CFPUA 09 12 2012
Cape Fear Public Utility Authority
Regular Meeting
September 12, 2012
Authority Members Present:
Jim Quinn, Chairman
Pat Kusek, Vice-Chair
Jim Brumit, Secretary
Mike Brown, Treasurer
Charlie Rivenbark, Councilman
Jason Thompson, Commissioner
Rick Catlin, Commissioner
Cindee Wolf
Gene Renzaglia
Larry Sneeden
Authority Member Absent:
Neil Anderson, Councilman
Staff Present:
Matt Jordan, CEO
Jim Flechtner, COO
Cheryl Spivey, CFO
Karen Durso, Assistant to CEO
Beth Eckert, ESMD Director
Frank Styers, Engineering Director
Tom Morgan, HR Director
Nancy Johnson, Customer Service Director
Julia Vosnock, Procurement manager
Ken Vogt, Wastewater Treatment Superintendent
Jim Craig, Utility Services Superintendent
Christene Mitchell, Engineering Manager
Kent Harrell, Engineering Manager
Donna S. Pope, Clerk
Attorney Present:
Linda A. Miles, the Miles Firm, PLLC
CFPUA 9.12.2012 MINUTES Page 1
Guests Present:
Donald and Nancy Caison
Burrows Smith
Eric Williams, HDR
Kate Queram, Wilmington Star News
Opening Comments and Determination of a Quorum:
Mr. Quinn called the meeting to order at 9:00 a.m. and declared a quorum present. He
announced that Mr. Anderson was out of town for business purposes. Mr. Rivenbark moved to
excuse Mr. Anderson. Ms. Kusek seconded the motion, and it passed unanimously.
Adoption of the Agenda:
unanimously.
Approval of Minutes:
Mr. Brumit moved to approve the minutes of the August 8, 2012, regular meeting as presented.
Mr. Renzaglia seconded the motion, and the minutes were approved unanimously.
Public Comment:
There were no speakers.
Consent Agenda:
Mr. Jordan presented the Consent Agenda, as follows:
1.Authorization for the CEO to enter into a contract with Glover I&C, Inc., for 12 months,
with the option to renew for up to four additional 12-month terms, at a cost of $113,000;
2.Authorization for the CEO to purchase Sensus brand water meters as a sole source bid,
for up to 3,125 meters, at a budget impact of $455,056.53;
3.Authorization for the CEO to purchase a new 2012 John Deere 210GL excavator from
R.W. Moore Equipment Company, at a budget impact of $168,565.77;
CFPUA 9.12.2012 MINUTES Page 2
4.Authorization for the CEO to purchase 11 Konica Minolta copiers from System Business
Equipment and to enter into yearly maintenance agreements, at a budget impact of
$63,549 for the copiers and $11,375.34 for maintenance;
5.Authorization for the CEO to grant a 24-month extension on the Chair Road Associates,
LLC, Utility Infrastructure Reimbursement Agreement, with no budget impact;
6.Authorization for the purchase of a Smith & Loveless vacuum pump system for the
Between the Creeks Pump Station project, at an approximate budget iimpact of $63,000;
and
7.Authorization for the CEO to sole source in-situ level trolls, aqua trolls, and ancillary
parts as the standard groundwater monitoring probes installed or replaced by the
Authority at a budget impact of $52,167.05.
Mr. Styers answered clarification questions on Item 7, and Ms. Vosnock answered clarification
questions on Item 4. Mr. Renzaglia moved to approve the Consent Agenda. Mr. Brown
seconded the motion, and it passed unanimously.
New Business Administrative and Committee Reports:
Ms. Miles stated that she had no report during open session but would have a
report in closed session regarding the Environmental Protection Agency and a personnel matter.
CEO Report: Mr. Jordagendas included the annual
Wastewater Performance Report.
Mr. Jordan provided the Environmental and Safety Management Report for the period ending
July 31, 2012. There was one sanitary sewer overflow in July, caused by inflow and infiltration
at Pump Station 19. All plants operated in compliance.
The reportable accident rate has declined and is below industry standards. There were two
employee accidents in July.
Executive Committee: The grand opening of the Sweeney Water Treatment plant is scheduled
for October 5. Individual tours for Board members are available on September 27 and 28.
Long Range Planning Committee: Ms. Wolf and Mr. Styers reported that the Committee met on
August 23 and reviewed the following items:
CFPUA 9.12.2012 MINUTES Page 3
1.Bald Eagle Water Line Extension. Mr. Catlin has met with residents of the Bald Eagle
Lane area to discuss the estimated costs of extending water service to the area. County
staff is drafting a proposed interlocal agreement between the County and the Authority.
