NOTICE OF REGULAR MEETING

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1 NOTICE OF REGULAR MEETING PLEASE TAKE NOTICE that there will be a regular meeting of the commission of the Madison Metropolitan Sewerage District at 8 a.m., on Thursday, November 9, 2017, at the Maintenance Facility Training Room at 1610 Moorland Road, Madison, Wis The commission will consider, and may take action, on the matters set forth on the attached agenda. If any matter on the agenda is to be considered in closed session of the commission, please be advised that following the closed session the commission will reconvene into open session for purposes of taking any action based on the closed session and concluding its agenda. Date: Nov. 9, 2017 D. Michael Mucha, P.E. Chief Engineer and Director Any person who has a qualifying disability as defined by the Americans with Disabilities Act that requires the meeting or materials at the meeting to be in an accessible location or format must contact the chief engineer director at , 1610 Moorland Road, Madison, Wis. at least 24 hours prior to the commencement of the meeting so that any necessary arrangements can be made to accommodate each request. 1. Opening A. Call to Order B. Welcome Guests C. Announcements Introduction of new Ecosystem Services Director Martye Griffin-Mucha Introduction of new Buildings and Grounds Crew members Drew Hathaway and Dominic Radunz-Lessner 2. Appearances by the Public 3. Consent Calendar A. Approval Meeting Minutes from B. Approval of Cash Statement-Operating Fund C. Approval of Cash Statement-Capital Projects Fund D. Approval of Cash Statement-Debt Service Fund E. Review and Approval of Sewer Extension Plans-Sauser Commission Agenda Report Attachment 1: Sewer Extension Vicinity Map Attachment 2: Sewer Extension Financial Summary 1

2 Re-Construction Projects 5565 Tancho Drive-Oakwood Village, City of Madison Attachment 3: 5565 Tancho Drive-Oakwood Village Map and Resolution ( R1) New Construction Projects Seminole Highway Sewer Extension, City of Fitchburg Attachment 4: Seminole Highway Map and Resolution ( R2) West Lexington Parkway Sanitary Sewer Extension, Village of DeForest Attachment 5: West Lexington Parkway Sanitary Sewer Extension Map and Resolution ( R3) E. Employee Engagement-Mucha Commission Agenda Report Attachment 1: Policy EL-2B Attachment 2: Resolution on Employee Engagement of June 15, 2015 Attachment 3: Resolution ( R4) F. Approval of Abatement for Property Tax Levy-Brochtrup Commission Agenda Report Attachment 1: Resolution ( R5) G. CED Pay Policy-Peters Commission Agenda Report Attachment 1: Policy CP-2K Attachment 2: Resolution ( R6) 4. PS-16 Forcemain Repair-Mucha Commission Agenda Report 5. Adoption of 2018 Connection Charge Rates and Plan, Direct Connection and Annexation Review Fees-Gebert Commission Agenda Report Attachment 1: Resolution ( R7) Attachment 2: Table of 2018 Connection Charge Rates Attachment 3: Map of District Interceptor Basins Attachment 4: Resolution ( R8) Attachment 5: CFCC Rate Adjustments for Projects Adding Capacity 6. Chief Engineer and Director s Report A. CED Update-Mucha 2018 District Goals - handout provided at the meeting An Equitable Water Future: A National Briefing Paper quity_final.pdf B. Regulatory Review-Kent Regulatory Review 2

3 C. Adaptive Management Quarterly Update-Lake Yahara WINs Annual Report (see link) 016AnnualReportfinal_web_ pdf D. Review of Commission Calendar Future Meeting Schedule as of Future Agenda Topics 8. Other Business by Law 9. Adjournment 3

4 Return to Agenda Meeting of the Commissioners of the Madison Metropolitan Sewerage District Thursday, Oct. 26, a.m. MMSD Maintenance Facility Training Room, 1610 Moorland Rd., Madison, Wis Present: Commissioner Tom Hovel Commissioner Angela James Commissioner Ken Clark (Via GoToMeeting) Commissioner Sara Eskrich (8:03 a.m.) Commissioner James Martin (excused absence) Commissioner Ezra Meyer Commissioner Brad Murphy Commissioner Brian Potts (8:43 a.m.) Commissioner Tom Wilson (excused absence) Commission Meeting 1. Opening A. Commissioner Hovel called the meeting to order at 8:00 a.m. B. Welcome guests: Greg Fries, City of Madison; Forbes McIntosh; Dane County Cities and Villages Association C. Announcements: Chief Engineer and Director Michael Mucha announced that the PS16 recognition will be moved to the next commission meeting on Nov Appearances by the Public 3. Consent Calendar None. A. Approval of commission meeting minutes from B. Approval of sewer extension plans: Don Tierney, Waunakee Development, Village of Waunakee Resolution ( R1) Discussion: The minutes and sewer extension plans were reviewed and placed on file. Action: After discussion, Commissioner Meyer moved, seconded by Commissioner Murphy to approve items A-B of the Consent Calendar. Motion carried 5-0 (Commissioner Eskrich and Commission Potts absent from the vote). 4

