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HomeMy WebLinkAboutCFPUA 09 14 2011 Regular Meeting CAPE FEAR PUBLIC UTILITY AUTORITY REGULAR MEETING SEPTEMBER 14, 2011 Members Present: Jim Quinn, Chairman Mike Brown, Vice-Chairman Pat Kusek, Secretary Burrows Smith, Treasurer Gene Renzaglia Cindee Wolf J.C. Hearne, II Rick Catlin, Commissioner Brian Berger, Commissioner Ron Sparks, Councilman Charlie Rivenbark, Councilman Staff Present: Matt Jordan, CEO Cheryl Spivey, CFO Mike Richardson, Interim COO Karen Durso, Assistant to CEO Frank Styers, Engineering Director Beth Eckert, Environment & Safety Director Carey Disney Ricks, CCO Tom Morgan, H.R. Director Nancy Johnson, Customer Service Director Ken Vogt, Wastewater Treatment Superintendent Julia Vosnock, Procurement Manager Christine Neal, Program Manager Christene Mitchell, Engineering Manager Jim Craig, Utility Services Superintendent Steve Mongeau, Asset Management Program Manager Brad Jones, Water Treatment Supervisor John Malone, Water Treatment Supervisor Allan Southerland, Water Control Operator Richard Hopman, Utility Maintenance Foreman Bruce Edwards, Water Control Operator Larry Redenbaugh, Facilities Specialist Mike Grantham, Wastewater Treatment Operator John White, Wastewater Treatment Operator Kevin Boyett, Pump Station Supervisor CFPUA 9.12.2011 MINUTES Page 1 Andrew Jones, Warehouse Manager Joel Bing, Environmental Program Manager Donna S. Pope, Clerk Attorney Present: Linda A. Miles, the Miles Firm, PLLC Guests Present: Sterling Cheatham, City Manager Jim Iannucci, NHC Engineering Director Lawless Bean, City of Wilmington Diane Williams, N.C. Division of Water Quality J.D. Solomon, CH2MHill Kevin Mauer, Wilmington Star News Call to Order, Opening Comments, and Determination of a Quorum: Mr. Quinn called the meeting to order at 9:00 a.m. and declared a quorum present. Mr. Hearne joined the meeting at 10:15 a.m. Mr. Quinn introduced himself as Chairman and read an excerpt from the February 8, 2007, recommendations of the Joint City/County Water & Sewer Advisory Committee wherein the Advisory Committee recognized that the City of Wilmington and New Hanover County faced significant future capital investments in their water and sewer systems that would total over $400 million in the next ten to fifteen years. Mr. Quinn stated that his goals as Chairman included a continued commitment to capital improvements, keeping the water and environment clean, improving the understanding of the Authority, and continuing relationships with the City of Wilmington and New Hanover, our parent organizations. Mr. Quinn recognized City and County staff in attendance at the meeting. Adoption of Agenda: unanimously. Approval of Minutes: Ms. Kusek presented the minutes of the August 10, 2011, Authority meeting. There were no corrections to the minutes. Mr. Sparks moved to approve the minutes. Ms. Kusek seconded the motion, and it passed unanimously. CFPUA 9.12.2011 MINUTES Page 2 Presentations: . Resolution Recognizing Staff for Service during Hurricane IreneMr. Quinn presented a Resolution Recognizing Cape Fear Public Utility Authority staff for their outstanding service during Hurricane Irene, August 26 and 27, 2011. Mr. Catlin moved to adopt the Resolution. Mr. Smith seconded the motion, and it passed unanimously. Messrs. Quinn and Jordan thanked employees and presented copies of the Resolution to the following Department representatives: Allan Southerland, on behalf of the Sweeney Water Treatment Plant; Rich Hopman, on behalf of Water Treatment, Maintenance; Bruce Edwards, on behalf of Water Treatment, Groundwater; Larry Redenbaugh, on behalf of Wastewater Treatment Maintenance; Mike Grantham, on behalf of the Northside Wastewater Treatment Plant; John White, on behalf of the Southside Wastewater Treatment Plant; Kevin Boyett, on behalf of Utility Services, Pump Stations and Collections; Andrew Jones, on behalf of Utility Services, Construction; Joel Bing, on behalf of Environment & Safety Management; and Christene Mitchell, on behalf of the Engineering Department, whose members worked at the New Hanover County Emergency Operations Center during the storm. Resolution Recognizing Gene Renzaglia, Authority Chairman from July 2008 June 2011. Mr. Sparks moved to adopt a Resolution recognizing Mr. Renzaglia and thanking him for his dedication to the Authority and the citizens of the City of Wilmington and New Hanover County, his support of the founding principles of the Authority, his diligence and hard work in creating the organizational chart, hiring the management team, serving on Authority Committees, and in guiding the Authority during his tenure as Chairman. Mr. Smith seconded the motion, and it passed unanimously. Mr. Quinn presented the Resolution and a gavel plaque to Mr. Renzaglia to commemorate his service as Authority