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CFPUA 6 11 2014 Regular Meeting CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES JUNE 11, 2014 Lucie Harrell Conference Room Regular Meeting 9:00 AM 230 GOVERNMENT CENTER DRIVE WILMINGTON, NC 28403 I. CALL TO ORDER Ms. Kusek called the meeting to order and declared a quorum pres II. DETERMINATION OF A QUORUM Attendee Name Organization Title Status Arrived Jim Quinn Cape Fear Public Utility Chairman Excused Authority Patricia Kusek Cape Fear Public Utility Vice-Chair Present Authority James Brumit Cape Fear Public Utility Secretary Present Authority Mike Brown Cape Fear Public Utility Treasurer Present Authority Cindee Wolf Cape Fear Public Utility Authority Member Present Authority William Norris Cape Fear Public Utility Authority Member Present Authority Larry Sneeden Cape Fear Public Utility Authority Member Present Authority Kevin O'Grady Cape Fear Public Utility City Councilman Present Authority Charlie Rivenbark Cape Fear Public Utility City Councilman Present Authority Woody White Cape Fear Public Utility County Commissioner Present Authority Thomas Wolfe Cape Fear Public Utility County Commissioner Present Authority Jim Flechtner Cape Fear Public Utility Executive Director Present Authority Linda Miles Miles Firm, PLLC Attorney Present Karen Durso Cape Fear Public Utility Assistant to the Executive Present Authority Director Beth Eckert Cape Fear Public Utility Director of EMD Present Authority Frank Styers Cape Fear Public Utility Chief Operations Officer Present Authority Cheryl Spivey Cape Fear Public Utility Chief Financial Officer Present Authority Carel Cape Fear Public Utility Director of Engineering Present Vandermeyden Authority Cape Fear Public Utility Authority Page 1 Minutes Authority Board June 11, 2014 Tom Morgan Cape Fear Public Utility HR Director Present Authority John Payne Cape Fear Public Utility Internal Auditor Present Authority Julie McLawhon Cape Fear Public Utility Budget/Finance Manager Present Authority Tymekia Askew Cape Fear Public Utility Fiscal Support Specialist Present Authority Sherri Alexander Cape Fear Public Utility Senior Accounting Technician Present Authoirty Ramona Burns Cape Fear Public Utility Accounting Manager Present Authority Melinda Hoggard Cape Fear Public Utility Financial Systems Analyst Present Authority Julia Vosnock Cape Fear Public Utility Procurement Manager Present Authority Teresa Horsboll Cape Fear Public Utility Buyer Present Authority Marcy Martin Cape Fear Public Utility Payroll Specialist Present Authority Mike Richardson Cape Fear Public Utility Water Resources Manager Present Authority Mike McGill Cape Fear Public Utility Chief Communications Officer Present Authority Kent Harrell Cape Fear Public Utility Engineering Manager Present Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Loria Potter Cape Fear Public Utility Billing & Collections Manager Present Authority Donna Pope Cape Fear Public Utility Clerk/Executive Secretary to Present Authority the Board Steve Thomas URS Corporation Present Jim Iannucci New Hanover County Present Engineering Dept. Heidi Cox N.C. Water Quality Division Present Tony Boahn McKim & Creed Present Landon Weaver Bill Clark Homes Present Timothy Cashman Citizen Present III. ADOPTION OF AGENDA Mr. Sneeden moved to adopt the day's Agenda. Mr. Rivenbark seco Agenda was uanimously adopted. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - May 14, 2014 9:00 AM The minutes were approved and accepted as presented. Cape Fear Public Utility Authority Page 2 Minutes Authority Board June 11, 2014 RESULT: ACCEPTED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: Cindee Wolf, Authority Member AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, EXCUSED: Quinn V. PRESENTATION 1. Government Finance Officers Association Certificate of Achievement Financial Reporting for the Fiscal Year Ended June 30, 2013 Mr. Brown presented Ms. Spivey and Finance Department staff with Achievement for Excellence in Financial Reporting from the Government Finance Officers Association. The Award was presented for the Comprehen Report for the Fiscal Year Ending June 30, 2013. The Authority for its fifth consecutive year, each year since beginning operations in 2008. Ms. Spivey thanked all Finance staff for their dedication and wo McLawhon in particular for her work in managing the Authority Bu reporting. The Board commended Ms. Spivey and Finance staff on a job well done. VI. PUBLIC COMMENTS Mr. Timothy Cashman spoke regarding the base charges on a proper He requested that the charges be suspended until he completed co the house. He shared photographs showing the condition of the property. Mr. Ms. Miles confirmed that the Authority considers a property habi service. Board members explained that the base charge representy of water, including fire protection. Mr. Rivenbark suggested that the re service and the installation of a temporary pole for constructio solution to Mr. Cashman's concern. VII. CONSENT AGENDA There were no questions from Authority members regarding the Con moved to approve the Consent Agenda, as presented. Ms. Wolf sec passed unanimously. 