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HomeMy WebLinkAbout08-07-2007 CAPE FEAR PUBLIC UTILITY AUTHORITY BOARD MEETING AUGUST 7, 2007 MEMBERS PRESENT:MEMBERS ABSENT: Matt Hunter, Chairman James Quinn Gene Renzaglia Dolores Williams Burrows Smith Jason Thompson Bill Caster Kathryn Johnston Rod Andrew Robert Greer Charles Wells Steve Thomas Guest: Ed Donuhue, Municipal & Financial Services Group (MFSG) Chairman Hunter called the meeting to order at 8:02 a.m. 1. Opening Comments Chairman Matt Hunter a. Determination of Quorum: A total of nine Authority members were in attendance. A quorum was present. b. Accelerated Meetings Proposal: Chairman Hunter distributed a copy of accelerated meetings proposal to Board members. Please refer to handout for more detail. c. Two New Committee Appointments: Information Technology and Inter-Local Agreements Information Technology: The Chairman of the Information Technology Committee will be Gene Renzaglia. The incentive agreements in the future will be very complex and will require engineering expertise, as well as legal expertise. The Authority does not have legal representation at this time. Inter-Local Agreements: The Chairman of the Inter-Local Agreements will be Rod Andrew. The Authority will get a general council available for him either permanent or internal as soon as possible, so that he will get the legal assistance that he will need. A third committee was not put on the agenda, but Chairman Hunter has asked Burrows Smith to chair a Facility Committee. The Facility Committee will be responsible for finding and determining Î the kind of office space that will be needed for the Authority to function. d. Proposed Rules for Committees: Chairman Hunter distributed a copy of the Cape Fear Public Utility Authority Roles and Reporting Relationships. Please refer to the handout for more detail. The information was sent to Board members via an e-mail from David Hyder, the e-mail is in an abbreviated form of what was briefly discussed during an earlier meeting. Chairman Hunter read the second paragraph that applies to Authority Committees to the Board. The various committee chairpersons will decide how to conduct their own committee business. On Friday, July 27, 2007, Chairman Hunter and David Hyder, MFSG, had a very brief meeting to discuss housekeeping issues and what items needed to be on the August 7, 2007, Board agenda, since it was the first agenda that the Board has actually drafted. The two previous agendas were supplied, since no Board was available to Î prepare the agendas. If Board members have any ideas or input on how to organize the agenda, Î they should contact Chairman Hunter. e. Recent Officer Guidance to MSG: f. Roberts Rules of Order: Chairman Hunter distributed a copy of Order. Please refer to the handout for more detail. The Chairman asked that all Board members review the rules before the next meeting. g. City, County, & MFSG Liaisons/Contacts: Ed Donahue distributed a contact and logistic list of City of Wilmington/New Hanover County Water and Sewer Consolidation Project Team Contact Information. Please refer to the handout for more detail. Chairman Matt Hunter noted that Board members should pay attention, especially the committee chairpersons to the first three people listed under Project Logistics: David Hyder, Brent McAbee, and Greg Thompson. Those people are the key people to contact first if any interrelationships Î between the Authority and other entities are to occur. 2 h. By-Laws Section 2.10 Member Compensation: Chairman Matt Hunter stated that according to the By-Laws, compensation for Authority members is provided. The Board members agreed that they were not on the Authority Board to receive an extra pay check. Chairman Hunter recommended that the Board members forego any compensation at least until they are done with the transition. Board members were advised to think about the recommendation and if Î there was a disagreement it would be discussed later on the agenda. 2. Approval of Minutes Steve Thomas a. Minute Corrections and Approval. Steve Thomas, Secretary to the Board, presented for approval the minutes from the July 18 and July 24, 2007 Board meetings. The second meeting was a continuation from the July 18, 2007 organization meeting. Gene Renzaglia made a motion to approve the minutes. Charles Well Î seconded the motion. Motion passed. b. Schedule Tracking Services using MS Project: Steve Thomas Steve Thomas stated that the initial schedule that MFSG provided as a planning guide was very loose and vague. At the time it was drafted, the duration of each of the tasks included on the Î schedule were unclear. Several things have changed since the schedule was created and the Board Î has asked MFSG to prepare a more detailed schedule in MFSG project format. Steve Thomas will maintain the schedule and use it as a tool for the Board Î to show the interdependencies of their decisions and to show how much time is needed to make decisions, so that things will keep moving on the critical path. Ed Donahue stated that the Board should have the first version of Î information by the end of the week. It will not be the final version. The information will be made available for Board members via e-mail and Î it will be available on line. The important thing that Board members need to understand is that if Î someone does