Chairman. Mr. Quinn stated that he served on Council when the Authority , recognizing his technical expertisein the engineering field. He stated that the Authority and the community owe Mr. Renzaglia a debt of gratitude for his service and dedication. Mr. Renzaglia continues to serve as an Authority member. CFPUA 9.12.2011 MINUTES Page 3 Public Comments: There were no speakers for Public Comment. Consent Agenda: Authorization for Procurement to advertise and sell items on GovDeals and donate those items to local non-profits if those items are not sold on GovDeals. Mr. Smith moved to approve the Authorization as recommended by staff. Ms. Kusek seconded the motion, and it passed unanimously. New Business, Administrative Reports: Operations Report. Steve Mongeau, Program Manager for Asset Management, provided a progress report on Asset Management and an overview of results expected from Phase II of the program implementation. Asset Management addresses key areas such as prioritization of investment and activities, work orders, integration of merged systems, training, succession planning, integrating initiatives such as the Water Resources Master Plan and Strategic Plan, growth, long range planning, and project scheduling. ns have been brought on line with the Maximo (CMMS) Routine maintenance can be scheduled using Maximo, and labor, material, and work history can be tracked with the system. The second phase of Asset Management implementation will expand the use of the Maximo system through the Authority, development a formal maintenance program based on maintenance task analysis, and expand business case evaluations and risk assessment of infrastructure. Much of the work during Phase II will be done by Authority employees, with less utilization of consulting services. Mr. Mongeau answered clarification questions from Authority members and gave examples of instances wherein Asset Management had saved time and money. Authorization for the CEO to execute a contract amendment with CH2M Hill for professional services to support Phase II Asset Management Implementation. Staff recommended the approval of the contract amendment, in the amount of $490,000, included in the FY2012 Budget. Mr. Smith moved to authorize the contract amendment. Mr. Rivenbark seconded the motion, and it passed unanimously. Environment and Safety Management Report and Annual Wastewater Report for the period of July 1, 2010, through June 30, 2011. Ms. Eckert presented the Annual Wastewater Report for the Fiscal Year ending June 30, 2011. The Report is posted on the Authority website and available for distribution at several locations. The Northside and Southside Wastewater CFPUA 9.12.2011 MINUTES Page 4 Treatment Plants had no violations during the year. The Walnut Hills package plant had three biochemical oxygen violations. The Northside Plant now receives septage for treatment. The plants continue to operate at an optimal level and to protect the environment. There were 23 Sanitary Sewer Overflows (SSOs) during the year. Ten of the SSOs occurred during Tropical Storm Nicole with heavy rainfall; six SSOs were caused by debris and grease; six were caused by pipe failures, and one was caused by a bypass pump failure. -party certification. Authority staff members continue education and outreach efforts so that residents will know what they can do to help prevent sewer overflows. Efforts include the distribution of fat trappers for kitchen grease and public service announcements explaining how opening manhole covers during rainstorms can cause overflows in the system. Ms. Eckert thanked staff members for their efforts and commitment to protecting the environment. Public Relations Report. Ms. Ricks reported on the Board job shadowing initiative and showed photos of Authority members working with staff in Customer Service, Meter Reading, Engineering Project Management, SCADA at the Sweeney plant, ESM Compliance, and plant maintenance at the Walnut Hills wastewater package plant. Messrs. Rivenbark, Catlin, Brown, Quinn, and Hearne commented on the departments they had visited and praised employees for their knowledge and commitment. Ms. Kusek added that she had the privilege of visiting several departments and stated that the Authority employed some of the finest people she had met in her entire career. Ms. Eckert answered questions from Board members about pre-treatment by corporate customers such as Corning. Mr. Hearne arrived at 10:15 a.m. Mr. Quinn adjourned the meeting for a break at 10:20 a.m. The Authority reconvened at 10:30 a.m. Ms. Miles stated that she would have two items to discuss in closed session. Resolution relative to the Disposition of Claims and Judgments sought or entered against Authority members (Board), Authority officers or employees. Ms. Miles recommended the adoption of a Resolution protecting Board