Fire Services may be able to fund the fire protection portion of water service. County
staff will sponsor a public meeting on September 18 at the Porters Neck fire station, and
Authority staff will be in attendance. Mr. Catlin answered questions from Authority
members regarding this item.
2.Mandatory Connection Deferral Policy. Connection deferrals may be obtained for a
three-year period, with a potential three-year renewal. The Authority must receive
certification that a well and/or septic system is functioning properly. The System
Development Charge and bi-monthly availability charge must be paid. Tap fees and
SDCs may be financed for eight years at 5 percent interest.
3.Builders & Developer Process Workshop. Ms. Wolf thanked staff for their time and the
good information provided at the August 30 workshop.
4.Groundwater Update. The Committee received an update on groundwater management.
A study by Groundwater Management Associates and the first phase of a United States
Geological Service study of aquifers have been completed.
Mr. Catlin reported that the Lower Cape Fear Water & Sewer Authority would proceed
with its plans to build a raw water booster pump station, which should supply raw water
currently expected peak demands.
Finance Committee: Mr. Brown reported that Ms. Spivey had been carefully monitoring water
sales and that consumption continues to decline. Ms. Spivey referred the Board to Page 10-5 in
their agendas, representing rolling 12-month water usage based on meter readings. She reported
that the Authority is experiencing its lowest metered water use since it began tracking use. The
volumetric water and sewer rates are intended to cover the budget except for debt service. The
current volumetric rates were based on calendar year 2011 sales, with no growth or decline
budgeted. Consumption is three percent below the data used to calculate rates. Because
August was a rainy month, staff anticipates an additional decline in sales to be reflected in next
Ms. Spivey reported that declining consumption is a trend in water sales nationwide and
throughout the state. Regionally, only Jacksonville and Duplin County have realized increased
sales. She distributed a summary of national and state water consumption trends.
CFPUA 9.12.2012 MINUTES Page 4
Mr. Jordan and Ms. Spivey have met with department managers and requested that they identify
five percent in reductions in their operating budgets. Ms. Spivey and Mr. Jordan will review the
potential reductions in the near future.
Ms. Spivey reported that all Fiscal Year 2012 accounts have been closed, and she expects to have
unaudited year-end financials next month. Ms. Spivey reported that she did not expect the
financial ratio to be as healthy as it was last year. August financial data was in the agenda
packet and will be posted on the Authority website.
Customer Service Report: Ms. Johnson referred the Board to page 10-22 of the Agenda for
customer service data. She reported on efforts to assist a customer who spoke at the August
meeting.
Ms. Johnson distributed a back billing analysis and reported that a retroactive change in
Authority policy would result in refunding between $110,900 and $584,500, depending on the
time frame addressed by a policy change. Ms. Spivey reported on the implications on financial
reporting that would be caused by refunding amounts already collected. Ms. Miles added that
there could be legal consequences of a policy change.
Mr. Catlin moved to revise the collections policy to collect 18 months of unbilled accounts
August meeting not to pursue collections on unbilled amounts discovered on or after January
2013. Mr. Thompson seconded for discussion purposes.
After discussion, Mr. Quinn asked for a vote. Mr. Catlin voted in favor of the motion. Ms.
Kusek, Ms. Wolf, and Messrs. Quinn, Brown, Brumit, Renzaglia, Sneeden, Rivenbark, and
Thompson were opposed. Motion failed, nine to one.
Human Resources Committee: Ms. Kusek reported that the Committee had met in closed session
and would need a closed session at the Board meeting.
Closed Session:
Mr. Rivenbark moved to enter closed session to discuss a personnel matter and the EPA claim.
Mr. Sneeden seconded the motion, and it passed unanimously. The Authority entered into closed
session at 10:05 a.m., with Ms. Miles in attendance. The Board discussed a personnel issue.
Mr. Jordan and Ms. Pope joined the meeting, and the Board received a report regarding EPA.
CFPUA 9.12.2012 MINUTES Page 5
Open Session, Old Business, and Adjournment:
Ms. Kusek moved to return to open session. Mr. Catlin seconded the motion, and it passed
unanimously. The Authority returned to open session at 10:45 a.m.
There was no old business.
Mr. Brown moved to adjourn. Mr. Renzaglia seconded the motion, and it passed unanimously.
The Authority adjourned at 10:47 a.m.
The next regular meeting of the Cape Fear Public Utility Authority will be held on Wednesday,
October 10, 2012. The meeting will be held in the Lucie Harrell Conference Room, 230
Government Center Drive, Wilmington, North Carolina, and will commence at 9:00 a.m.
Respectfully submitted,
Donna S. Pope, Clerk
CFPUA 9.12.2012 MINUTES Page 6