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HomeMy WebLinkAboutCFPUA 05 11 2011 Regular meeting CAPE FEAR PUBLIC UTILITY AUTHORITY REGULAR MEETING MAY 11, 2011 Members Present: Gene Renzaglia, Chairman Michael Brown, Secretary Burrows Smith, Treasurer Patricia Kusek Cindee Wolf Jim Quinn Brian Berger, Commissioner Rick Catlin, Commissioner Charlie Rivenbark, Councilman Ronald Sparks, Councilman Member Absent: J.C. Hearne, II, Vice-Chairman Staff Present: Matt Jordan, CEO Nancy Gallinaro, COO Cheryl Spivey, CFO Karen Durso, Assistant to the CEO Beth Eckert, Director of Environment and Safety Carey Disney Ricks, Chief Communications Officer Frank Styers, Director of Engineering Nancy Johnson, Customer Service Director and Deputy CFO Tom Morgan, H.R. Director Jim Flechtner, Engineering Manager Christene Pyne Mitchell, Engineering Manager Jamison Fair, Project Manager Graham Fripp, Property Acquisition Specialist Julie McLawhon, Finance & Accounting Manager Melinda Hoggard, Accounting Manager Betty Redmond, Customer Service Supervisor Loria Potter, Billing & Collections Supervisor Mike Richardson, Water Treatment Superintendent Ken Vogt, Wastewater Treatment Superintendent Jim Craig, Utility Services Superintendent CFPUA 5.11.2011 Regular Meeting Page 1 Roger Colee, Chief Wastewater Treatment Operator Robert Daughtry, Utility Collection Systems Manager Jim Tayson, Water Distribution Supervisor Milton Vann, Wastewater Treatment Supervisor Donna S. Pope, Clerk to the Board Attorney Present: Linda A. Miles, the Miles Firm, PLLC Guests Present: Jim Iannucci, New Hanover County 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. Mr. Berger arrived at 9:10 a.m. Adoption of the Agenda: Mr. Smith moved to adopt the Agenda. Ms. Wolf seconded the motion, and it passed unanimously. Approval of Minutes: Mr. Brown presented the minutes from the April 13, 2011, Regular Meeting and asked for comments or corrections. Mr. Rivenbark noted a typographical error on Page 8. Mr. Brown moved to approve the minutes with the correction. Mr. Rivenbark seconded the motion, and it passed unanimously. Mr. Brown presented the minutes from the April 27, 2011, Special Meeting and asked for comments or corrections. Mr. Smith noted a typographical error on Page 3. Mr. Brown moved to approve the minutes with the correction. Mr. Smith seconded the motion, and it passed unanimously. Public Comment: CFPUA 5.11.2011 Regular Meeting Page 2 New Business, Administrative Reports. Chief Financial Officer Report Recommended Budget for Fiscal Year 2012: Mr. Jordan introduced the budget presentation by stating that expenditures had been cut by approximately $300,000 and that $500,000 in additional costs had been absorbed. The purpose of the presentation was to provide an overview and answer questions from Authority members. The recommended FY2012 Budget is incorporated herein by reference. A public hearing and budget work session will be held on May 18 in the Authority offices, and Board members were encouraged to evaluate the information provided in the overview and request additional data as needed. Director and Deputy Finance Officer. Ms. Johnson stated that she was excited to join the Authority. Ms. Spivey presented an overview of the recommended budget, which had been provided to Authority members with their Agenda. The Operating Fund appropriations and revenues equal $76,844.761. System Development Charges equal $2,374,000, and the Capital Projects Fund equals $28,020,108. The budget notebook included the planned and projected water and wastewater capital projects for Fiscal Year 2012 through Fiscal Year 2021. A bond sale is anticipated for Fiscal Year 2012. Ms. Spivey answered questions regarding debt service requirements, debt coverage, reserves, and bond market expectations. Authority members briefly discussed the fact that the Authority was entering its fourth year without any pay adjustments for employees. No adjustments are provided in the recommended budget. Each department director presented a brief overview of their budgets, answered questions from Authority members, and noted items for which Authority members requested more data. Following the lengthy budget review and discussion, Mr. Renzaglia thanked Ms. Spivey and staff for their work and sought direction from the Board regarding the remainder of the Agenda. The Board consensus was to defer all items that did not require immediate attention until a later meeting. Committee reports and the April financial data were available in the Agenda for Board members to read and review. CFPUA 5.11.2011 Regular Meeting Page 3 Mr. Jordan reported that there were some Agenda items that needed to be addressed before adjourning the meeting. Mr. Quinn stated that he had one item to bring forward from the Long Range Planning Committee. Ms. Gallinaro presented two Operations items requiring Authority action, as follows: Authorization for the Chief Executive Officer to approve a change order with Skinner Smith Construction Inc., for