5 Return to Agenda 4. Review and Adoption of 2018 Operating, Capital Projects and Debt Service Budgets-Mucha Presenter: Chief Engineer and Director, Michael Mucha Description: 2018 budget approval. Discussion: No substantive discussion. Action: Commissioner James moved, seconded by Commissioner Meyer to adopt resolution No R2, which approves the 2018 operating, capital projects and debt service budgets. Motion carried 6-0 (Commissioner Potts absent from the vote) Review and Adoption of Proposed 2018 Sewer Service Charge Rates Presenter: Assistant Chief Engineer and Director of Administration, Jeff Brochtrup Description: Review and approval of sewer service charge rates and septage disposal rates. Discussion: Mr. Brochtrup presented information on the financial impact, background of the request, analysis and options and next steps. Action: Commissioner Eskrich moved, seconded by Commissioner Meyer to adopt resolution R3, which established sewer service charges effective on Jan. 1, 2018 and septage disposal rates effective approximately on Jan. 12, Motion carried 6-0 (Commissioner Potts absent from the vote). Chief Engineer and Director s Report A. Updates - Mucha Chief Engineer and Director; Michael Mucha, gave a brief update on district happenings. Mr. Mucha reported district staff followed up with a memo to the Wilfongs that made an appearance at the Oct. 12 commission meeting. Mr. Mucha also updated the commission on the WPDES permit violation as a result of the PS11 overflow. Mr. Mucha ensured that district staff will fully cooperate with the DNR to provide them with further information and that he will report back to the commission. Action: No action necessary. B. Operations Report - Grooms Operations Manager, Alan Grooms, presented on current operations, including September plant performance and flow data. Action: No action necessary. C. Regulatory Review Action: No action necessary. D. Review of Commission Calendar Action: No action necessary. E. Commissioner Potts arrives at 8:47 a.m. 5

6 6. Future Agenda Topics Action: Add connection charge topic to return at the next meeting. 7. Other Business Allowed by Law Action: No other business was discussed, no action necessary. 8. Adjournment Action: Commissioner Meyer moved, seconded by Commissioner Eskrich that the meeting be adjourned. Motion carried 7-0 at 8:52 a.m. Regular Meeting of the Commissioners Oct. 26, 2017 Angela James, Secretary Future Meetings: Thursday, November 9, :00 a.m. Regular Commission Meeting Wednesday, November 22, :00 a.m. Regular Commission Meeting Thursday, December 14, :00 a.m. Regular Commission Meeting 6

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18 WELLS FARGO CREDIT CARD BILLING DATE 10/3/17 Vendor Description Amount 3 Star Inc Parts $1, Amazon Parts and Computer supplies $1, Amer Soc Civil Engineers Membership renewal $ Budget Signs Pollution prevention Week Signage $ City of Madison Parking $8.60 Communication Arts Magazine subscription $89.00 CTCconstant contact.com Monthly Subscription $20.00 DOT Net Nuke Website Module $5.99 Dropbox.com Additional licenses $ DSPS Eservice fees Backflow preventer registrations $ Erdmann Corp Parts $ Farm & Fleet Madison Tools $ Home Depot Paint $52.71 Indeed.com Advertising $1.62 J2 Efax Monthly Subscription $16.95 J2 Metrofax Monthly Subscription $7.95 Linked In Monthly subscription Lynda.com Communication/Marketing subscription $ Metal Supermarket ent Office Supplies $83.78 Pick N Save Governance Mtg Supplies $64.74 Sears.com Tools $52.70 Seventhwave Employee electrician class $ Smartsheet Additional Licenses $ Sonicwall Services Tech Support + 5 licenses $ UWEX Registration Engineering classes $1, Walmart Commission/Meeting Supplies $84.10 YWCA Annual Racial Justice Summit $ Total $8,

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23 Return to Agenda COMMISSION AGENDA REPORT Meeting of Nov. 9, 2017 Review and Approval of Sanitary Sewer Extensions Lead Staff: Engineering Technician, Curt Sauser Requested Action: Adopt resolutions approving sanitary sewer extension plans. Attachments: Attachment 1: Attachment 2: Attachment 3: Attachment 4: Attachment 5: Sewer Extension Vicinity Map Sewer Extension Financial Summary 5565 Tancho Drive Oakwood Village - Resolution ( R1) & Map Seminole Highway Sewer Extension - Resolution ( R2) & Map West Lexington Parkway Sanitary Sewer Extension - Resolution ( R3) & Map Financial Impact: A plan review fee of $1, will be due for the new construction projects for external customers that propose to install new publicly owned sewers. Interceptor and treatment plant connection charges will also be due for the lands that can be served from the sewers being installed, as identified above. Background: The district is directed under Section 66.24(3) of the Wisconsin Statutes and NR108.04(4) of the Wisconsin Administrative Code to review and approve any proposed sanitary sewerage system construction or installation projects within the Madison Metropolitan area for which Wisconsin Department of Natural Resources approval is required. Request adoption of a resolution for sanitary sewer extension plans that were reviewed by staff and placed on file with the district. Reconstruction Projects: 5565 Tancho Drive Oakwood Village, City of Madison This project will relocate 164 LF of 10-inch sanitary sewer that is located below a stormwater basin. The Oakwood Village Assisted Living development is currently served by these sanitary sewers, however new buildings and stormwater requirements are forcing the relocation of the sanitary sewers. 23

24 New Construction Projects: Seminole Highway Sewer Extension, City of Fitchburg The project will install 270 LF of 8-in sanitary sewer and extend the public sanitary sewers to the south property line of the Blackhawk Church development. The new sewers will provide a connection point for a future multifamily development. West Lexington Parkway Sanitary Sewer Extension, Village of DeForest This development proposes to install 412 LF of 8-inch sanitary sewer within West Lexington Parkway 2 commercial lots of certified survey map no Analysis and Options: Recommendation: Adopt resolutions approving the sewer extension plans. Key considerations: Plans have been reviewed by the planning department and are acceptable. Option 1: Approve sewer extensions, with modifications determined by the commission. Key considerations The commission may choose to place conditions on the approval, as neccessary. Option 2: Other options brought forward by the commission. Next Steps: Upon commission approval, plans will be forwarded to the Wisconsin DNR for final approval, prior to construction. 24

25 Attachment 1 Return to Agenda West Lexington Parkway Sanitary Sewer Extension Village of DeForest 5565 Tancho Drive Oakwood Village City of Madison Seminole Highway Sewer Extension City of Fitchburg Vicinity Map Sewer Extensions 25 Prepared by: CAS Date: 11/06/2017

