Memo Ohio River Valley Water Sanitation Commission · 1 Memo Ohio River Valley Water Sanitation Commission SINCE 1948 Improving Water Quality in the Ohio River for over 60 Years 5735

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Memo Ohio River Valley Water Sanitation Commission

SINCE 1948 Improving Water Quality in the

Ohio River for over 60 Years

5735 Kellogg Avenue Cincinnati, Ohio 45230

Telephone: (513) 231-7719 Fax: (513) 231-7761

DATE: May 18, 2017 TO: Commissioners/Proxies/All Attendees

FROM: Richard Harrison, Executive Director SUBJECT: Transmittal of Resource Materials and Schedule for 218th Commission Meeting and

214th Technical Committee Meeting June 6-8, 2017, West Baden Springs, Indiana Enclosed for your information and preparation are the agendas, attachments and related resource documents for the upcoming 218th Commission Meeting, as well as the 214th Technical Committee (TEC) Meeting to be held in West Baden Springs, Indiana. The meetings will be held at West Baden Springs Hotel in West Baden Springs, Indiana. The hotel address is 8538 West Baden Avenue, West Baden Springs, Indiana 47469; the telephone number is 888-936-9360. Check-in time is 4:00 pm and check-out time is 11:00 am. Pets are permitted with a $75 fee. Enclosed are maps for your information listing shopping, dining and recreation. There are resort SUVs that will travel to and from local airports on demand. Travel to or from Louisville, Indianapolis or Evansville airports requires 7 days’ notice and you must contact the front desk to schedule or email an itinerary to [email protected]. West Baden Springs is on Eastern Daylight Time. The Technical Committee (TEC) will meet from 1:00 p.m. on Tuesday, June 6, and conclude by 12:00 p.m. on Wednesday, June 7. Following a group lunch on Wednesday, Commissioners and Proxies will meet in Executive Session; there will not be a Roundtable meeting. The 218th Commission meeting will be held on Thursday morning, June 8 at 9:00 a.m. Suggested attire is business-casual through Wednesday and business on Thursday. Some additional background on the scheduled events and agenda items follow: Tuesday, June 6: 12:00 Noon Lunch will be available for members of the Technical Committee,

Commissioners who have arrived and staff. 1:00 P.M. Technical Committee Meeting – TEC’s agenda includes discussions and

presentations concerning: technical program updates from ORSANCO staff, Nutrients Mass Balance, Nutrients Trading, and other Source Water Protection presentations, and reports from technical committee members.

Wednesday, June 7: 8:30 A.M. Technical Committee Meeting continues 12:00 Noon Lunch for Commissioners, TEC, guests and staff

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1:15 P.M. Executive Session of Commissioners – Commissioners/Proxies only 5:30 P.M. Chairman’s Reception in Atrium near Caddy Sinclair’s 6:30 P.M. Group Dinner at Caddy Sinclair’s Thursday, June 8: 9:00 A.M. 218th Commission Meeting – Background information on some of the agenda

items follows:

Item 5 – A report by Technical Committee Chairman, Mike Wilson will be given on outcomes of the June 6-7 Technical Committee Meeting. Item 6 – The Program and Finance Committee met on April 4, 2017. Committee Chairman Stuart Bruny will recommend a program of Commission activities for fiscal year 2018 and the associated budget together with state funding levels for fiscal year 2020. Item 7 – Nominating Committee Chairman Toby Frevert will present its recommendations for Commission officers for fiscal year 2018 (July 1, 2017 - June 30 2018). Item 8 – Audit Committee Chairman John Kupke will present the Committee’s recommendation for the completion of the FY17 and FY18 Commission Audit. Item 9 – Pension Committee Chairman Joe Harrison, Jr. will present the Committee’s recommendation regarding ORSANCO’s Pension and Defined Contribution Plan.

We look forward to seeing you next month.

O H I O R I V E R V A L L E Y W A T E R S A N I T A T I O N C O M M I S S I O N

SCHEDULE OF EVENTS

218th Commission Meeting West Baden Springs Hotel

West Baden Springs, Indiana June 6-8, 2017

DATE/TIME FUNCTION LOCATION

Tuesday, June 6, 2017: 12:00 P.M. TEC Lunch West Baden Room 1:00 P.M. – 5:00 P.M. TEC Meeting EB Rhodes Room Wednesday, June 7, 2017: 8:30 A.M. TEC Meeting – Continued EB Rhodes Room 12:00 P.M. – 1:00 P.M. Lunch West Baden Room 1:15 P.M. Executive Session of Commissioners EB Rhodes Room (Commissioners/Proxies only) 5:30 P.M. Chairman’s Reception Atrium 6:30 P.M. Group Dinner Caddy Sinclair’s Thursday, June 8, 2017: 9:00 A.M. Commission Meeting EB Rhodes Room

218th Commission Meeting West Baden Springs Hotel

West Baden Springs, Indiana Thursday, June 8, 2017

9:00 A.M. (EDT)

Chairman C. Ronald Lovan, Presiding

COMMISSION MEETING AGENDA PLEDGE OF ALLEGIANCE

QUORUM CALL – Commissioner Ron Potesta, Secretary/Treasurer

PUBLIC PARTICIPATION Introduction of Guests and Staff Comments by Guests on Commission Agenda Items

COMMISSION ACTION ITEMS AND COMMITTEE REPORTS

1. Report of the Chairman – Commission Chairman Ron Lovan 2. Report of the Executive Director – Richard Harrison 3. Action on Minutes of February 9, 2017 – Commissioner Ron Potesta, Secretary/Treasurer 4. Report of the Treasurer – Commissioner Ron Potesta, Secretary/Treasurer 5. Report and Recommendations; June 6-7, 2017 Technical Committee Meeting – Commissioner

Mike Wilson, Chairman 6. Report of the Program and Finance Committee – Commissioner Bruny, Chairman

a. Adoption of Program and Budget for FY2018 b. Recommendations for States’ Funding for FY2020

7. Report of the Nominating Committee; Proposed Slate of Officers for 2017-18 – Commissioner Frevert, Chairman

8. Report of the Audit Committee – Commissioner Kupke, Chairman 9. Report of the Pension Committee – Commissioner Joe Harrison, Jr. 10. Report of the Water Users Advisory Committee – Bruce Whitteberry, Chairman 11. Report of the Watershed Organizations Advisory Committee – Adam Rissien, Ohio Environmental

Council

OTHER BUSINESS

Comments by Guests/Others Upcoming Meetings

October 3-5, 2017 Columbus, Ohio February 7-9, 2018 (Wednesday-Friday format) Covington, Kentucky

Adjourn

Ohio River Valley Water Sanitation Commission

COMMISSION MEETING COMMUNICATION Meeting Date:

June 8, 2017 Subject:

Report of the Chairman Number:

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Page 1 of 1

Attachments: None

Committee Type: Standing Advisory Ad-Hoc N/A

Action Required: Information Only Motion

Prepared by: Richard Harrison Presentation by: Chairman Ron Lovan

KEY CONSIDERATIONS:

Chairman Ron Lovan will provide a report on ORSANCO activities.

BUDGET/STAFF IMPLICATIONS: None

RECOMMENDATION:

Chairman comments are for information only. BACKGROUND/HISTORY:

The Chairman presides at all meetings, appoints committees, signs all official orders or other official documents of the Commission, and performs all other duties appropriate to the office of the Chairman of the Commission.

The Chairman serves as the Chairman of the Executive Committee and may participate in the deliberations of any committee created by the Commission.

The Chairman’s term of office is July 1 through June 30.




Report of the Executive Director Number:

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Page 1 of 1

Attachments: None



Prepared by: Richard Harrison Presentation by: Executive Director Richard Harrison

KEY CONSIDERATIONS:

The Executive Director will provide a report on ORSANCO activities since the February 9, 2017 ORSANCO Commission Meeting.


RECOMMENDATION:

Any recommendations that need to be approved by the Commission will be presented at the June 8, 2017 Commission Meeting.

BACKGROUND/HISTORY:

The Executive Director is the Chief Executive Officer of the Commission, and administrative head of the Commission staff.

The Executive Director performs such duties including the signing of contracts as may be assigned by the Commission, the Chairman or the Executive Committee.



June 8, 2017 Subject: Adoption of February 9, 2017 Commission Meeting Minutes

Number: 3

Page 1 of 1

Attachments: February 9, 2017

Commission Meeting Minutes



Prepared by: David Bailey Presentation by: Commission Secretary/Treasurer Potesta

KEY CONSIDERATIONS:

The draft minutes of the February 9, 2017 Commission meeting were drafted by staff and reviewed in draft form by Commission Secretary/Treasurer Potesta.

The draft minutes were made available for review on the Commissioners’ web portal. The minutes were subsequently distributed to Commissioners on May 18, 2017.

BUDGET/STAFF IMPLICATIONS: N/A RECOMMENDATION:

The Secretary/Treasurer recommends adoption of the February 9, 2017 Commission meeting minutes as presented because they reflect the proceedings of the meeting.

BACKGROUND/HISTORY: N/A

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MINUTES 217th Commission Meeting

Embassy Suites Cincinnati-RiverCenter Covington, Kentucky

Thursday, February 9, 2017

Reports Page

Chairman ................................................................................................................................ 1

Audit Committee .................................................................................................................... 3

Executive Director ................................................................................................................. 3

Treasurer ................................................................................................................................ 4

Technical Committee ............................................................................................................. 4

Program & Finance Committee ........................................................................................... 7

Research Committee .............................................................................................................. 7

Water Users Advisory Committee ........................................................................................ 8

Public Information Advisory Committee ............................................................................ 8

Watershed Organizations Advisory Committee ................................................................. 9

Foundation for Ohio River Education ................................................................................. 9

Roster of Attendance ........................................................................................................... 11

Attachment 1: Resolution 3-17 – Motion to (i) amend the Bylaws to dissolve the Research Committee and (ii) to authorize the establishment of a new scientific work group on an as needed basis

DRAFT February 10, 2017

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MINUTES

217th Commission Meeting Embassy Suites Cincinnati-RiverCenter

Covington, Kentucky Thursday, February 9, 2017

Chairman Ronald Lovan, Presiding

Call to Order Chairman Lovan called the 217th meeting of the Ohio River Valley Water Sanitation Commission to order at 9:00 A.M., Thursday, February 9, 2017. Chairman Lovan invited Judy Petersen, attending her final meeting as Chairman of the Watershed Organizations Advisory Committee, to lead the Pledge of Allegiance. Quorum Call Commissioner Potesta certified that a quorum was present (see Roster of Attendance, page 11). Chairman Lovan asked Commissioners, staff and guests to introduce themselves and provide a little background on their roles outside the Commission. Report of the Chairman Commission Chairman Lovan began by welcoming new Commissioners Bruno Pigott from Indiana and Alec Messina from Illinois. Chairman Lovan then recognized the following ORSANCO staff members for service milestones: Steve Braun – 10 years of service Joe Gilligan – 25 years of service Chairman Lovan commented on several anniversary dates taking place in the January-February timeframe. He called attention to the fact that the Roebling Suspension Bridge, a prototype of the Brooklyn Bridge, is 150 years old this January. Fast forward to the 1937 flood, possibly the largest catastrophe to hit the region, the Roebling Suspension Bridge was the only bridge that remained operational during this flood event. In June 2017, the Ohio River Valley Water Sanitation Commission will celebrate its 69th anniversary. Chairman Lovan also directed attention to several pictures from January 1977 when the Ohio River was frozen from shore to shore. Chairman Lovan commented, that in the brief period of time that we are all serving and working to protect the Ohio River, one may wonder if we are having any impact. Mr. Lovan believes we are and that Commissioners, committee members, and staff are having a positive impact during this short timeframe. Chairman Lovan commented that his appreciation for staff has grown as he works closely with them and then asked all ORSANCO staff members present to re-introduce themselves and say a few words about their role at the Commission.

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Recognition of Service Commissioner Pigott presented the following resolution:

Resolution 1-17

RECOGNITION OF SERVICE

CAROL S. COMER WHEREAS: Carol Comer has served as a Commissioner to the Ohio River Valley Water

Sanitation Commission from 2015 through 2016, representing the State of Indiana, and

WHEREAS: Ms. Comer has provided faithful and diligent service to the Commission,

and WHEREAS: Ms. Comer actively worked to help advance the Commission’s goals, and WHEREAS: Ms. Comer has earned the esteem and friendship of her fellow

Commissioners, and WHEREAS: Ms. Comer has devoted her career to protecting the precious natural

resources of the State of Indiana, NOW THEREFORE BE IT RESOLVED: The Commissioners of the Ohio River Valley Water

Sanitation Commission express their heartfelt gratitude for Carol Comer’s service and wish her all the best in her future endeavors.

ACTION: Motion by Commissioner Pigott, second by Commissioner Harrison, Jr. and unanimously carried, to adopt Resolution 1-17 as presented.

Scott Mandirola presented the following resolution:

Resolution 2-17

RECOGNITION OF SERVICE

RANDY C. HUFFMAN WHEREAS: Randy Huffman has served as a Commissioner to the Ohio River Valley

Water Sanitation Commission from 2008 through 2016, representing the state of West Virginia, and

WHEREAS: Mr. Huffman has provided faithful and diligent service to the Commission,

and WHEREAS: Mr. Huffman actively worked to help advance the Commission’s goals, and WHEREAS: Mr. Huffman has earned the esteem and friendship of his fellow

Commissioners, and

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WHEREAS: Mr. Huffman has devoted his career to protecting the precious natural resources of the State of West Virginia,

NOW THEREFORE BE IT RESOLVED: The Commissioners of the Ohio River Valley Water

Sanitation Commission express their heartfelt gratitude for Randy Huffman’s service, and wish him all the best in his future endeavors.

ACTION: Motion by Commissioner Flannery, second by Melanie Davenport and

unanimously carried, to adopt Resolution 2-17 as presented. Report of the Audit Committee Commissioner Kupke, Committee Chairman, noted that an Audit Report was provided in the meeting packet. He then introduced George Sparks, the audit director from Barnes Dennig, to provide an overview of the June 30, 2016 audit findings. Mr. Sparks reported that the audit team from Barnes Dennig met with the Audit Committee on Tuesday, February 7 to present a detailed report of the audit process and findings. He then provided an overview of the audit engagement and reported that ORSANCO’s audit was “unmodified” with no deficiencies or material weaknesses found in internal controls. Mr. Sparks also noted the good level of cooperation received from staff in performing the audit. Commissioner Kupke then proceeded with a Committee report. In the auditor’s opinion, the general-purpose financial statements present fairly, in all material respects, the financial position of ORSANCO as of June 30, 2016. There were no material internal control findings or issues. In other words, it was a “clean audit.” Commissioner Kupke noted that this has been the sixth consecutive audit performed by Barnes Dennig. Over this period, the Committee believes that they have performed solid, professional services. The Committee also believes that a periodic rotation of the independent auditor can afford an added degree of financial inspection and oversight due to another set of eyes conducting the audit. Therefore, for ORSANCO’s June 30, 2017 audit, it is recommended that the Committee evaluate other potential independent audit firms in conjunction with a request for proposal process. ACTION: Motion by Commissioner Kupke, second by Commissioner Elmaraghy and

unanimously carried, to accept the Independent Auditor’s Report for the period ending June 30, 2016.

Commissioner Kupke concluded by informing the Commission that the Committee will undertake a request for proposal process to evaluate other audit firms. The Committee will make a recommendation at the June 2017 Commission meeting. Report of the Executive Director Executive Director Richard Harrison reported on several items: The Commission plans to accept West Virginia America Water’s proposal to add their new scientific instrumentation, located on the Elk River, to ORSANCO’s Organics Detection System (ODS) fully at their expense. This will provide a good addition to the system in an active area of recent spills. Part of the proposal was a request for ORSANCO staff to conduct an evaluation of the monitoring systems at their Kanawha Valley Treatment Plant. Over the recent day’s meetings, the importance of source water protection was discussed. Staff will be reviewing the work recently undertaken by Greater Cincinnati Water Works (GCWW)

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and Northern Kentucky Water District (NKWD) to develop a joint source water protection plan. The goal is to determine if ORSANCO can offer services to other utilities to facilitate the development of similar plans and to consider a possible holistic approach to river-wide planning. Mr. Harrison then reported that a meeting was held with Jim Lazorchak of US EPA, several universities, and utilities, as well as ORSANCO staff, to compare notes on all the work being conducted related to HABs research on the Ohio River. Several million dollars of research is being conducted, and prior to this meeting, the partners we not necessarily communicating. Several entities have received and are pursuing additional grants to continue this work. This provides a good opportunity to continue to communicate and coordinate efforts related to the challenge of HABs on the Ohio River. He also reported that staff has submitted a STAR grant application in the amount of $700,000 to fund further HABs research. Mr. Harrison reminded Commissioners that in December 2016, he sent a Supplemental Environmental Projects Designation Letter to all state Directors for consideration of ORSANCO to receive such funds. The letter highlighted the need to fund the ODS equipment replacement. A companion communication will soon go out to state directors on the drinking water side. Both communications will go out annually. He concluded by recognizing Judy Petersen for her good work with the Watershed Organizations Advisory Committee, and also recognized staff for their good work on a number of new initiatives and the positive outcomes of the recently completed ODS renovation grant. Action on Minutes ACTION: Motion by Commissioner Duritsa, second by Scott Mandirola and unanimously

carried, that the minutes of the 216th meeting of the Commission, be adopted as presented.