additional emergency work at West Lake Shore Drive, at a budget impact of $47,393. Mr. Smith asked to recused from the discussion and vote because he was the former owner of Skinner-Smith Construction, Inc. Mr. Rivenbark moved to recuse Mr. Smith. Ms. Wolfe seconded the motion, and it passed unanimously. Mr. Smith was recused and left the meeting. Ms. Gallinaro and Mr. Craig presented this item and answered clarification questions from Authority members regarding the nature and scope of the required work. Mr. Rivenbark moved to authorize the CEO to approve the change order with Skinner Smith Construction, Inc. Mr. Sparks seconded the motion, and it passed unanimously. Mr. Smith rejoined the meeting. Relocation of Utility Services from City of Wilmington River Road Operations Center to 2310 rd North 23 Street. Ms. Gallinaro presented this item, and Mr. Fripp was available to answer clarification questions. rd Mr. Catlin moved to authorize the relocation of a portion Utility Services to 2310 North 23 Street. Ms. Kusek seconded the motion. Ms. Kusek, Ms. Wolf, and Messrs. Renzaglia, Rivenbark, Brown, Smith, Berger, and Catlin voted in favor of the motion. Messrs. Sparks and Quinn were opposed. Motion carried, eight to two. Mr. Quinn presented one item for Authority input or direction, as follows: Long Range Planning Committee discussion: automated meter reading/monthly billing conversion. Mr. Quinn reported that the Committee had not completed its exploration of automated meter reading and monthly billing. The Committee had identified three options, one of which would represent a capital improvement and could be considered as part of a Bond issuance. The options were: CFPUA 5.11.2011 Regular Meeting Page 4 (1) Full automation of meters and reading, which would be an initial capital outlay of $8.3 million, creating an annual debt service of $600.000, equal to a 1 percent rate increase. Full automation is estimated at a total cost of $15 million; (2)Monthly meter reading and billing with no new equipment or meters, with additional personnel costs estimated at $950,000; and (3) 30 days, with the balance being due in 60 days, costs not determined. Mr. Quinn reported that the three methods could possibly be combined, with full automation being implemented over ten years. He requested feedback from Board members. Ms. Kusek asked if an incentive could be provided for paying within 30 days. Mr. Sparks stated that the understood and agreed with the need for monthly billing but was hesitate to select a method without more data. He and Mr. Berger wished to wait before making a decision. Mr. Smith stated that the topic could be discussed in more detail. Mr. Renzaglia supported moving forward with monthly billing. Mr. Catlin suggested revisiting the Capital Improvement Plan to reprioritize and perhaps move automation of meters forward. Mr. Rivenbark stated he would want to know how rates would be affected. Mr. Quinn concluded that he would assume the Board believed monthly billing to be a high priority and the Long Range Committee would continue to explore the subject and methodologies. Mr. Jordan reminded the Board that the Budget vote in June would include the CIP budget and that any additional monies borrowed would affect the FY2012 rates. Ms. Spivey presented two Finance items for Authority information and direction: Customer Service: Staff recommended remaining in the Customer Service location in the City of Wilmington building at 305 Chestnut Street. recommendation to maintain a customer service facility at 305 Chestnut Street. Mr. Quinn seconded the motion, and it passed unanimously. CFPUA 5.11.2011 Regular Meeting Page 5 Fleet Maintenance for Medium and Heavy Duty trucks: Staff recommended qualifying three vendors for repairs to medium-duty vehicles, as follows: T&L Truck Repair, Fairway Ford, and Hughes Brothers. Staff recommended two vendors for heavy-duty vehicle repair, those being Ms. Vosnock was available to answer clarification questions. Several Board members expressed concern about the use of several vendors. Ms. Wolf suggested that the Authority might want to consider employing a fleet manager. The Board did not vote on this item. Closing Comments: Mr. Renzaglia thanked everyone for their time. Mr. Jordan thanked Ms. Durso for her work in preparing the Agenda and the Budget notebook. He reminded Board members that there is a tour of the Sweeney Water Treatment Plant on May 25 and requested that they let Ms. Ricks know if they would be able to attend. There was no further business to come before the Authority. Mr. Sparks moved to adjourn. Mr. Smith seconded the motion, and the motion passed unanimously. The meeting adjourned at 12:45 p.m. The next regular meeting of the Cape Fear Public Utility Authority is Wednesday, June 8, at 9:00 a.m. in the Lucie Harrell Conference Room, New Hanover County Administration Building, 230 Government Center Drive. Respectfully submitted, Donna S. Pope Clerk to the Board CFPUA 5.11.2011 Regular Meeting Page 6