26 Attachment 2 Sewer Extension - Resolution Approvals - Year 2017 Sewer Plan Agenda Item Sewer Extension Community Proposed Use Meeting Apvl Date 11/9/2017 a Tancho Drive - Oakwood Village City of Madison Sewer re-alignment for 1 multifamily residential lot TPCC Length and Size Plan Review Fee ICC (Interceptor Charges) (Treatment Plant Charges) Sewer Plan Total 164' - 10" , , /9/2017 b. Seminole Highway Sewer Extension City of Fitchburg Future Development 270' - 8" 1, , /9/2017 c. West Lexington Parkway Sanitary Sewer Extension Village of DeForest 2 Commercial lots 412' - 8" 1, , , , Charges Approved: Current Meeting $2, $11, $10, $24, Previous Total Approved (by Resolution) $58, $1,001, $278, $1,338, Current Total Approved (by Resolution) $60, $1,012, $289, $1,362, Actual vs. Budget comparison Plan Review 2017 Income: Actual Collected $60, Income: Budgeted $61, Percent of Budget 99.59% ICCAS_apvls.xlsx Day of the year 310 % Yr passed by 85% Interceptor & Treatment Plant $1,520, $1,800, % 26

27 Attachment 3 RESOLUTION R1 WHEREAS, plans for sanitary sewer extensions were submitted to the Madison Metropolitan Sewerage District (the district) for 5565 Tancho Drive Oakwood Village, in the City of Madison, on Oct. 20, 2017, by Mark Moder, City Engineering Division, under the professional seal of Anne Anderson of Mead & Hunt, and WHEREAS, the project will relocate 164 LF of 10-inch sanitary sewer within a sanitary sewer easement. The existing sewers are currently beneath a stormwater basin, and will be relocated in conjunction with a building project, and WHEREAS, the proposed sanitary sewer extension will connect to the City of Madison s sewerage facilities and is within the district s Northeast Interceptor/Waunakee-DeForest basin, and WHEREAS, plan review fees are waived for reconstruction projects, and WHEREAS, interceptor connection charges for the areas being served have been paid, and WHEREAS, some treatment plant connection charges, on a per lot basis, for the areas being served have been paid. Current district policy states that treatment plant connection charges are now due on an area basis, with credits applied for payments previously made, and WHEREAS, the district has received a sewer extension review letter # from the Capital Area Regional Planning Commission dated Oct. 25, 2017 stating the Capital Area Regional Planning Commission staff has reviewed the proposed extension and determined that it is consistent with the urban service area provisions of the "Dane County Water Quality Plan" and the "Dane County Land use and Transportation Plan" and is consistent with the conditions of Resolution DCRPC No. 802, which added this area to the Central Urban Service Area, and WHEREAS, the chief engineer and director of district has recommended the approval of said plans, THEREFORE, BE IT RESOLVED, that the plans for sanitary sewer extensions for 5565 Tancho Drive Oakwood Village, in the City of Madison, submitted on Oct. 20, 2017, by Mark Moder, City Engineering Division, under the professional seal of Anne Anderson of Mead & Hunt, be approved subject to the following conditions: 27

28 1. That prior to connection of the proposed sewers serving said lands to the public sewerage system, the City of Madison shall have paid to MMSD $5, in treatment plant connection charges for the lands to be served; said lands being part of a replat of Lot 2, Porter Plat. 2. That treatment plant connection charges are adjusted from time to time, and said connection charges will be due based on the rate in place at the time which the payment is made. 3. That, if said treatment plant connection charges for the lands to be served remain unpaid after connection of the said sewer extensions to sewers within the district s system, appropriate interest on the unpaid balance shall be charged to the City of Madison by the district. 4. That the City of Madison shall require the presence of an engineer or an inspector on the construction of said sewer extensions who shall make a record showing in detail the construction as built and shall furnish the district with as-built plans in the case of any significant deviations from the original design. 5. That the construction, operation, maintenance and use of said sewer extensions shall be in accordance with the lawful rules and regulations of the district and with the applicable State of Wisconsin plumbing and sewerage codes. 6. That if construction of the sewer extensions covered by said plans has not commenced within four years following the approval date of this resolution, this approval shall become void and new plans shall be submitted. If construction has commenced but has not been completed within the four-year approval period, the unbuilt portion must be submitted for reapproval if it is a significant portion of the project and would require DNR approval. The above resolution was adopted by the Commissioners of the Madison Metropolitan Sewerage District at their meeting held at the district on Nov. 9, MADISON METROPOLITAN SEWERAGE DISTRICT Attested by: Thomas Hovel, President Angela James, Secretary 28

29 Return to Agenda Relocate sewer outside of stormwater basin *2017 Aerial Photography Legend 5565 Tancho Drive / Oakwood Village Proposed Buildings Map Scale 0 Proposed Sewers Feet Existing Sewers 5565 Tancho Dr Oakwood Village City of Madison MMSD Plan No Prepared by: CAS Date: 10/20/2017

30 Attachment 4 RESOLUTION R2 WHEREAS, plans for sanitary sewer extensions were submitted to the Madison Metropolitan Sewerage District (the district) for Seminole Highway Sewer Extension, in the City of Fitchburg, on Oct. 24, 2017, by Wade Wyse of Wyser Engineering, and WHEREAS, the project proposes to install 270 LF of 8 inch sanitary sewer within a sanitary sewer easement adjacent to the right of way of South Seminole Highway, and WHEREAS, the proposed sewers will extend the existing sanitary sewer system beyond the Blackhawk church property, and provide a connection point for a future residential development to the South of the church. No new lands will be immediately served as part of this sewer extension, and WHEREAS, any new service connections will require additional review and approval, and WHEREAS, the proposed extension will connect to the City of Fitchburg s facilities and is within the district s Nine Springs Valley Interceptor basin, and WHEREAS, plan review fees are due, and WHEREAS, interceptor and treatment plant connection charges for future lands to be served have not been paid, and WHEREAS, the district has received a sewer extension review letter # from the Capital Area Regional Planning Commission dated Sept. 9, 2016 stating the Capital Area Planning Commission staff has reviewed the proposed extension and determined that it is consistent with the urban service area provisions of the "Dane County Water Quality Plan" and the "Dane County Land Use and Transportation Plan" and the conditions of Resolution DCRPC No. 428 and Resolution CARPC No , which added this area to the Central Urban Service Area, and WHEREAS, the chief engineer and director of the district has recommended the approval of said plans, THEREFORE, BE IT RESOLVED, that the plans for sanitary sewer extensions for Seminole Highway Sewer Extension, in the City of Fitchburg, submitted on Oct. 24, 2017, by Wade Wyse of Wyser Engineering, be approved subject to the following conditions: 30