Report of the Treasurer Commissioner Potesta noted that a Treasurer’s Report as of December 31, 2016 was provided in the agenda packet. The report indicates a balance of $591,571 in accounts receivable due the Commission as of December 31, 2016. The balance represents $228,350 due from Signatory States, $347,124 due from federal sources, and $16,097 due from other sources. Additionally, the report indicates receipts of $2,281,363 plus carryover of $2,236,380 totaling $4,517,743 through the end of December 2016. Of that amount, $1,709,659 was expended on programs, leaving $2,808,084 available for the continuation of ORSANCO’s programs. Report of the Technical Committee Commissioner Wilson, Committee Chairman, reported that the Technical Committee met on February 7-8, 2017. Six states, three federal agencies, and four advisory committees were represented. Commissioner Wilson began his report by thanking Ron Schwartz of Pennsylvania DEP for his thirteen years of highly valuable service to the Technical Committee, and also for serving as a proxy to the Commission. A summary of outcomes follows:

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Overview of ORSANCO’s Technical Programs Staff presented an overview of ORSANCO’s technical programs to support development of recommendations for program planning purposes for the FY18 program. Recommendations resulting from the meeting were summarized at the end of the meeting and agreed upon by the committee. These recommendations will be forwarded to the Program and Finance Committee for FY18 program planning purposes. Mine Pools in the Upper Ohio Basin Three outside speakers talked about water quality issues surrounding mine pools in the upper Ohio River Basin, including southwest Pennsylvania and the Northern panhandle of West Virginia. Dr. Frank Borsuk with US EPA Region 3 discussed reactivation of the Eastern Mine Drainage Federal Consortium. The role of this federal consortium is to facilitate coordinated responses among Federal Agencies to mine drainage issues in the Eastern United States, and more specifically, regarding mine drainage in the upper Ohio River Basin. ORSANCO has been included in the consortium. Dr. Joe Donovan, with the Water Research Institute at West Virginia University, discussed the extent of underground mine flooding in the region. This region includes the Pittsburgh coal seam which has extensive active and abandoned mines. These mines fill with water over time, which ultimately results in controlled or uncontrolled discharges to surface waters containing various constituents. These mine pools have been mapped, and a set of wells have been installed to monitor the extent of mine pool flooding. It is estimated that approximately 28% of discharges from these mines are currently receiving treatment. Dr. Paul Ziemkiewicz, Director of the Water Research Institute at West Virginia University, discussed the water quality impacts resulting from the mine pool discharges. The Water Research Institute operates a monitoring program called Three Rivers Quest, referring to the Allegheny, Monongahela, and Ohio Rivers. They monitor for various metals and total dissolved solids ions associated with mine drainage. The good news is that for the mine-related constituents monitored on the three large rivers, there does not appear to be any significant increasing trends at this time as well as no impairments. Biological Water Quality Subcommittee Report Staff provided a report of the Biological Water Quality Subcommittee which met at ORSANCO headquarters earlier this year. The subcommittee endorsed results of fish surveys for the three biological pools surveyed in 2016, including Willow Island, Greenup, and Cannelton pools. All three pools scored “good” or “very good” based on fish data; however, macroinvertebrate results are not yet available. Staff reported on a small study investigating microplastics in Ohio River fish being conducted gratis by Professor Hollien at Loyola University of Chicago. Staff has collected a number of fish gut samples and expects to receive results in the next six months. Staff also reported on the large fish contaminants study being conducted by ORSANCO on behalf of the WVDEP through a 604b grant. That study will be completed this spring. The Subcommittee is also recommending three pools, New Cumberland, Meldahl, and Newburgh, for 2017 biological surveys. In addition, still under consideration are six special projects for the 2017 biological field season. Finally, staff reported on a special study on submerged aquatic vegetation, which has been identified as having an effect on biological survey

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results. These results should be accounted for in future surveys conducted in areas affected by hydrilla. Bacteria Trends Staff gave an interim report on an analysis of trends for Ohio River bacteria levels. While results may be inconclusive as to whether bacteria conditions in the Ohio River are improving, it certainly does not appear that conditions are degrading. Additional work is underway, and a draft report will be forthcoming at the June 2017 meeting. Report of the Monitoring Strategy Subcommittee Staff reported on an effort to update its monitoring strategy document. The exercise will be used to obtain valuable input from the states and federal agencies on the value and possible revisions to ORSANCO’s monitoring efforts to better serve its members. In the strategy, staff plans to include a project to compile a GIS database of all routine monitoring programs in the Ohio River Basin. Ohio River CSO and Stormwater Abatement Reports Staff reported on the status of CSO and stormwater abatement activities on the Ohio River. In general, Ohio River communities are complying with the applicable requirements. Greater Cincinnati Water Works/Northern Kentucky Water District Joint Source Water Protection Program Amy Kramer, of the Northern Kentucky Water District, and Richard Stuck, of the Greater Cincinnati Water Works, gave a presentation on their joint source water protection program. Because the two intakes are only a few hundred feet apart on the Ohio River, even though the utilities are in different states, it makes great sense that they prepare source water protection plans common to both utilities. The objectives of the plan are to ensure a safe and reliable water supply for almost one and a half million people in the region. Major components of the plan include a contaminants source inventory, protection strategies and contingency planning, outreach and education, monitoring and notification, and a program to recognize voluntary participation by industries. It is anticipated that the plan will be submitted to Ohio and Kentucky in the near future. Staff then presented the status of current source water protection activities on the Ohio River. Source water assessment plans to complete contaminant source inventories and conduct contaminant susceptibilities analyses were required under the 1996 amendments to the Safe Drinking Water Act and have been completed by all Ohio River water utilities. Since then, a number of Ohio River water utilities have developed voluntary (with the exception of West Virginia which are regulated) Source Water Protection Plans which expand on the assessments to include contingency planning, monitoring, risk reduction scenarios, and public outreach. There have been a few joint plans developed as in the Cincinnati area; however, ORSANO will be considering its future rule in this area to facilitate and coordinate the development of more of these joint plans. Staff then provided an update on the Organics Detection System (ODS) as well as the occurrence of Ohio River spills. The ODS renovation grant has been closed out, which allowed for ORSANCO to secure three years of paid maintenance agreements for the system. Over the period from September to December 2016, the system operated at 87% of capacity, with over 6,000 samples analyzed during that time. Regarding spills, there were 590 spill reports received in 2016, over two hundred of which were deemed to potentially affect water quality, and of which the most common involved petroleum-based substances.

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Report of the Program & Finance Committee Commissioner Bruny, Committee Chairman, reported that the Committee held an interim meeting on Tuesday to discuss several topics in preparation for the Committee’s April 4, 2017 meeting. Staff presented a recap of the outcomes of the Committee’s October 2016 interim meeting. Highlights included a discussion of the five-year financial forecast with associated possible reductions, potential funding opportunities, and the use of unencumbered funds and restricted reserve funding levels. The Committee endorsed the use of unencumbered funds to support the FY18 budget. Staff presented a brief overview of ORSANCO’s current financial position. The June 30, 2016 audit has been completed, indicating that the fiscal year ended under budget. The current FY17 budget, through December, is trending well within budget. Executive Director Harrison provided an update on potential funding opportunities with state partners. Some preliminary discussions regarding 604b and SEP funding have taken place. Staff also proposed an expansion of work activity under the National Rivers and Streams Assessment funding. The Committee endorses staff’s proposal to expand this work activity, which benefits partner states, while also providing some financial benefit to ORSANCO. The Committee also endorses staff’s proposal to assess some sites within partner states that are located just outside the Basin boundaries. The Committee discussed reserve account balances and considered establishing an ODS equipment replacement fund. Staff will work with the Committee on a recommendation for consideration in April. The Committee also endorsed a proposal from West Virginia American Water to procure an Organics Detection System and pay all associated costs to add the system to ORSANCO’s network. The meeting concluded with Committee members providing input on additional topics for the April 4, 2017 meeting. These topics included pension funding, ORBA’s role, reserve accounts, and direction for strategic planning. Report of the Research Committee Commissioner Duritsa, Committee Chairman, directed attention to Agenda Item 8 in the meeting packet. He noted the unusual nature of taking action to dissolve a standing committee. Commissioner Duritsa reported that the Committee briefed the Commission in October 2016 regarding a recommendation to dissolve the Research Committee and authorize staff to draft all documents and Bylaws changes required for this action. It is also important to note that a companion action authorizing the formation of scientific workgroups on an as needed basis at the discretion of the Executive Director is part of this action. These workgroups will be temporal in nature, with fluid membership depending on the workgroup’s charge. Scientific workgroups are not a new concept, as these have been utilized in the past. Commissioner Duritsa presented the following action: ACTION: Motion by Commissioner Duritsa, second by Commissioner Frevert and

unanimously carried, to adopt Resolution 3-17 (Attachment 1) which dissolves

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the Research Committee and authorizes the formation of scientific workgroups as needed.

Report of the Water Users Advisory Committee Bruce Whitteberry, Committee Chairman, reported that the Committee met on January 18-19, 2017 in Bellevue, Kentucky. He was pleased to report that conditions on the river have been quiet recently, from a drinking water perspective, with no major spills or algae issues. Mr. Whitteberry thanked Erich Emery, of the US Army Corps of Engineers, for coordinating presentations on the history and operation of navigation and flood control dams. A presentation was provided regarding the joint effort of Greater Cincinnati Water Works and the Northern Kentucky Water District to develop a source water protection plan. The Committee is interested in working with ORSANCO on finding ways to enhance their source water protection efforts. Staff provided updates on biological monitoring activities, the mercury study, and the Organics Detection System. Mr. Whitteberry concluded by noting that Greater Cincinnati Water Works celebrates its 200th anniversary on March 31, 2017. Report of the Public Information Advisory Committee Betsy Mallison, Committee Chairman, reported that the Committee met on February 7, 2017 to review and discuss several public information activities. Commissioners Lovan, Duritsa, and Conroe joined the meeting. The Committee discussed the “State of the Ohio River” print publication. The publication is being updated by staff to reflect current content. The Committee suggested that this document be used as resource tool for reporters and others. The Committee further suggested that this type of updated document could be best utilized as an online resource and not a print publication. The Committee also suggested consideration of a “Friends of the Aquarium” program to seek funds and sponsorships to support continuation of this valuable outreach program. This funding program would include a multi-faceted communications campaign, including ways for the public to become involved and supportive. Staff reported that numerous historical publications were scanned to the website for public access. The Committee recommends two outreach approaches for both libraries and universities who might value access to such historical documents. The Committee also suggested that staff produce short summaries of each publication to entice others to read the publications and visit the website more regularly. The Committee also recommended that staff consider optimizing its website search engine to move ORSANCO higher up in the hierarchy when searching for Ohio River information. The Committee also discussed the use of a drone for public information activities. While the Committee endorses such use, it noted some of the challenges of licensing and approved uses of such devices. Staff will continue to investigate how drone videos and pictures can be used on the website. The Committee suggested ORSANCO pursue the licensing needed to use the drone coverage.

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Commissioner Conroe noted that ORSANCO currently owns a drone, and public information is only looking for ways to fully utilize its capabilities. The Committee also thanked the communications staff for the work they do to promote ORSANCO. Report of the Watershed Organizations Advisory Committee (WOAC) Judy Petersen, Committee Chairman, reported that the Committee has strong concern over the proliferation of oil and gas infrastructure being developed both under and adjacent to the Ohio River and associated risks to water quality. There is also concern over the proposed ethane cracker plants in Ohio and Pennsylvania. A key concern is to collectively discuss recent improvements to Ohio River water quality. However, these are new emerging threats to the river, and the Committee urges ORSANCO and state agencies take a real lead in making sure we continue to see progress in Ohio River water quality. One material of concern, benzene, is a major threat related to oil and gas activities. ORSANCO staff will speak to the Committee regarding the role of ODS capabilities in the detection of benzene. The Water Users Advisory Committee (WUAC) also offered to meet with the Committee to discuss areas of common concern. Ms. Petersen noted the importance of the WOAC’s seat at the table to continue working directly with the Commission on these important issues. She again reported that this would be her final meeting as Committee Chairman and that Rich Cogen will take over as Chair on July 1, 2017. Report of the Foundation for Ohio River Education Heather Mayfield, Executive Director, presented an update on the Foundation’s history, current programs, and financial position. Although the Foundation is a separate 501(c)(3), it was established to fund and conduct environmental education programs on ORSANCO’s behalf. Ms. Mayfield provided an overview of the numerous educational programs conducted as well as current collaborative activities to develop tools for monitoring water quality and harmful algal blooms. Ms. Mayfield also highlighted recent grant and funding opportunities, in particular a $100K award from Duke Energy as part of a spill settlement. Upcoming Meetings Chairman Lovan noted the following schedule for upcoming Commission meetings:

June 6-8, 2017 French Lick, Indiana October 3-5, 2017 Columbus, Ohio (Tentative)

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Adjournment The 217th meeting of the Commission at was adjourned at 10:45 A.M. Prepared by:

Date:

February 10, 2017

David Bailey Director of Administration

Approved by: Date:

February 15, 2017

Ronald Potesta Secretary/Treasurer

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ROSTER OF ATTENDANCE 217th Commission Meeting

February 9, 2017

Commissioners Illinois Toby Frevert Alec Messina Indiana Bruno Pigott John Kupke Joseph Harrison, Jr. Kentucky Ron Lovan Peter Goodmann (PROXY for Lt. Governor Hampton) New York Douglas Conroe Mike Wilson Ohio Craig Butler Stuart Bruny Pennsylvania Charles Duritsa Kelly Heffner (PROXY for Acting Secretary Patrick McDonnell) Virginia Melanie Davenport (PROXY for Director David Paylor) West Virginia David Flannery Ron Potesta Scott Mandirola (PROXY for Secretary Austin Caperton) Federal George Elmaraghy Legal Counsel Ross Wales Executive Director Richard Harrison Guests Betsy Mallison – PIACO; Bruce Whitteberry – WUAC; Erich Emery – USACE;

Judy Petersen – KWA/WOAC; Tiffani Kavalec – Ohio EPA; Jim Lazorchak – US EPA; Adam Rissien – Ohio Environmental Council; George Sparks – Barnes Dennig

Staff David Bailey, Jason Heath, Sam Dinkins, Jeff Thomas, Joe Gilligan, Lisa

Cochran, Tracey Edmonds, Lila Ziolkowski, Travis Luncan, Steve Braun, Heather Mayfield, Rob Tewes, Ryan Argo, Eben Hobbins

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(Attachment I)

RESOLUTION 3-17

MOTION TO (i) AMEND THE BYLAWS TO DISSOLVE THE RESEARCH COMMITTEE AND (ii) TO AUTHORIZE THE ESTABLISHMENT OF A NEW SCIENTIFIC WORK GROUP ON AN AS NEEDED BASIS WHEREAS: ORSANCO’s Research Committee has reviewed the Committee’s functions,

including ORSANCO’s Bylaws relating to the Committee and its purpose; and WHEREAS: Input was received from Commissioners at the February 11, 2016 Commission

meeting regarding the status of the Committee, and staff liaison Jeff Thomas reached out to the Committee’s scientific members for individual feedback; and

WHEREAS: Committee members concluded at a meeting on August 3, 2016, that the Research

Committee is redundant to the activities of other committees, which are vetting their research needs through other committees or means;

WHEREAS: The Commission at its October 6, 2016, meeting authorized that appropriate

resolutions be drafted to amend the ORSANCO Bylaws to dissolve the Committee and to simultaneously authorize the establishment of a scientific working group on an as needed basis as provided in the last sentence of Section XII, A of the Bylaws;

IT IS THEREFORE HEREBY MOVED THAT THE COMMISSION BYLAWS BE AMENDED AS FOLLOWS: That Article XII, A is hereby amended to delete reference to the Research Committee, as shown: A. Standing committees, with duties and functions as hereinafter set forth, shall be: Executive

Committee, Audit Committee, Nominating Committee, Program and Finance Committee, Pension Trust Committee, Personnel Committee, Pollution Control Standards Committee, Research Committee, Technical Committee, Congressional Liaison Committee, and Water Resources Committee. Except as hereinafter specified, all members of standing committees shall be duly appointed Commissioners or their proxies, pursuant to the legislative authorizations of the respective signatory states. Subcommittees or work groups may be formed by Standing Committees to carry out specific functions with the approval of a majority of the Commissioners.

And, That Article XII, A, 8, relating to the Research Committee, shall be deleted in its entirety,

and subsequent Subsections of Article XII, A shall be renumbered accordingly. AND FURTHER IT IS MOVED THAT: The Executive Director is hereby authorized to establish a Scientific Work Group on an as needed basis that shall be comprised of individual scientists with expertise in areas where the Commission, its Committees, the Executive Director or staff need better information to make better decisions. Except as set forth in the following sentence, members of the Work Group shall serve on a voluntary and as needed basis and shall work directly with the appropriate Committee or staff members, under the coordination and direction of the Executive Director. Committee members may be paid for their research.




