May 26, 1999
A meeting of the Board of Directors of the Massachusetts Water Resources Authority was held on May 26, 1999 at the Authority Headquarters in Charlestown. Present: John Carroll, Andrew Pappastergion, Norman Jacques, Advisory Board Representatives; Vincent Mannering and Andrea d'Amato, City of Boston Representatives; Lucile Hicks and Donald Mitchell, Gubernatorial Representatives; Joseph MacRitchie, City of Quincy Representative; Marie Turner, Town of Winthrop Representative. Absent: Chairman Robert Durand, Gubernatorial Representative; Robert Spinney, City of Boston Representative.
AGENDA
Report of the Chair
No Report.
Report of the Executive Director
Douglas MacDonald, Executive Director of the MWRA, reported that the Authority has met CT requirements since November; customer complaints are down considerably from FY97 and FY98 due to improvements in the chlorination system; and valve work in the waterworks area is on target. The Authority has been tracking peak flows at Deer Island to ensure that MWRA is using on site Combustion Turbine Generators during peak flows to reduce Boston Edison Co. peak flow charges.
Mr. MacDonald also noted that he has asked staff to redouble their efforts to solve the continuing odor situation at Framingham Extension Relief Sewer.
In addition, Mr. McDonald also stated that the total craft hours devoted by the preventative maintenance staff to work orders has increased, taking the Authority in the right direction. Norman Jacques asked, "Doesn't increasing the number of hours include increasing the number of people, yet the percentage stays the same and hasn't improved?" Mr. MacDonald replied, "The percentage is still below our target, but the staff hasn't changed."
Mr. Jacques also brought attention that there is an average ten-day sick leave per employee, noting that the Wall Street Journal states that the average is 5.5 sick days. He then suggested that sick leave monitoring should be part of manager's goals and objectives, and tied into merit increases.
Combination of Certain Existing Laboratory Units into a Consolidated Department of Laboratory Services
The Board voted to approve the creation of the Department of Laboratory Services, consisting of 67 existing laboratory positions from the Waterworks and Sewerage Divisions. The new Department will provide laboratory services from four locations (Clinton, Deer Island, Somerville and Southborough) and the Director of Laboratory Services will have a matrix reporting relationship to the Directors of the Sewerage and Waterworks Divisions.
Staff determined that bringing scientists/personnel from four laboratory locations into a unified department would yield four primary benefits: better allocation of staff and facility resources, including cross-functional training; a single unified approach to quality control and laboratory information management; independence from the operating functions that are monitored by laboratory testing; and future cost savings of at least $140,000, with additional savings as the new Department's processes are consolidated and streamlined.
Norman Jacques asked if the consolidation would eliminate the use of outside labs. Staff responded that there would always be a need for outside labs due to major equipment failure or for testing outside of the MWRA scope. These labs are paid on a unit basis and not by contract.
May PCR Amendments - FY99
The Board voted to approve amendments to the Position Control Register, with the exception of Amendment No. B50 (Manager, Security Planning), as follows:
Reclassifications in Waterworks Operations to ensure adequate coverage for SCADA Engineering work in the Metering and Monitoring Section and to continue position changes as incumbents acquire required technical qualifications.
Reclassifications in the Support Division to reflect changing workloads and technical requirements. The changes incorporated in this package represent the first step in organization planning for Materials Management. Reclassifications in other Divisions that reflect assessments of changing workload and priorities.
Mr. Mitchell noted that Amendment No. B50, Manager, Security Planning, was a position that was discussed at the Budget Hearings and it was determined that this was a position for the next fiscal year.
Mr. Mannering stated that the Head of Security, responsible for $6 million in assets, should be a non-union position, and requested that a written study be done. He requested that staff report back with their findings before a vote will be taken..
Non-Union Compensation Program
The Board approved, with John Carroll opposed, the following actions in the Authority's compensation program for non-union managers:
1. To approve a revised non-union salary structure for Grades 13-17 (Grades 12 and 13 merged) as presented to and filed with the records of the meeting (see Attachment A);
2. To authorize the Executive Director to approve adjustments to base salaries in accordance with the report on "pay-for-performance" implementation, included in the staff summary.