31 1. That the City of Fitchburg shall pay the plan review fee of $1,350 to the district within 30 days of receiving an invoice for the fee. 2. That interceptor and treatment plant connection charges for future lands to be served by this sewer extension shall be due and payable at such time as these lands develop and require additional sewer extensions. 3. That the City of Fitchburg shall require the presence of an engineer or an inspector on the construction of said sewer extensions who shall make a record showing in detail the construction as built and shall furnish the district with as built plans in the case of any significant deviations from the original design. 4. That the construction, operation, maintenance and use of said sewer extensions shall be in accordance with the lawful rules and regulations of the district and with the applicable State of Wisconsin plumbing and sewerage codes. 5. That if construction of the sewer extensions covered by said plans has not commenced within four years following the approval date of this resolution, this approval shall become void and new plans shall be submitted. If construction has commenced but has not been completed within the four year approval period, the unbuilt portion must be submitted for re approval if it is a significant portion of the project and would require DNR approval. The above resolution was adopted by the Commissioners of the Madison Metropolitan Sewerage District at their meeting held at the district on Nov. 9, MADISON METROPOLITAN SEWERAGE DISTRICT Attested by: Thomas Hovel, President Angela James, Secretary 31

32 Return to Agenda Badger State Trail Blackhawk Church Parcel Sub Zero Pkwy Stoner Prairie Plat Proposed Sewers Future Residential Development *2017 Aerial Photography Legend Blackhawk Church Parcel Future Multifamily Development Map Scale Proposed Sewers 0 Existing Sewers Feet Seminole Highway Sewer Extension City of Fitchburg MMSD Plan No Prepared by: CAS Date: 10/25/2017

33 Attachment 5 RESOLUTION R3 WHEREAS, plans for sanitary sewer extensions were submitted to the Madison Metropolitan Sewerage District for West Lexington Parkway Sanitary Sewer Extension, in the Village of DeForest, on Oct. 25, 2017, by Ryan Quam of Quam Engineering LLC, and WHEREAS, the project consists of installing 412 feet of 8-inch sanitary sewer on West Lexington Parkway and within an access easement on Lots 2-3 of CSM 14579, and WHEREAS, the parcels to be served are Lots 2-3 of CSM 14579, and WHEREAS, Outlot 1 and that part of Lot 2 of CSM that is within a delineated wetland buffer have been recognized by the Capital Area Regional Planning Commission as being within an environmental corridor, and WHEREAS, the proposed extensions will connect to the Village of DeForest s sewerage facilities and are within the district s Northeast Interceptor/Waunakee-DeForest extension basin, and WHEREAS, plan review fees are due, and WHEREAS, district interceptor and treatment plant connection charges for the lands being served have not been paid, and WHEREAS, the district has received sewer extension review letter # revised from the Capital Area Regional Planning Commission dated Oct. 18, 2017 stating the Capital Area Regional Planning Commission staff has reviewed the proposed extension and determined that it is consistent with the urban service area provisions of the "Dane County Water Quality Plan" and the "Dane County Land Use and Transportation Plan" and fulfills the conditions of Resolution DCRPC No. 562, which added this area to the Northern Service Area, and WHEREAS, the chief engineer and director of the district has recommended the approval of said plans, THEREFORE, BE IT RESOLVED, that the plans for sanitary sewer extensions for West Lexington Parkway Sanitary Sewer Extension, in the Village of DeForest, submitted on Oct. 25, 2017 by Ryan Quam of Quam Engineering, LLC, be approved subject to the following conditions: 1. That the Village of DeForest shall pay the plan review fee of $1,350 to the district within 30 days of receiving an invoice for the fee. 2. That the district interceptor and treatment plant connection charges for Outlot 1 and that part of Lot 2 of CSM that is within a delineated wetland buffer are deferred. 33

34 3. That prior to connection of the proposed sewers serving said lands to the public sewerage system, the Village of DeForest shall have paid to the district the sum of $15, for payment of $11, in Northeast Interceptor/Waunakee-DeForest extension connection charges and $4, in treatment plant connection charges for the lands to be served; said lands being Lots 2-3 of CSM That interceptor and treatment plant connection charges are adjusted from time to time, and said connection charges will be due based on the rate in effect at the time in which the payment is made. 5. That if said interceptor and treatment plant connection charges for the lands to be served remain unpaid after connection of the said sewer extensions to sewers within the district s system, appropriate penalties shall be charged to the Village of DeForest by the district. 6. That the Village of DeForest shall require the presence of an engineer or an inspector on the construction of said sewer extensions who shall make a record showing in detail the construction as built and shall furnish the district with as-built plans in the case of any significant deviations from the original design. 7. That the construction, operation, maintenance and use of said sewer extensions shall be in accordance with the lawful rules and regulations of the district and with the applicable State of Wisconsin plumbing and sewerage codes. 8. That if construction of the sewer extensions covered by said plans has not commenced within four years following the approval date of this resolution, this approval shall become void and new plans shall be submitted. If construction has commenced but has not been completed within the four-year approval period, the unbuilt portion must be submitted for reapproval if it is a significant portion of the project and would require DNR approval. The above resolution was adopted by the Commissioners of the Madison Metropolitan Sewerage District at their meeting held at the district on Nov. 9, MADISON METROPOLITAN SEWERAGE DISTRICT Attested by: Thomas Hovel, President Angela James, Secretary 34