something that is going to affect their area, it is going to affect other areas as well. 3 3. Committee Reports/Updates Chairman Matt Hunter Chairman Hunter stated that the Board was planning on having an Executive Committee meeting, but since the rules and the legal requirements for having committee meetings were not known at the time, no official meeting was held. Instead committee members toured the building downtown that Bruce Shell, County Manager, had mentioned to them. Afterwards, a discussion was held with David Hyder. a. Human Resources Committee: Kathryn Johnston The By-Laws were read by the Human Resources Committee members and minutes were taken. The meeting was conducted as a regular meeting, but there were some Î concerns about voting members. The Committee made decisions by consensus. Î There are eight members on the Committee, but a total of 11 people were Î present. Steve Kaii-Zieger, MFSG, and representatives from the City of Î Wilmington and New Hanover County also provided input on the benefit issue. There are eight main areas that are confronting the Committee, they are as following: Benefits Î Organization Chart Î Job Description Î Pay Class Study Î The General Manager (GM) Position Î Key Director Reports to the General Manager Î Policies and Procedures for Employees Î Populating the Organization Chart with Employees Î The benefit timeline was moved up due to the employee and employee work group meetings. Some of the core key components to the benefit package were discussed. The Committee is working on the details for medical, dental, disability, life insurance and retirement. The City of Wilmington and New Hanover County Human Resources Î staffs have been asked to complete their review and provide a recommendation to the Committee at its next meeting. The next Committee meeting will be Monday, August 20, 2007. Î 4 Organization Chart: The job descriptions and pay class information were dealt with together, since they are all inter-related. The organization chart is a high priority and the consultants are doing a fantastic job helping to compile the information. A final organization chart will not be completed until a General Manager Î is hired. Kathryn Johnston made a motion that the Human Resources Committee recommend giving approval to the consultants and give them enough guidance and sufficient detail on the organization chart, job descriptions and pay class study and to allow them to continue, but not finalized those items until after the general manager and Authority members have had the opportunity to review the information and approve it in December. The motion was seconded by Rod Andrew. Motion passed unanimously. General Manager Recruitment: Ed Donahue The following information has been compiled by MFSG regarding the General Manager Recruitment process: A total of 79 e-mail responses have been received and all recipients have Î been sent a brochure with five questions on it for them to respond to before the interview process can begin. Eleven applicants are from Career Builder. Î Twenty-two applicants are from Monster.com. Î Forty-six applicants are from personal inquires. Î A majority of the computerized data bases use a specific checklist when they scan the information to see if the information is complaint with the criteria established for a specific position. So far, no applicants have met all of the criteria. After the resumes are reviewed, the Board will decide how to proceed with the interview process. Key Supervisor Positions: Kathryn Johnston The Human Resources Committee discussed the General Manager and Director reports and it is the recommendation of the Committee that they not have a role in the selection process, since there are several staff members on the Committee from both the City of Wilmington and New Hanover County. The Committee recommended that Gene Renzaglia along with the Î consultants do the screening and provide the Board with the results. There are six key positions that will report directly to the General Î Manager. 5 Kathryn Johnston made a motion to present a staggered hiring practice Î for the key supervisor positions. Motion was seconded by Gene Renzaglia. Motion carried. Steve Thomas added to the motion, the need to keep the Board on schedule Î and to push the schedule as much as possible so that the pursuit of candidates and interviewing process will be available for the General Manager to approve once he/she is secured instead of waiting for the General Manager to be secured before starting the hiring process of the key supervisor position candidates. Once the job descriptions have been completed for the six key supervisor Î positions, every position on the organization chart will have a job description. The Human Resources Committee will review the job descriptions and Î provide input to the Board members so that the search process can continue. b. Finance Committee: Charles Wells The Finance Committee did not met in July due to not having significant information for a meeting. Members of the Finance Committee consist of David Hyder, Brent Î McAbee, and Avril Pinder The financials and realization of depreciation for a utility company are Î different from other financial institutions. The Committee would like to discuss with the consultants the process of Î understanding financials for a public utility authority. Several