3. To authorize and direct the Executive Director to implement "pay-for-performance" compensation adjustments for non-union managers for FY00 where the range of adjustments for individuals shall fall between zero and five percent, and to report to the Board of Directors by or before April 1, 2000.
4. To direct that the Authority continue to review its salary results for non-union managers by internal and external review, including the continuation of expert consulting assistance at a cost of not more than $35,000 in FY00, for purposes of further defining MWRA's compensation strategies, developing improved internal job evaluation factors, and improving the performance appraisal and assessment process. The Board should receive a report no later than September 30, 1999 on individual pay equity adjustments which may be required by employment marketplace concerns. Revisions to salary ranges should next be considered for FY01.
Discussion was moved to Executive Session.
Amendment to the Other Capital Projects Contingency Fund
The Board voted to approve an amendment to the FY99-01 Capital Improvement Program to increase the Other Capital Projects contingency fund by $9.6 million, from $57.8 million to $67.4 million.
The amendment will increase the contingency fund so that MWRA can award the Braintree-Weymouth Construction 1 (Tunnel) contract in FY99. A consent decree with DEP calls for MWRA to issue a Notice to Proceed for this contract by June 30, 1999. To meet this deadline, the contingency amendment was approved. The Advisory Board agreed to expedite its review of the amendment to facilitate the award according to this schedule.
Retirement System Funding for FY2000
The Board voted to approve funding of MWRA's FY00 contribution to the Retirement System at the level of 3.78% of covered payroll, an amount of approximately $2,675,000 (based on an estimated covered payroll of $70.8 million), subject to final adjustment in accordance with completion of the CEB process.
The Authority funds its contribution to the Retirement System based on a percentage of covered payroll. For the proposed FY99 CEB, the percentage was set at 4.75%. Through March, the actual contribution has been 1.3% less than the year-to-date budget, reflecting underspending in payroll when compared to budget. Based on the valuation and a consultant's recommendation for future funding, the Retirement Board determined that a rate of 3.78% of covered payroll will be adequate to maintain full funding of the System in FY00.
Ms. Hicks asked, "Why were we able to drop a percentage point?" Ron Joseph answered, "Because last year's investment income had a good year, the contribution can go down."
Execution of Mortgage Subordination Agreement
The Board voted to authorize the Executive Director to execute a Mortgage Subordination Agreement among Massachusetts Heavy Industries, Inc. (MHI), MHI Shipbuilding, LLC, Massachusetts Development Finance Agency (MDFA), the City of Quincy, Massachusetts, and Massachusetts Water Resources Authority (MWRA), acknowledging and agreeing that the mortgage from MHI to MWRA originally dated December 17, 1997 is subordinated to an additional financing debt of up to $4 million from MHI to MDFA.
MWRA agreed to defer the payment of $7 million of the purchase price for the shipyard sale, but will accrue interest at a 7.5% rate for the deferred period.
Joe Favaloro, Executive Director of the MWRA Advisory Board, asked, "What would be the result if the board said no, we don't support this, why would the Authority want to be further down on this list?" Mr. MacDonald answered, "If the Authority doesn't agree, then the loan would not be made by MDFA."
Mr. Favaloro asked, "Has there been any discussion with the Commonwealth that we should be held harmless so that we are not out the funds if MHI defaults for ratepayers benfits?" Mr. MacDonald stated that the Authority has not had conversation with the Commonwealth regarding this matter; while Mr. Jacques felt that a dialogue with the Commonwealth could be beneficial.
Approval of a Request for Sewer Service to a Location Outside the MWRA Service Area (System Expansion Policy): Regis College, Weston, MA
The Board voted to approve, with Ms. Hicks and Mr. Pappastergion opposed, an application for a connection to the MWRA sewer system through the Waltham sewer system for Regis College in Weston, MA as set forth in its application in accordance with MWRA Policy and Procedures for Requests for Sewer Service to Locations Outside MWRA Service Area, subject to the staff and Advisory Board conditions.