1. Authorization for VantageSouth Bank to Become an Official Depository for CFPUA Funds Cape Fear Public Utility Authority Page 3 Minutes Authority Board June 11, 2014 RESULT: ADOPTED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Cindee Wolf, Authority Member AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, EXCUSED: Quinn 2. Write Off Uncollectible Utility Accounts RESULT: ADOPTED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Cindee Wolf, Authority Member AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, EXCUSED: Quinn 3. Approval of Budget Ordinance and Amendment #14-013 for Sale of Capital Assets RESULT: ADOPTED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Cindee Wolf, Authority Member AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, EXCUSED: Quinn 4. Approval of Budget Ordinance and Amendment #14-014 Recognizing Additional System Development Charges RESULT: ADOPTED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Cindee Wolf, Authority Member AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Wolfe EXCUSED: Quinn 5. Surplus Items to be Sold on GovDeals RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Cindee Wolf, Authority Member AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, EXCUSED: Quinn 6. Motor Fleet and Large Equipment-Replacement of Vehicle & Upgrade to CCTV Equipment Cape Fear Public Utility Authority Page 4 Minutes Authority Board June 11, 2014 RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Cindee Wolf, Authority Member AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Wolfe EXCUSED: Quinn 7. Authorization for the Executive Director to Execute a $472,750.0 2 with McKim and Creed, Inc. for the Marquis Hills Area Sewer Ex RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Cindee Wolf, Authority Member AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, EXCUSED: Quinn 8. Authorization for the Executive Director to Execute an $8,674,88 Contract with T. A. Loving Company for the Marquis Hills Area Sewer Extension Proj RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Cindee Wolf, Authority Member AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, EXCUSED: Quinn 9. Authorization for the Executive Director to Execute the Third Am Sharing Agreement with Bill Clark Homes of Wilmington, LLC. RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Cindee Wolf, Authority Member AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, EXCUSED: Quinn 10. Authorization for the Executive Director to Execute an $193,263 with URS Corporation - North Carolina for the Heritage Park Area Sewer Extension Project Cape Fear Public Utility Authority Page 5 Minutes Authority Board June 11, 2014 RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Cindee Wolf, Authority Member AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, EXCUSED: Quinn 11. Authorization for the Executive Director to Execute a $6,587,527.75 Construction Contract with T. A. Loving Company for the Heritage Park Area Wa Extension Project RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Cindee Wolf, Authority Member AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, Wh EXCUSED: Quinn 12. Authorization for the Executive Director to Execute a $20,000 Co with W.K. Dickson for the Masonboro Sound Road Area Water and Se Project RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Cindee Wolf, Authority Member AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, EXCUSED: Quinn 13. Greenfield Lake Outfall Rehabilitation Amendment 1 to Interlocal Agreement with City of Wilmington RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Cindee Wolf, Authority Member AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, EXCUSED: Quinn 14. Authorization for the Executive Director to Execute a $144,994.87 Loving Company for the Smith Creek 'Alandale' Pump Station Remov RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Cindee Wolf, Authority Member AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, EXCUSED: Quinn 15. Third Amendment to the Chair Road Utility Infrastructure Reimbur Cape Fear Public Utility Authority Page 6 Minutes Authority Board June 11, 2014 RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Cindee Wolf, Authority Member AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, EXCUSED: Quinn 16. Authorization for the Executive Director to Execute a $66,300.00 with Skippers Well Drilling for Monitoring Wells and Well Logging at Westbrook ASR Site RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Cindee Wolf, Authority Member AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, EXCUSED: Quinn VIII. NEW BUSINESS A. Administrative Reports i. Attorney Report Ms. Miles had no report and did not require a Closed Session dur ii. Executive Director Report Mr. Flechtner referred Board members to the Environmental and Sa Agenda packet. Mr. Sneeden commended staff on a good safety and co record. 