bond resolution prior to issuance of any debt. The Disclosure Counsel will be responsible for much of the preparation of MWRA official statements, review of all required disclosure filings and materials that MWRA supplied to investors to ensure that MWRA complies with requirements of the security laws designed to protect investors.
The cost for Bond and Disclosure Counsel is $1,236,075 for the services through FY2007. These expenses will be included in cost of issuance in upcoming bond and note issues. This cost is based upon 12 transactions (8 MWRA bond issues and 4 SRF issues) over the next four years.
Mr. Mannering noted that the Mintz Levin quote was $70,000 less. Mr. Wissman responded that Mintz Levin had an escalating price and rates would depend on when the transactions were done, in the fourth year rates would be more expensive. Additionally, Ropes & Gray committed a senior lawyer to the MWRA, whereas Mintz Levin committed a senior lawyer for 6% of the total commitment.
Cosgrove Intake Screens and Stormwater Drain, Barletta Engineering Corp., Contract 6773
The Board voted to approve the award of Contract 6773, Cosgrove Intake Screens and Stormwater Drain, to the lowest responsive bidder, Barletta Engineering Corp., and to authorize the Executive Director, on behalf of the Authority, to execute and deliver said contract in the bid amount of $3,044,444 for a term of 365 calendar days from the notice to proceed.
This Contract consists of replacing static screens with mechanical travelling type screens, modifications to the existing electrical system, fiber optic cable link between the Wachusett Lower Gate House and the Cosgrove and installation of a stormwater drain system at the Cosgrove Intake Facility in Clinton.
The Cosgrove Intake is currently planned to be an unstaffed facility; facility operations will be controlled remotely from operator workstations located in the Walnut Hill Water Treatment Plant Control Room.
Barletta Engineering Corp. submitted a bid in the amount of $3,044,444, which is $330,556 or 9.8% less than the Engineer’s estimate and 10.5% below the bid average of $3,401,319. MWRA’s Design Engineer, Campus Dresser & McKee, Inc. reviewed the bid and concluded that it is based on prevailing wages and represents a reasonable and accurate cost for performance of this Contract.
The FY04-06 CIP includes a budget of $3,368,000 for Contract 6773.
CONTRACT AMENDMENTS/CHANGE ORDERS
Property Damage Adjustment Services: Butterworth & O’Toole, Inc., Contract F147, Amendment 2
The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Amendment 2 to extend the time for completion of Contract F147 with Butterworth & O’Toole, Inc., Property Damage Adjustment Services, by 12 months to June 30, 2004.
Risk Management and, at times, the Law Division utilize this Consultant to assist the Authority in estimating, negotiating and settling residential and commercial personal and real property damage claims made against the MWRA. From time to time, this Consultant is also utilized by the MWRA as an expert witness during mediation and/or litigation proceedings for those claims that are not settled.
The FY04 CEB contains sufficient funds to support this contract.
East Boston Branch Sewer Relief Project: Jacobs Civil, Inc., Contract 6256, Amendment 2
[On April 10, 2002 the Board of Directors approved suspending certain design work associated with the East Boston Branch Sewer Relief Project and entering into negotiations with EPA, DEP and other parties to obtain regulatory approval and Federal Court acceptance of revisions to schedule six. This suspension is to allow MWRA to complete a full re-evaluation of alternatives for controlling East Boston CSO discharges and, as a result, possibly recommend a revised, more cost-effective control plan. Staff had recommended the re-evaluation and associated additional time to respond to new information indicating that the cost of the relief project would be much higher than earlier estimated and that the intended benefits might not be achieved. Amendment 2 adds services to contract 6256 for performance of the re-evaluation.]
The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Amendment 2 to increase the amount of Contract 6256 with Jacobs Civil, Inc., East Boston Branch Relief Sewer Project, in an amount not to exceed $347,394.
Amendment 2 will provide additional funds for engineering services to re-evaluate the project to identify potential alternatives that may provide more cost-effective CSO control.
The FY04-06 CIP includes $5,220,000 for Contract 6256. Including this Amendment, the adjusted contract upset limit will be $5,317,234 or $97,234 over budget. This amount will be absorbed within the spending cap.
Design and Construction Services for North Dorchester Bay/Reserved Channel Consolidation Conduits and Reserved Channel CSO Facility: Parsons Brinckerhoff/Metcalf & Eddy, JV, Contract 6220, Amendment 7
The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Amendment 7 to increase the amount of Contract 6220 with Parsons Brinckerhoff/Metcalf & Eddy, JV, Design and Construction Services for North Dorchester Bay/Reserved Channel Consolidation Conduits and Reserved Channel CSO Facility, in an amount not to exceed $153,000.