35 Return to Agenda COMMISSION AGENDA REPORT Meeting of Nov. 9, 2017 Commission Policy on Employee Engagement Lead Staff: D. Michael Mucha, Chief Engineer and Director Requested Action: The commission is requested to adopt Resolution R4, amending Policy EL-2B and incorporating policy language from the Resolution on Employee Engagement of June 11, 2015 into the commission s policy book. Attachments: Attachment 1: Policy EL-2B Attachment 2: Resolution on Employee Engagement of June 11, 2015 Attachment 3: Resolution R4 Financial Impact: Incorporating existing language into the commission policy book does not have any financial impact. Background: On Sept. 28, 2017, the commission approved a set of policies entitled Policy Book of the Madison Metropolitan Sewerage District Commission, describing how the commission will operate and govern. With the establishment of the new policies, the commission also evaluated the status of existing district policies and determined how these should be incorporated into district policy or delegated to staff. The commission directed staff to incorporate policy language from the 2015 Resolution on Employee Engagement into the policy book. Analysis and Options: Recommendation: The commission is requested to adopt Resolution R4, amending Policy EL-2B and incorporating policy language from the Resolution on Employee Engagement into the commission s policy book. Key Considerations: Consolidates stand-alone district policies into a comprehensive policy book. 35

36 Includes only key commission policies contained in the Resolution on Employee Engagement and delegates everything else to the chief engineer and director. Resolution of June 11, R4 is housekeeping and is not intended to change the current policy. Option 1: Revise the resolution to provide the appropriate level of policy detail for the commission. Key considerations: There may be aspects of the resolution on employee engagement that the commission feels should be included or excluded. Option 2: Retain the current language contained in Policy EL-2B and incorporate the intent of the resolution through updates to the employee handbook. Key considerations: Commission adoption of the amended provides a more visible level of support to the employee leadership council than incorporation by reference into the employee handbook. Next Steps: If approved, incorporate the amended policy into the policy book and convey the commission s approval to members of the Employee Leadership Council and all staff. 36

37 Attachment 1 Madison Metropolitan Sewerage District COMMISSION POLICY Category: Executive Limitations Policies Title: Treatment of Staff Policy Number: EL 2B Adopted: Revised: 11/02/17 With respect to interactions with staff, the chief engineer and director shall not cause or allow conditions, procedures or decisions that are unsafe, undignified, disrespectful or unprofessional. Accordingly, the chief engineer and director shall not cause or allow conditions, procedures or decisions that: 1) Violate the district s employee handbook. 2) Fail to maintain written department-specific work rules that clarify personnel guidelines for staff, and provide an employee notification and comment process before promulgation of any changes to department-specific work rules. 3) Fail to acquaint staff with their rights under this policy. 4) Prevent staff members from communicating with the commission with regard to assertions that commission policies have been violated or that commission policies do not adequately protect their human rights. 5) Diminish the ability of the employee leadership council to strengthen communication, encourage meaningful employee participation and develop leadership within the district. 6) Discourage employees from participating in voluntary associations. 7) Fail to provide regular updates on the employee leadership council to the commission and involve the commission in a manner that encourages and fosters an inclusive, open and positive work environment through reliance on the council. 37

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40 Adoption of Modifications to the Commission Policy Book R4 WHEREAS, the commission approved a Resolution on Employee Engagement on June 11, 2015 endorsing the role of the employee leadership council; and WHEREAS, the commission approved a set of policies entitled Policy Book of the Madison Metropolitan Sewerage District Commission, on Sept. 28, 2017 describing how the commission will operate and govern; and WHEREAS, with the establishment of the new policies, the commission also directed staff to incorporate policy language from the 2015 resolution on employee engagement into the policy book; THEREFORE, BE IT RESOLVED by the Madison Metropolitan Sewerage District Commission as follows: That the commission hereby adopts resolution R4, amending policy EL-2B and incorporating policy language from the resolution on employee engagement of June 11, 2015 into the commission s policy book. The above resolution was adopted by the commissioners of the Madison Metropolitan Sewerage District at the meeting held at the district on Nov. 9, MADISON METROPOLITAN SEWERAGE DISTRICT Attested by: Thomas Hovel, President Angela James, Secretary 40

41 Return to Agenda COMMISSION AGENDA REPORT Meeting of November 9, 2017 Approval of Abatement of 2018 Property Tax Levy Lead Staff: Assistant Chief Engineer and Director of Administration, Jeff Brochtrup Requested Action: The commission is requested to approve resolution ( R5) abating the levy of 2018 property taxes. Attachments: Attachment 1: Resolution ( R5) abating levy of 2018 taxes Financial Impact: Maintains existing financing and budgeting practice. Background: The district issues debt through the Clean Water Fund. This debt is general obligation debt of the district and uses the taxing power of the district to secure the loans. The district therefore levies a property tax whenever it approves a Clean Water Fund Loan. The Clean Water Fund Loan agreements contain an option to pay the debt service using service charge revenues rather than the property tax. It is district policy to collect funds for servicing this debt through service charges and not through property taxes. The district exercises this option by depositing in our debt service fund by Oct. 1 of each year amounts sufficient to cover the next year s debt service payments. The district has deposited in our debt service fund amounts sufficient to cover our 2017 debt service payments. District counsel recommends that the district abate the property tax by commission resolution. Analysis and Options: Recommendation: The commission is requested to approve resolution ( R5) abating the levy of 2018 property taxes. Key considerations: The resolution formally indicates that the district will abate the levying of the property tax for This action would maintain methods used to finance capital projects that were in effect on May 1,

