Meeting Date: August 18, 2020

The following action items passed by majority vote during this month's regular meeting of the Sanitation District No. 1 Board of Directors.

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Electrical Engineering Services for
Treatment Plants and Pump Station Power Systems

A Master Service Agreement with Hazen & Sawyer, CE Power Solutions, and Wells Engineering was awarded per the rate schedules outlined in their respective proposals.

The MSA allows for an annual maximum of 1200 hours for each firm with an option to renew two (2) additional one-year terms given SD1 is satisfied with the services.

SD1 operates and maintains three regional treatment plants, 121 pump stations, 15 flood pump stations, and six package treatment plants. These facilities contain multiple power systems that deal with the transmission, distribution, and utilization of electric power, as well as numerous electric motors and control systems. On occasion SD1 electricians and maintenance personnel must consult with an electrical engineer to evaluate equipment for the asset management program or to troubleshoot electrical equipment in the field. This contract is intended to supplement electrical engineering expertise beyond staff as well as assist with the on-going preventative maintenance program and condition assessment of our treatment plant and pump station equipment.

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The MSA arrangement will allow for a continued competitive environment for future electrical engineering work. The three selected consultants shall perform these services over a 12-month duration following the award of a contract.

SD1 Goals Advanced:
Operational Efficiency & Resiliency, Optimal Infrastructure Management

State Route 9 Storm Sewer Improvements

The SD1 Board of Directors authorized SD1 enter into an agreement with KYTC to construct the KYTC State Route 9 Storm Sewer Improvements at an estimated total cost of $1,772,578.13. The agreement provides full reimbursement for all project costs to SD1 from KYTC.

Over the last several years KYTC has been working on the realignment of KY State Route 9 in the City of Newport. The State Route 9 realignment design included a separate storm sewer which was paid for by KYTC. This new storm sewer created a unique opportunity for SD1 to partner with KYTC to upsize the proposed storm sewer for future sewer separation in the area to offload storm water from the combined sewer system. SD1 staff worked early-on with KYTC officials to ensure that storm water flows from the new road realignment project would not discharge through SD1’s combined sewer system but would discharge through a separate storm water system to be installed through the flood levee directly into the Licking River, thereby eliminating storm runoff from the combined sewer system.

KYTC has requested that SD1 bid and manage the construction of the storm pipe that will extend through the flood levee at the SD1 4th Street Pump Station. This is the final phase of the project, effectively completing the storm sewer separation for the KY State 9 project area. Since the pipe will be owned and maintained by SD1 upon completion of construction it is essential the pipe be constructed to SD1 and USACE specifications. Logically in made sense for SD1 to bid, manage, and inspect the construction of this project. Construction is planned to start early June 2021 and should take no more than four months to complete.

SD1 Goals Advanced:
Environmental Stewardship, Operational Efficiency & Resiliency,
Stakeholder Support

Reservation of Sanitary Sewer Capacity

Six new requests for reservation of sanitary sewer capacity were approved at the August 2020 meeting.

The reservation of capacity program provides SD1 with knowledge of development, an opportunity to assess system capacity, track committed capacity in balance with system operations and capital improvements, and provide developers assurance of capacity. This process benefits the communities served by SD1 by providing planning tools for economic vitality.

SD1 Goals Advanced:
Customer Satisfaction, Environmental Stewardship, Stakeholder Support,
Financial Viability, Optimal Infrastructure Management

Disposal of Surplus Vehicles

The SD1 Board of Directors authorized staff to dispose of surplus public property through sale by on-line public auction during fiscal year 2021.

In April 2020, as part of the on-going SD1 LEAN initiatives, the Asset Management Department conducted a Vehicle Right-Sizing Evaluation of the District’s current fleet.
Per policy, SD1 may sell or otherwise dispose of any property which is not needed or has become unsuitable for public use, or which would be suitable, consistent with the public interest, for some other use

The vehicles being disposed of were originally purchased to enable SD1 crews to perform their normal course of duties. Due to the vehicles’ age, condition, cost of ownership, and/or current low utilization rates, it is not in SD1’s best interest to continue to own these assets.

SD1 Goals Advanced:
Financial Viability, Operational Efficiency & Resiliency

2019 Series A - Refunding Bond Resolutions

The SD1 Board of Director’s authorized the refund (refinance) of two existing bond issues allowing SD1 to reduce gross interest expense.

The payment of the new refunded Bonds, in terms of years, is the same as the original bonds, set to terminate in the year 2041.

In addition to the savings over the life of the bonds on Interest Expense, SD1 will be able to reduce the balance in the Debt Service Reserve Fund (DSRF) by approximately $1.5 million due to this refunding.

SD1 Goals Advanced:
Financial Viability

Storm Water Public Cost-Share

The SD1 Public Cost-share Program provides financial assistance to co-permittees for the installation of new storm water infrastructure that addresses drainage issues associated with a dedicated and accepted right-of-way, impacting a right-of-way, or caused by or related to public infrastructure drainage. Upon satisfactory completion of the project, SD1 assumes ownership of the new infrastructure and reimburses the Co-Permittee a percentage of the project cost. Currently, the SD1 reimbursement percentage is set at 50% of the cost.

One new request in the City of Villa Hills was approved during the August 2020 Board of Directors Meeting.

SD1 Goals Advanced:
Customer Satisfaction, Stakeholder Engagement, Financial Viability