Regis has an average daily flow of 90,000 gallons of wastewater. Their current on-site disposal system is not performing adequately, and after review of existing conditions and options, Regis identified two alternatives: construct a new advanced wastewater treatment facility on site (effluent disposal site was not capable of handling the permitted flow), or pump its wastewater to a neighboring community for conveyance to the MWRA's Deer Island Treatment Plant.
The Town of Weston, the City of Waltham, DEP, MWRA Advisory Board and State Legisture have approved the request.
Mr. Pappastergion stated that he received letters from Weston, WSCAC, WAC and Representative John Locke expressing concerns about the Regis connection.
Ms. Hicks expressed concern that there was pressure to approve because it had received legislative approval, and that she would like to delay the vote until she had more time to review the System Expansion Policy.
Payment of Meritorious Claim: Hazardous Materials Remediation III: IEM Sealand Corp., Contract 6098
The Board voted to adopt the Engineer's Decision dated April 29, 1999 and to authorize the Executive Director, on behalf of the Authority, to pay the contractor, IEM Sealand Corporation the sum of $118,485 as the meritorious portion of claim no. 051-01, Contract 6098, Hazardous Material Remediation Phase III, for increased costs due to significant underruns in estimated quantities on 77 bid items.
The contract documents contain a provision commonly referred to as a Variation in Estimated Quantities clause which allows the adjustment of unit price items upward or downward when the actual quantity differs by more than 15%. A significant underrun in estimated quantities may increase the unit price when an economy of scale cannot be achieved or certain, fixed costs such as project management cannot be fully recovered over the life of the contract due to the reduced quantities.
John Carroll asked, "Who designed the contract?" Staff responded that Environmental Engineering designed it based on 1990 information. The Authority did not require them to do more drilling which might have resulted in a more accurate estimate of hazardous materials on Deer Island.
Employee Assistance Program Provider: Value Options
The Board voted to approve the recommendation of the Consultant Selection Panel to select Value Options to provide Employee Assistance Program (EAP) services and to authorize the Executive Director, on behalf of the Authority, to execute a contract with Value Options in the amount of $47,750 for a one-year period; and, further, to authorize the Executive Director to exercise a single three-year option to renew the contract, subject to budget authorization, at an estimated cost of $151,866.
The Employee Assistance Program is designed to assist MWRA employees and their family members in recognizing and resolving personal problems that may interfere with employees' job performance. To accomplish this objective, the EAP provides comprehensive employee outreach and supervisory training; confidential diagnostic and counseling services; and, referral and follow-up services.
DITP Process Instrumentation & Control System (PICS) Service and Maintenance: ABB Automation
The Board voted to approve the award of a sole source contract to provide service and maintenance of the Process Instrumentation and Control System (PICS) at the Deer Island Treatment Plant to ABB Automation (formerly Bailey Controls Co.), and to authorize the Executive Director, on behalf of the Authority, to execute and deliver said contract in the amount of $965,000 for a three year period.
The PICS is a modern industrial digital process control system that is the primary interface for control of the treatment plant and power plant processes at the Deer Island Treatment Plant (DITP). This contract is needed to supply: labor and materials to perform thorough preventive maintenance activities; emergency support from the vendor's maintenance staff for problems that cannot be handled by DITP staff alone; technical support from the vendor's Technical Support operations; e-mail and Internet access to the latest changes, problems and service bulletins from the vendor.
Mr. Mannering expressed concern at having a sole source for parts should the firm go out of business. Staff stated that re-built parts were available, but ABB Automation is the only firm that makes the original parts for a machine of their design.
Maintenance Services for the Continuous Emissions Monitoring Systems (CEMS), On-Site Thermal/Power Plant: Precision Preventive Maintenance Company, Inc.