Report of the Treasurer Number:

4

Page 1 of 1

Attachments: Treasurer’s Report as

of March 31, 2017



Prepared by: Joe Gilligan Presentation by: Secretary/Treasurer Ron Potesta

KEY CONSIDERATIONS:

ORSANCO’s Comptroller compiles Fiscal Year to Date ORSANCO financial data in both short form and in detailed spreadsheet format to be presented to the Commission.

The Treasurer’s Report as of March 31, 2017 indicates that the Commission has accounts receivable totaling $340,600 at the end of March 2017.

The receipts of $2,635,378 plus the carryover of $2,236,380 totals $4,871,758 through the end of March 2017. Of that amount, $2,293,313 was expended on programs, leaving resources of $2,578,445 available for the continuation of ORSANCO’s programs.

BUDGET/STAFF IMPLICATIONS: The Treasurer’s Report provides a financial snapshot for the period covered in the report.

RECOMMENDATION:

Information Only BACKGROUND/HISTORY:

The Treasurer has custody of all funds of the Commission and makes reports to Program & Finance and to the Commission.

The Program & Finance Committee met on April 26, 2016 to review staff’s recommend budget for FY17.

The Commission’s adopted the Program & Finance Committee’s recommendation to approve the FY17 budget at its June 9, 2016 Commission Meeting.

Staff prepares budget status reports for Commission receipt for the period ending at the close of the quarter that immediately precedes each Commission Meeting.

Memo Ohio River Valley Water

Sanitation Commission

5735 Kellogg Avenue

SINCE 1948 Cincinnati, Ohio 45230

Improving Water Quality in the Telephone: (513) 231-7719

Ohio River for over 60 Years Fax: (513) 231-7761

Agenda Item 4

218th Commission Meeting

June 8, 2017

DATE: May 18, 2017

TO: Commissioners FROM: Ron Potesta SUBJECT: Treasurer’s Report as of March 31, 2017 The Treasurer’s Report is presented in both the short form and the detailed spreadsheet format. The report indicates that the Commission has accounts receivable totaling $340,600 at the end of March 2017. The balance in accounts receivable is detailed as follows: Signatory States $78,225 Kentucky 35,850 West Virginia $114,075 Federal Sources $78,542 106 Grant 98,039 WV 604(b) Contaminants in Fish Tissue $176,581 Other Sources $49,554 Ohio River Sweep 390 Foundation for Ohio River Education $49,944 The receipts of $2,635,378 plus the carryover of $2,236,380 equals $4,871,758 through the end of March 2017. Of that amount, $2,293,313 was expended on programs, leaving resources of $2,578,445 available for the continuation of ORSANCO’s programs.

The Ohio River Valley Water Sanitation Commission

Treasurer's Report

Through March 31, 2017

Carryover Earned FY17 % Budget Resources

RESOURCES @ 7-1-16 Income Total Budget @ 3-31-17

Carryover July 1, 2016

Restricted Operating Reserve Funds $992,000 $992,000 $992,000 $992,000

Restricted Program Funds $423,950 $423,950 $83,771 $204,531

Unrestricted Funds $820,430 $820,430 $976,627 $1,381,914

States $1,404,400 $1,404,400 $1,404,400

US EPA

106 Grant Federal FY 16 $308,713 $308,713

106 Grant Federal FY 17 $537,391 $537,391 $1,493,000

Other Federal Grant Programs

ODS Renovation - STAG $93,402 $93,402 $32,976

WV 604(b) Contaminants in Fish Tissue $73,177 $73,177 $130,879

Non-Federal Projects

EPRI Pilot Trading $0 $0 $5,000

Ohio River Sweep $49,554 $49,554 $110,862

Other Non-Federal Projects $163,669 $163,669 $198,500

Other Income $5,072 $5,072 $1,000

Total Resources $2,236,380 $2,635,378 $4,871,758 $5,429,015 89.7% $2,578,445

EXPENDITURES

Personnel Expenses $1,214,984 $1,947,538 62.4%

Travel $145,688 $327,332 44.5%

Supplies $201,179 $256,188 78.5%

Telephone $10,861 $17,828 60.9%

Equipment $114,943 $46,691 246.2%

Office & Utilities $61,986 $118,802 52.2%

Equipment Repairs & Maintenance $27,382 $65,514 41.8%

Contractual Services $416,260 $464,713 89.6%

Printing & Reproduction $3,049 $6,550 46.5%

Lab Fees & Deliveries $96,981 $305,722 31.7%

Total Expenses $2,293,313 $3,556,878 64.5%

RESOURCES AVAILABLE $2,578,445Page 2

OHIO RIVER VALLEY WATER SANITATION COMMISSION OHIO RIVER VALLEY WATER SANITATION COMMISSION

COMBINED STATEMENT OF REVENUES AND EXPENSES COMBINED STATEMENT OF REVENUES AND EXPENSES

AND AVAILABLE RESOURCES - ALL FUNDS AND AVAILABLE RESOURCES - ALL FUNDS

Through March 31, 2017 Through March 31, 2017

ORSANCO EPRI

GENERAL Internal 106 WPC Ohio River ODS Upgrade Pathogen

RESOURCES ACCOUNT WPC Trading STAG Assessment

Carryover on July 1, 2016 $0.00 $238,971 $0.00 $312 $26,552 $19,345

INCOME

State Funding $1,404,400

PA DEP

Other Program Funding $0 $0

U.S. EPA $846,104 $0 $93,402

In-Kind Services $0

Transfer of River Users Funds to Programs

Transfer of State Funds to Programs ($944,425) $541,120 $203,106 $0 $143,507 $8,540

Transfer of Other Funds to Programs $0

Funds Encumbered for Prepaid Maintenance $0

Miscellaneous

Interest

Fines and Settlements $0

Total Resources $459,975 $780,091 $1,049,210 $312 $263,461 $27,885

ACCOUNTS RECEIVABLE

USEPA $78,542 $0 $0

Signatory States $114,075


TOTAL RESOURCES LESS A/R $345,900 $780,091 $970,668 $312 $263,461 $27,885

EXPENDITURES

Payroll $324,815 $232,742 $291,217 $0 $28,346 $9,754

Employee Benefits ($7,114) $121,836 $152,140 $0 $14,666 $5,083

Staff Travel $6,039 $9,615 $48,887 $0 $1,679 $0

Commission Travel $54,685 $0 $0 $0 $0 $0

Advisory Committee Travel $8,127 $511 $1,048 $0 $1,100 $0

Associations & Memberships $10,509 $282 $0 $0 $0 $0

Supplies $29,037 $13,780 $17,141 $0 $81,283 $0

Telephone $9,092 $1,072 $629 $0 $0 $0

Equipment $3,165 $0 $0 $0 $39,830 $0

Equipment Lease $0 $0 $0 $0 $0 $0

Rent $45,940 $0 $0 $0 $0 $0

Utilities $16,046 $0 $0 $0 $0 $0

Equipment Maintenance $8,726 $200 $3,454 $0 $0 $0

Facility Maintenance $7,318 $0 $0 $0 $0 $0

Vehicle, Building, Equipment Insurance $16,250 $0 $821 $0 $0 $0

Shipping & Delivery $254 $616 $17,071 $0 $0 $0

Reproduction $85 $0 $0 $0 $0 $0

Printing $2,964 $0 $0 $0 $0 $0

Contractual Services $40,754 $87,982 $53,309 $0 $58,632 $0

Lab Analysis $0 $147 $73,955 $0 $0 $0

Legal & Accounting Fees $60,697 $0 $0 $0 $0 $0

Educational $0 $0 $0 $0 $0 $0

TOTAL DIRECT EXPENSES $637,389 $468,783 $659,671 $0 $225,536 $14,837

IN-KIND SERVICE $0

INDIRECT EXPENSE ALLOCATION ($788,252) $311,308 $389,540 $0 $37,924 $13,048

TOTAL DIRECT & INDIRECT EXPENSES ($150,863) $780,091 $1,049,210 $0 $263,461 $27,885

Balance before Transfers & Adjustments $610,838 ($0) $0 $312 $0 $0

In-Kind Service Transfer $0 $0

Interfund Transfer ($610,838)

BALANCE - Resources - Expenses $0 ($0) $0 $312 $0 $0

Page 3

OHIO RIVER VALLEY WATER SANITATION COMMISSION OHIO RIVER VALLEY WATER SANITATION COMMISSION

COMBINED STATEMENT OF REVENUES AND EXPENSES COMBINED STATEMENT OF REVENUES AND EXPENSES

AND AVAILABLE RESOURCES - ALL FUNDS AND AVAILABLE RESOURCES - ALL FUNDS

Through March 31, 2017 Through March 31, 2017

WV 604(b) Mercury State of Ohio Marathon Stream Life Below

River Contaminants MB Sunoco Petroleum Gauge The

RESOURCES Users in Fish Tissue Effort SEP Emerg Resp Transfer Waterline

Carryover on July 1, 2016 $83,771 $0 $0 $20,000 $0 $34,999 $0

INCOME

State Funding

PA DEP

Other Program Funding $0 $0 $0 $147,554 $15,725

U.S. EPA $73,177

In-Kind Services

Transfer of River Users Funds to Programs $0

Transfer of State Funds to Programs $1,360 $0 $2,686 $0 $10,000 $34,095

Transfer of Other Funds to Programs $0

Funds Encumbered for Prepaid Maintenance

Miscellaneous

Interest

Fines and Settlements $0 $0

Total Resources $85,131 $73,177 $2,686 $20,000 $10,000 $182,553 $49,820

ACCOUNTS RECEIVABLE

USEPA $98,039 $0

Signatory States


TOTAL RESOURCES LESS A/R $85,131 ($24,862) $2,686 $20,000 $10,000 $182,553 $49,820

EXPENDITURES

Payroll $476 $7,757 $0 $0 $0 $0 $10,647

Employee Benefits $247 $4,078 $0 $0 $0 $0 $5,552

Staff Travel $0 $3,121 $0 $0 $0 $0 $8,171

Commission Travel $0 $0 $1,422 $0 $0 $0 $0

Advisory Committee Travel $0 $0 $1,210 $0 $0 $0 $0

Associations & Memberships $0 $0 $0 $0 $0 $0 $0

Supplies $0 $169 $0 $2,477 $1,192 $0 $283

Telephone $0 $0 $55 $0 $0 $0 $0

Equipment $0 $0 $0 $17,523 $0 $0 $0

Equipment Lease $0 $0 $0 $0 $0 $0 $0

Rent $0 $0 $0 $0 $0 $0 $0

Utilities $0 $0 $0 $0 $0 $0 $0

Equipment Maintenance $0 $0 $0 $0 $0 $0 $7,684

Facility Maintenance $0 $0 $0 $0 $0 $0 $0

Vehicle, Building, Equipment Insurance $0 $0 $0 $0 $0 $0 $2,783

Shipping & Delivery $0 $4,616 $0 $0 $0 $0 $0

Reproduction $0 $0 $0 $0 $0 $0 $0

Printing $0 $0 $0 $0 $0 $0 $0

Contractual Services $0 $43,061 $0 $0 $0 $70,913 $458

Lab Analysis $0 $0 $0 $0 $0 $0 $0

Legal & Accounting Fees $0 $0 $0 $0 $0 $0 $0

Educational $0 $0 $0 $0 $0 $0 $0

TOTAL DIRECT EXPENSES $723 $62,803 $2,686 $20,000 $1,192 $70,913 $35,578

IN-KIND SERVICE

INDIRECT EXPENSE ALLOCATION $637 $10,374 $0 $0 $0 $0 $14,242

TOTAL DIRECT & INDIRECT EXPENSES $1,360 $73,177 $2,686 $20,000 $1,192 $70,913 $49,820

Balance before Transfers & Adjustments $83,771 ($0) ($0) $0 $8,808 $111,640 $0

Resources Available to Complete Contract

Interfund Transfer $0

BALANCE - Resources - Expenses $83,771 ($0) ($0) $0 $8,808 $111,640 $0

Page 4

mailto:=+@sum('EOR%20Pathogen%20TMDL%20(335)'!D72:D80)+'EOR%20Pathogen%20TMDL%20(335)'!D102

Foundation Total Reserve Funds

Sweep for Ohio Restrcted Unrestricted Restricted Total

RESOURCES River Education Program Funds Funds Escrow Activities

Carryover on July 1, 2016 $0 $0 $423,950 $820,430 $992,000 $2,236,380

INCOME

State Funding $1,404,400 $1,404,400

PA DEP $0 $0

Other Program Funding $49,554 $390 $213,223 $0 $213,223

U.S. EPA $1,012,683 $1,012,683

In-Kind Services $0

Transfer of River Users Funds to Programs $0 $0

Transfer of State Funds to Programs $0 $12 ($0) ($0)

Transfer of Other Funds to Programs $0 $0

Funds Encumbered for Prepaid Maintenance $0 $0

Miscellaneous $0 $0 $0

Interest $0 $5,072 $5,072

Fines and Settlements $0 $0 $0

Total Resources $49,554 $402 $3,054,256 $825,502 $992,000 $4,871,758

ACCOUNTS RECEIVABLE

USEPA $176,581 $176,581

Signatory States $114,075 $114,075

Other Program Funding $49,554 $390 $49,944 $49,944

TOTAL RESOURCES LESS A/R $0 $12 $2,713,656 $825,502 $992,000 $4,531,158

EXPENDITURES

Payroll $8,358 $0 $914,111 $0 $914,111

Employee Benefits $4,371 $12 $300,872 $0 $300,872

Staff Travel $62 $12 $77,586 $0 $77,586

Commission Travel $0 $0 $56,107 $0 $56,107

Advisory Committee Travel $0 $0 $11,995 $0 $11,995

Associations & Memberships $449 $0 $11,240 $0 $11,240

Supplies $24,663 $59 $170,084 $0 $170,084

Telephone $0 $14 $10,861 $0 $10,861

Equipment $0 $0 $60,518 $54,425 $114,943

Equipment Lease $0 $0 $0 $0 $0

Rent $0 $0 $45,940 $0 $45,940

Utilities $0 $0 $16,046 $0 $16,046

Equipment Maintenance $0 $0 $20,064 $0 $20,064

Facility Maintenance $0 $0 $7,318 $0 $7,318

Vehicle, Building, Equipment Insurance $0 $0 $19,854 $0 $19,854

Shipping & Delivery $322 $0 $22,879 $0 $22,879

Reproduction $0 $0 $85 $0 $85

Printing $0 $0 $2,964 $0 $2,964

Contractual Services $150 $305 $355,563 $0 $355,563

Lab Analysis $0 $0 $74,102 $0 $74,102

Legal & Accounting Fees $0 $0 $60,697 $0 $60,697

Educational $0 $0 $0 $0 $0

TOTAL DIRECT EXPENSES $38,375 $401 $2,238,888 $54,425 $0 $2,293,313

IN-KIND SERVICE $0 $0

INDIRECT EXPENSE ALLOCATION $11,179 $0 $0 $0 $0

TOTAL DIRECT & INDIRECT EXPENSES $49,554 $401 $2,238,888 $54,425 $0 $2,293,313

Balance before Transfers & Adjustments ($0) $0 $815,368 $771,077 $992,000 $2,578,445

Resources Available to Complete Contract $0

Transfer to Escrow ($610,838) $610,838 $0

BALANCE - Resources - Expenses ($0) $0 $204,531 $1,381,914 $992,000 $2,578,445

OHIO RIVER VALLEY WATER SANITATION COMMISSION

COMBINED STATEMENT OF REVENUES AND EXPENSES

AND AVAILABLE RESOURCES - ALL FUNDS

Through March 31, 2017

Page 5



June 6-7, 2017 Subject:

Report and Recommendations; June 6-7, 2017 Technical Committee Meeting

Number: 5

Page 1 of 1

Attachments: TEC June 6-7 Meeting

Transmittal Memo

TEC June 6-7 Meeting Agenda



Prepared by: Jason Heath Presentation by: Committee Chairman Mike Wilson

KEY CONSIDERATIONS:

The Commission Technical Committee (TEC) will conduct its 214th meeting on June 6-7, 2017 prior to the June 8, 2017 Commission meeting in West Baden Springs, Indiana.

The meeting agenda includes discussions concerning: ORSANCO’s work on Ohio River HABs, mercury mass balance project and tributary surveys, source water protection programs, biological programs, Ohio River Bacteria TMDL, report of the NPDES Subcommittee, Ohio EPA’s nutrient mass balance study, and update on the Ohio River Basin Nutrient Trading Program.

Committee Chairman Mike Wilson will provide a report of the TEC meeting at the Thursday, June 8, 2017 Commission meeting.

BUDGET/STAFF IMPLICATIONS:

The Technical Committee reviews technical programs and makes recommendations to the Commission to be considered during the Program and Finance Committee’s Program and Budget development process.

The Commission has staff time to perform Committee liaison work and to facilitate the meetings and work of the Committee’s Workgroups and Subcommittees.

RECOMMENDATION:

For information only BACKGROUND/HISTORY:

The Technical Committee (TEC) serves as the technical arm of the Commission and studies, discusses and evaluates technical questions of concern or interest to the Commission.