members, officers, and employees against claims in civil court. The Resolution would not include legal actions arising from criminal activities, malice, fraud, or corruption. Mr. Brown moved to adopt the Resolution as recommended by legal counsel. Mr. Rivenbark seconded the motion, and it passed unanimously. CFPUA 9.12.2011 MINUTES Page 5 CEO Report. Mr. Jordan presented the Environmental & Safety Management monthly report and answered clarification questions from Authority members. Customer Service Feedback Report. Mr. Jordan reported that Ms. Durso had volunteered and developed a customer feedback procedure and requested that she update the Board on results. Ms. Durso reported that she had a great interest in customer service, causing her to designthe program and recommend it to Mr. Jordan. The Efficiency and Competitiveness Study also supported the use of a customer service feedback program. Ms. Durso works closely with Customer Service and Utility Services and makes phone calls to customers after a work order is complete. She has received very positive responses from customers and has recommended some minor adjustments to customer service procedures as a result. She will continue to conduct customer service feedback calls and report to Mr. Jordan, with updates as requested to the Board. New Business, Committee Reports: Finance Committee. Bond Order Authorizing the Issuance of Not to Exceed $52,200,000 Water & Sewer System Revenue Bonds of the Cape Fear Public Utility Authority. Mr. Smith referred Authority members to the Bond information and supporting documentation in their Agendas. The Committee supported the adoption of a Bond Order for the issuance of water and sewer revenue bonds not to exceed $52,200,000. Ms. Spivey reviewed the Bond documents. The Local Government Commission approved the bond sale on September 13. Ms. Spivey and Messrs. Smith and Jordan had met with rating agencies earlier in the week and expect to receive the ratings within the next week. The Bonds should be sold on September 28, 2011, and funds received on or about October 13, 2011. A five percent rate increase may be needed in Fiscal Year 2013 to support the debt service on the Bonds. The increase would be a one-time increase to meet this need. Additional increases in future years may be needed to continue the Capital Improvements Program. The Board reviewed the capital projects listed for the Bond sale. Ms. Spivey and Messrs. Smith and Jordan answered clarification questions from Authority members. Mr. Smith moved to approve the Bond Order authorizing the issuance of water and sewer revenue bonds in an amount not to exceed $52,200,000. .Mr. Renzaglia seconded the motion. Following discussion and further clarification questions, Mr. Quinn called the question, and theBond Order passed unanimously. Resolution Designating TD Bank as an Official Depository. The Finance Committee recommended BB&T and TD as official depositories for Bond proceeds. The Authority already utilizes BB&T. Staff requested official designation of TD Bank as a depository. Mr. Smith moved to adopt the Resolution designating TD Bank as an official depository. Mr. Catlin seconded the motion. CFPUA 9.12.2011 MINUTES Page 6 Ms. Spivey answered clarification questions from Authority members regarding deposit security, liquidity, and yield on investments. Mr. Quinn called the question, and it the Resolution was unanimously adopted. August Financial Reports: The August financial data was included in the Agenda. There were no questions from the Board regarding the monthly statements. Long Range Planning Committee. Mr. Quinn reported that Ms. Wolf will chair the Committee beginning in September. Monthly Billing Update: Ms. Johnson provided an update on monthly billing. A poll of customers who call the Authority, walk-er feedback calls has been conducted. There is also an survey on the Authority website for customers to indicate their preference for monthly or bimonthly billing. Results show that 52 percent of customers surveyed prefer the continuation of bimonthly billing, and 44 percent would like monthly billing. The remaining responses did not indicate a preference. Mr. Renzaglia asked if the survey questions addressed the cost of converting to monthly billing. Ms. Johnson responded that some customers had asked about costs, and Ms. Ricks added that customer Facebook comments asked about costs. Mr. Renzaglia asked if staff had determined what the costs would be to convert. Mr. Quinn stated that staff had presented three estimates of costs but the estimates included costs for equipment purchases and did not represent the cost of monthly billing alone. The Long Range Planning Committee sought direction from the full Board regarding further exploration and the development of a monthly billing plan. Mr. Rivenbark observed that the survey results