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HomeMy WebLinkAboutCFPUA 10 13 2010 CAPE FEAR PUBLIC UTILITY AUTHORITY OCTOBER 13, 2010 REGULAR MEETING Members Present: Gene Renzaglia, Chairman Jim Hunter, Vice-Chairman Michael Brown, Secretary Burrows Smith, Treasurer Bobby Greer, Commissioner Bill Caster, Commissioner Ron Sparks, Councilman Charlie Rivenbark, Councilman J.C. Hearne, II Jim Quinn Staff Present: Matt Jordan, CEO Karen Durso, Assistant to the CEO Cheryl Spivey, CFO Frank Styers, Engineering Director Martha Zeigler, Customer Service Director Tom Morgan, H.R. Director Beth Eckert, Safety & Engineering Director Carey Disney Ricks, PIO/Public Relations Julia Vosnock, Procurement Manager William Pinnix, Engineering Manager Jim Flechtner, Engineering Manager Kent Harrell, Senior Project Engineer Bernice Johnson, Project Manager Christene Mitchell, Project Manager Chris Bowling, Project Manager Craig Lundin, Project Manager Mike Richardson, Drinking Water Superintendent Ken Vogt, Wastewater Treatment Superintendent Attorney Present: Linda A. Miles, the Miles Firm, PLLC CFPUA OCTOBER 13, 2010 MINUTES 1 Guests Present: Les Basnight Michael Lee Ron Brown John Lennon Jeremy Blair Tyler Newman Evan Folds Opening Comments and Determination of a Quorum: Mr. Renzaglia announced that John Tunstall had resigned his position on the Authority Board due to business demands. Adoption of the Agenda: Mr. Renzaglia presented the agenda. Mr. Smith recommended moving Item (v) from the Engineering report, Chair Road Utility Infrastructure Agreement, to follow the related Ordinance revisions, and he asked to be recused from the Chair Road discussion and associated items. Mr. Smith also recommended changing Item (f) in the Finance Committee report to the first item reviewed in New Business, as Mr. Basnight from DeVere Construction was present. Mr. Sparks moved to recuse Mr. Smith from the Chair Road discussion and associated discussions and votes. Mr. Caster seconded the motion, and it passed unanimously. Mr. Smith moved to adopt the Agenda with the recommended changes in order. Mr. Sparks seconded the motion, and it passed unanimously. Approval of Minutes: Mr. Brown presented the minutes from the September 8 Authority meeting. Mr. Smith noted that a vote was incomplete on Page 6, and asked for clarification regarding the grandfathering language of the Irrigation Meter Ordinance revision. Mr. Renzaglia asked Ms. Miles to review that passage of the minutes and clarify as necessary. Mr. Smith asked for followup information regarding Clean Water applications from the September meeting, and Mr. Renzaglia stated that would be addressed later in this meeting. CFPUA OCTOBER 13, 2010 MINUTES 2 Mr. Smith moved to approve the minutes, as amended. Mr. Caster seconded the motion, and it passed unanimously. Public Comment: contract for the Loughlin (Northside) Wastewater Treatment Plant effluent force main. He by the Authority. Mr. Renzaglia asked that Mr. Basnight remain in the meeting so that Authority members might ask him clarification questions when the contract was considered. Mr. Folds spoke in opposition to water fluoridation. He advised that a local group called STOP FLUORIDE had been organized to address concerns regarding fluoride and that it was the be best spent on the national level and addressed to the American Water Works Association and incorporated by reference. Mr. Newman, of the Business Alliance for a Sound Economy, spoke in support of Item (e) on the Finance Committee report, a resolution to defer payment of SDCs on shell buildings. , referencing information provided to the Board by staff at the July meeting. He stated his belief that the current rate structure does not provide the lowest cost for essential water use or encourage conservation, both of which are stated goals of the Authority. A copy of Mr. reto and incorporated by reference. Consent Agenda: Mr. Renzaglia presented the Consent Agenda, as follows: 1. Authorization for the CEO to execute a contract with Synagro Central, LLC, for residual management services for an initial term of three years from January 1, 2011, to December 31, 2013, with options for two additional one-year renewal periods, at an annual cost of $915,153.00. 2.Authorization for the CEO to execute a construction contract for the Pump Station 34 Bar Screen Upgrade, at a budget impact of $353,500.00. 