42 Option 1: Do not abate the property tax for our Clean Water Fund Loans and place the taxes on the 2017 property tax roll. Key considerations: This action would change the methods used to finance capital projects in effect on May 1, 2015 and would require an affirmative vote of three-fourths of the commission members in accordance with Wis. Statutes (3m). This action would reduce district service charges and would add a line item to the property tax bills for properties within the district. Dane County and other local governments would be responsible for calculating the taxes due for each property within the district. Option 2: Approve the resolution abating the 2018 property taxes and undertake a study in 2018 to examine the alternative of funding its debt service payments using the property tax. This option would allow the commission to examine the advantages and disadvantage of using the property tax as a funding source and either re-affirm or change the existing policy. Next Steps: District staff will pay the principle and interest due in 2018 as it comes due. 42

43 COMMISSION RESOLUTION R5 Resolution Abating Levy of 2018 Taxes for Payment of the District's General Obligation Sewerage System Promissory Notes and General Obligation Sewerage System Bonds (the "Debt") WHEREAS, the Madison Metropolitan Sewerage District ( the district ), a metropolitan sewerage district created under Wis. Stat. ch. 200, has general obligation debt described as the general obligation sewerage system promissory notes and general obligation sewerage system bonds (the debt ), which obligations require payment of principal and interest in the coming calendar year; and, WHEREAS, metropolitan sewerage districts created under Wis. Stat. ch. 200 are included in the definition of municipalities subject to Wis. Stat. ch. 67, which chapter governs municipal borrowing and municipal bonds; and, WHEREAS, Wis. Stat (10) and the borrowing documents for the debt require that the governing body of the district levy upon property in the district a direct, annual, irrepealable tax sufficient in amount to pay, and for the express purpose of paying, the principal and interest on the debt as it becomes due; and, WHEREAS, pursuant to Wis. Stat (10) and the borrowing documents, the amount of tax carried into the tax roll may be reduced in any year by the amount of revenues of the district s wastewater sewer service charge system which are appropriated and irrevocably deposited in the debt service fund created under Wis. Stat as the debt service fund for the debt; and, WHEREAS, as part of its annual budget review and approval, the district s chief engineer and director and the director of administration have advised the district commission that sufficient revenues have been appropriated and irrevocably deposited in the debt service fund for the debt to make the payment for the debt as it becomes due in the upcoming year; and, WHEREAS, the district commission wishes to ratify the appropriation and irrevocable deposit in the debt service fund for the debt of an amount sufficient to pay the amount due on the debt in the upcoming year, and further wishes to confirm that the district is not required to levy a tax in the amount of that appropriation and may therefore abate any such levy. 43

44 NOW, THEREFORE, THE DISTRICT COMMISSION HEREBY RESOLVES AS FOLLOWS: 1. The 2018 tax levy otherwise required for the debt is hereby reduced and abated in full. 2. The proper officers of the district are authorized and directed to pay the principal and interest due on the debt in 2018 and when it becomes due use those funds appropriated and irrevocably deposited in the debt service fund for the debt. The above resolution was adopted by the commissioners of the Madison Metropolitan Sewerage District at the meeting held at the district on Nov. 9, MADISON METROPOLITAN SEWERAGE DISTRICT Attested by: Thomas Hovel, President Angela James, Secretary Approved as to form: Attorneys for the district Date: 44

45 Lead Staff: Jenni Peters, HR Manager COMMISSION AGENDA REPORT Meeting of Nov. 9, 2017 Chief Engineer and Director Pay Policy Requested Action: Approve Resolution R6 to make an addition to the commission policy book on chief engineer and director pay. Attachments: Attachment 1: Chief Engineer and Director Pay Policy Attachment 2: Resolution R6 Financial Impact: None. Background: The commission has historically granted the chief engineer and director two annual pay adjustments. The first is a market adjustment to maintain a competitive market position. This adjustment was granted after a satisfactory performance review in the spring of each year. The second was a mid-year performance increase after a mid-year performance check in. In October, the commission established a new performance review process for the chief engineer and director that includes one annual review. To align the pay adjustments with the new review process, the commission directed staff to draft a policy that handles chief engineer and director pay adjustments in a manner similar to other district employees. Analysis and Alternatives: The establishment of the chief engineer and director s pay is a commission process policy. The policy includes the establishment of the chief engineer and director s pay through an annual market adjustment that is approved by the commission as part of the annual budget and a potential performance adjustment that is considered mid-year after a satisfactory performance review. Recommendation: To approve the attached resolution and amend the commission policy book to include a policy on chief engineer and director pay. 45

46 Key considerations: This action will align the pay adjustment with the newly adopted performance review process for the chief engineer and director. The process will be consistent with that used to adjust pay for salaried district staff. Auditors prefer clear processes for establishing chief executive pay that are authorized by the governing body. Establishing a commission process policy will provide clear guidance to the commission and staff on how chief engineer and director pay adjustments should be handled. Approval of the change will minimize the need to provide retroactive pay. Option 1: Return to the commission at a later date with other options. Key considerations: The commission may wish to modify the policy before approving. 46

47 Attachment 1 Madison Metropolitan Sewerage District COMMISSION POLICY Category: Title: Policy Number: Adopted: Commission Process Policies Chief Engineer and Director Pay CP 2K Revised: Pay for the chief engineer and director will be treated in a manner consistent with other salaried employees. Therefore, market adjustments approved by the commission through the budget process will also apply to the chief engineer and director and will not require separate commission action or approval. Performance pay adjustments will be approved by the commission and will be contingent on a satisfactory performance review. 47

48 Adoption of Modifications to the Commission Policy Book R6 WHEREAS, the district has no explicit policy that governs the administration of chief engineer and director pay; and WHEREAS, the commission desires to clearly define the how chief engineer and director pay will be determined and approved; and WHEREAS, the policy on chief engineer and director pay will be added to the commission policy book. THEREFORE, BE IT RESOLVED by the Madison Metropolitan Sewerage District Commission as follows: That the commission hereby adopts the commission policy on chief engineer and director pay as shown in attachment 1, Commission Process Policies Chief Engineer and Director Pay. The above resolution was adopted by the commissioners of the Madison Metropolitan Sewerage District at their meeting held at the district on Nov. 9, MADISON METROPOLITAN SEWERAGE DISTRICT Attested by: Thomas Hovel, President Angela James, Secretary 48