Upon completion of Phase I of the South Boston CSO reassessment, the Board authorized staff to proceed with Phase II of the reassessment and approved Amendment 6 to Contract 6220 on March 12, 2003. Early Phase II work has yielded promising results for the CSO control alternatives evaluations, but weather conditions have prevented the project team from completing the water quality sampling program. Mainly in response to these two factors, Amendment 7 is required for additional scope and funds for related work.
The FY04-06 CIP includes $27,546,000 for Contract 6220. Including Amendment 7, the upset limit will be $24,398,366. The construction services portion of the contract budget, $9,606,726, remains unspent and will not be changed by this Amendment. Depending upon the outcome of the reassessment and subsequent negotiations with regulatory agencies and court parties, staff are likely to return to the Board of Directors to request additional funds for design services and possibly construction services as well for a revised recommended plan.
Southern Extra High, Sections 41/42 and 74 Water Main Replacement: SEA Consultants, Inc., Contract 6107, Amendment 1
The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Amendment 1 to Extend the time for completion of Contract 6107 with SEA Consultants, Inc., Southern Extra High, Sections 41/42 and 74 water main replacement, by 488 days to October 31, 2004.
Water Main Sections 41/42 and 74 connect the existing Hyde Park Pump Station and the Newton Street Pump Station discharge pipeline (Section 77) to Bellevue tanks 1 and 2. Because of the higher pressures created by Bellevue tank 2, which stands 25 feet higher than Bellevue tank 1, Water Main Sections 41/42 and 74 are susceptible to breaks. When the work of this contract is complete, this water main will be able to handle the high pressures from Bellevue tank 2.
The FY04-06 CIP includes a budget of $1,591,000 for contract 6107. This amendment is for time only.
Ms. Hicks questioned that a lot of additional time is needed. Staff responded that construction schedules had to be changed to accommodate two schools in the area and a moratorium on construction during winter months. Additionally, there was a conflict with Boston Water and Sewer Commission and NStar construction schedules.
Walnut Hill Water Treatment Plant – Ozonation Treatment Facilities: Barletta-Shea, JV, Contract 6489, Change Order 47
The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Change Order 47 to increase the amount of Contract 6489 with Barletta-Shea, JV, Walnut Hill Water Treatment Plant – Ozonation Treatment Facilities, in an amount not to exceed $75,700. Further, to authorize the Executive Director to approve additional Change Orders as may be needed to Contract 6489 in amounts not to exceed the aggregate of $250,000.
A failure of a large water pipe at the Cambridge Water Treatment Plant, designed by Camp Dresser & McKee, Inc. (CDM), flooded the lower level of that plant. As a result of this event, MWRA and CDM evaluated the potential for a similar occurrence at the Walnut Hill plant and concluded that a break in one of the plant water pipes could potentially release a large volume of water into the Chemical Building, depending on how quickly valves could be closed.
The evaluation identified a means of carrying flood waters away from the Walnut Hill plant by utilizing the 66-inch overflow pipe in the lower level of the Chemical Building, which had to be built to ensure the option of using filtration at a later date.
The cumulative value of all change orders to this contract will total $9,395,509, or 8.04% of the original contract amount. The FY04-06 CIP contains a budget of $128,003,000 for Contract 6489. Including this change, the adjusted total for this contract is now $126,239,509.
Mr. Mannering questioned if this could be considered a design failure on the part of CDM. Staff believes that CDM followed reasonable procedures during the design. This change is being made at MWRA’s direction to minimize potential damage in the event of a pipe break at the Walnut Hill plant.
Ms. Hicks noted that the change orders are now at 8% of the original contract and the project is only two-thirds of the way complete. Frank DePaola stated that upon Substantial Completion of the project, MWRA plans to conduct a Consultant Review Program with CDM to determine damages that the Authority has incurred as a result of CDM performance and seek mitigation.
Ms. Hicks asked if there were ways to avoid the overruns, rather than negotiate after the fact. Mr. DePaola stated that staff is applying lessons learned to ongoing projects. Some change orders are a result of these lessons and the request has been made prior to the work beginning. The Walnut Hill facility is probably the largest ozonation facility in the United States and the work does not always scale up as nicely as it did in the planning stages for this very large plant. Mike McBride stated that if something egregious is discovered along the way, MWRA has put the consultant on notice and continues to discuss ongoing issues with CDM.
Chestnut Hill Pump Station Supply Mains, R. Zoppo Corp., Contract 6651, Change Order 5
The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Change Order 5 to increase the amount of Contract 6651 with R. Zoppo Corp., Chestnut Hill Pump Station Supply Mains, in an amount not to exceed $35,000. Further, to authorize the Executive Director to approve additional change orders as may be needed to Contract 6651 in amounts not to exceed the aggregate of $250,000.