3.Authorization for the CEO to execute a construction contract for the Middle Sound Paving Project, at a budget impact of $1,871,447.60, funded through the Middle Sound Capital Improvement Project. CFPUA OCTOBER 13, 2010 MINUTES 3 Following clarification questions, Mr. Sparks moved to approve the Consent Agenda. Mr. Caster seconded the motion, and it passed unanimously. New Business: Authorization for the CEO to execute a construction contract for the Northside Wastewater Treatment Plant Effluent Force Main, at a budget impact of $4,407,430.00, provided in the Capital Improvements budget. Ms. Spivey presented this item to the Board. Ms. Miles and Engineering staff were available to answer questions. Staff recommended that the contract be awarded to State Utility Contractors, Inc. DeVere Construction Company, Inc., the lowest bidder, had appealed the contract award. Mr. Basnight from DeVere was available to answer questions. DeVere Construction and Triangle Grading & Paving, Inc., submitted the two lowest bids, but staff reported that those companies did not submit contractors names which were required as part of the bid package. Of particular importance was the subcontractor for directional drilling. Ms. Miles explained that North Carolina bid laws hold that a bidder may leave out things that do not affect his ability to deliver work but may not leave out items that could result in an unfair advantage to the contractor if the bid were awarded to him. Mr. Renzaglia asked Mr. Basnight to address the Board and answer any questions Authority ed that Triangle Grading & Paving was the third lowest bidder when the bids were read on the bid date. He stated that his company was fully licensed to do the entire project, including the directional bore drilling, and had not determined the appropriate subcontractors at the time of the bid submission. He added that his company had the appropriate insurance and surety guarantee. Mr. Hunter asked Mr. Basnight if his company intended to do the directional bore. Mr. Basnight responded that DeVere was qualified to do the drilling but would probably not do that work, if awarded the contract. Ms. Miles advised that the Board could throw out all of the bids and rebid the project or award the contract to the lowest responsible bidder. All subcontractors and a summary of their experience were items required in the bid. Ms. Miles stated that the law is clear that letting a bidder add something to a bid that gives him an advantage is in violation of the open bid laws of North Carolina. CFPUA OCTOBER 13, 2010 MINUTES 4 Staff answered clarification questions regarding what items were omitted from bids by other contractors. Mr. Brown of State Utility Contractors was also present to answer questions Mr. Quinn stated that the Finance Committee had reviewed this item and recommendation to award the bid to State Utility Contractors and that the Board has properly delegated the bid process to staff. He believed that staff properly followed the bid process and state law and supported the contract award recommended by staff. Mr. Sparks asked what it would cost to rebid and how much time that would take. Mr. Flechtner reported that the cost would be $5,000-10,000 and would take 60-90 days. Mr. Renzaglia read the staff recommendation into the record. Mr. Sparks moved to award the construction contract for the effluent force main to State Utility Contractors, Inc. Mr. Renzaglia seconded the motion. Mr. Hearne offered a substitute motion to rebid the project, and Mr. Brown seconded that motion. Staff answered clarification questions regarding rebidding the project. Because of advertising requirements and the process of receiving and evaluating bids, December is the earliest the project could be awarded. Mr. Greer asked if the money for the project was set aside, as he knew it had been planned for at least a year. Mr. Jordan verified that the money is in the Capital Improvements budget. Authority members discussed the possibility of setting a precedent in throwing out bids. Mr. Renzaglia called the question on the substitute motion to rebid the project. Messrs. Greer, Rivenbark, Smith, Hearne, and Brown voted in favor of the substitute motion. Messrs. Renzaglia, Hunter, Caster, Quinn, and Sparks voted against the motion. Motion failed because of a tie. Mr. Renzaglia called the question on the original motion to award the contract to State Utility Contractors, Inc. Messrs. Renzaglia, Hunter, Caster, Quinn, and Sparks voted in favor of the contract award. Messrs. Greer, Rivenbark, Smith, Hearne, and Brown voted against the motion. Motion failed because of a tie. The Authority recessed at 10:17 a.m. and reconvened at 10:30 a.m. Mr. Hunter moved to reconsider the contract award to State Utility Contractors, Inc. Mr. Hearne seconded the motion. CFPUA OCTOBER 13, 2010 MINUTES 5 Mr. Hunter stated that he wanted to send a clear message to all bidders that bids require complete information, as well as telling staff not to bring incomplete bids forward to the Board. Mr. Renzaglia called the question on the motion to reconsider, and it passed unanimously. Mr. Hunter moved to reject the staff recommendation to award the contract to State Utility Contractors, Inc., reject all bids, and rebid the project. Mr. Hearne seconded the motion. Mr. Smith offered a substitute motion to award the contract to State Utility Contractors, Inc., as