were not overwhelmingly in favor of monthly billing. Mr. Sparks believed additional information was needed before a decision could be made. Mr. Renzaglia asked Mr. Jordan if he had considered an approach to address monthly billing options. Mr. Jordan reported that two options exist: (1) hire more staff for accommodate meter reading and billing, keeping the current system in place; and (2) using more automation, which could be more efficient in the long run but would be a capital cost with debt service to support the expense. Mr. Jordan stated that costs need to be identified and isolated, and he recommended using the Asset Management Business Case Evaluation to study the questions. Mr. Smith supported proceeding with a study and analysis so that the Board could make an educated decision. Mr. Berger supported a side by side comparison of monthly versus bimonthly billing and every conceivable scenario. After further discussion and clarification questions, Mr. Sparks moved to endorse the Long Range Planning recommendation to direct the CEO to continue to develop a strategy and plan CFPUA 9.12.2011 MINUTES Page 7 and to determine the financial impacts associated with the implementation of monthly billing. Ms. Wolf seconded the motion, and it passed unanimously. Mr. Berger offered a second motion related to the monthly billing consideration. He moved to direct staff to conduct a side by side comparison and provide a report on all of the costs under different scenarios for monthly versus bi-monthly billing, and, if feasible, some on monthly and some on bi-monthly. He believed that information to be essential to making a decision. Ms. Kusek and Mr. Sparks stated that they believed that was the direction given to staff. Mr. Jordan stated that he understood the comparison and scenarios to be part of the direction and that he appreciated the clarification. Mr. Berger was satisfied with the clarification and withdrew his motion. Mr. Sparks advised the Chairman that he needed to leave the meeting and requested that he be excused. Mr. Brown moved to excuse Mr. Sparks. Ms. Kusek seconded the motion, and it passed unanimously. Mr. Sparks was excused and left the meeting at 11:30 a.m. Raw Water Pump Station. Mr. Styers reported that discussions continue with the Lower Cape needs for raw water. Lower Cape Fear is conducting its study and evaluation, which should be complete in 90-120 days. Growth Discussion. Discussions continue regarding planning with the City of Wilmington, New Hanover County, and Highway 421 Corridor stakeholders. The Authority Board will join in formulating a growth philosophy and policies. Kerr Avenue Water Line and Interconnections. Mr. Styers reported on the Kerr Avenue water line and its interconnection between Sweeney and the Nano-filtration Water Plant. The Some funding has been identified, and other funding strategies are being developed. Kirkland and Country Haven Pump Station. The Committee had reviewed and discussed capacity at the Kirkland/Country Haven pump station in the Northeastern portion of the County. Ms. Wolf added that she had an additional item to add to the next Long Range Planning Committee, as requested by Mr. Catlin. The Committee will discuss raw water storage at its September 22 meeting, in addition to other items already scheduled. Mr. Brown asked about the Nano Plant groundwater levels and sinkholes. Mr. Styers reported that staff if developing a white paper regarding aquifer management. Old Business: There was no old business and no further questions from Authority members. CFPUA 9.12.2011 MINUTES Page 8 Closed Session: Mr. Rivenbark moved to enter closed session to discuss personnel matters and to receive an update from legal counsel regarding the Environmental Protection Agency enforcement action. Mr. Berger seconded the motion, and it passed unanimously. The Authority entered closed session at 11:45 a.m. Ms. Miles, Ms. Pope, and Messrs. Jordan and Morgan remained in the meeting with the Board. Ms. Miles reported on the status of the EPA enforcement action. The Board received a report and gave direction to staff and legal counsel on a legal action related The Board briefly discussed evaluation procedures for employees reporting directly to the Board. Return to Open Session and Adjournment: Ms. Wolf moved to return to open session. Mr. Rivenbark seconded the motion, and it passed unanimously. The Authority returned to open session at 12:10 p.m. Ms. Wolf moved to adjourn. Ms. Kusek seconded the motion, and it passed unanimously. The Authority adjourned at 12:11 p.m. The next regular meeting of the Cape Fear Public Utility Authority will be Wednesday, October 12, 2011, in the Lucie Harrell Conference Room, 230 Government Center Drive, Wilmington, North Carolina. Respectfully submitted, Donna S. Pope Clerk to the Board CFPUA 9.12.2011 MINUTES Page 9