The contract documents require the contractor to furnish and install a 48-inch pipeline along Reservoir Road in Brookline to replace the existing pipeline of Section 52. Reservoir Road is a narrow stretch of roadway that also contains an existing gas main that runs parallel to the proposed location of the 48-inch pipeline. To avoid conflicts with the existing gas main, the Design Engineer, Fay, Spofford & Thorndike (FS&T) specified installation of the 48-inch pipeline away from the gas main, but close to existing trees. As designed, the contract specified pipe run would result in the removal of, or damage to, several 100 year-old trees along Reservoir Road. Subsequent to the contract award, the Brookline Tree Warden refused to issue a permit to allow the MWRA to remove the trees. Staff is reviewing the circumstances with the design consultant to determine if the original design was appropriate.
To avoid disturbing the trees, MWRA Staff compensated Boston Gas Company to relocate its gas main, thus allowing sufficient room to install the 48-inch pipeline away from the existing trees. The pipeline realignment work, however, requires the contractor to furnish and install an additional 54 feet of 48-inch piping, relocate approximately 16 feet of an existing 6-inch Brookline water line to eliminate an interference in the installation of the necessary fittings and appurtenances.
The cumulative value of all change orders to this contract will total $272,780.96, or 3.9% of the original Contract amount, which is now approximately 72% complete. The FY04-06 CIP contains $7,292,000 for contract 6651; including this change, the adjusted sub phase total is $7,263,880.96.
Mr. Pappastergion inquired on the amount of compensation given to Boston Gas to relocate its pipes and expressed his dismay that FS&T did not include this solution in its original design. Staff stated that Boston Gas received $41,500 to relocate its pipes.
MetroWest Water Supply Tunnel – Owner-Controlled Insurance Program: Liberty Mutual Insurance Co., Contract 6122, Amendment 2
The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Amendment 2 to increase the amount of Contract 6122 with Liberty Mutual Insurance Co., MetroWest Water Supply Tunnel – Owner-Controlled Insurance Program (OCIP), in the amount of $5,421,170.
On May 22, 1996, MWRA’s Board of Directors approved the implementation of an OCIP for the MetroWest Water Supply Tunnel Project. An OCIP is an insurance program purchased and controlled by the owner covering the risks of the owner, its contractors and subcontractors. At that time, estimated savings through the use of the OCIP were $8.9 million; however, labor costs exceeded the estimate requiring this Amendment and reducing the actual savings to approximately $3.5 million over the life of the program. Staff stated that the OCIP is generally only considered for projects in excess of $100 million.
The FY03-05 CIP includes $20,067,000 for contract 6122. Including this amendment for $5,421,170, the adjusted sub-phase total will be $24,541,574, or $4,474,574 over budget. The final FY04-06 CIP contains $23,693,000 for contract 6122.
Integrated Water Supply Improvement Program Update
MWRA staff provided an information piece regarding the project status and staff concerns on completion of construction leading to system start-up of the MetroWest Water Supply Tunnel, Norumbega Covered Storage and Walnut Hill Water Treatment Plant projects. The report discussed the contracts and work activities to move through the three Start-Up Phases of the Integrated Water Supply Improvement Program and highlighted the activities that are scheduled to take place over the next three to five months leading up to placing the Wachusett Aqueduct/MetroWest Water Supply Tunnel "bypass" system in service and shutting down the Cosgrove Tunnel for the Wachusett Tie-In.
Environmental Notification Form for the Shaft 7 to WASM3 Connecting Mains Project
MWRA staff provided an information piece regarding an Expanded Environmental Notification Form (ENF), which has been prepared for Shaft 7 to WASM3 Connecting Mains Project and it is expected to be submitted to the Massachusetts Environmental Policy Act (MEPA) Unit by June 30, 2003.
Executive Director’s Performance Review and Contract Extension
The Board voted to: 1) rate the performance of the Executive Director from June 4, 2002 to June 3, 2003 as outstanding; and 2) extend the term of the Executive Director’s employment agreement and appointment as Executive Director by one year to June 3, 2006, subject to his consent.
Mr. Laskey stated his intention not to take a salary increase in light of fiscal conditions and the sacrifice made by others at the Authority and thanked the Board for its support.
Extension of Contract for Chief Operating Officer
The Board voted to extend by one year the employment contract of Michael Hornbrook, Chief Operating Officer, to May 31, 2006.
Mr. Hornbrook waived a salary increase as well. Mr. Laskey thanked Mr. Hornbrook for his hard work and "24/7" commitment to the Authority.
This Summary does not include every item discussed by the Board, nor the full extent of the discussions. Please contact Mary Ann McClellan at the Advisory Board office with questions, comments and requests for additional information.