recommended by staff. Mr. Quinn seconded the substitute motion. Following a brief discussion, Mr. Hearne called the question on the substitute motion. Messrs. Caster, Renzaglia, Quinn, and Sparks voted to award the contract to State Utility Contractors, Inc. Messrs. Greer, Hearne, Smith, Rivenbark, Brown, and Hunter voted against the substitute motion. Motion failed. and rebid the project. Messrs. Greer, Hearne, Smith, Rivenbark, Brown, and Hunter voted in favor of the motion. Messrs. Caster, Renzaglia, Quinn, and Sparks voted against the motion. Motion carried. or the effluent force main was rejected, all bids rejected, and the project will be rebid. Engineering Report: Having been recused from the Chair Road and related Ordinance, Policy, and Capacity Management discussions, Mr. Smith left the meeting. Revision to the Capacity Management Program and Appendix C of the Authority Ordinance to include a provision to allow the Authority to reserve sewer flow allocation for a Utility Infrastructure Reimbursement Agreement. Mr. Pinnix referred to the Capacity Management and Appendix C revisions that were distributed with the Agenda. There were three revisions, as follows: (1)The reservation of sewer flow not to exceed 24 months; (2) allocation; and (3)A reservation appeal process. Mr. Pinnix answered clarification questions from Authority members. CFPUA OCTOBER 13, 2010 MINUTES 6 Mr. Caster moved to adopt the recommended revisions to the Capacity Management Program and Appendix C. Mr. Hunter seconded the motion, and it passed unanimously. Revision to Paragraph 7 of the Policies for Contracts with Developers for Reimbursement for Water and/or Sewer Facilities and Lines Built Solely by the Developer. The recommended revision allows the Authority to extended the period of reimbursement for a extra year, should surplus funds be unavailable in any year. Ms. Miles answered clarification questions from Authority members. Mr. Hunter moved to adopt the recommended revision to Paragraph 7 of the Policies for contracts with developers for reimbursement for water and/or sewer facilities and lines built solely by the developer. Mr. Hearne seconded the motion, and it passed unanimously. Chair Road Utility Infrastructure Reimbursement Agreement. Mr. Renzaglia thanked staff members and Ms. Miles for their time, energy, and work on the agreement. He stated that there might have been a perception that staff had hindered the process agreement could be finalized. Mr. Renzaglia further stated that Board members had not received to vote on the agreement at this meeting or to delay it for one more month in order to review it at length. Mr. Greer informed the Board that the Chair Road development had been approved by New Hanover County and that the developers had returned to the County to ask to enlarge the project. He asked how that would affect the Authority. Mr. Pinnix responded that, if the increased density of the project was approved, it would be reflected on the Fast Track application submitted to the Department of Natural Resources. Authority staff members serve on the Review Committee and have input into such requests. Mr. Pinnix added that the Authority does not collect System Development Charges at the time of plan review and approval, but at the issuance of building permits. Mr. Pinnix explained the process through which the Authority and staff members had developed the Chair Road agreement with Chair Road principles and their attorney. A copy of his power point presentation is attached hereto and incorporated by reference. The Board adopted policies for utility infrastructure reimbursement in May 2010. The conceptual plan and preliminary engineering report for Chair Road were approved by the Authority on June 9, 2010. Board policies maintain that the agreement must be finalized within six months of the conceptual plan and preliminary engineering report approval, and this month CFPUA OCTOBER 13, 2010 MINUTES 7 marks the halfway point between the June approval and the end of the six-month period in December. Mr. Pinnix showed the Wastewater Master Plan for the area which the infrastructure would serve, located along Blue Clay road near I-140, and proceeding to the Loughlin (Northside) Wastewater Treatment Plant. The infrastructure proposed by Chair Road is consistent with the for the areas surrounding Blue Clay Road and Castle Hayne Road. The Authority would spend no money to build the infrastructure, which will include a ten-inch gravity force main to serve the undeveloped basin in the area. Chair Road Associates, LLC, would build the infrastructure and would be reimbursed through fees paid by future developers who connect to the line. The fee charged to subsequent developers would be called a Developer Capacity Fee, and there will be two formulas to determine that fee, based on the pump station and force main usage. The Authority policies