Loading...
HomeMy WebLinkAboutCFPUA 01-12-2011 CAPE FEAR PUBLIC UTILITY AUTHORITY JANUARY 12, 2011 REGULAR MEETING Members Present: Gene Renzaglia, Chairman J.C. Hearne, II, Vice-Chairman Michael Brown, Secretary Burrows Smith, Treasurer Ron Sparks, Councilman Charlie Rivenbark, Councilman Brian Berger, County Commissioner Richard Catlin, County Commissioner Cynthia Wolf Jim Quinn Staff Present: Matt Jordan, Chief Executive Officer Nancy Gallinaro, Chief Operating Officer Cheryl Spivey, Chief Financial Officer Frank Styers, Director of Engineering Martha Zeigler, Customer Services Director Beth Eckert, Environment & Safety Director Tom Morgan, Human Resources Director Karen Durso, Assistant to Mr. Jordan Julie McLawhon, Finance and Accounting Manager Melinda Hoggard, Accounting Manager Christene Pyne Mitchell, Project Manager Jim Flechtner, Engineering Manager Kent Harrell, Senior Project Engineer Jonathan Ham, Project Engineer Tige Brubaker, Project Engineer Chris Bowling, Project Manager Craig Lundin, Project Manager James Craig, Utility Services Superintendent Mike Richardson, Water Treatment Superintendent Ken Vogt, Wastewater Treatment Superintendent Donna S. Pope, Clerk to the Board CFPUA JANUARY 12, 2011, MEETING DRAFT OF MINUTES FOR REVIEW Page 1 Attorney Present: Linda A. Miles, the Miles Firm, PLLC Guests Present: Tyler Newman, Buniness Alliance for a Sound Economy Kathleen Rielly, Wilmington Area Association of Realtors Eric Williams, HDR Engineering Tony Boahn, McKim & Creed J.C. Solomon, CH2MHill Jennifer Caslin, Food Bank of Central & Eastern North Carolina Heidi Cox, N.C. Dept. of Environment & Natural Resources Call to Order and Determination of a Quorum: Mr. Renzaglia called the meeting to order at 9:00 a.m. and declared a quorum present. Adoption of the Agenda: Mr. Rivenbark moved to adopt the Agenda. Mr. Hearne seconded the motion, and the Agenda was adopted unanimously. Oaths of Office for New Authority Members: Ms. Pope administered the Oath of Office to Ms. Wolf, Commissioner Catlin, and Commissioner Berger. Mr. Renzaglia welcomed the new members to the Authority. Approval of Minutes of December 8, 2010, Meeting: Mr. Brown moved to approve the Minutes of the December 8, 2010, meeting. Mr. Smith seconded the motion, subject to a correction on Page 3 regarding the motion to approve the Consent Agenda. The corrected Minutes were approved unanimously. Presentations: Mr. Renzaglia introduced Ms. Bernita W. Demery, CPA and MBA, Director of Financial Services for the City of Greenville, North Carolina. On behalf of the Government Finance Officers Association of the United States and Canada, Ms. Demery presented the Authority with CFPUA JANUARY 12, 2011, MEETING DRAFT OF MINUTES FOR REVIEW Page 2 Comprehensive Annual Financial Report for the Fiscal Year Ending June 30, 2009. Ms. Spivey and Mr. Renzaglia accept the Award, and Ms. Spivey thanked Ms. McLawhon, Ms. Hoggard, and all Accounting staff for making the award possible. Mr. Renzaglia introduced Ms. Jennifer M. Caslin, Wilmington Branch Development Manager for the Food Bank of Central and Eastern North Carolina. Ms. Caslin presented the Authority with a certificate recognizing its partnership in the 2010 Food Drive. 2010 was the second year the Authority participated in the Food Drive. The contribution of 602 pounds was almost double the amount donated in 2009. Mr. Renzaglia and Ms. Ricks accepted the award on behalf of the Authority. Mr. Renzaglia thanked Ms. Ricks for spearheading the food drive and thanked all employees for their participation and generosity. Public Comment: Mr. tiered rates. A copy of his presentation is attached hereto and incorporated by reference. Consent Agenda: Mr. Renzaglia presented the Consent Agenda, as follows: (1)Authorization for the Chairman to execute an Interlocal Agreement between the Authority and the City of Wilmington relating to asphalt restoration for the Northeast Interceptor (NEI) Force Main Contract 1A project (no budget impact anticipated). (2)Authorization for the CEO to execute a Construction Contract with M.B. Kahn Construction Company, Inc., for the Country Haven Pump Station Phase II improvements (cost of $314,413, provided in the CIP). (3)Authorization for the CEO to execute an amendment to the Contract with IBM for Professional Services for support of IBM Maximo implementation (cost of $73,100, provided in the CIP). Mr. Rivenbark stated that he wished to remove Item (2), Country Haven Pump Station Phase II contract, for discussion. Mr. Catlin asked for clarification on Item (3), the IBM Maximo contract. CFPUA JANUARY 12, 2011, MEETING DRAFT OF MINUTES FOR REVIEW Page 3 Mr. Smith moved to approve Consent Agenda Items (1) and (3). Mr. Rivenbark seconded the motion, and Items (1) and (3) were passed unanimously. New Business, Administrative Reports. Engineering: Mr. Styers introduced two members of the Engineering staff, and the Authority recognized both for recent achievements. Jonathan Ham, Project Engineer, was recognized by the Professional Engineers of North Carolina for outstanding ethics in the engineering profession. Christene Pyne