The Board voted to approve the award of a contract for the Maintenance Services for the Continuous Emissions Monitoring Systems, On-site Thermal/Power Plant, to the lowest responsive bidder, Precision Preventive Maintenance Company, Inc., and to authorize the Executive Director, on behalf of the Authority, to execute and deliver said contract in the bid amount of $67,200 for a duration of 730 calendar days.
This contract includes Scheduled Service Checks and Maintenance (including daily, weekly, monthly, quarterly, semi-annual and annual checks), and Emergency On-Call Repair Services (including 24 hours-a- day coverage for the entire term of the contract).
Braintree-Weymouth Tunnel and Shafts: Modern Continental Construction Co., Contract 5315
The Board voted to approve the award of Contract No. 5315, Braintree-Weymouth Tunnel and Shafts, to the lowest responsive bidder, Modern Continental Construction Co., and to authorize the Executive Director, on behalf of the Authority, to execute and deliver said contract in the bid amount of $73,007,162 for a duration of 1064 calendar days.
This contract provides for the construction of an 11.5-foot diameter deep rock tunnel 2.8 miles long, a 20- foot diameter working shaft in North Weymouth, and two 6-foot diameter drop shafts at Nut Island and the Fore River Staging Area, respectively. The tunnel will contain two 14-inch diameter sludge lines from Nut Island to the pelletizing plant at the Fore River Staging Area to carry liquid sludge pumped from Deer Island, which will eliminate the need for sludge barging. In addition, two 12-inch pipes will be installed in the tunnel between the pelletizing plant and the Intermediate Pump Station to carry wastewater from the pelletizing plant to the pump station, where it will join the flow directed to the Inter-Island Tunnel for treatment at Deer Island.
Mr. Jacques asked, "One Advisory Board member community stated that after this project is completed, there will still be back ups into homes, is this true?" Staff responded, "Most problems will be alleviated, but problems with local sewers, and situations where homes are located too far away hydraulically, may still result in occasional back ups."
CONTRACT AMENDMENTS/CHANGE ORDERS
West Roxbury Tunnel Inspection: R. Zoppo Corp., Contract 6230, Change Order 6
The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Change Order No. 6 to extend the time for completion of Contract No. 6230, West Roxbury Tunnel Inspection, with R. Zoppo Corp., by 149 calendar days to September 15, 1999, and to authorize the Executive Director to approve additional change orders as may be needed to Contract No. 6230 in amounts not to exceed the aggregate of $74,560 and time extensions not to exceed the aggregate of 180 calendar days.
The inspection of the West Roxbury Tunnel is being undertaken because pipe deterioration has been observed in the MWRA interceptors upstream of the tunnel and in the tunnel entrance itself.
Jay MacRitchie asked, "How did we arrive at an odd amount [for the delegated authority for additional change orders]?" Staff replied it is $250,000 or a percentage of the contract amount.
Western Shoreline Protection: Jay Cashman, Contract 6363, Change Order 8
The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Change Order No. 8 to increase the contract price on Contract No. 6363, Western Shoreline Protection, with Jay Cashman, Inc., in the amount of $278,500. And, further, to authorize the Executive Director to approve additional change orders as may be needed to Contract No. 6363 in amounts not to exceed the aggregate of $250,000.
The Western Shoreline Protection contract consists primarily of the construction of approximately 4,500 feet of revetment at Deer Island commencing at the Shirley Gut Causeway, continuing along the length of the western shore of Deer Island and terminating at the Island's southern tip. The revetment will prevent erosion and reduce flooding of the sole access road to Deer Island and the underlying utilities, as well as the southern secure landfill which contains grit and screenings from operations at the former treatment plant. In addition, the project includes the replacement of the existing 100-year old Shirley Gut sewer siphon which connects the nine-foot diameter North Metropolitan Trunk Sewer to the Deer Island Treatment Plant. The change order supports further work needed for reconstruction of the 600-foot roadway at Shirley Gut.