regarding reimbursement agreements allow for a reimbursement period up to and including 20 years. The current agreement addresses sewer infrastructure only. An amendment will be developed in the future to address the installation of a sixteen-inch water main. The total estimated cost for water and sewer infrastructure that will be built by Chair Road Associates, LLC, is $6,294,220. Authority staff and Ms. Miles recommended that the Board authorize the Chief Executive Officer to execute the Utility Infrastructure Reimbursement Agreement with Chair Road Associates, LLC, subject to minor legal revisions and approval by the Local Government Commission. Following clarification questions, Mr. Sparks moved to authorize the CEO to execute the Utility Infrastructure Reimbursement Agreement with Chair Road Associates, LLC, subject to minor revisions and approval by the Local Government Commission. Mr. Hunter seconded the motion, and it passed unanimously. Mr. Smith rejoined the meeting. Revision to the Capacity Management Program and Appendix C to exempt sewer allocations to public agencies that install infrastructure for the public good from the rescission policy of the Capacity Management Program. Mr. Pinnix presented the recommended revision to the Capacity Management Program and Appendix C. Following clarification questions, Mr. Sparks moved to adopt the recommended revisions to the Capacity Management Program and Appendix to exempt sewer allocations to public agencies installing infrastructure for the public good from the rescission policy. Mr. Hunter seconded the motion, and it passed unanimously. CFPUA OCTOBER 13, 2010 MINUTES 8 Authorization for the CEO to execute a professional services contract for the Comprehensive Odor and Corrosion Control Program. Mr. Bowling distributed documentation for this item, with the recommendation that Siemens Water Technologies Corporation be awarded the contract for Odor and Corrosion Control, at a cost of $2,592,456 for a 26-month period. Following clarification questions, Mr. Sparks moved to authorize the CEO to execute the professional services contract for Comprehensive Odor and Corrosion Control with Siemens Water Technologies Corporation. Mr. Smith seconded the motion. Mr. Rivenbark suggested an amendment to Mr. the contract but to bring renewal options to the Board. Messrs. Sparks and Smith agreed with the amendment to his motion. The amended motion passed unanimously. Environmental and Safety Management Report: Ms. Eckert reported that there had been two minor vehicular accidents in September. There were nine sanitary sewer overflows related to the tropical storm. Plant performance and maintenance are in compliance. Amendments to the CFPUA Utility Ordinances Appendices A. and D. Ms. Eckert and Ms. Bradshaw presented several revisions to Appendices A and D of the Authority Ordinance. Following clarification questions from Authority members, Mr. Hunter moved to adopt the recommended revisions to Appendices A and D. Mr. Caster seconde the motion, and it passed unanimously. The Authority recessed at 12:15 p.m. Mr. Hearne left the meeting. The Authority reconvened at 12:25 p.m., with a quorum present. Ms. Miles advised that negotiations continue with the Environmental Protection Agency. CEO Report: Mr. Jordan reported on the rain event and operations during the tropical storm from September 26 through October 1, which delivered 22.5 inches of rain to the area. The wastewater plants CFPUA OCTOBER 13, 2010 MINUTES 9 performed very well, with one overflow of a bypass due to power failure at the Southside Wastewater Treatment Plant. There were ten reportable Sanitary Sewer Overflows and three pipe failures due to the storm. Causes included silt and grease buildup and hydraulic lockout at pump stations. The Ogden Interceptor had no problems during the storm. Employees worked around the clock during and after the storm to manage the system and respond to incidents. Mr. Jordan stated that the Authority was fortunate to have talented and dedicated employees. Public Relations Committee Report: Mr. Brown, Committee Chairman, reported that the Committee had discussed four suggestions to increase the Au Board. The Committee had reviewed the following possibilities: (1)Holding the November 10 Annual Meeting during evening hours, televising the meeting from the County Commissioner (recommendation); (2)Televising CIP workshops; (3)Ethics and conflict of interest training for Board members (recommendation); (4)General public relations initiatives, such as board appearances on radio talk shows. The Committee did not have funding to televise the CIP workshops. Ms. Pope presented costs for moving the November 10 meeting to the Commissioners chambers and having a live broadcast of the meeting. Following clarification questions, Mr. Brown moved to hold the November 10 meeting as an evening meeting, commencing at 6:00 