It is composed of a Chairman, who is a Commissioner appointed by the Commission Chairman with one member from each of the signatory states as designated by the Commissioners of each state. TEC includes a member designated by the United States Commissioners to represent federal interests. Up to three additional members may be appointed by the Commission Chairman.

The Chief Engineer of the Commission, Chair of the Public Information Advisory Committee, Chemical Industry Advisory Committee, Power Industry Advisory Committee, Publicly Owned Wastewater Treatment Works Advisory Committee, Watershed Organizations Advisory Committee and Water Users Advisory Committee are ex officio, non-voting members of TEC.

TEC has established workgroups and subcommittees to assist with Committee activities including: 305b Coordinators Workgroup, Biological Subcommittee, Emergency Response Coordinators Workgroup, Fish Consumption Advisory Workgroup, HABs Workgroup, Monitoring Strategy Subcommittee, NPDES Subcommittee, ODS Operators Workgroup, Source Water Assessment Workgroup; Stream Criteria Subcommittee, and TMDL Coordinators Workgroup.

1

Memo

Since 1948 Improving Water Quality in the Ohio River for over 60 Years

Ohio River Valley WaterSanitation Commission

5735 Kellogg AvenueCincinnati, Ohio 45230Phone: (513) 231-7719

Fax: (513) 231-7761www.orsanco.org

DATE: May 18, 2017 TO: Technical Committee Michael Wilson, Chairman CDR Molly Wike, USCG Vacant, IL Tim Henry, USEPA Eileen Hack, IN Scott Morlock, USGS Peter Goodmann, KY Ex Officio Jeff Konsella, NY Rob Reash, Chairman, PIAC Erin Sherer, OH Betsy Mallison, Chairman, PIACO Dana Drake, PA Alex Novak, Chairman, POTW Melanie Davenport, VA Judy Petersen, WOAC Scott Mandirola, WV Bruce Whitteberry, Chairman, WUAC Erich Emery, USACE Richard Harrison, Chief Engineer SUBJECT: Announcement of 214th Technical Committee Meeting, June 6-7, 2017, West Baden Springs

Hotel, West Baden Springs, IN FROM: Jason Heath, P.E., BCEE The 214th meeting of the ORSANCO Technical Committee will take place on June 6-7, 2017, at the West Baden Springs Hotel, West Baden Springs, IN, beginning at 1:00 PM on Tuesday, June 6, and concluding by Noon on Wednesday, June 7. Lunch will be provided on both days. Hotel rooms have been reserved at the West Baden Springs Hotel and French Lick Springs Hotel according to your preference. Please contact me or Tracey Edmonds if you have any questions or are in need of any travel assistance. The Technical Committee meeting will be held in conjunction with the 218th Commission meeting being held on Thursday, June 8, at the same location. Additional logistics for both meetings can be found with the agenda package for the Commission meeting. Notes on agenda items are as follows: Item 1: Minutes of the 213th Technical Committee Meeting Minutes of the 213th Technical Committee meeting are attached. An action to approve the draft minutes will be sought. Item 2: Chief Engineer’s Report Executive Director Richard Harrison will report on selected items. Item 3: Nutrients Project Staff has been collecting nutrients and physical parameters in conjunction with our macroinvertebrate sampling program for the last three years. Staff is now in the process of analyzing the data for relationships between nutrients, dissolved oxygen, and macroinvertebrate communities. Interim results will be presented.

2

Item 4: Harmful Algal Blooms Staff has prepared a white paper (attached) on lessons learned from the 2015 Ohio River HAB event. Recommendations and follow up activities in response to the lessons learned will be discussed. Staff has held conference calls with the ORSANCO HABs Workgroup (composed of state and federal agencies), as well as a newly formed Ohio River HABs Research Consortium. Results of those calls will be discussed. Staff will provide an overview of the Ohio River HABs Response and Communications Plan to refresh everyone’s understanding of ORSANCO’s role as the summer season approaches. Finally, staff will overview the HABs monitoring and data dissemination network that will be in place this summer. Item 5: Mercury Project Staff has been working on a mercury mass balance for the Ohio River and tributaries as was presented to TEC at its October, 2016 meeting. A review of the project work plan and results to date will be presented. Item 6: Source Water Protection An update on the source water protection program will be provided. Through a project with the USEPA, ORSANCO’s spill model has been upgraded. Details of that project will be presented. In addition, staff has been updating its Spill Response and Communications Plan which will be reported on. Rengao Song of the Louisville Water Company will present some concepts to be considered during the development of the next generation Organics Detection System. Rengao has participated in the ODS for many years. Item 7: Biological Programs Staff will provide a report (attached) of the Fish Consumption Advisory Committee which met by conference call on April 26. Final results of 2016 biological pool assessments will also be presented. Finally, staff will overview plans for the 2017 biological sampling season. Item 8: Ohio River Bacteria TMDL Approximately two-thirds of the Ohio River has been designated as impaired for the contact recreation use based on bacteria levels. Bacteria levels in the Ohio River are predominantly a wet weather issue. Jean Chruscicki, US EPA Region 5, will present the draft Ohio River Bacteria TMDL Report. The report has been provided to the states for review prior to its dissemination for public review. Item 9: Report of the NPDES Subcommittee Subcommittee Chairman Paul Novak will present a report of the subcommittee which met by conference call on May 17 to discuss: 1) How states are handling recent developments in the requirements under the Steam Electric Power Generating Effluent Guidelines; 2) Use of USEPA’s ICIS database to generate mercury loads for permitted point sources in the basin, and; 3) Provide them with a status update on the Ohio River Bacteria TMDL. Item 10: Member Updates on Interstate Water Quality Issues TEC members are asked to report on water quality issues of importance to their organization. These reports are informational and this agenda item will be conducted as the first item on Wednesday morning. Item 11: Ohio EPA’s Nutrient Mass Balance Project Joshua Griffin, Ohio EPA, will present results of a project conducted by Ohio EPA to develop a mass balance for nutrients in certain basins in the state. Item 12: Update on the Ohio River Basin Nutrients Trading Program Jessica Fox with the Electric Power Research Institute will provide a status report on the Ohio River Basin Nutrients Trading Program. An agreement to develop a nutrients trading program was entered into by Indiana, Kentucky, and Ohio in August, 2012.

3

214th Technical Committee Meeting

West Baden Springs Hotel French Lick Resort, West Baden Springs, IN

June 6-7, 2017 1:00 P.M. (eastern)

Chairman Michael Wilson, Presiding

TECHNICAL COMMITTEE MEETING AGENDA PLEDGE OF ALLEGIANCE

CHAIRMAN’S WELCOME

Introduction of Guests

ACTION ITEMS AND COMMITTEE REPORTS

1. Action on Minutes of 213th Technical Committee Meeting * 2. Chief Engineer’s Report 3. Nutrients Project 4. HABs

a. Lessons Learned White Paper * b. Establishment of HABs Scientific Working Group c. Review of the HABs Response and Communications Plan d. 2017 Ohio River HABs Monitoring Network

5. Mercury Project 6. Source Water Protection

a. Program Update b. Spills Model Upgrade c. Spills Response and Communications Plan d. Future Considerations for the Organics Detection System (Rengao Song, Louisville

Water Company) 7. Biological Programs

a. Report of the Fish Consumption Advisory Workgroup * b. Pool Reports c. Plans for 2017 Special Studies *

8. Ohio River Bacteria TMDL Update (Jean Chruscicki, US EPA Region 5, invited) 9. Report of the NPDES Subcommittee (Paul Novak, Subcommittee Chairman, IDEM)

ADJOURN TUESDAY/RECONVENE WEDNESDAY

10. Member Updates on Interstate Water Quality Issues 11. Ohio EPA’s Nutrients Mass Balance Project (Joshua Griffin, Ohio EPA) 12. Update on the Ohio River Basin Nutrients Trading Program (Jessica Fox, EPRI)

OTHER BUSINESS

Comments by Guests Announcement of Upcoming Meetings Adjourn

* Indicates agenda attachment.




Report of the Program and Finance Committee Number:

6

Page 1 of 2

Attachments: Committee Report

Budget Resolution

State Funding Level Resolution



Prepared by: David Bailey Presentation by: Committee Chairman Stuart Bruny

KEY CONSIDERATIONS: The Program & Finance Committee met on April 4, 2017 to review the FY 2018 proposed

programs and budget for ORSANCO. The FY 2018 Budget Message, that is included in the attached Program & Finance Committee

Report, focuses on the proposed FY18 balanced budget, five-year revenue and expenditure forecast, carryover resources, and present and future funding initiatives.

The carryover resources into FY18 are estimated to be $2,136,517, which includes unencumbered resources of $902,550, restricted reserves of $992,000, and encumbered resources of $241,967.

The proposed FY18 budget utilizes no unencumbered funds within the carryover resources to support the total proposed program budget of $3,296,922.

The Five Year Revenue and Expenditure Forecast was developed to help project financial trends for planning purposes and showed a significant gap between revenues and expenditures.

Staff developed the Potential Future Programs list to help identify future funding opportunities that staff will pursue to help provide supplemental program funding to ORSANCO.

The Committee prepared a list of six recommendations for consideration by the Commission: 1. Adoption of the FY 18 program plan and balanced budget as presented. 2. Maintain the current restricted reserve fund policy and retain the current fund balance of

$992,000 due to future funding uncertainty. 3. Adopt a 0.0% state funding increase for fiscal year 2020. 4. Establish a separate Organics Detection System (ODS) equipment replacement account. 5. Recommend that additional formal strategic planning activities are not required at this time

due to extensive efforts completed to develop five-year program and reasonable, financial forecasting scenarios.

6. Recommend that the Congressional Liaison Committee work with staff to craft a clear message to Congress on specific implications to ORSANCO’s Source Water Protection Program associated with the proposed reductions to ORSANCO’s US EPA Grant funding as outlined in the President’s Budget Blueprint.

BUDGET/STAFF IMPLICATIONS: Approval of the proposed FY18 Program Plan and Budget Resolution will result in budget

expenditures of $3,296,922. A full time equivalent staffing level of 19 employees is included in the proposed FY18 budget.

RECOMMENDATION: The Program and Finance Committee recommends that the Commission consider three separate

motions. 1) Adopt Resolution to approve the Program Plan and Budget for Fiscal Year 2018 (Committee Recommendation 1); 2) Adopt Resolution to establish FY20 State Funding levels (Committee Recommendation 3); 3) Accept the Program and Finance Committee April 4, 2017 Report Recommendations 2, 4, 5 and 6 as presented.

Because these actions are necessary to provide the financial and operating authority to establish the FY18 program budget and FY20 State funding levels for ORSANCO.




Report of the Program and Finance Committee Number:

6

Page 2 of 2

BACKGROUND/HISTORY:

The Program and Finance Committee reviews the Commission’s programs and makes recommendations with respect to the annual operating budget of the Commission.

The Committee prepares for Commission ratification and submission to the Governors of the signatory states for approval, the amount of appropriations to be made by the states.

The Committee is composed of at least three Commissioners, or their duly appointed proxies, the Chairman of the Technical Committee, the Executive Director and the Treasure as ex officio non-voting members.

By policy, state funding levels are established two years in advance to facilitate legislative/fiscal processes of the individual states.

The adopted State funding level increase for FY18 was set at 1% and FY19 was set at 1.5%.


Report of the April 4, 2017 Program and Finance Committee Meeting

Committee Chairman, Commissioner Bruny Presiding

The Program and Finance Committee met in Newport, Kentucky on April 4, 2017. Six member states including Kentucky, Ohio, Illinois, West Virginia, Pennsylvania, New York, and the Federal Government were represented. FY18 Budget Message (Attachment 1) Executive Director Richard Harrison provided a budget message overview focusing on the proposed FY18 balanced budget, five-year revenue and expenditure forecasts, carryover resources, and present as well as future funding initiatives. Mr. Harrison also discussed possible next steps for a possible Strategic Plan update. Status of April 2016 Program & Finance Committee Recommendations The Committee received a presentation reviewing the status of previous recommendations that had been made by the Committee and follow-ups that had occurred. These recommendations included allocation of funds for mercury work; develop revenue and expense forecasts for fiscal years 18-22; and update Strategic Plan to address future needs. The Committee received presentations providing detailed information on these follow-up activities throughout the meeting. Fiscal Year 2018 Programs The Committee received detailed presentations from managerial staff describing proposed program activities, focusing on program changes and the budget impacts of such changes. Estimated Carryover Resources into FY18 Staff provided an overview of the estimated carryover resources of $2,136,517, which includes unencumbered resources of $902,550, restricted reserves of $992,000, and encumbered resources of $241,967. Proposed FY18 Budget (Attachment 2) The Committee received a detailed budget presentation by staff covering resources and expenditures broken down by program area. Staff presented a total proposed program budget of $3,296,922. Five-Year Base Forecast (Attachment 3) Five-Year Moderate Forecast and Incremental Reductions (Attachment 3a, 3b) Executive Director Harrison presented detailed forecasts of projected revenues and expenditures through FY22. The forecasts show a trend of relatively flat funding with some increases in expenses, heightening attention to the need to continue identifying additional funding sources. Mr. Harrison presented a number of potential future programs which could serve as the foundation for additional funding.

Potential Future Programs (Attachment 4) Staff presented a list of potential future programs. These programs, prioritized based on anticipated funding opportunities, were identified to help identify possible sources of future funding. Recommended Levels of State Funding for Fiscal Year 2020 (Attachment 5) The Committee gave serious consideration to ORSANCO’s future funding needs, the economic climate within the states, and possible federal funding reductions. The Committee concluded that a 0% state funding increase be recommended for FY20. Strategic Planning The Committee discussed possible next steps for strategic planning but concluded that additional formal planning activities are not required at this time due to extensive efforts to develop five-year program and financial forecasting scenarios. Committee Recommendations 1. Recommend adoption of the FY18 program plan and balanced budget as presented. 2. Recommend maintaining the current restricted reserve policy and retaining the current

fund balance of $992,000 due to future funding uncertainty.

3. Recommend adoption of a 0% state funding increase for fiscal year 2020.

4. Recommend the establishment of a separate Organics Detection System (ODS) equipment replacement account.

5. Recommend that additional formal strategic planning activities are not required at this time due to the extensive efforts to develop five-year program and financial forecasting scenarios.

6. The Committee supports a request to the Congressional Liaison Committee to work with staff to craft a clear message to Congress on the specific implications of the proposed federal budget reductions.

1

ORSANCO 2018 Budget Message

The proposed Fiscal Year 2018 (FY18) budget being presented reflects the effort of the Commission staff to develop an efficient and cost effective financial plan against a backdrop of sustainable funding challenges, increasing operational costs including escalating pension costs, and a very challenging, overall fiscal climate. Staff has incorporated several proposed program reductions that were presented to the Commission last October to develop a balanced FY18 budget. Staffing levels of 19 full time equivalent (FTE) personnel have been utilized to carry out the proposed budgeted programs. For reference purposes, this is a reduction of 11 FTE’s below our 2004 program staffing level of 30 FTE’s and is equal to ORSANCO’s 1976 staffing level. Staff prepared a Five-Year Revenue and Expenditure Forecast (FY18-FY22) including an associated moderate reduction planning scenario to help demonstrate potential actions to close the forecasted funding gap between revenues and expenditures. Additionally, staff updated the Supplemental Program Elements Funding Breakdown to identify possible programs that could be supported with additional funding. The budget and five-year trend forecast were developed with the Commission’s Mission in mind as we strive to meet the Ohio River Valley Water Sanitation Compact goals through coordination with our State and Federal Partners and other key stakeholders. As this budget was developed, staff was mindful to operate the Commission in a cost effective manner and to meet the water quality objectives established through the Compact. The President’s Budget Blueprint released on March 16, 2017 proposes a nearly 45% reduction to EPA Categorical Grants that includes ORSANCO’s 106 Grant funding. This potential reduction was not included in the proposed ORSANCO FY18 budget or the proposed FY18-FY22 Five-Year Revenue and Expenditure Forecast. The Federal Budget is approved by Congress and cuts, if any, to ORSANCO’s 106 Grant funding will not be known until the FY18 Federal Budget is developed later this summer or fall. ORSANCO’s FY18 budget will be revisited if any of the President’s Budget Blueprint reductions to ORSANCO’s federal funding materialize. The following is a brief summary of the FY18 budget developed to meet the goals of the Commission.

FY18 Revenues are budgeted at $3,206,113, a decrease of $180,589, or 5.33% less than the $3,386,702 budgeted for FY17. The projection took into account anticipated revenues related to completing National Rivers and Streams Assessment work; and additional State funding for FY18 set by Commission Action of June 9, 2016. The net revenue decrease from FY16 to FY17 was driven in part by the removal of one time 2013 US EPA Region 3 106 Grant funding as well and the federal 604(b) set aside funding from West Virginia DEP since the associated project was completed in FY17. The net revenue decrease was also driven by a reduction in revenue associated with the closeout of the ODS Renovation Grant on September 30, 2016.