Ancillary Design Modifications - Phase III: R. Zoppo/Interstate Engineering, JV, Contract 6180, Change Order 36
The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Change Order No. 36 to increase the contract price on Contract No. 6180, Ancillary Design Modifications - Phase III, with R. Zoppo Corp./Interstate Engineering Corp., JV, in the amount of $867,019.92, and to authorize the Executive Director to approve additional change orders as may be needed to Contract No. 6180 in amounts not to exceed the aggregate of $250,000.
The Ancillary Design Modifications contract includes a wide array of modifications which are necessary for safe and efficient long-term operation of the Deer Island Treatment Plant, including Plant Safety, Operation and Maintenance, Odor Control System Upgrades and General BHP Completion Items. The change order covers supplemental costs relating to modifications of the conduit support system for the surge containment/scum control facility and compressed air lines.
Nut Island Headworks: Modern Continental/SAE Americon, JV, Contract 5850A, Change Order 115
The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Change Order No. 115 to extend the time for completion of Contract No. 5850A, Nut Island Headworks, with Modern Continental/SAE Americon, JV, by 121 calendar days to November 30, 1999. And, further, to authorize the Executive Director to approve additional change orders as may be needed to Contract No. 5850A in amounts not to exceed the aggregate of $250,000.
The Nut Island Headworks provides preliminary treatment (screening and grit removal) for South System flows before being sent through the Inter-Island Tunnel for treatment at Deer Island. This contract also includes the demolition of the existing Nut Island Treatment Plant and the completion of the final site work for the new Headworks and surrounding open space.
Secondary Reactor and Clarifier Battery C: Modern Continental, Contract 6159, Change Order 27
The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Change Order No. 27 to increase the contract price on Contract No. 6159, Secondary Reactor and Clarifier Battery C, with Modern Continental Construction Co., Inc., in the amount of $76,328, and to authorize the Executive Director to approve additional change orders as may be needed to Contract No. 6159 in amounts not to exceed the aggregate of $250,000.
Secondary Reactor and Clarifier Battery C is the last major process-related construction contract on the Boston Harbor Project and will complete the Secondary Treatment Facilities. This contract includes construction of the third battery of secondary oxygen reactors and clarifiers. It also includes expansion of the cryogenic oxygen facility and several ancillary projects around Deer Island. Secondary Battery C includes three oxygen reactors, 18 secondary clarifiers, and one additional cryogenic air separation unit. The Court Order requires that Secondary Battery C be operational by December 1999. The change order funds waterproofing in the reactor effluent channel, and installation of cables connecting the programable logic controller at the dry polymer building to the distributed processing unit in the secondary operation building.
Secondary Treatment Facilities-Phase IV: Metcalf & Eddy, Contract 5686, Amendment 7
The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Amendment No. 7 to increase the contract price on Contract No. 5686, Secondary Treatment Facilities, Phase IV, with Metcalf & Eddy, Inc., in the amount of $215,000.
The additional funding is required for two tasks: Y2K Compliance Review [$45,000], and Plant-Wide System Coordination and Start-up [$170,000].
Inter-Governmental Agreement for Regulatory Support Services: City of Portland, Oregon, Contract W137, Amendment 2
The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Amendment No. 2 to increase the contract price on Contract No. W137, Inter-Governmental Agreement for Regulatory Support Services with the City of Portland, Oregon, in an amount not to exceed $68,000 and to extend the time for completion by 366 calendar days to April 1, 2000.
Under this agreement, the MWRA will continue to participate, along with other municipal water suppliers with large unfiltered water systems, in sponsoring a technical assistance services contract. The services provided under this contract are related to the regulatory and legislative processes and technical management issues associated with the control of microbial contaminants, and disinfection-by-products in large unfiltered water supplies. This agreement enables the participants to respond jointly to prospective Environmental Protection Agency regulations on unfiltered systems.
Ms. Hicks asked, "Why is the cost doubling?" Stephen Estes-Smargiassi, MWRA staff, replied, "The budget is increasing for research that the whole group thinks is important. If results of the research look good, it may give EPA confidence in the Authority."