p.m., in the on, and it passed unanimously. The Board directed Ms. Miles to develop ethics and conflict of interest training for the Board, to be conducted after new members are appointed following the Commissioner election and City of Wilmington appointment to the Authority. public and had also discussed the possibility of citizens being able to submit questions that could be addressed during the public comment segment of each Board meeting. CFPUA OCTOBER 13, 2010 MINUTES 10 Ms. Ricks reported that Authority staff was participating in a Green Day Expo on October 13. ney construction. Long Range Planning Committee: The Committee met on October 7 and reviewed the following items, some of which had already been discussed and voted upon during the Board meeting: (1)Chair Road Utility Infrastructure Reimbursement Agreement; (2)Capacity Management and Appendix C revisions; (3)Policy revision for contracts regarding infrastructure reimbursement; (4)Third party development infrastructure reimbursement for water staff presented proposed language for policies regarding this item and was directed to solicit feedback from the development community; (5)Project updates Ogden Interceptor work was delayed because of the tropical storm and heavy rains. A low-interest loan was approved by the state of North Carolina for the Burnt Mill Creek wastewater project; (6)Lease agreement with the City of Wilmington for the Operations Center on River Road Mr. Rivenbark planned to discuss this item at a Council retreat in late October; and (7)Northern school site pump station this pump station has allowed the pump station at the New Hanover County jail to be removed from service. The new school site pump station is a regional station and presently operates at nine percent capacity. There were questions from Board members regarding the loan for the Burnt Mill Creek wastewater project. The only additional costs associated with the loan would be administrative costs, largely involving report preparation, Davis-Bacon, and Buy American compliance. Mr. Sparks moved to accept the low-interest loan funds for the Burnt Mill Creek wastewater project. Mr. Brown seconded the motion, and it passed unanimously. Finance Committee: Ms. Spivey reviewed the September financial reports. Cash is up $3.5 million. There is no significant change in accounts receivables. The Authority collected $70,000 on payment plans. With one-quarter of the fiscal year past, revenues are at 26.61 percent and expenditures at 17.89 percent. CFPUA OCTOBER 13, 2010 MINUTES 11 Ms. Spivey presented a recommended revenue recovery contract with Penn Credit. Following clarification questions, Mr. Smith moved to approve the contract and the associated Budget Amendment, and Mr. Hunter seconded the motion. Following further clarification questions, Mr. Renzaglia called the question, and the motion passed unanimously. Ms. Spivey requested direction from the Board regarding the timing of final letters from the Authority for the accounts going to Penn Credit. The Board directed her to follow the Executive Committee recommendation of a 60-day letter. Shell Building Resolution. Ms. Miles presented a Resolution holding in abeyance the System Development Charges for shell buildings for which owners had obtained building permits from New Hanover County prior le revisions to the Authority Ordinance. Mr. Greer moved to adopt the resolution, and Mr. Rivenbark seconded the motion. Mr. Brown asked Ms. Miles if he needed to be recused from the vote, as the owner of a building affected by the resolution was a client of a company he worked for. Ms. Miles ascertained that Mr. Brown would not personally benefit from the resolution and advised that the did not need to seek recusal. Mr. Renzaglia called the question, and the resolution passed unanimously. Operating Fund Budget Amendment. Ms. Spivey presented a Budget Amendment to increase water and sewer charges by $50,000 each and appropriate $100,000 from other professional services for the revenue recovery contract with Penn Credit. Mr. Sparks moved to adopt the Budget Amendment. Mr. Smith seconded the motion, and it passed unanimously. Mr. Smith left at 1:10 p.m. Consultants. The Finance Committee recommended that staff prepare Requests for Proposals for the following consultants: (1)Rate Model Study; (2)Efficiency; and (3)Revenue Enhancement. CFPUA OCTOBER 13, 2010 MINUTES 12 Mr. Jordan stated that the Authority had conducted an internal efficiency study last year and made substantial cuts the budget. Mr. Renzaglia reminded the Board that the FY2009 operations were 14.5 percent below budget and FY2010 was 15 percent below budget. The Authority has reduced costs while expanding services. Old Business: There was no old business, and Mr. Renzaglia adjourned the meeting at 1:30 p.m. Respectfully submitted, Donna S. Pope Clerk to the Board CFPUA OCTOBER 13, 2010 MINUTES 13