FY18 Expenditures are budgeted at $3,296,922, a decrease of $260,854, or 7.33% less than 2017’s

budgeted expenditures of $3,557,776. FY18 expenditure decreases include; removal of the resources needed to complete the West Virginia DEP 604(b) project; a reduction in resources allocated to support the Mercury Study to develop a mercury mass balance for the Ohio River; and several of the staff proposed reductions that were presented to the Commission last October to balance the projected funding gap anticipated by the FY17 Five-Year Revenues and Expenditures Forecast. These include; decreasing the Commission’s pension contribution due to a proposed change in the unfunded liability amortization schedule from 10 to 20 years; suspending the Commission’s 457 plan employee match; reducing the employee merit raise pool; reducing legal and audit fees; removing the volunteer monitoring program; applying EPA supplemental monitoring funding to existing programs; a reduction in the nutrient criteria development program costs; and reducing one fecal indicator from our contact recreation program for most sites. Implementing these net reductions reduced the anticipated utilization of unencumbered carry over funds in FY18 from $267,324 as projected in the FY17-FY21 Five-Year Revenue and Expenditures Forecast to an increase of $15,425 at the end of FY18 that is projected in the proposed FY18 budget. This dramatic change demonstrates staff’s continued efforts to control costs by carefully reviewing expenditures and striving to implement organizational efficiencies.

Attachment 1

2

The Five-Year Revenue and Expenditure Forecast was completed by staff as part of the FY18 budget process to serve as a baseline to help identify future funding and expenditure needs for the FY18-FY22 five-year period. This base forecast assumes that no new sources of funding become available to ORSANCO other than those already identified or approved by the Commission. On the expenditure side, the base five-year forecast assumes static program expenditure levels that have been incorporated in the proposed FY18 budget. Projected inflationary increases have been applied to complete the FY19-FY22 base expenditure component of the five-year forecast.

On the funding side, level EPA 106 Grant funding in the amount of $1,379,000 annually was utilized throughout the FY18-FY22, five-year period for the base forecast. Annual River Sweep funding received from FORE was included for approximately $110,000. Annual Life Below the Waterline program sponsor funding for $20,000 was included. State funding was projected at a 1% increase for FY18, a 1.5% increase for FY19 as already approved by the Commission and no increase for FY20-FY22, resulting in State projected funding of $1,418,400 in FY18 and 1,439,700 for FY19-FY22. Additional funding sources include projected National Rivers and Streams Assessment funding of $126,000 in FY18, $342,000 in FY19 and $96,000 in FY20. These five-year revenue assumptions generated a projected annual funding decrease of approximately 0.16% from $3,206,113 in FY18 to $3,184,600 in FY22.

Key five-year expenditure assumptions that were utilized to prepare the base forecast include maintaining FY18 program expenditure levels throughout the five-year period. Staffing was held constant at 19 full time equivalent staff members. Funding the pension utilizing a 20-year unfunded liability amortization schedule were included in each year of the forecast to meet current actuarial funding projections. Appropriate inflation factors were applied to each FY18 expense category to forecast FY19 through FY22 base level expenditures. Anticipated equipment needs were projected to sustain FY18 program levels. These assumptions generated a projected base forecasted annual expenditure increase of approximately 1.8% from $3,296,922 in FY18 to $3,538,261 in FY22. The five- year forecast projects that $758,323 of the projected $902,550 in available unencumbered carryover resources would be needed to meet expenditure requirements taking into account projected revenue reductions. This leaves an available projected balance of $144,227 in unencumbered carryover resources and would leave the restricted reserve balance of $992,000 intact at the close of FY22. In order to balance this forecasted funding gap, staff developed a moderate reduction scenario that applied potential new revenue sources and proposed expenditure reductions to develop a moderate reduction scenario. Potential new sources of revenue totaling $279,846 annually by FY22 include; additional EPA 604(b) funding, federal State Revolving Loan Funding from state set asides, volunteer stakeholder funding from water utilities and industry to fund the ODS equipment maintenance agreements and website expense and a potential 1% state funding increase in FY21-FY22. Potential incremental reductions in program costs total $125,505 by FY22 include; membership, travel and training reductions, nutrient criteria development analytical costs; water chemistry analytical costs; bacteria monitoring analytical costs; clean monitoring analytical costs; eliminating tributary monitoring analytical costs and moving bimonthly monitoring to quarterly.

Carryover Resources into FY18 are projected to be $2,136,517, an increase of $84,119, or 4.10% more than the $2,052,398 that were projected to be carried over into FY17. This amount includes; $902,550 in unencumbered resources; $992,000 in restricted reserve resources; and $241,967 in encumbered project resources. The encumbered projected resources have increased due to the required accounting treatment of the prepaid maintenance agreements for 2016-2019 that were paid from the US EPA ODS Renovation Grant in late 2015. This $318,627 expenditure must be amortized across the 3-year period covered by the maintenance agreements. $106,209 of this will be allocated to FY18’s proposed budget and $51,987 of this will be allocated to FY19’s budget in the future. The budgeted increase in Carryover Resources is primarily due to staff’s diligent efforts to reduce program costs and additional unencumbered resources received from the US EPA from remaining ODS Renovation Grant. Although $106,209 of encumbered carry over resources are being utilized in FY18 for the prepaid maintenance agreement expense, the Commission’s unencumbered carry over resources are projected to increase by $15,425 as a result of staff’s efforts to control costs.

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The Base Five-Year Revenue and Expenditure Forecast would utilize $758,323 of the projected $902,550 in available unencumbered carryover resources to meet expenditure requirements taking into account projected revenue reductions. This leaves an available projected balance of $144,227 in unencumbered carryover resources and would leave the restricted reserve balance of $992,000 intact at the close of FY22. The proposed Moderate Five-Year Revenue and Expenditure Forecast Scenario would result in an increase to unencumbered carryover resources of $317,936 to $1,220,486 at the conclusion of FY22 as compared to unencumbered carryover resources of $902,550 anticipated to carry over into FY18.

The Potential Future Programs list is prepared as part of the FY18 budget process to help identify future funding opportunities that staff will pursue to help provide supplemental program funding to ORSANCO. With core funding from EPA and States projected to be nearly level over the next five years, reductions in the projected one time funding sources and a projected increase in expenditures, staff is proposing to advance a prioritized list of potential future programs to try to secure additional funding to address the projected funding challenge facing ORSANCO. Although staff has conducted the initial prioritization based primarily on funding opportunities, additional prioritization is anticipated to be completed by the Commission through an update of the ORSANCO Strategic Plan last updated in 2008.

In Summary the proposed FY18 budget is planned to meet our one-year program needs in a cost effective and efficient manner. FY18 revenues are projected to decrease by $180,589, or 5.33% in comparison to the FY17 budget to reflect anticipated conditions in FY18. Expenditures are projected to decrease by $260,854, or 7.33% as compared to FY17. The Five-Year Revenue and Expenditure Forecast demonstrates a clear need for ORSANCO to generate additional funding to offset a combination of projected five-year funding decreases as well as increasing annual expenditures. Carryover Reserve resources going into FY18 are projected to total $2,136,517. The strategic allocation of these resources should help provide the time needed for ORSANCO to respond to any potential Federal Budget cuts to ORSANCO’s 106 Grant and to work to develop a sustainable, long-term funding plan. It is recommended that ORSANCO undertake an update of its 2008 Strategic Plan to help facilitate this process.

Attachment 2

Program and Budget Detail

TABLE OF CONTENTS

pg pg

Proposed 2018 Budget 1 Development of Total Maximum Daily Loads 16

Comparison of Adopted 2017 and Proposed 2018 Budget 2 Urban Wet Weather Water Quality 17

Line Item Detail of Proposed 2018 Budget 3 State Funded Water Pollution Control Program 18

Administrative Programs 4 Special Studies of Emerging Water Quality Issues 19

Indirect Rate Calculation for FY 18 5 Special Studies of Emerging Water Quality Issues

Notes to Indirect Cost Pool Entries 6 Algae Nutrients

Interstate Water Pollution Control Program (106 Grant) 9 Biological Assessment

Water Quality Monitoring 10 Water Quality Problem Follow Up 20

QA/QC Spill Detection and Notification 21

Clean Metals Organics Detection System

Bimonthly Sampling Spill Notification and Tracking

Bacteria Monitoring Emergency Response Preparedness

Supplemental Monitoring Public Awareness 22

Biological Studies 11 Special Projects 23

Macroinvertibrate Studies Ohio River Sweep 24

Fish Tissue Studies ORSANCO / USGS Gaging Stations

Fish Population Studies Mercury Project

National Rivers & Streams (NRSA) Life Below the Waterline

Public Information 12 River Users

Work Groups 13 Unallocated Fund Activities 25

Pollution Control Standards 14 Unallocated Administrative Costs 26

Standards Development Capitol Equipment

Standards Administration Restricted Reserve Accounts 27

Water Quality Assessment 15 Building 28

Water Quality Assessment Equipment

Development of a Monitoring Strategy ODS Equipment

Source Water Assessment and Protection Operating Reserve

Watershed Protection Unencumbered Funds 29

THE OHIO RIVER VALLEY WATER SANITATION COMMISSIONPROPOSED 2018 BUDGET

JULY 01, 2017 - JUNE 30, 2018

FUNDING SOURCES

Restricted Reserves $992,000Encumbered Special Project Resources $241,967Unencumbered Funds $902,550

FY 2018 State Funding $1,418,400USEPA Funding $1,505,000Other Program Funding $281,739Fines & Settlements $0Interest Income $1,000Misc Income $0In-Kind Service $0

TOTAL FUNDING $5,342,656

EXPENDITURES

Federal Clean Water Act Supported Program (106) $1,894,074State Funded Water Pollution Control Program $1,006,801Special Projects $331,933Unallocated Fund Activities $64,114Restricted Reserve Accounts $0

TOTAL EXPENDITURES $3,296,922

FUNDING LESS EXPENDITURES $2,045,733

RESOURCES CARRIED INTO NEXT FISCAL YEAR

Restricted Reserves $992,000Encumbered Special Project Resources $135,758Unencumbered Funds $917,975

$2,045,733Page 1

THE OHIO RIVER VALLEY WATER SANITATION COMMISSIONComparison of Adopted 2017 and Proposed 2018 Budget

Adopted Proposed2017 2018

FUNDING SOURCES

Restricted Reserves $992,000 $992,000Encumbered Special Project Resources $83,771 $241,967Unencumbered Funds $976,627 $902,550

State Funding $1,404,400 $1,418,400 $14,000USEPA Funding $1,525,976 $1,505,000 ($20,976)Other Program Funding $445,241 $281,739 ($163,502)Fines & Settlements $0 $0 $0Interest Income $1,000 $1,000 $0Misc Income $0 $0 $0In-Kind Service $10,085 $0 ($10,085)

TOTAL FUNDING $5,439,099 $5,342,656 ($96,443)

EXPENDITURES

Federal Clean Water Act Supported Program (106 Grant) $1,948,909 $1,894,074 ($54,835)State Funded Water Pollution Control Program $853,960 $1,006,801 $152,841Special Projects $650,604 $331,933 ($318,671)Unallocated Fund Activities $104,305 $64,114 ($40,191)Restricted Use Accounts $0 $0 $0

TOTAL EXPENDITURES $3,557,778 $3,296,922 ($260,856)

FUNDING LESS EXPENDITURES $1,881,321 $2,045,733

RESOURCES CARRIED INTO NEXT FISCAL YEAR

Restricted Reserves $992,000 $992,000Encumbered Special Project Resources $83,771 $135,758Unencumbered Funds $805,550 $917,975

$1,881,321 $2,045,733

Page 2

Total Proposed FY 2018 BudgetTotal Total Unallocated Indirect

Total ORSANCO Special Fund Total Expense106 Grant WPCP Projects Activities Budget Allocation

EXPENDITURES

Payroll $493,337 $247,534 $37,596 $0 $778,467 $407,173 $1,185,640Employee Benefits $280,207 $140,595 $21,354 $0 $442,156 $231,268 $673,424Staff Travel $104,606 $44,771 $11,440 $0 $160,817 $22,675 $183,492Commission Travel $0 $0 $0 $0 $0 $106,969 $106,969Adv. Comm. Travel $7,329 $0 $0 $0 $7,329 $13,774 $21,103Supplies $32,430 $79,275 $51,200 $0 $162,905 $88,705 $251,610Telephone $684 $780 $0 $0 $1,464 $16,193 $17,657Equipment Purchases $0 $11,691 $0 $57,000 $68,691 $0 $68,691Mort., Utilities, & Maintenance $0 $0 $0 $7,114 $7,114 $61,334 $68,448Equipment Repairs and Maintenance $10,000 $0 $0 $0 $10,000 $63,686 $73,686Printing and Reproduction $0 $1,500 $1,750 $0 $3,250 $3,300 $6,550Lab Fees and Delivery $179,374 $6,120 $0 $0 $185,493 $0 $185,493Contractual Services $92,298 $126,414 $155,720 $0 $374,432 $79,728 $454,160SUB-TOTAL - DIRECT EXPENSES $1,200,265 $658,679 $279,060 $64,114 $2,202,118 $1,094,805 $3,296,922

Indirect Expenses Allocation $693,810 $348,122 $52,873 $0 $1,094,805Total program Cost $1,894,074 $1,006,801 $331,933 $64,114 $3,296,922

FUNDING SOURCESRestricted UnencumberedReserve Resources

Restricted Reserve $0 $0 $0 $0 $992,000 $0 $992,000Encumbered Special Project Resources $0 $158,196 $83,771 $0 $0 $0 $241,967Unencumbered Resources $0 $0 $0 $0 $0 $902,550 $902,550

Other Program Funding $0 $0 $281,739 $0 $0 $0 $281,739Misc Income $0 $0 $0 $0 $0 $0 $0Interest Income $0 $0 $0 $1,000 $0 $0 $1,000Fines & Settlements $0 $0 $0 $0 $0 $0 $0USEPA $1,505,000 $0 $0 $0 $0 $0 $1,505,000State Funding Transfer $389,074 $900,592 $50,194 $63,114 $0 $15,425 $1,418,400River Users Funding Transfers $0 $0 $0 $0 $0 $0 $0Unencumbered Resources Transfer $0 $0 $0 $0 $0 $0 $0In-Kind Services Transfers $0 $0 $0 $0 $0 $0 $0

Total Funding $1,894,074 $1,058,788 $415,704 $64,114 $992,000 $917,975 $5,342,655

Budgeted Carryover into FY 2019 $0 $51,987 $83,771 $0 $992,000 $917,975 $2,045,733

Page 3

THE OHIO RIVER VALLEY WATER SANITATION COMMISSIONProposed Administative Programs

Program Support Community Committee TotalFacilities Development Activities Relations Activities Administrative

(009) (010) (011) (012) (013) ProgramsEXPENDITURES

Payroll $15,694 $111,393 $242,385 $17,491 $20,211 $407,173Employee Benefits $0 $0 $0 $0 $0 $0Staff Travel $5,865 $500 $16,310 $22,675Commission Travel $106,969 $106,969Adv. Comm. Travel $13,774 $13,774Supplies $7,200 $69,992 $11,513 $88,705Telephone $533 $15,660 $16,193Equipment Purchases $0Mort., Utilities, & Maintenance $68,448 $68,448Equipment Repairs and Maintenance $42,282 $42,282

$0Printing and Reproduction $0 $2,500 $2,500Lab Fees and Delivery $0Contractual Services $12,200 $0 $321,000 $333,200SUB-TOTAL - DIRECT EXPENSES $145,824 $224,759 $649,537 $47,814 $33,985 $1,101,919

Indirect Expenses Allocation ($138,710) ($224,759) ($649,537) ($47,814) ($33,985) ($1,094,805)Total program Cost $7,114 $0 $0 $0 $0 $7,114

FUNDING SOURCES

Carryover from Previous Fiscal Year $0 $0 $0 $0 0 $0

Other Program FundingMisc IncomeInterest IncomeFines & SettlementsUSEPAState Funding Transfer $7,114 $7,114River Users Funding TransfersUnencumbered Resources Transfer $0Other Funding Transfers

Total Funding $7,114 $0 $0 $0 $0 $7,114

Expected Carryover $0 $0 $0 $0 $0 ($0)

Page 4

OHIO RIVER VALLEY WATER SANITATION COMMISSION DETAILS OF INDIRECT RATE CALCULATION FOR FY18

Indirect Cost Pool $1,094,805 = Indirect Cost Rate 140.64%Total Direct Payroll $778,467

Details Of Indirect Cost Pool

Temporary Help $0 Payroll $407,173 Employee Benefits $231,268 Staff Travel $22,675 Commission Travel $106,969 Adv. Comm. Travel $13,774 Supplies $88,705 Telephone $16,193 Equipment Purchases $0 Mort., Utilities, & Maintenance $61,334 Equipment Repairs and Maintenance $63,686 Printing and Reproduction $3,300 Contractual Services $79,728 TOTAL INDIRECT COSTS $1,094,805

Page 5

NOTES TO INDIRECT COST POOL ENTRIES

Payroll includes the salries of personnel that cannot be reasonably allocated to a single operating program.

Indirect Salaries Work Yrs. Payroll

Total Indirect Payroll 5.7 $407,173

Employee Benefits

Total Payroll $1,185,640Less Indirect Payroll $407,173Direct Payroll $778,467

Indirect employee benefits are calculated by dividing the total benefitsby the total payroll and multiplying the result by the Indirect Payroll.