financial courses are available through the School of Government Î in Chapel Hill, North Carolina and other entities that relate to water issues. The City of Wilmington and New Hanover County are providing funding Î until the Authority can function on its own. C. (Temporary) Search Committee: Rod Andrew The (Temporary) Search Committee consists of Jim Quinn and Bill Caster. were mailed to three law firms. The firms are as following: Hogue, Hill, Jones, Nash and Lynch Murchison, Taylor & Gibson, PLLC Smith Jason Three proposals were received from the above firms. Î The Committee evaluated the proposals and recommended to retain the firm Î of Hogue, Hill, Jones, Nash and Lynch. Bill Lynch serves as the attorney for the Lower Cape Fear Water and Sewer Î Authority, the Onslow Water and Sewer Authority and North Brunswick Senate District. 6 Hogue, Hill, Jones, Nash and Lynch were selected due to their experience in Î authority matters and local agreements. The Committee recommended that would be limited to Î an on interim basis until the Authority was up and running and the majority of the legal documents completed. A letter was drafted by MSFG to Bill Lynch informing him of the Î Ed. Donahue stated that in the letter sent to Bill Lynch, it lists hourly rates and Î suggests a retainer of $1,000 per month. Rod Andrew made a motion that the Board retain the firm Hogue, Hill, Jones, Î Nash and Lynch on an interim basis and that the contract would expire within one year or at the pleasure of the Board. The motion was seconded by Mr. Bill Caster. Motion passed. 4. Break Chairman Hunter gave Authority members a 10-minute break beginning at 8:45 a.m. Meeting convened at 8:55 a.m. 5. Decision Briefings a. Information Technology: Gene Renzaglia and Leslie Stanfield Gene Renzaglia distributed a handout on the Information Technology Recommendation Summary. Please refer to the handout for more detail. The Information Technology Committee consists of Gene Renzaglia, Leslie Stanfield, Roger McCall, Avril Pinder, and Lynnine Webb. The main issue that was brought up at the last meeting was a need for a business system for the Authority to implement and provide online services. A fully integrated system would provide the Authority with all the Î mechanisms that would be required to support a business. The three main pieces that would need to be implemented quickly would Î be a financial, customer billing, and customer identification systems. Additional modules could be added later to address other requirements as needed. rganization called Î SunGard HTE. Please refer to the handout for more detail. Utilizing an application service provider, such as SunGard and entering Î into a service agreement with them would benefit the Authority instead of purchasing the various servers or types of servers that would be needed to perform the different functions. Gene Renzaglia made the motion that the Board approve the actions to Î move forward with final negotiations with SunGard HTE for the expressed 7 purpose of entering into a service agreement that will provide a fully integrated resource system to address the complete business needs of the Authority. The motion was seconded by Steve Thomas. After a lengthy discussion, the motion carried. b. Key Interim Positions: Kathryn Johnston The Human Resources Committee felt very strongly about the staggered approach to hiring key positions instead of hiring interim positions for each position. Gene Renzaglia addressed the Information Technology position and stated that it was a very important position and that he would contact the Human Resources Committee to make sure Committee members understood what the needs are to fill that position. Chairman Hunter will place the Information Technology position on the agenda for the next meeting. c. Communications with Employees: Kathryn Johnston The Human Resources Committee feels that communications with the employees is very important and would like to recommend that regular communications with the employees be established. A maximum of four to six-week time frame should be established between Î communications. The communications would include updating and utilizing the website in Î addition to a formal letter that will be sent out from the Board Chairman, County Manager and City Manager to ensure that the information is consistent. Communications with Public: Kathryn Johnston There is an Employee Communications Committee already established and the Human Resources Committee recommends that it be utilized to its full capacity. The Public Information Officers from both the City of Wilmington and Î New Hanover County serve on the Employee Communications Committee. The Human Resources Committee had no further recommendations on Î public communications. 6. Questions and Answers: Rod Andrew stated he would like Ed Donahue to brief the Board on his contract with New Hanover County and the City of Wilmington. 