Mitchell, Project Manager, has obtained her Professional Engineering certification. Ogden Interceptor. Mr. Styers reported that the gravity main has been completed and is in use with no bypass pumping along the interceptor. Site work continues. Recommendation for Authorization for the CEO to execute Contract Amendment Number 14 with McKim & Creed for Professional Services associated with the closeout of the Northside Wastewater Treatment Plant Upgrade and Expansion and the installation of the Northside Effluent Force Main. Phase 1 of the Northside Upgrade and Expansion is complete, with an interim capacity upgrade of 10 million gallons per day. The recommended contract amendment is for construction administration, supervision, and observation services for the installation of the Effluent Force Main, which is necessary for the plant to be permitted for 16 million gallons per day. A copy of the Engineering powerpoint presentation for this item is attached hereto and incorporated by reference. route through the Love Grove community, negotiations with CSX regarding the railroad right of way, and why the Authority would discharge into the Cape Fear River rather than into Smith Creek. Mr. Catlin requested cost data regarding the force main alignment and alternatives. Mr. Sparks urged care at the entrance to the Love Grove community and stated that the City needs a second access to that neighborhood. Ms. Miles answered questions regarding legal liabilities. Mr. Sparks moved to authorize the CEO to execute Contract Amendment 14 with McKim & Creed for Professional Services associated with Northside and the Effluent Force Main. Mr. Rivenbark seconded the motion, and it passed unanimously. CFPUA JANUARY 12, 2011, MEETING DRAFT OF MINUTES FOR REVIEW Page 4 Authorization for the CEO to execute a Construction Contract with M.B. Kahn Construction Company, Inc., for the Country Haven Pump Station Phase II Improvements (Item 2 from the Consent Agenda). The Country Haven Pump Station is over capacity, and the recommended work will increase its capacity from 473,000 to 686,000 gallons per day. In 2009, the Authority entered into a cost-sharing agreement with ACI-Pine Ridge, LLC, under which ACI-Pine Ridge will fund $80,625 of the construction cost and receive 70,000 gallons per day of the capacity. Mr. Rivenbark stated that there was land in the northern part of the County that could not presently be developed and questioned if the planned upgrade would be sufficient for future growth. Mr. Styers reported that the upgrade would provide an additional 217,000 gallons per day. Further upgrades can be accomplished after a new force main is built between the Marsh Oaks and Bayshore. Mr. Smith moved to authorize the CEO to execute the construction contract with M.B. Kahn Construction for the Country Haven Pump Station Phase II Improvements. Mr. Rivenbark seconded the motion, and it passed unanimously. Environmental and Safety Management: Ms. Eckert presented the Environment and Safety report. There were two lost time accidents in November and none in December. Staff continues to audit all incidents for compliance and prevention. There was a 140 gallon Sanitary Sewer Overflow in November. There are no current. compliance issues at the water or wastewater plants. Ms. Eckert and Mr. Richardson answered clarification questions from Authority members. Mr. Catlin requested that he be excused from the meeting due to a scheduling conflict. He stated that he would return as soon as possible. Mr. Rivenbark moved to excuse Mr. Catlin. Mr. Sparks seconded the motion, and it passed unanimously. Mr. Catlin was excused at 10:15 a.m. Public Relations: Ms. Ricks reported that the United Way has $6,000 towards its goal of $10,000 for the Customer Assistance Program. Authority employees have donated $3,000, and the United Way has contributed $3,000. Customers may have a recurring payment established as part of their regular bills or can make a one-time donation. There will be information regarding the program on the Authority website. Ms. Ricks anticipates the program being effective in April. CFPUA JANUARY 12, 2011, MEETING DRAFT OF MINUTES FOR REVIEW Page 5 A report on water main breaks and sewer system repairs during the time period between December 27 31, 2010, was distributed and reviewed. A copy of the report is attached hereto and incorporated by reference. Mr. Renzaglia shared favorable comments he had received from response to the breaks. Mr. Berger volunteered to serve on the Board Public Relations Committee. Attorney: Ms. Miles reported that she would be scheduling ethics training for the Board. She hoped to have a report on the Environmental Protection Agency at the February Authority meeting. Chief Executive Officer: Mr. Jordan thanked crews for their dedication and hard work responding to line breaks during extreme cold and over holidays. Mr. Jordan provided an update on issues raised by Ms. Bell at the December Authority meeting. The Authority recessed at 10:35 a.m. and reconvened at 10:50 a.m. A quorum was present. Committee Reports. Long Range Planning: Mr. Quinn welcomed Ms. Wolf