Total Benefits $673,424 = 56.80%Total Payroll $1,185,640

Indirect Employee Benefits 56.80% $407,173 = $231,268

Benefits DetailHealth Insurance $284,839Life Insurance $4,273Disability Insurance $7,573Accident Insurance $556Social Security $90,701Pension Payment $274,575457 Retirement Savings $0Workers Compensation $5,697Caffeteria Plan & Actuarial Management Fees $5,210

$673,424

Page 6

Travel, Staff includes expenses for support personnel to travel to functions related to theirresponsibilities, the cost of the leased vehicles used for all activities and the cost of operatingand maintaining the leased vehicles.

Travel - Program Development $5,865Travel - Administration $500Travel Community Relations $16,310

Total Travel - Staff $22,675

Travel - Commission includes travel, per diem and meeting expenses for Commissioner'sactivities.

Commission & Special Committee Meetings $106,969$106,969

Travel, Committee includes travel, per diem and meeting expenses for Commitees and follows:

PIACO $2,428Water Users $7,640POTW $3,706River Users $0 $13,774

Supplies includes office supplies, postage, general insurances, reference materials, association dues and other miscellaneous items.

General Office Supplies $58,687Data Processing Strategy $18,505Association & Memberships $11,513 $88,705

Telephone includes the cost of charges for voice and data communications for office operations.

Cincinnati Bell Data/Voice $9,600Cincinnati Bell Any Distance $2,393Verizon Wireless $4,200

$16,193

Page 7

Rent and Utilities includes the allowable costs associated with the purchase of an officebuilding in accordence with Section C of Circular A-87. The Commission's office and monitoring headquarters is located at 5735 Kellogg Avenue. in Cincinnati, Ohio.

Purchase cost of building $1,108,863IRS regulations - Years to Depr. 31.5

Allowable Annual Cost $35,202Interest paid to an external party for funds used for "Buildingsacquired or completed on or after October 1, 1980". $1,802Gas, Electric & Water $21,440Lower level building construction $91,037

Annual Allowable Cost $2,890$61,334

Repairs & Maintenance includes the cost of service contracts and or repairs for office machines and the cost of maintaining the office facility.

Internet Access 12 mo @ $867/mo. $9,204HVAC Maintenance Agreement, 12 mo @ $500/mo $6,114Elevator Maintenance Agreement, 12 mo @ $335/mo $5,592Telephone Maintenance Agreement, 12 mo @ $270/mo. $2,076Security System Rental & Maintenance, 12mo @ $59/mo $1,000Waste Services, 12mo @ $110/mo $4,500Equipment, Vehicle & Building Maintenance $35,200

$63,686

Printing and Reproduction includes the monthly charges for the office copy machine and the cost of printing the Commission's general publications.

$3,300

Contractual Services includes a monthly retainer for Legal Counsel, fees for a year-end CPA audit and Data Processing Support.

Legal $36,000Audit $25,200

Legal Review of Policies & Procedures $0Data Processing $18,528

$79,728

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THE OHIO RIVER VALLEY WATER SANITATION COMMISSION THE OHIO RIVER VALLEY WATER SANITATION COMMISSIONProposed Interstate Water Pollution Control Plan (106 Grant) Proposed Interstate Water Pollution Control Plan (106 Grant)

Total Proposed Interstate Water Pollution Control Plan (106 Grant) Water Quality Monitoring Programs

Total106 Grant

EXPENDITURES

Payroll $493,337Employee Benefits $280,207Staff Travel $104,606Commission Travel $0Adv. Comm. Travel $7,329Supplies $32,430Telephone $684Equipment Purchases $0Mort., Utilities, & Maintenance $0Equipment Repairs and Maintenance $10,000Printing and Reproduction $0Lab Fees and Delivery $179,374Contractual Services $92,298SUB-TOTAL - DIRECT EXPENSES $1,200,265

Indirect Expenses Allocation $693,810Total program Cost $1,894,074

FUNDING SOURCES

Restricted Reserve $0Encumbered Special Project ResourcesUnencumbered ResourcesOther Program FundingMisc IncomeInterest IncomeFines & SettlementsUSEPA $1,505,000State Funding Transfer $389,074River Users Funding TransfersUnencumbered Resources TransferOther Funding Transfers

Total Funding $1,894,074

Expected Carryover into Next Fiscal Year $0

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Water Quality Monitoring Programs Biological Studies

Clean Bimonthly Bacteria Supplemental TotalQA / QC Metals Sampling Monitoring Monitoring Monitoring

(120) (122) (123) (129) (132)EXPENDITURES

Payroll $20,045 $17,279 $19,479 $24,220 $38,313 $119,336Employee Benefits $11,385 $9,814 $11,063 $13,757 $21,761 $67,781Staff Travel $1,083 $6,300 $2,023 $5,600 $0 $15,006Commission Travel $0Adv. Comm. Travel $0Supplies $0 $3,745 $1,200 $5,750 $0 $10,695Telephone $0Equipment Purchases $0Mort., Utilities, & Maintenance $0Equipment Repairs and Maintenance $0Printing and Reproduction $0Lab Fees and Delivery $90,807 $31,458 $25,144 $0 $147,409Contractual Services $0SUB-TOTAL - DIRECT EXPENSES $32,514 $127,945 $65,223 $74,471 $60,075 $360,227

Indirect Expenses Allocation $28,191 $24,301 $27,394 $34,062 $53,882 $167,830Total program Cost $60,704 $152,246 $92,617 $108,533 $113,957 $528,057

FUNDING SOURCES

Restricted Reserve $0 $0 $0 $0 $0 $0Encumbered Special Project ResourcesUnencumbered ResourcesOther Program FundingMisc IncomeInterest IncomeFines & SettlementsUSEPA $48,235 $120,972 $73,592 $86,239 $90,548 $419,585State Funding Transfer $12,470 $31,274 $19,025 $22,295 $23,409 $108,472River Users Funding TransfersUnencumbered Resources TransferOther Funding Transfers

Total Funding $60,704 $152,246 $92,617 $108,533 $113,957 $528,057

Expected Carryover into Next Fiscal Year $0 $0 $0 $0 $0 $0

Page 10


Biological Studies Public Information

Macro Fish Fish BiologicalStudies Tissue Population NRSA Studies

(124) (127) (128) (154)EXPENDITURES

Payroll $14,168 $8,568 $53,270 $19,759 $95,766Employee Benefits $8,047 $4,867 $30,256 $11,223 $54,393Staff Travel $11,469 $2,272 $26,412 $32,307 $72,460Commission Travel $0Adv. Comm. Travel $0Supplies $5,410 $625 $0 $15,000 $21,035Telephone $0Equipment Purchases $0 $0Mort., Utilities, & Maintenance $0Equipment Repairs and Maintenance $10,000 $10,000Printing and Reproduction $0Lab Fees and Delivery $6,815 $25,150 $0 $31,965Contractual Services $0 $63,868 $27,330 $91,198SUB-TOTAL - DIRECT EXPENSES $45,910 $41,482 $183,806 $105,620 $376,817

Indirect Expenses Allocation $19,926 $12,050 $74,916 $27,789 $134,681Total program Cost $65,836 $53,532 $258,722 $133,408 $511,498

FUNDING SOURCES

Restricted Reserve $0 $0 $0 $0Encumbered Special Project ResourcesUnencumbered ResourcesOther Program FundingMisc IncomeInterest IncomeFines & SettlementsUSEPA $52,312 $42,535 $205,576 $106,004 $406,428State Funding Transfer $13,524 $10,996 $53,146 $27,404 $105,070River Users Funding TransfersUnencumbered Resources TransferOther Funding Transfers

Total Funding $65,836 $53,532 $258,722 $133,408 $511,498

Expected Carryover into Next Fiscal Year $0 $0 $0 $0 $0

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Public Information Work Groups

PublicInformation

(114)EXPENDITURES

Payroll $32,141Employee Benefits $18,255Staff Travel $1,750Commission TravelAdv. Comm. TravelSupplies $300TelephoneEquipment PurchasesMort., Utilities, & MaintenanceEquipment Repairs and MaintenancePrinting and ReproductionLab Fees and DeliveryContractual ServicesSUB-TOTAL - DIRECT EXPENSES $52,446

Indirect Expenses Allocation $45,201Total program Cost $97,648

FUNDING SOURCES

Restricted Reserve 0Encumbered Special Project ResourcesUnencumbered ResourcesOther Program FundingMisc IncomeInterest IncomeFines & SettlementsUSEPA $77,589State Funding Transfer $20,058River Users Funding TransfersUnencumbered Resources TransferOther Funding Transfers

Total Funding $97,648


Page 12


Work Groups Pollution Control Standards

Work Groups(119)

EXPENDITURES

Payroll $27,921Employee Benefits $15,859Staff TravelCommission TravelAdv. Comm. Travel $7,329SuppliesTelephone $144Equipment PurchasesMort., Utilities, & MaintenanceEquipment Repairs and MaintenancePrinting and ReproductionLab Fees and DeliveryContractual ServicesSUB-TOTAL - DIRECT EXPENSES $51,252


FUNDING SOURCES

Carryover from Previous Fiscal Year 0

Other Program FundingMisc IncomeInterest IncomeFines & SettlementsUSEPA $71,925State Funding Transfer $18,594River Users Funding TransfersUnencumbered Resources TransferOther Funding Transfers



Page 13


Pollution Control Standards Water Quality Assessment

PCS PCS TotalDevelopment Administration Pollution

(155) (156) Control StandardsEXPENDITURES

Payroll $21,192 $17,199 $38,391Employee Benefits $12,037 $9,769 $21,805Staff Travel $852 $0 $852Commission TravelAdv. Comm. TravelSupplies $400 $0 $400TelephoneEquipment PurchasesMort., Utilities, & MaintenanceEquipment Repairs and MaintenancePrinting and Reproduction $0Lab Fees and DeliveryContractual Services $1,100 $1,100SUB-TOTAL - DIRECT EXPENSES $35,581 $26,968 $62,548

Indirect Expenses Allocation $29,804 $24,188 $53,992Total program Cost $65,385 $51,155 $116,540

FUNDING SOURCES

Restricted Reserve 0 $0 $0Encumbered Special Project ResourcesUnencumbered ResourcesOther Program FundingMisc IncomeInterest IncomeFines & SettlementsUSEPA $51,954 $40,647 $92,601State Funding Transfer $13,431 $10,508 $23,939River Users Funding TransfersUnencumbered Resources TransferOther Funding Transfers

Total Funding $65,385 $51,155 $116,540

Expected Carryover into Next Fiscal Year $0 $0 $0

Page 14


Water Quality Assessment Development of Total Maximum Daily Loads

Water Qual. Development Source H2O Watershed TotalAssesmt. Mon Strategy Assessment Protection Water Quality

(130) (131) (140) (157) AssessmentEXPENDITURES

Payroll $67,060 $27,563 $42,641 $28,192 $165,456Employee Benefits $38,089 $15,655 $24,219 $16,013 $93,976Staff Travel $0 $2,914 $2,423 $6,446 $11,783Commission Travel $0Adv. Comm. Travel $0Supplies $0 $0 $0 $0 $0Telephone $540 $540Equipment Purchases $0Mort., Utilities, & Maintenance $0Equipment Repairs and Maintenance $0Printing and Reproduction $0 $0Lab Fees and Delivery $0 $0Contractual Services $0SUB-TOTAL - DIRECT EXPENSES $105,689 $46,132 $69,283 $50,651 $271,755

Indirect Expenses Allocation $94,310 $38,763 $59,968 $39,649 $232,690Total program Cost $199,999 $84,895 $129,251 $90,300 $504,445

FUNDING SOURCES

Restricted Reserve $0 $0 $0 $0 $0Encumbered Special Project ResourcesUnencumbered ResourcesOther Program FundingMisc IncomeInterest IncomeFines & SettlementsUSEPA $158,916 $67,456 $102,701 $71,751 $400,824State Funding Transfer $41,083 $17,439 $26,550 $18,549 $103,621River Users Funding TransfersUnencumbered Resources TransferOther Funding Transfers

Total Funding $199,999 $84,895 $129,251 $90,300 $504,445

Expected Carryover into Next Fiscal Year $0 $0 $0 $0 $0

Page 15


Development of Total Maximum Daily Loads Urban Wet Weather Water Quality

TMDL(145)

EXPENDITURES

Payroll $10,500Employee Benefits $5,964Staff Travel $2,755Commission TravelAdv. Comm. TravelSupplies $0TelephoneEquipment PurchasesMort., Utilities, & MaintenanceEquipment Repairs and MaintenancePrinting and Reproduction $0Lab Fees and DeliveryContractual ServicesSUB-TOTAL - DIRECT EXPENSES $19,219


FUNDING SOURCES

Restricted Reserve $0Encumbered Special Project ResourcesUnencumbered ResourcesOther Program FundingMisc IncomeInterest IncomeFines & SettlementsUSEPA $27,005State Funding Transfer $6,981River Users Funding TransfersUnencumbered Resources TransferOther Funding Transfers



Page 16

THE OHIO RIVER VALLEY WATER SANITATION COMMISSIONProposed Interstate Water Pollution Control Plan (106 Grant)

Urban Wet Weather Water Quality

Urban Wet WeatherWater Quality

(158)EXPENDITURES

Payroll $3,826Employee Benefits $2,173Staff TravelCommission TravelAdv. Comm. TravelSuppliesTelephoneEquipment PurchasesMort., Utilities, & MaintenanceEquipment Repairs and MaintenancePrinting and ReproductionLab Fees and DeliveryContractual ServicesSUB-TOTAL - DIRECT EXPENSES $6,000


FUNDING SOURCES

Restricted Reserve $0Encumbered Special Project ResourcesUnencumbered ResourcesOther Program FundingMisc IncomeInterest IncomeFines & SettlementsUSEPA $9,043State Funding Transfer $2,338River Users Funding TransfersUnencumbered Resources TransferOther Funding Transfers



Page 17

THE OHIO RIVER VALLEY WATER SANITATION COMMISSION THE OHIO RIVER VALLEY WATER SANITATION COMMISSIONTotal State Funded Water Pollution Control Program Proposed State Funded Water Pollution Control Program

Special Studies of Emerging Water Quality Issues

Total ORSANCO

WPCPEXPENDITURES

Payroll $247,534Employee Benefits $140,595Staff Travel $44,771Commission Travel $0Adv. Comm. Travel $0Supplies $79,275Telephone $780Equipment Purchases $11,691Mort., Utilities, & Maintenance $0Equipment Repairs and Maintenance $0Printing and Reproduction $1,500Lab Fees and Delivery $6,120Contractual Services $126,414SUB-TOTAL - DIRECT EXPENSES $658,679

Indirect Expenses Allocation $348,122Total program Cost $1,006,801

FUNDING SOURCES

Restricted Reserve $0Encumbered Special Project Resources $158,196Unencumbered Resources $0Other Program Funding $0Misc Income $0Interest Income $0Fines & Settlements $0USEPA $0State Funding Transfer $900,592River Users Funding Transfers $0Unencumbered Resources Transfer $0Other Funding Transfers $0

Total Funding $1,058,788

Expected Carryover into Next Fiscal Year $51,987

Page 18

THE OHIO RIVER VALLEY WATER SANITATION COMMISSION THE OHIO RIVER VALLEY WATER SANITATION COMMISSIONProposed State Funded Water Pollution Control Program Proposed State Funded Water Pollution Control Program

Special Studies of Emerging Water Quality IssuesWater Quality Problem Follow Up

Special Algae Biological TotalStudies Nutrients Assessment Special

(159) (126) (134) StudiesEXPENDITURES

Payroll $2,782 $28,132 $70,660 $101,574Employee Benefits $1,580 $15,978 $40,134 $57,692Staff Travel $0 $8,004 $6,738 $14,742Commission Travel $0Adv. Comm. Travel $0Supplies $3,150 $3,590 $6,740Telephone $0Equipment Purchases $11,691 $11,691Mort., Utilities, & Maintenance $0Equipment Repairs and Maintenance $0Printing and Reproduction $1,500 $1,500Lab Fees and Delivery $0 $6,120 $6,120Contractual Services $456 $456SUB-TOTAL - DIRECT EXPENSES $4,363 $73,074 $123,078 $200,515

Indirect Expenses Allocation $3,913 $39,563 $99,374 $142,850Total program Cost $8,276 $112,637 $222,451 $343,364

FUNDING SOURCES

Restricted Reserve $0 $0 $0 $0Encumbered Special Project Resources $0Unencumbered Resources $0Other Program Funding $0Misc Income $0Interest Income $0Fines & Settlements $0USEPA $0 $0 $0 $0State Funding Transfer $8,276 $112,637 $222,451 $343,364River Users Funding Transfers $0Unencumbered Resources Transfer $0Other Funding Transfers $0

Total Funding $8,276 $112,637 $222,451 $343,364

Expected Carryover into Next Fiscal Year $0 $0 $0 $0

Page 19


Water Quality Problem Follow Up Spill Detection And NotificationWQ Problem

Follow-up(135)

EXPENDITURES

Payroll $7,292Employee Benefits $4,142Staff TravelCommission TravelAdv. Comm. TravelSuppliesTelephoneEquipment PurchasesMort., Utilities, & MaintenanceEquipment Repairs and MaintenancePrinting and ReproductionLab Fees and DeliveryContractual ServicesSUB-TOTAL - DIRECT EXPENSES $11,433