8 Ed Donahue stated that his firm, MSFG, was hired by the City of Î Wilmington and New Hanover County jointly to facilitate the formation of the Authority. The contract is a task order contract which means that there are specific Î assignments, or when an assignment is considered necessary to distribute work or budget in a schedule. The contract does not have an end date; however, each task order has an Î end date and its own separate budget where the funds are controlled by the task order. Ed Donahue will supply a summary of the open task orders and what has Î been sent by the next Board meeting. A monthly report is submitted by MSFG that lists the hours each Î individual has worked on a specific task and what expenses they have incurred for that task. The contract is also being used as vehicle of convenience for the Î Authority. (Employee breakfast, advertising cost for a general manager newspaper ads -$7,000 - $8, 000.) The expenditures are not marked up with overhead or profit, it passes Î through dollar for dollar, but those types of costs are in there. Each task order is recorded separately. If there are no more task orders, the contract is over. Î Steve Thomas stated that he would appreciate it if, when Rod Andrew Î brought the information forward to the Board, he could present the Board with his logical recommendation for a transition point and why and how that would be structured. Ed Donahue stated it is awkward to transfer a contract to the Authority, if Î the Authority does not have any revenue in place. A revenue screen cannot be put in place until a billing system is in place. Î MSFG is sending the bills to New Hanover County and the City of Î Wilmington and they are splitting them 50/50. They are contributing to the Authority and the Authority will pay back the Î monies once they begin generating a revenue source. The invoices are being charged to the enterprise funds that New Hanover County and the City of Wilmington have established for the Water and Sewer Authority. Whatever is spent out of the enterprise funds is that much less that will be Î transferred to the Authority in terms of either an asset or liability. The system was designed to function that way, so that the Board would Î not have to worry about how they were going to pay for different items associated with becoming an Authority. It will also make the transition into existence easier. Î The attorneys for the City of Wilmington and New Hanover County stated Î that under North Carolina law they could not be party to the contract, it had to be one entity. It was decided that the agreement for the contract would be drawn up by Î New Hanover County, but the City of Wilmington would contribute funding for half of expenditures incurred by the Authority. 9 Ed Donahue stated that there is money in the MSFG contract. Î He indicated that some task order contracts could be reduced because not Î all of the funding allocated for that contract was spent, but at the same time, other task order contracts may need additional funding added to their account to complete the job. It was suggested that the Board should hire staff as quickly as possible, so Î that less funding will be spent on consultants and the Authority will get the acquired institution knowledge. 7. OLD BUSINESS Chairman Matt Hunter a. Cape Fear Public Utility Authority Seal Selection: Ed Donahue distributed a copy of a handwritten seal to Board members. Please refer to the handout for more detail. A proof of the printed seal is expected to be sent to MSGF today. Once the seal is approved by MSGF staff, it can be processed and the turn Î around time will be six or seven days. The cost will be $42. Î The seal was designed to comply with the description in the By-Laws. Î CSeal to clarify that Î it is a corporate seal. A motion was made by Rod Andrew to accept the seal with the one correction of Thomas. Motion passed unanimously. 8. NEW BUSINESS Chairman Matt Hunter a. Accelerated Meeting Proposals Decision: Chairman Matt Hunter Discussion continued from a previous discussion held earlier in the agenda. Steve Thomas made a motion that the Authority adopt the accelerated meeting proposal. Burrows Smith seconded the motion. Steve Thomas stated that due to the vast number of decisions that the Board needs to make and be involved in to organize the Authority one more meeting a month is needed to complete the organization. The By-Laws call for a regular monthly meeting. Î A lengthy discussion followed on the accelerated meeting proposals. Î 10 Meeting Per Diem: Authority members voted at the first Board meeting that they would be paid a per diem as outlined in the By-Laws. The per diem was put into place to compensate Board members for Î participating in regular scheduled meetings, if a Board member did not attend a meeting, they would not get compensated. Sub-committees have been created for the Authority and Board members Î have spent several hours attending those meetings in addition to the regular scheduled meetings. Steve Thomas read the part of the By-Laws on the reimbursement Î compensation issue Section 2.10 regular Authority meetings not to exceed $250 per He stated that the Board has not set that as an amount, so as a point of order Board members will need to recommend a motion indicating the amount of compensation for meetings that will be compliant with the By-Laws. Chairman Hunter asked Steve Thomas to e-mail to Board members the set Î of goals that he presented at the officers meeting rules of the road for the future The Board needs to have clear goals outlined for them. It was stated that the information being recommended from the Î committees and the work groups is what the Board is approving and acting on to establish policies and procedures for the Authority. It was suggested that