1. Environmental Summary 2. Safety Performance Report B. Committee Reports i. Executive Committee The Executive Committee met on June 4 for Agenda Review. The Mi provided in the Agenda packet. 1. Executive Committee - Regular - Jun 4, 2014 2:00 PM RESULT: NO ACTION REQUIRED ii. Finance Committee The Finance Committee met on June 4. The Committee minutes were Agenda packet. 1. Finance Committee - Regular Meeting - Jun 4, 2014 9:00 AM Cape Fear Public Utility Authority Page 7 Minutes Authority Board June 11, 2014 RESULT: NO ACTION REQUIRED 2. FY15 Recommended Budget Submitted for Adoption Mr. Brown introduced Mr. Flechtner and Ms. Spivey, and they pres FY2015 Budget. Mr. Flechtner reported that the full Board had ed the Budget and that it had been studied in depth and vetted by the F Committee. He believed it to be a responsible budget that would sustainability of the Authority's infrastructure and the provisi community. He reported that operating expenses have remained steady since the Authority assumed operations of water and sewer and recogniz Authority staff for their commitment and for their work on the r budget. Ms. Spivey presented the Budget Ordinance for the Fiscal Year beginning July 1, 2014. The recommended Budget includs an Operating Fund of $78,0 System Development Fund of $4,000,000, and a Capital Projects Fu $11,836,000. The CIP will be cash-funded for FY2015, reducing the amountof revenue bonds needed in a future sale. Ms. Kusek reported that the Budget had been well-vetted and a Public Hearing held for customer comment. Mr. Rivenbark moved to adopt the FY2 Mr. Brumit seconded the motion, and the Budget was adopted unanimously. Ms. Spivey thanked all Authority staff for their work preparing special thanks to Julie McLawhon and Karen Durso for their work documents. Ms. Kusek reminded the Board that the Budget documentation conta excellent information and departmental goals, which had been inc Agenda. RESULT: ADOPTED [UNANIMOUS] MOVER: Charlie Rivenbark, City Councilman SECONDER: James Brumit, Secretary AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Wolfe EXCUSED: Quinn 3. Monthly Finance Report The May financial data was provided in the Agenda packet. Ms. S highlighted the rolling twelve-month consumption chart. Water consumption for calendar year 2013 was used to determine the current rates. The decline in consumption appeared to have stablized and usage is beginning to Spivey anticipates that revenues will support the FY2015 Budget. Cape Fear Public Utility Authority Page 8 Minutes Authority Board June 11, 2014 4. Deposit Status Ms. Irick reported on revisions to the Authority's customer deposit policies. In 2012, the policy was revised to require a deposit for a customer service who had an outstanding balance, was not the property own to open an non-residential account. In 2013, the policy was revised to require deposit for residential customers with multiple involuntary term non-payment, for customers who had tampered with the meter, and for - petition bankruptcy accounts. In April 2014, the policy was re and assess non-residential deposits based on six months' actual usage. The minimum deposit is $200, and deposits may be increased based upo use. The policy will be applied to new accounts. The addition will start billing in August, customers will be notified in writing, and payment arrangements will be available. Data showing potential losses f accounts was provided in the Agenda and reviewed by Ms. Irick. Ms. Irick and Messrs. Flechtner and McGill answered clarificatio Authority members regarding the deposit policy and planned commu customers. Board members directed staff to communicate with cus in advance of the initiation of deposit billing and to make it c policy is intended to protect the majority of customers from the impact of unpaid accounts affecting their rates. IX. OLD BUSINESS There was no old business. X. AUTHORITY Q&A / CLOSING COMMENTS Mr. Flechtner reported that the conversion to the automated Agenpproximately 8,000 pages of paper in the preparation of the June Agenda packe Mr. Rivenbark reported that he had referred a customer to Ms. Ir been well-pleased with his interaction with the Authority. Mr. Sneeden commended the utility crews for their promptness, courtesy, and profession when responding to cut lines and other emergency situations. XI. ADJOURNMENT Mr. Rivenbark moved to adjourn. Mr. Norris seconded the motion, The Authority adjourned at 9:40 a.m. The next Regular Meeting of the Cape Fear Public Utility Authori July 9, 2014. The Board will meet in the Lucie Harrell Conferen County building located at 230 Government Center Drive and will commence the meeting at 9:00 a.m. The July meeting will include the election of corpora Respectfully submitted, Cape Fear Public Utility Authority Page 9 Minutes Authority Board June 11, 2014 Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 10