49 Return to Agenda COMMISSION AGENDA REPORT Meeting of Nov. 9, 2017 Pumping Station 16 Force Main Repair Lead Staff: D. Michael Mucha, Chief Engineer and Director Requested Action: No action requested. For information only. Attachments: None. Financial Impact: None. Background: On the morning of Oct. 23 a team including district staff, city of Madison staff and the district s contractor, converged on Pumping Station 16 to replace a piece of critical infrastructure. The purpose of this agenda item is to share with the commission some of the high risk work that occurs to critical infrastructure that few people see. A pictorial and video of the action will be shown. 49

50 Return to Agenda COMMISSION AGENDA REPORT Meeting of Nov. 9, 2017 Adoption of 2018 Connection Charge Rates and Plan, Direct Connection and Annexation Review Fees Lead Staff: Todd Gebert, Capital Planning Engineer Requested Action: Adopt resolution R7 establishing conveyance facility and treatment plant connection charges rates, to be effective Jan. 1, Adopt resolution R8 establishing plan, direct connection and annexation review fees, to be effective Jan. 1, (The requested rates and fees are calculated based on established commission policy. Commission policy requires separate formal approval of rates themselves.) Attachments: Attachment 1: Resolution R7 (regarding connection charges rates) Attachment 2: Table of 2018 connection charges rates Attachment 3: Map of district interceptor basins Attachment 4: Resolution R8 (regarding review fees) Attachment 5: CFCC rate adjustments for projects adding capacity Financial Impact: The proposed 2018 connection charges are expected to increase connection charges revenues by $500,000 per year for an average year. Connection charges revenue varies by year, depending on the pace of development in the area. For comparison, connection charges revenues totaled $1.2 million in 2016 and are on pace to total $1.5 million in Proposed review fees are expected to have a minor effect on the district s budget. Together with projected growth in review applications, review fee revenue is budgeted at $99,000 in 2018, up from a projected total of $67,000 in

51 Background: Connection Charges Connection charges recover the capital and related costs of system capacity over time, as new users connect to the system. Charges are owed by customer communities, which generally collect them from developers or property owners. Conveyance facility connection charges recover costs of interceptors, force mains and pump stations. They vary by basin depending on the actual cost of serving each basin. Treatment plant connection charges recover costs of the Nine Springs wastewater treatment plant. There is one uniform treatment plant rate for all basins. New connection charges regulations adopted by the commission in July 2017 continue the longstanding practice of adjusting connection charges rates periodically. Generally, adjustments reflect: (a) inflation, as estimated by the Engineering News Record Construction Cost Index (ENR-CCI); and (b) capital costs for new capacity added to the system. For 2018, two additional factors affect the proposed adjustments, reflecting the July resolution. First, the proposed conveyance facility rates include a one-time adjustment of 22.8 percent to match improved estimates of chargeable area. The estimation method and the one-time adjustment percentage were included in the July resolution adopting new connection charges regulations. Second, the July resolution set a phase-in schedule for the new treatment plant rate, beginning in The resolution did not specify what rate to use for 2018, although staff believes the commission s intent was to continue using the old method for Staff recommends doing so. Review Fees Plan, direct connection and annexation review fees are intended to recover district expenses associated with these activities. Expenses include: Staff time (administrative, clerical and engineering) Review, coordination and documentation Inspection (direct connections only) Newspaper publication costs Attorney fees Per commission direction at its Sept. 25, 2014 meeting, fees are to be adjusted annually based on the average increase or decrease of district salaries and benefits. Fees are to be reviewed in detail approximately every five years to ensure they are appropriate. The commission implemented this direction at its Nov. 11, 2014 meeting setting 2015 fees. The commission called for re-evaluation of the issue in Staff has adjusted fees annually since 2015 following the established method. The rate of increase in these fees for 2018 is approximately 4.7 percent. 51

52 Return to Agenda Analysis and Options: Attachment 3 is the table of proposed connection charges rates. It also shows the previous rates and the changes discussed above, specifically: Increase conveyance facility rates by 22.8 percent to reflect the improved estimate of chargeable area. This adjustment was adopted in the July resolution and is included in the table for completeness. Increase conveyance facility rates by 3.95 percent, which is the Engineering News Record Construction Cost Index increase for Increase certain basins rates to reflect costs of new capacity added by projects completed through summer Raise the treatment plant rate to $23.02 per 1,000 square feet, which is the value yielded by the previous treatment plant rate method. (The new method and phase-in will begin in 2019.) For an average size lot of 11,500 square feet, total rate increases compared to 2017 for all factors combined range from $101 per lot (#23, Rimrock) to $475 per lot (#13, Lower Badger Mill Creek). On a percentage basis, the highest percentage increases are in the northeast intercepting system. This reflects the extensive capacity increases that have been required in that area in recent years. The proposed review fees follow the method directed by the commission in For 2018, the inflation factor was 4.34 percent. Values are rounded to the nearest $ Proposed Annexation fee per petitioned annexation area $3,000 $3,125 Annexation fee per expedited annexation area $1,250 $1,300 Plan review fee per sewer extension plan serving a new area $1,350 $1,425 Direct connection fee $1,025 $1,075 Recommendation: Adopt resolution R7 (regarding connection charges rates). Adopt resolution R8 (regarding review fees). Key considerations: The rates and fees are derived from established policies, notably the connection charges regulations adopted in July Conveyance facility rates accurately estimate the cost of system capacity. Different rates would generate less or more revenue than intended under commission policy. The treatment plant rate continues the previous rate-setting method, which staff believes to have been the intent of the commission in its July 2017 resolution. 52

53 Review fees follow commission directive set in Option 1: Identify concerns with some or all rates or rate setting methods. Direct staff to analyze those concerns and return at a future meeting. Key considerations: Concerns with technical details or minor errors could be handled by amendment during the meeting. Concerns with underlying policy decisions would require reconsideration of policies established by previous commission action. Next Steps: If rates are adopted, staff will communicate to affected customer communities and others per standard practice. Rates would be in effect Jan. 1,