the Board meet at their regular meeting, define what Î they are trying to obtain, what their objectives would be and if it is appropriate to have the information available in two weeks, if so, then the Board could meet again on the interim meeting date. Ed Donahue suggested that the Board at least identify the dates that have Î already been identified as the dates for potential interim meetings, so if an additional meeting is need, Board members will already have the date scheduled in on their calendars. The monthly meetings could be held and then the meeting could be Î recessed and continue it on the dates of the interim meetings. Steve Thomas made a motion to reserve the dates for probable or potential Î future meetings. Gene Renzaglia seconded the motion. Motion carried. Rod Andrew made a motion that in accordance with the By-Laws, the Î members of the Authority be paid a per diem for attendance at a regular Authority meeting not to exceed $250 per month. Seconded by Kathryn Johnston. Motion carried. b. Future Agenda Topics: Chairman Hunter Burrows Smith stated that as Chairman of the Facility Committee he needs some direction from the Board on the type of office space that will be needed to accommodate the Authority needs. 11 Gene Renzaglia suggested that the Committee locate a facility that will Î provide office space for the Board to work out of, as well as for the staff that will eventually be in place. The timing should coincide with the hiring of a General Manager and the Î initial staffing that will be needed to operate an Authority. The office space should accommodate a full functioning staff. Î Material items such as chairs, desks, computers, etc. will also need to be Î addressed. Kathryn Johnston suggested using the organization chart to identify Î positions and see how many people are involved and what their needs will be before locating a facility space. Space will be needed for the operations and administrative staffs (Finance, Î Human Resources, Information Technology, etc.). Ed Donahue suggested talking to a space planner to help figure out how Î many square feet will be needed for each employee and the different kinds of work environments that will be needed. He also suggested contacting New Hanover County and the City of Î Wilmington for the planning standards they used to find facilities. Matt Hunter agreed to serve on the Facility Committee. Î No other volunteers agreed to serve; therefore, they will be recruited. Î 9. Authority Member or Public Comments: Chairman Matt Hunter Gene Renzaglia: He would like to propose a recommendation whether or not the Board should seek an Information Technology person as they move forward and when it should be done. Burrows Smith: Some of his questions were answered today in regard to where the funding is coming from and what kind of debts the Authority is creating. The cost information would be very helpful. Ed Donahue will e-mail the Board members with the appropriate details from MSFG. Bill Caster: He suggested more training for Board members. Ed Donahue stated that there are several training opportunities available Î and he would provide Board members with a copy of the agenda and schedule for the Water Environment Federation along with a schedule of other local seminars and topics of interest that Board members could attend. A retreat for Board members was also mentioned to discuss long-term Î policy goals. Facilities are available locally that could be used instead of traveling Î outside of the State. 12 Kathryn Johnston: The Human Resources Committee did not address communications with the public. She would like that topic to be revisited at the next meeting, since it is a Î critically important topic. Chairman Matt Hunter will put the topic on the next Board meeting Î agenda. Rod Andrew: The City of Wilmington and New Hanover County need to evaluate their water resources. There is a need to know how much ground water can be pumped, how Î much surface water can be pumped and if one of the two systems goes down can the Authority still serve the citizens in the area. Water is an essential item that the Authority will need to be able to Î provide to the citizens with an adequate and portable water resource. Maryann Hinshaw, Deputy City Manager, stated that the City of Î Wilmington and New Hanover County both have water master plans that are being worked through and it might be a good topic for the retreat where both entities could present Board members with the master water and wastewater master plans along with an update on all the work that is being done with the systems. Bobby Greer: No comment Charles Wells: He stated that he agreed with Rod Andrew on the water issue. He has concerns that the surrounding counties are getting near their water Î capacities since they are growing at much faster rate than New Hanover County. (Brunswick County is in the 75 to 80 percent range). With the problems the City of Wilmington and New Hanover County are Î having with sewer, he does not think the Board could sit in these meetings and not at some point talk about those problems. The Authority needs to reassure the public that the water is ok, the sewer Î line probably not yet. Steve Thomas: No comment ADJOURNMENT A motion was made for adjournment by Charles Wells, seconded by Rod. Andrew. Motion carried. Meeting was adjourned at 10:12 a.m. 13