FUNDING SOURCES

Restricted Reserve $0Encumbered Special Project ResourcesUnencumbered ResourcesOther Program FundingMisc IncomeInterest IncomeFines & SettlementsUSEPAState Funding Transfer $21,688River Users Funding TransfersUnencumbered Resources TransferOther Funding Transfers



Page 20


Spill Detection And Notification Public AwarenessEmergency

ODS Spills Response TOTAL(125) (150) (152) SPILLS

EXPENDITURES

Payroll $86,321 $23,248 $12,454 $122,022Employee Benefits $49,029 $13,204 $7,073 $69,307Staff Travel $16,604 $4,410 $8,437 $29,451Commission Travel $0Adv. Comm. Travel $0Supplies $66,320 $6,215 $0 $72,535Telephone $780 $780Equipment Purchases $0Mort., Utilities, & Maintenance $0Equipment Repairs and Maintenance $0Printing and Reproduction $0Lab Fees and Delivery $0Contractual Services $123,658 $0 $123,658SUB-TOTAL - DIRECT EXPENSES $341,931 $47,857 $27,964 $417,753

Indirect Expenses Allocation $121,398 $32,695 $17,514 $171,607Total program Cost $463,329 $80,552 $45,478 $589,360

FUNDING SOURCES

Restricted Reserve $0 $0 0 $0Encumbered Special Project Resources $158,196 $158,196Unencumbered Resources $0Other Program Funding $0Misc Income $0Interest Income $0Fines & Settlements $0USEPA $0State Funding Transfer $357,120 $80,552 $45,478 $483,151River Users Funding Transfers $0Unencumbered Resources Transfer $0 $0Other Funding Transfers $0

Total Funding $515,316 $80,552 $45,478 $641,347

Expected Carryover into Next Fiscal Year $51,987 $0 $0 $51,987

Page 21


Public Awareness Source Water Assessment and ProtectionPublic

Awareness(118)

EXPENDITURES

Payroll $16,646Employee Benefits $9,455Staff Travel $578Commission Travel $0Adv. Comm. Travel $0Supplies $0Telephone $0Equipment Purchases $0Mort., Utilities, & Maintenance $0Equipment Repairs and Maintenance $0Printing and Reproduction $0Lab Fees and Delivery $0Contractual Services $2,300SUB-TOTAL - DIRECT EXPENSES $28,979


FUNDING SOURCES

Restricted Reserve $0Encumbered Special Project Resources $0Unencumbered Resources $0Other Program Funding $0Misc Income $0Interest Income $0Fines & Settlements $0USEPA $0State Funding Transfer $52,389River Users Funding Transfers $0Unencumbered Resources Transfer $0Other Funding Transfers $0



Page 22

THE OHIO RIVER VALLEY WATER SANITATION COMMISSION THE OHIO RIVER VALLEY WATER SANITATION COMMISSIONTotal Proposed Special Projects Proposed Special Projects

TotalProjectsSpecial

EXPENDITURES

Payroll $37,596Employee Benefits $21,354Staff Travel $11,440Commission Travel $0Adv. Comm. Travel $0Supplies $51,200Telephone $0Equipment Purchases $0 Mort., Utilities, & Maintenance $0Equipment Repairs and Maintenance $0Printing and Reproduction $1,750Lab Fees and Delivery $0Contractual Services $155,720

SUB-TOTAL - DIRECT EXPENSES $279,060Indirect Expenses Allocation $52,873

Total program Cost $331,933

FUNDING SOURCES

Restricted Reserve $0Encumbered Special Project Resources $83,771Unencumbered Resources $0Other Program Funding $281,739Misc Income $0Interest Income $0Fines & Settlements $0USEPA $0State Funding Transfer $50,194River Users Funding Transfers $0Unencumbered Resources Transfer $0Other Funding Transfers $0In-Kind Services $0



Page 23

THE OHIO RIVER VALLEY WATER SANITATION COMMISSION THE OHIO RIVER VALLEY WATER SANITATION COMMISSIONProposed Special Projects Proposed Special Projects

Ohio ORSANCO Life Foundation River USGS Mercury Below the for Ohio River River

Sweep Gaging Stations Project Waterline Education UsersEXPENDITURES

Payroll $21,076 $0 $10,611 $5,909Employee Benefits $11,971 $0 $6,027 $3,356Staff Travel $900 $10,540Commission TravelAdv. Comm. TravelSupplies $48,500 $2,700TelephoneEquipment PurchasesMort., Utilities, & MaintenanceEquipment Repairs and MaintenancePrinting and Reproduction $1,750Lab Fees and DeliveryContractual Services $145,000 $10,000 $720

SUB-TOTAL - DIRECT EXPENSES $84,197 $145,000 $10,000 $30,598 $0 $9,265Indirect Expenses Allocation $29,641 $0 $14,923 $8,310

Total program Cost $113,838 $145,000 $10,000 $45,521 $0 $17,574

FUNDING SOURCES

Restricted Reserve $0 $0 $0 $0 $0 $0Encumbered Special Project Resources $83,771Unencumbered ResourcesOther Program Funding $113,838 $147,901 $0 $20,000 $0 $0Misc IncomeInterest IncomeFines & SettlementsUSEPAState Funding Transfer ($2,901) $10,000 $25,521 $0 $17,574River Users Funding TransfersUnencumbered Resources TransferOther Funding TransfersIn-Kind Services

Total Funding $113,838 $145,000 $10,000 $45,521 $0 $101,345

Expected Carryover into Next Fiscal Year $0 $0 $0 $0 $0 $83,771

Page 24

THE OHIO RIVER VALLEY WATER SANITATION COMMISSION

TotalsEquipment &UnallocatedAdmin Costs

EXPENDITURES

Payroll $0Employee Benefits $0Staff Travel $0Commission Travel $0Adv. Comm. Travel $0Supplies $0Telephone $0Equipment Purchases $57,000Mort., Utilities, & Maintenance $7,114Equipment Repairs and Maintenance $0Printing and Reproduction $0Lab Fees and Delivery $0Contractual Services $0

SUB-TOTAL - DIRECT EXPENSES $64,114Indirect Expenses Allocation $0

Total program Cost $64,114

FUNDING SOURCES

Restricted Reserve $0Encumbered Special Project ResourcesUnencumbered ResourcesOther Program Funding $0Misc Income $0Interest Income $1,000Fines & Settlements $0USEPA $0State Funding Transfer $63,114River Users Funding Transfers $0Unencumbered Resources Transfer $0Other Funding Transfers $0Transfer from Indirect Cost Rate $0



Unallocated Fund Activities

Page 25

UnallocatedAdministrative Capital

Costs EquipmentEXPENDITURES

Payroll $0Employee Benefits $0Staff TravelCommission TravelAdv. Comm. TravelSuppliesTelephoneEquipment Purchases $57,000Mort., Utilities, & Maintenance $7,114Equipment Repairs and MaintenancePrinting and ReproductionLab Fees and DeliveryContractual Services

SUB-TOTAL - DIRECT EXPENSES $7,114 $57,000Indirect Expenses Allocation $0 $0

Total program Cost $7,114 $57,000

FUNDING SOURCES

Restricted Reserve $0 $0Encumbered Special Project ResourcesUnencumbered ResourcesOther Program FundingMisc Income $0Interest Income $1,000Fines & SettlementsUSEPAState Funding Transfer $6,114 $57,000River Users Funding TransfersUnencumbered Resources Transfer $0Other Funding TransfersTransfer from Indirect Cost Rate

Total Funding $7,114 $57,000

Expected Carryover into Next Fiscal Year $0 $0

THE OHIO RIVER VALLEY WATER SANITATION COMMISSIONUnallocated Fund Activities

Page 26

THE OHIO RIVER VALLEY WATER SANITATION COMMISSION THE OHIO RIVER VALLEY WATER SANITATION COMMISSIONRestricted Reserve Accounts Restricted Reserve Accounts

TotalsReserve

AccountsEXPENDITURES

Payroll $0Employee Benefits $0Staff Travel $0Commission Travel $0Adv. Comm. Travel $0Supplies $0Telephone $0Equipment Purchases $0Mort., Utilities, & Maintenance $0Equipment Repairs and Maintenance $0Printing and Reproduction $0Lab Fees and Delivery $0Contractual Services $0

SUB-TOTAL - DIRECT EXPENSES $0Indirect Expenses Allocation $0

Total program Cost $0

FUNDING SOURCES

Restricted Reserve $992,000Encumbered Special Project Resources $0Unencumbered Resources $0Other Program Funding $0Misc Income $0Interest Income $0Fines & Settlements $0USEPA $0State Funding Transfer $0River Users Funding Transfers $0Unencumbered Resources Transfer $0Other Funding Transfers $0Transfer from Indirect Cost Rate $0



Page 27

THE OHIO RIVER VALLEY WATER SANITATION COMMISSIONRestricted Reserve Accounts

Restricted Use Reserve

Building ODS OperatingEquipment Equipment Equipment Reserve

EXPENDITURES

PayrollEmployee BenefitsStaff TravelCommission TravelAdv. Comm. TravelSuppliesTelephoneEquipment PurchasesMort., Utilities, & MaintenanceEquipment Repairs and MaintenancePrinting and ReproductionLab Fees and DeliveryContractual Services

SUB-TOTAL - DIRECT EXPENSES $0 $0 $0 $0Indirect Expenses Allocation $0 $0 $0 $0

Total program Cost $0 $0 $0 $0

FUNDING SOURCES

Restricted Reserve $200,000 $87,000 $250,000 $455,000Encumbered Special Project ResourcesUnencumbered ResourcesOther Program FundingMisc IncomeInterest IncomeFines & SettlementsUSEPAState Funding TransferRiver Users Funding TransfersUnencumbered Resources TransferOther Funding TransfersTransfer from Indirect Cost Rate

Total Funding $200,000 $87,000 $250,000 $455,000

Expected Carryover into Next Fiscal Year $200,000 $87,000 $250,000 $455,000

Page 28

THE OHIO RIVER VALLEY WATER SANITATION COMMISSIONUnencumbered Funds

TotalsUnencumbered

FundsEXPENDITURES

Payroll $0Employee Benefits $0Staff Travel $0Commission Travel $0Adv. Comm. Travel $0Supplies $0Telephone $0Equipment Purchases $0Mort., Utilities, & Maintenance $0Equipment Repairs and Maintenance $0Printing and Reproduction $0Lab Fees and Delivery $0Contractual Services $0

SUB-TOTAL - DIRECT EXPENSES $0Indirect Expenses Allocation $0

Total program Cost $0

FUNDING SOURCES

Restricted Reserve $0Encumbered Special Project Resources $0Unencumbered Resources $902,550Other Program Funding $0Misc Income $0Interest Income $0Fines & Settlements $0USEPA $0State Funding Transfer $15,425River Users Funding Transfers $0Unencumbered Resources Transfer $0Other Funding Transfers $0Transfer from Indirect Cost Rate $0



Page 29

Attachment 3Five Year Base Revenue & Expenditure Forecast with 1% FY18, 1.5% FY19, & 0% FY20 - FY22 State Funding Increase

FY17 FY18 FY19 FY20 FY21 FY22

Payroll 1,211,773 1,185,640 1,194,186 1,209,113 1,224,227 1,239,530

Benefits 735,765 673,425 689,461 711,370 736,163 762,772

Travel 328,232 311,564 360,462 330,155 330,472 337,082

Supplies/Utilities/Mgt. 464,882 417,949 412,648 390,201 395,505 403,415

Equipment 46,691 68,691 64,000 57,000 24,000 57,000

Analytical lab Services 305,722 185,493 175,175 180,430 201,843 207,899

Contractual Services 464,713 454,160 570,304 537,686 523,200 530,564

Total Expenditures 3,557,778 3,296,922 3,466,235 3,415,956 3,435,410 3,538,261

State Funding 1,404,400 1,418,400 1,439,700 1,439,700 1,439,700 1,439,700

Federal 106 Funding 1,379,000 1,379,000 1,379,000 1,379,000 1,379,000 1,379,000

Additional 106 Funding Increases 114,000 126,000 342,000 96,000

SRF Set Aside (Sourcewater Protection)

Other Federal Funding 32,976

Ohio River Stakeholder Contribution

Other & Special Project Funding 456,325 282,739 313,200 315,400 312,700 315,000

Total Revenues 3,386,701 3,206,139 3,473,900 3,230,100 3,131,400 3,133,700

Net Income (Loss) Before Transfers (171,077) (90,783) 7,665 (185,856) (304,010) (404,561)

Carryover into Fiscal Year 2,236,380 2,136,517 2,045,733 2,114,424 1,928,568 1,624,558

Encumbered Project Resources; Use or Add 84,983 106,209 51,987

Unencumbered Resources; Use or Add 14,880 15,425 120,678 185,856 304,010 404,561

Carryover Into Next Fiscal Year 2,136,517 2,045,733 2,114,424 1,928,568 1,624,558 1,219,998

Unencumbered Resources $902,550 $917,975 $1,038,653 $852,797 $548,787 $144,227

Restricted Reserves $992,000 $992,000 $992,000 $992,000 $992,000 $992,000

Encumbered Project Resources $241,967 $135,758 $83,771 $83,771 $83,771 $83,771

$2,136,517 $2,045,733 $2,114,424 $1,928,568 $1,624,558 $1,219,998

Attachment 3aFive Year Moderate Revenue & Expenditure Forecast with 0% FY20 and 1% FY21, FY22 State Funding Increase

FY17 FY18 FY19 FY20 FY21 FY22

Payroll 1,211,773 1,185,640 1,194,186 1,209,113 1,224,227 1,239,530

Benefits 735,765 673,425 689,461 711,370 736,163 762,772

Travel 328,232 311,564 360,462 306,593 304,286 310,055

Supplies/Utilities/Mgt. 464,882 417,949 412,648 372,428 376,741 383,876

Equipment 46,691 68,691 64,000 57,000 24,000 57,000

Analytical lab Services 305,722 185,493 175,175 116,095 125,275 118,795

Contractual Services 464,713 454,160 570,304 537,686 523,200 530,564

Total Expenditures 3,557,778 3,296,922 3,466,235 3,310,285 3,313,891 3,402,591

State Funding 1,404,400 1,418,400 1,439,700 1,439,700 1,454,200 1,468,600

Federal 106 Funding 1,379,000 1,379,000 1,379,000 1,379,000 1,379,000 1,379,000

Additional 106 Funding Increases 114,000 126,000 342,000 96,000

SRF Set Aside (Sourcewater Protection) 50,000 50,000

Other Federal Funding 32,976 35,000 35,000 35,000 35,000

Ohio River Stakeholder Contribution 78,013 155,000 155,000 155,000

Other & Special Project Funding 456,325 282,739 313,200 315,400 312,700 315,000

Total Revenues 3,386,701 3,206,139 3,586,913 3,420,100 3,385,900 3,402,600

Net Income (Loss) Before Transfers (171,077) (90,783) 120,678 109,815 72,009 9

Carryover into Fiscal Year 2,236,380 2,136,517 2,045,733 2,114,424 2,224,239 2,296,248

Encumbered Project Resources; Use or Add 84,983 106,209 51,987

Unencumbered Resources; Use or Add 14,880 15,425 120,678 109,815 72,009 9

Carryover Into Next Fiscal Year 2,136,517 2,045,733 2,114,424 2,224,239 2,296,248 2,296,257

Unencumbered Resources $902,550 $917,975 $1,038,653 $1,148,468 $1,220,477 $1,220,486

Restricted Reserves $992,000 $992,000 $992,000 $992,000 $992,000 $992,000

Encumbered Project Resources $241,967 $135,758 $83,771 $83,771 $83,771 $83,771

$2,136,517 $2,045,733 $2,114,424 $2,224,239 $2,296,248 $2,296,257

Five Year Incremental Reductions Applied to FY19‐22 Moderate ScenarioStaff Weeks Expenditure Reduction

Pollution Control Standards (Unallocated) 24 Weeks $7,826

Association Memberships & Travel 6 Weeks $15,162

Commission Meeting Travel N/A $10,000

Training & Public Information Travel 4.5 Weeks $5,000

Eliminate Nutrient Criteria at Biological Sites N/A $14,553

Eliminate Water Chemistry at Biological Sites N/A $13,180

Eliminate Upstream Bacteria Monitoring at CSO Locations 1 Week $15,000

Reduce Clean Metals to Quarterly N/A $27,716

Eliminate Tributaries from Bimonthly Sampling Program 3 Weeks $12,083

Reduce Fixed Stations to 12 Sites 1 Week $2,807

Quarterly Monitoring Instead of Bimonthly for All Parameters 6 Weeks

Not Used in Moderate 5‐Year Forecast Scenario

$10,005

Eliminate ODS Website

Eliminate ODS Maintenance Agreements

N/A

N/A

$25,000

$130,000

Reduce to Two Biological Pools 4 Weeks $51,238

Reduce Fish Tissue Collection & Analysis 1 Week $8,552

Reduce Legal & Audit Fees (1/2 of Contingency Budget) N/A $13,800

0% Pay Increase N/A $14,821

Transition to a Defined Contribution Pension Plan N/A $90,396

Attachment 3b

Potential Future Programs Attachment 4

Program/Activity Estimated Capital Cost

Estimated Annual O&M

Spill Monitoring, Detection & Response (ODS)Replace system with 12 CMS Units, 4 GCMS UnitsEquipment and website maintenance