54 Attachment Connection Charge Rates Resolution R7 WHEREAS, Section of the Madison Metropolitan Sewerage District Sewer Use Ordinance authorizes the commission to establish district connection charge rates as part of a fee schedule adopted by resolution of the commission; WHEREAS, Section of the Madison Metropolitan Sewerage District Sewer Use Ordinance authorizes the commission to implement district regulations for conveyance facility connection charges and treatment plant connection charges; WHEREAS, on July 27, 2017 the commission adopted resolution R6 establishing such regulations (the regulations ); WHEREAS, on July 27, 2017 the commission adopted resolution R7 establishing a new method for calculating treatment plant connection charge rates and setting a phase-in schedule for those rates, to begin January 1, 2019; WHEREAS, in its action on resolution R7 the commission indicated its intent to continue using the previous rate calculation method for treatment plant connection charges in 2018; WHEREAS, the district has applied the previous treatment plant connection charge rate method for 2018 to yield a rate of $23.02 per thousand square foot of area connected, which the commission has considered and determined was calculated on a reasonable and rational basis; WHEREAS, resolution R7 increased conveyance facility charge rates to reflect an adjustment in estimated chargeable area, to be effective January 1, 2018; WHEREAS, the regulations specify methods for adjusting conveyance facility connection charge rates periodically based on the Engineering News Record Construction Cost Index or similar escalation factor and for costs of additional system capacity; WHEREAS, the district has calculated the costs of additional capacity projects and applied the construction cost index adjustment to yield the conveyance facility connection charge rates as given in the attached table entitled MMSD Connection Charges Rates, which the commission has considered and determined were calculated on a reasonable and rational basis; 54

55 THEREFORE, BE IT RESOLVED, that, following consideration of the recitals above which are incorporated in this resolution as findings of the commission, the Commission of the Madison Metropolitan Sewerage District resolves as follows: 1. The conveyance facility connection charges rate schedule given in the attached table entitled MMSD Connection Charges Rates, which is incorporated by reference as if set forth in full herein, is hereby approved. The conveyance facility rates shall take effect on Jan. 1, The treatment plant connection charge rate schedule given in the attached table entitled MMSD Connection Charges Rates, which is incorporated by reference as if set forth in full herein, is hereby approved. The treatment plant rate shall take effect on Jan. 1, The district shall begin a phase in of the new method for calculating the treatment plant connection charge, effective Jan. 1, 2019, as established in resolution R7. Incorporated by Reference: Attachment 2 MMSD Connection Charge Rates The above resolution was adopted by the commissioners of the Madison Metropolitan Sewerage District at their meeting held in the district office on Nov. 9, MADISON METROPOLITAN SEWERAGE DISTRICT Attested by: Thomas Hovel, President Angela James, Secretary 55

56 Attachment 2 to Commission Agenda Report 2018 MMSD Connection Charges Rates Effective January 1, 2018 Combined Cost Per Average Lot 2017 Rates ($/1,000 sf) CFCC Adjustments 2018 Rates ($/1,000 sf) (11,500 sq. ft.) # Interceptor / Basin CFCC TPCC Combined Chargeable Area* ENR-CCI (3.95%) Capacity Increases** CFCC TPCC Combined Percent Increase in Combined Previous New 1 EAST $ $ $ $ 7.27 $ 1.55 $ 5.79 $ $ $ % $ 612 $ FAR EAST % FAR EAST/FAR EAST EXT % FAR EAST/COTTAGE GROVE EXT % 1,004 1,340 5 FAR EAST/DOOR CREEK EXT % 1,116 1,482 6 FAR EAST/GASTON ROAD EXT % 1,321 1,745 7 NINE SPRINGS VALLEY % NINE SPRINGS VALLEY/ESSER POND EXT % 848 1,033 9 NINE SPRINGS VALLEY/HWY 14 EXT % 1,267 1, NINE SPRINGS VALLEY/MENDOTA EXT % NINE SPRINGS VALLEY/MENDOTA-BISHOPS BAY*** % 1,045 1, NINE SPRINGS VALLEY/MIDTOWN BASIN % 917 1, LOWER BADGER MILL CREEK % 1,895 2, NINE SPRINGS VALLEY/MINERAL POINT EXT % NINE SPRINGS VALLEY/SYENE EXT % 1,778 2, NINE SPRINGS VALLEY/WAUBESA EXT % PS 17 SERVICE AREA % 1,358 1, NORTHEAST % NORTHEAST/LIEN EXT % NORTHEAST/LIEN INTERSTATE EXT % 788 1, NORTHEAST/WAUNAKEE-DEFOREST EXT % 882 1, NORTHEAST/HIGHWAY 19 EXT % 1,211 1, RIMROCK % SOUTH % 891 1, SOUTHEAST % SOUTHEAST/BLOOMING GROVE EXT % SOUTHEAST/MCFARLAND RELIEF % 982 1, SOUTHEAST/SIGGELKOW EXTENSION $ % 1,446 1, SOUTHWEST % 855 1, WEST INT $ $ $ $ 8.81 $ 1.88 $ $ $ % $ 690 $ 832 Range of cost per average lot (11,500 sf) at new rates The Median Basin: $1,066; Lowest: $641 (23 RIMROCK); Highest: $2,370 (13 LOWER BADGER MILL CREEK). * Increase previously adopted in resolution R7. Adjustment for improved estimate of chargeable area. ** Costs of added system capacity for projects completed prior to the 2018 rate adjustment. *** #11 Mendota-Bishops Bay CFCC rate not adjusted for chargeable area. Previous 2017 rate already reflected recent estimate of chargeable area percentage. 56

57 Attachment 3 Return to Agenda Conveyance Facility Basins 57 Prepared by: CAS Date: 10/31/2017