Water Transmission Main, Sections 95 & 100: P. Gioioso & Sons, Contract 6108, Change Order 5
The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Change Order No. 5 to increase the contract price on Contract No. 6108, Water Transmission Mains, Sections 95 and 100, with P. Gioioso & Sons, Inc., in the amount of $154,025. And, further, to authorize the Executive Director to approve additional change orders as may be needed to Contract No. 6108 in amounts not to exceed the aggregate of $250,000.
The construction of Section 95 allows for increased pumping capacity of the Newton Street Pumping Station and provide redundancy to the critical Boston Meter 170. The construction of Section 100 will allow abandonment of the MWRA's Dudley Road Pumping Station and provide an emergency connection from the MWRA's Southern Extra High Service System to Newton's Southern Pressure District.
Rehabilitation of Commonwealth Avenue Pumping Station: Methuen Construction Co., Inc., Contract 6132, Change Order 5
The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Change Order No. 5 to increase the contract price on Contract No. 6132, Rehabilitation of Commonwealth Avenue Pumping Station, with Methuen Construction Co., Inc., in the amount of $258,265, and to authorize the Executive Director to approve additional change orders as may be needed to Contract No. 6132 in amounts not to exceed the aggregate of $250,000, and time extensions not to exceed the aggregate of 180 days.
The Commonwealth Avenue Pumping Station is a 53-year old facility which provides 85% of the water service to the City of Newton. The existing pumps are undersized and at the end of their useful life. This contract will rehabilitate the existing pumping station and construct a new building to contain additional pumps to upgrade the capacity and reliability of the pumping station. The change order is required to dispose all excavated material removed from the site as contaminated soil, and for additional gravel to replace the removed soil.
MetroWest Water Supply Tunnel - Middle Tunnel Segment: Shea-Traylor-Healy, JV, Change Order 21
The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Change Order No. 21 to increase the contract price on Contract No. 6055, MetroWest Water Supply Tunnel - Middle Tunnel Segment, with Shea-Traylor-Healy, JV, in the amount of $436,800, and to authorize the Executive Director to approve additional change orders as may be needed to Contract No. 6055 in amounts not to exceed the aggregate of $250,000.
The major work of the Middle Tunnel Segment includes the excavation and lining of 11.8 miles of a 14 foot completed internal diameter water supply tunnel. The change order will provide an additional 2,100 LF of probe hole, allowing for the probing of fault zones..
Fells Reservoir Covered Storage Project: Barletta Engineering Corp., Contract 5088, Change Order 13
The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Change Order No. 13 to increase the contract price on Contract No. 5088, Fells Reservoir Covered Storage Project, with Barletta Engineering Corp., in the amount of $32,272.26 and to extend the time for completion by 26 days to June 30, 1999. Further, to authorize the Executive Director to approve additional change orders as may be needed to Contract No. 5088 in amounts not to exceed the aggregate of $250,000.
In order to comply with the consent order between MWRA, MDC and DEP in regard to the Surface Water Treatment Rule for Wachusett Reservoir, the MWRA is constructing a covered distribution storage facility to enable the open Fells Reservoir to be removed from service. The change order is required to furnish and install a reducing nozzle to each of three inlet pipes. The time extension will allow for the procurement of materials, complete modifications, paint and to allow the paint to cure prior to submerging with water.
Weston Aqueduct Supply Mains 2 and 4: W. Walsh Co., Inc., Contract 6312, Change Order 3
The Board voted to authorize the Executive Director, on behalf of the Authority, to approve Change Order No. 3 to increase the contract price on Contract No. 6312, Weston Aqueduct Supply Mains 2 and 4, with W. Walsh Co., Inc., in the amount of $77,678.07, and to authorize the Executive Director to approve additional change orders as may be needed to Contract No. 6312 in amounts not to exceed the aggregate of $250,000.
This change order will allow for modifications to the Air Release Valve Vault, removal of riveted joints, and the rewelding of seam defects.