and Mr. Berger to the Long Range Planning Committee and direction. Mr. Jordan stated that the IBM Maximo contract that was on the Consent Agenda was for implementation as well as software. The item had been reviewed by the Long Range Committee. Mr. Styers reported that the Committee met on January 5, 2011, and reviewed the following items: IBM Maximo Implementation. Ms. Gallinaro and staff provided an update on Maximo (asset management) implementation and supported their recommendation for a contract amendment with IBM. CFPUA JANUARY 12, 2011, MEETING DRAFT OF MINUTES FOR REVIEW Page 6 Mandatory Connection Deferral Policy. Staff presented the current policy for deferral and a proposed policy revision that would be in effect system-wide and would allow more time for connection and make deferral easier to obtain. Committee members expressed continued concern about financial hardships and asked staff to further refine the policy and bring it to the Finance Committee in February. reported that mandatory connection was an expensive process, and the Committee had asked staff to look into further types of assistance to customers. Mr. Rivenbark expressed concern about the financial hardship mandatory connections could cause for customers. Ms. Miles added that cities and counties could provide assistance in ways that an authority cannot by statute. Renzaglia requested that a recommendation regarding mandatory connection and the deferral policy come to the full Authority by April 2011. Fire Hydrant Maintenance. Ms. Miles reported that the Interlocal Agreement forming the Authority is unclear about responsibility for fire hydrants, and the City and County attorneys have advised her that they will look into the matter. Mr. Renzaglia requested a recommendation regarding fire hydrants for the February 2011 meeting. Mr. Sparks requested that he be excused from the meeting. Mr. Rivenbark moved to excuse Mr. Sparks. Mr. Smith seconded the motion, and it passed unanimously. Mr. Sparks left at 11:10 a.m. A quorum remained. Finance Committee: Mr. Smith stated that, when he accepted the position as Treasurer, Ms. Spivey advised him that that problem, and the Authority is now has a stronger financial position and better able to issue bonds in the future. Country Haven Pump Station and Force Main Design Services Contract. The Committee Station. CFPUA JANUARY 12, 2011, MEETING DRAFT OF MINUTES FOR REVIEW Page 7 December Financial Report. The Authority has $76,000,000 in current assets, which includes $47,400,000 in unrestricted cash. Net receivables are $9,000,000. There is approximately $527,000 in payment plans, which is $55,000 less than November. With 50 percent of the fiscal year complete, the Authority has $31,700,000 in revenues, representing 54.02 percent of budget, compared to 46.4 percent for the same time frame last year. Expenditures are $14,100,000, which is 37.38 percent of budget, compared to 50.79 percent last year. Revenues are $8,400,000 over expenditures. A substantial debt payment is due this month. The Capital Projects budget is $66,000,000, all of which is committed to projects. Water Distribution. Water distribution was slightly higher than in December of 2009. Customer Service Update. Customer service handled 9,302 phone calls in December, with an average answer time of 1.23 minutes. The Committee received information regarding payment types. Mr. Berger requested data regarding the cost to the Authority for each type of payment. Rate Model Study. The consultant is at work and will present a new model to the Finance Committee before presentation to the full Board. A summary of the methodology used was outlined in the Agenda material. Proposed Budget Calendar. The Committee had for the FY2012 Budget process. Ms. Spivey presented the calendar to the full Authority. Board members directed staff to plan to televise the public workshop and public hearing on rates. The workshop would be during the week of February 21 and the hearing the evening of March 9. Rates are anticipated to be adopted at the April 13 meeting, and the FY2012 budget to be approved at the June 8 meeting. Automated Meter Reading. The Committee received information regarding automated meter reading, which would provide for monthly billing. The item will be addressed in the afternoon CIP workshop. Old Business. There was no old business. Closing Comments. Mr. Renzaglia reminded Authority members of the 2:00 p.m. CIP workshop at the Authority Administrative offices. Photographs of Authority members will be taken prior to the workshop. CFPUA JANUARY 12, 2011, MEETING DRAFT OF MINUTES FOR REVIEW Page 8 Mr. Smith moved to adjourn. Mr. Rivenbark seconded the motion, and it passed unanimously. The Authority adjourned at 11:45 a.m. The next regular meeting of the Cape Fear Public Utility Authority will be Wednesday, February 9, 2011, at 9:00 a.m. in the Lucie Harrell Conference Room, New Hanover County Administration Building, 230 Government Center Drive, Wilmington, North Carolina. Respectfully submitted, Donna S. Pope Clerk to the Board CFPUA JANUARY 12, 2011, MEETING DRAFT OF MINUTES FOR REVIEW Page 9