$ 1.5M $175K

HAB Monitoring & Response (20 Units at $100K ea) $2M $600K ‐ $900K

National Rivers & Streams Assessment (96 sampling events) $500K2‐yr study

Update Dioxin & PCBs Monitoring Data (5 sites, 2 rounds) $75K (1 study)

Update Bacteria Monitoring Data (5 longitudinal surveys ) $160K (new mobile lab)

$140K

Update Emerging Contaminants Baseline Study (all)PFOS/PFOA Only (EPA In‐kind analyses)

$300K (1 study)$3,000

Data Management Capabilities (enhanced GIS & Aquarius) $100K* $20K annual licenses

Enhance Biological Pool Surveys (4 pools, enhanced chemistry) $250K

Add DRP & Alkalinity to Bimonthly & Nutrients Monitoring $14,400/yr

Expand Bimonthly/Clean Metals Monitoring $100K $350K

Remote Sensing Applications $100K $50K

Continuation of Water Resources Initiative $90K

Review Fish Consumption Rate Assumptions $200K (1 study)

Conduct Mussel Surveys & Develop Multi‐metric Index $25K $75 ‐ $100K

Upgrade Mobile Lab & Additional Capabilities(New mobile lab, VOCs, semi‐volatiles, hydrolab)

$400K

Public Outreach $100K $200K

1

Attachment 5


STATE FUNDING DISTRIBUTION INFORMATION

COMBINED ADOPTED ADOPTED ADOPTED PROPOSED

SHARE (1) FY2017 FY2018 FY2019 FY2020

% INCREASE 1% 1% 1.5% 0.0%

STATE

ILLINOIS 4.92% $69,100 $69,800 $70,800 $70,800

INDIANA 19.63% $275,700 $278,400 $282,600 $282,600

KENTUCKY 22.28% $312,900 $316,000 $320,800 $320,800

NEW YORK 0.98% $13,800 $13,900 $14,100 $14,100

OHIO 26.00% $365,100 $368,800 $374,300 $374,300

PENNSYLVANIA 12.44% $174,700 $176,500 $179,100 $179,100

VIRGINIA 3.54% $49,700 $50,200 $51,000 $51,000

WEST VIRGINIA 10.21% $143,400 $144,800 $147,000 $147,000

TOTAL 100.00% $1,404,400 $1,418,400 $1,439,700 $1,439,700

$13,900 $14,000 $21,300 $0

(1) THE COMBINED SHARE IS BASED ON ARTICLE X OF THE OHIO RIVER VALLEY WATER SANITATION COMPACT WHICH PROVIDES

THAT THE ANNUAL BUDGET BE APPORTIONED TO THE MEMBER STATES ONE HALF IN PROPORTION TO THEIR RESPECTIVE

POPULATION AND ONE-HALF IN PROPORTION TO THEIR RESPECTIVE LAND AREA WITHIN THE COMPACT DISTRICT. THE 2010

CENSUS DATA WAS USED FOR DETERMINING THE POPULATION RATIOS.




Report of the Nominating Committee Number:

7

Page 1 of 1

Attachments: None



Prepared by: Richard Harrison Presentation by: Committee Chairman Toby Frevert

KEY CONSIDERATIONS:

The Nominating Committee worked to determine a proposed slate of ORSANCO candidates for the offices of Chair, Vice Chair and Secretary/Treasurer for Fiscal Year 2018.

The recommended slate of candidates will be presented at the June 8, 2017 Commission Meeting.


RECOMMENDATION:

The Nominating Committee recommends that the Commission accept the slate of officers for Fiscal Year 2018 recommended by the Nominating Committee because Commission approval is required to establish the Commission leadership.

BACKGROUND/HISTORY:

The Nominating Committee prepares and presents to the Commission at the meeting held immediately prior to July 1 of each year a slate of candidates for Chair, Vice Chair and Secretary/Treasurer.

The Nominating Committee consists of three Commissioners; at least one of whom shall be a past-Chairman of the Commission.




Report of the Audit Committee Number:

8

Page 1 of 1

Attachments: None



Prepared by: David Bailey Presentation by: Commissioner John Kupke, Chairman

KEY CONSIDERATIONS:

Barnes Dennig has conducted ORSANCO’s financial audit for the past six fiscal years through June 30, 2016.

At the February 2017 Commission meeting the Commission authorized the Committee to undertake a Request for Professional Services process to evaluate additional audit firms to perform the June 30, 2017 financial audit.

A Request for Proposals was sent to seven audit firms with four firms submitting proposals. Staff evaluated the proposals and provided a recommendation to the Committee for

consideration. The Audit Committee will recommend an audit firm to perform the FY17 and FY18 financial audits

to the Commission at the June 8, 2017 meeting.

BUDGET/STAFF IMPLICATIONS: Estimated $4,000 budget reduction for audit services.

RECOMMENDATION:

The Committee will recommend a FY 2017 and FY 2018 auditor to the Commission at its June 2017 meeting.

BACKGROUND/HISTORY: The Audit Committee shall be composed of at least three Commissioners. It shall review the

outside auditor’s year-end report and shall present it to the commission. It shall have authority to conduct an audit of all books and accounts of the Commission at any time. The Audit Committee, at the regularly scheduled meeting of the Commission immediately prior to the beginning of each new fiscal year, shall present for approval by the Commission a recommendation for designation of a certified public accountant to serve as outside auditor for the next fiscal year.

Current Committee members include Commissioners John Kupke (Chairman), Charles Duritsa, Michael Wilson, John Hoopingarner, and Lou Ann Jessee Wallace.




Report of the Pension Trust Committee Number:

9

Page 1 of 1

Attachments: Resolution 4-17 Pension

Plan Amendment No. 1

Certificate of Corporate Resolution

Resolution 5-17 Suspension of 457 Plan match

Proposed 2017 Actuarial Assumptions



Prepared by: David Bailey Presentation by: Commissioner Joseph Harrison Jr., Chairman KEY CONSIDERATIONS:

The Pension Trust Committee has continued to review the Pension Plan and monitor the investment portfolio.

Staff has reviewed ORSANCO’s actuarial assumptions with its actuarial firm, Buck Consultants, LLC and information provided through the National Association of State Retirement Administrators to help support the proposed actuarial assumptions.

The Committee assessed the actuarial assumptions and supports a recommendation to approve the table of assumptions including a 20-year closed amortization of the unfunded liability, reducing the anticipated annual rate of return from 7.6% to 7.5% and other actuarial plan assumptions.

The Committee supports a recommendation to amend the Plan to not allow new entrants into the Defined Benefit Plan after July 1, 2017.

The Committee supports a recommendation to suspend ORSANCO’s matching contribution to the Deferred Compensation Plan.

Minor modifications to ORSANCO’s Administrative Procedures will need to be made to reflect these changes.

BUDGET/STAFF IMPLICATIONS: Estimated $90,000 reduction in FY18 Pension Plan required contribution. Estimated $15,000 reduction in FY18 due to suspension of Deferred Compensation Plan match.

RECOMMENDATION:

The Pension Trust Committee recommends that the Commission adopt Amendment No. 1 to the Ohio River Valley Water Sanitation Commission Employees’ Pension Plan.

The Pension Trust Committee recommends that the Commission suspends the matching contribution to the Deferred Compensation Plan effective July 1, 2017.

The Pension Trust Committee recommends that the Commission adopt revised actuarial assumptions to reflect a 20-year closed amortization of the unfunded liability and reduce the anticipated annual rate of return from 7.6% to 7.5%.

The Pension Trust Committee recommends that the Commission approve amending the Commission’s Administrative Procedures to reflect the above changes.

BACKGROUND/HISTORY:

The Pension Trust Committee manages the Pension Plan affairs of the Pension Plan for employees of the Commission as established by the Commission. The Committee shall consist of not less than three members who shall be appointed from time to time by the Commission to serve at the pleasure of the Commission. One Pension Trust Committee member shall be from the Commission staff.

Current Committee members appointed by the Commission include Commissioners Joseph Harrison Jr., Ron Lovan, Douglas Conroe, John Hoopingarner, and David Bailey.


Agenda Item 9 Attachment 218th Commission Meeting

June 8, 2017

RESOLUTION 4-17

AMENDMENT No. 1

TO THE OHIO RIVER VALLEY WATER SANITATION COMMISSION

EMPLOYEES’ PENSION PLAN

In accordance with provisions of the Ohio River Valley Water Sanitation Commission

Employees’ Pension Plan, as amended and restated effective as of July 1, 2015 (the “Plan”), the Ohio River

Valley Water Sanitation Commission (the “ORSANCO”) hereby further amends the Plan as follows:

First: Purpose and Effective Date of Amendment. This Amendment is adopted to cease new participation in the Plan effective as of June 30, 2017.

Second: Supersession of Inconsistent Provisions. The provisions of this Amendment No. 1 shall

supersede the provisions of the Plan, or any other instrument under which the Plan is administered or operated, to the extent those provisions are inconsistent with the provisions of this Amendment.

Third: Cessation of New Participation. Notwithstanding any other provision of the Plan to the

contrary, no Employee who is not an active Participant on June 30, 2017, shall become, or be reinstated as, a Participant after that date.

Fourth: Article I, Section 1.11 of the Plan is amended by the addition of the following sentence at

the current end thereof: There shall be no “Entry Date” after January 1, 2017. Fifth: Article II, Section 2.1 of the Plan is amended by the addition of the following new sentence

at the end thereof: Notwithstanding the foregoing provisions of this Section 2.1 or any other provisions of the

Plan, January 1, 2017 is the final Entry Date under the Plan. Sixth: Article II, Section 2.3 of the Plan is amended by the addition of the following new sentences

at the end thereof: Notwithstanding the foregoing provisions of this Section 2.3, no one who is not an active

Employee on June 30, 2017 shall ever be reinstated as an active Participant in this Plan. Furthermore, if a Participant who was an active Employee on June 30, 2017 has a severance of employment from the Employer after that date, he shall not be reinstated as an active Participant in this Plan.

2

Seventh: In all other respects, the Plan shall remain unchanged by this Amendment No. 1.

IN WITNESS WHEREOF, the Ohio River Valley Water Sanitation Commission has caused this Amendment to be signed by its duly authorized officer as of this 8th day of June, 2017.


By: ___________________________ Title: Commission Secretary



June 8, 2017

CERTIFICATE OF CORPORATE RESOLUTION

The undersigned Secretary of Ohio River Valley Water Sanitation Commission (“ORSANCO”) hereby certifies that the following resolutions were duly adopted by the Commissioners on June 8, 2017, 2017:

WHEREAS, ORSANCO sponsors the Ohio River Valley Water Sanitation Commission Employees’ Pension Plan, which was last amended and restated effective as of July 1, 2015 (the “Plan”); and

WHEREAS, ORSANCO has reserved the authority to amend the Plan; and WHEREAS, ORSANCO wishes to amend the Plan effective June 30, 2017 to not permit any

individual to newly participate in or renew participation in the Plan after such date; NOW THEREFORE BE IT RESOLVED, that effective as of June 30, 2017, Amendment No. 1 to

the 2015 Edition of the Plan is hereby adopted and approved in substantially the form attached hereto, with such changes therein as may be approved by the Executive Director of ORSANCO which approval shall be conclusively evidenced by the signature of the Executive Director to a copy of such Amendment; and further

RESOLVED, that that the Executive Director shall be, and hereby is, authorized and directed to take such action and to make, execute, deliver and file or cause to be made, executed, delivered, or filed such notices, agreements, documents, payments, applications, instruments, and certificates, and to take such other and further actions, as he may deem to be proper, necessary, desirable or appropriate to effectuate the purpose and intent of the foregoing resolutions, the authority for taking of such action and the making, execution, delivery or filing of such notices, agreements, documents, payments, applications, instruments or certificates to be conclusively evidenced thereby; and further

RESOLVED, that all actions heretofore taken by the Executive Director, or any other officer,

employee, or agent of ORSANCO in connection with the subject matter of the foregoing resolutions and recitals be, and hereby are ratified, approved, and confirmed in all respects as the acts and deeds of ORSANCO. The undersigned further certifies that attached hereto is a true copy of the Amendment approved and adopted in the foregoing resolutions. OHIO RIVER VALLEY WATER SANITATION COMMISSION By:

Ronald Potesta, Secretary

Date:



June 8, 2017

RESOLUTION 5-17

Suspension of 457 Plan Match WHEREAS, ORSANCO sponsors a 457 Deferred Compensation Plan (“457 Plan”) the terms of which are described in ORSANCO’s Administrative Procedures booklet and the 457 Plan document; and WHEREAS, ORSANCO has reserved the authority to amend the 457 Plan; and WHEREAS, in the past, ORSANCO has made matching contributions to the 457 Plan at a rate of 25% of each employee’s deferrals up to an amount equal to 6% of such employee’s compensation that year; and WHEREAS, ORSANCO wishes to discontinue the matching contribution effective as of July 1, 2017; NOW THEREFORE, BE IT RESOLVED, that effective July 1, 2017 ORSANCO will discontinue the match to the 457 Plan; and further RESOLVED, that that the Executive Director shall be, and hereby is, authorized and directed to take such action and to make, execute, deliver and file or cause to be made, executed, delivered, or filed such notices, agreements, documents, payments, applications, instruments, and certificates, and to take such other and further actions, as he may deem to be proper, necessary, desirable or appropriate to effectuate the purpose and intent of the foregoing resolutions, the authority for taking of such action and the making, execution, delivery or filing of such notices, agreements, documents, payments, applications, instruments or certificates to be conclusively evidenced thereby; and further RESOLVED, that all actions heretofore taken by the Executive Director, or any other officer, employee, or agent of ORSANCO in connection with the subject matter of the foregoing resolutions and recitals be, and hereby are ratified, approved, and confirmed in all respects as the acts and deeds of ORSANCO.



June 8, 2017

OHIO RIVER VALLEY WATER SANITATION COMMISSION Defined Benefit Plan

Proposed Actuarial Assumptions June 8, 2017

Item Actuarial Assumption

Actuarial Asset Method Market value of Plan assets.

Actuarial Cost Method Individual Early Age Normal Cost Method

Amortization Method Closed 20-year period

Commencement and Election 100% of current and future term vested are assumed to

take benefits at age 65.

Cost of Living Adjustment 0%

Expenses Administrative expenses will be paid by the Commission.

Funded Ratio Actuarial value of assets divided by the accrued liability

Funding Benefits are funded for all those individuals who are eligible on the valuation date.

Investment Return 7.50% per year, compounded annually

Marriage Assumption 100% assumed

Mortality RP-2014 table, projected with Scale MP-2014 on a fully generational basis

Retirement Age Participants eligible under the “Rule of 90” are assumed to retire at the following rates: 55-59 - 20% 60-61 - 25% 62-64 - 50% 65 or later - 100% Participants not eligible under the “Rule of 90” are assumed to retire at a rate of 100% at 65 or later.

Salary Progression 3%




Report of the Water Users Advisory Committee Number:

10

Page 1 of 1

Attachments: None



Prepared by: Sam Dinkins Presentation by: Committee Chairman Bruce Whitteberry

KEY CONSIDERATIONS:

The Water Users Advisory Committee will meet May 24-25, 2017. The Report of the Committee shall be provided at the June 8, 2017 Commission Meeting.

BUDGET/STAFF IMPLICATIONS:

Travel related expenses to support committee meetings are covered by the Commission. The Commission has staff time to support Water Users Advisory Committee liaison work.

RECOMMENDATION:

Information Only BACKGROUND/HISTORY:

The Water Users Advisory Committee provides input to the Commission on matters related to water treatment.

Appointed representatives to the Committee are designated by the Chairman of the Commission from companies or agencies which operate water treatment plants.

The Chairman of this Committee serves as a representative to ORSANCO’s Technical Committee and the Ohio River Users Program Advisory Committee.



June 8, 2017 Subject: Report of the Watershed Organizations Advisory Committee

Number: 11

Page 1 of 1

Attachments: None



Prepared by: Richard Harrison Presentation by: Adam Rissien, Ohio Environmental Council

KEY CONSIDERATIONS:

The Report of the Committee shall be provided at the June 8, 2017 Commission Meeting.

BUDGET/STAFF IMPLICATIONS: The Commission does not assume any meeting expenses incurred for Special Interests

Stakeholder Advisory Committee Members. The Commission has staff time to serve as liaison to the Committee and to help provide support

to the Committee as needed.

RECOMMENDATION: Information Only

BACKGROUND/HISTORY:

The Watershed Organizations Advisory Committee is a Special Interests Stakeholder Advisory Committee to the Commission formed to provide advice to the Commission for its program of regional pollution control.

The Committee was established through Commission action at its February 11, 2016 Commission Meeting.

The Committee is responsible for appointment of their membership and organization.

Documents

Memo Ohio River Valley Water Sanitation Commission · 1 Memo Ohio River Valley Water Sanitation Commission SINCE 1948 Improving Water Quality in the Ohio River for over 60 Years 5735