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HomeMy WebLinkAboutCFPUA 04 8 2009 Regular meeting CAPE FEAR PUBLIC UTILITY AUTHORITY REGULAR MEETING APRIL 8, 2009 Members Present: Gene F. Renzaglia, Chair Burrows Smith, Secretary Charles Wells, Treasurer Robert Greer, Commissioner William Caster, Commissioner James Quinn, Councilman Ronald Sparks, Councilman Jim Hunter John Tunstall Staff Present: Matt Jordan, Chief Executive Officer Karen Durso, Assistant to Mr. Jordan Nancy Gallinaro, Chief Operations Officer Brent McAbee, Chief Financial Officer Tom Morgan, Human Resources Director Martha Zeigler, Customer Service Director Frank Styers, Engineering Director Haskell Rhett, Strategic Planning Officer Carey Disney Ricks, Public Information Officer/Public Relations Jim Flechtner, Engineering Manager William Pinnix, Engineering Manager Steve Mongeau, Procurement Manager Graham Fripp, Property Acquisitions Specialist Frank Sheffield, Ward & Smith, Board Counsel Donna S. Pope, Clerk to the Board Guests Present: Jeff Coggins, Black & Veatch 1 Tony Boahn, McKim & Creed Tyler Newman, Business Alliance for a Sound Economy Guests, continued: Eric Williams, HDR John Cease Jim Walker Michael Walker Howard Drexler Frank Montgomery Call to Order, Determination of a Quorum, and Opening Comments. Mr. Renzaglia called the meeting to order at 9:02 a.m. and declared a quorum present. Vice- Chair Johnston was unavailable due to illness, and Authority member Hearne was unavailable due to a business scheduling conflict. Mr. Renzaglia stated that he was aware that the Authority meetings had been running at length and requested that Authority members keep comments concise and to direct questions to staff or Authority committees when possible. Adoption of the Agenda. Mr. Renzaglia presented the agenda, with one correction. Item 3 on the Consent Agenda was a streets, rights-of- sion of the raw water line repair be added to the agenda, and Mr. Renzaglia asked Mr. Jordan to add that to his report to the Board. Mr. Caster moved to adopt the agenda with the two stated amendments. Mr. Hunter seconded, and the motion passed unanimously. Minutes Correction and Approval. Mr. Smith presented the minutes of the March 18, 2009, meeting, with a minor typographical correction on Page 5. Mr. Quinn stated that he did not feel the minutes accurately reflected the 2 Billing Conversion Report and the Authority discussion regarding billing. He remembered Mr. Hyder of Municipal Financial Services Group the billing system failure and requested a more detailed account in the public record. Mr. Renzaglia directed Ms. Pope to review the recording of the March 18 meeting and revise the portion of the minutes regarding the billing conversion. Mr. Quinn asked if Mr. Hyder had provided a written report to the Authority. The Chairman directed Mr. Jordan to request a written report from Mr. Hyder. Mr. Wells moved to approve the minutes with the stated changes. Mr. Caster seconded the motion, and it passed unanimously. Public Comments. Mr. John Cease, a Wilmington resident and property owner, stated that he had two distinct and separate concerns. His first concern regarded a duplex in the Jasmine Cove subdivision which he had inherited from his mother. The property receives both water and sewer services from the Authority. Mrs. Cease was ill for some time, and spent two months in Hospice care in 2008 before her death in October of that year. Her water use was minimal at the property prior to her passing away, and the house is presently unoccupied. Mr. Cease checked the property and the meter for leaks, and he believed the meter reading to be inaccurate. He requested that the bill for that property be adjusted to reflect the minimal charge for the set fees of $31.70 per billing cycle. Mr. Cease stated that all of his contacts with Authority employees had been very positive and that the employees had been professional and courteous to him. ed his residence. His home is in an area where the Authority has no projected plans to extend water service. He has a deep well for general usage, and a shallow well for irrigation, and receives sewer services from the Authority. He felt the flat rate of $82.50 for every two months was unfair and discriminated against customers who could not receive Authority water. There were no questions from Authority members, and Mr. Renzaglia Mike and Jimmy Walker addressed the Authority regarding property they own on the corner of Solara Drive and Wrightsville Avenue. The Authority is in the process of obtaining a 30-foot easement along Wrightsville Avenue, and the Walkers do not believe the appraisal obtained by the Authority is accurate or that the price offered by the Authority would fairly compensate them. Mr. Mike Walker stated that the comparison properties on the Authority appraisal were larger, rectangular lots which could better absorb a 30-foot easement than their smaller lot. They 3 stated that the easement would take 37 percent of the frontage of their property. The comparable lots were vacant lots, and the Walker property has two rental houses on it. The Walkers also believed their property had additional value as a corner lot. The Walkers believed the easement would adversely affect their ability to provide a buffer of plantings between their houses and Wrightsville Avenue, which provides a physical barrier between the houses and the road and diminishes traffic noise. The easement would remove the plantings and open the property to Wrightsville Avenue. The Walkers felt the easement would adversely affect their ability to rent the houses on their lot and also adversely affect the resale value of the property. Mr. Walker assured the Authority that he and his brother support well-managed development and terceptor. The Walkers provided Authority members with a written statement of their position and a copy of a map showing their lot and the proposed easement. They requested that the Authority consider their statement and revise its Offer of Just Compensation. There were clarification questions from Authority members, and Mr. Renzaglia thanked the Walkers for their presentation and asked if staff had been working with them. They responded that they had been working closely with Mr. Fripp. spoke regarding his belief that the tiered rate system is inherently discriminatory to famil 52 gallons per person per day, he stated that a family of five conservatively using 52 gpd per person ted that North Carolina law recommends tiered rates as a conservation measure in response to drought. He distributed a handout supporting his position, and requested that the Authority consider a uniform rate. comments and informed the Board that Ms. Ricks praised Ms. Ricks for her assistance. Howard Drexler stated that he and his wife had met with Mr. Jordan, Ms. Zeigler, and Mr. Quinn regarding concerns over their account. They had a $524 bill they were told covered more than read by mistake. Staff had worked with the Drexlers to address the mistakes. Their meter had been replaced and tested, and they were told that it had only read 65 percent of the water that passed through it. Mr. Jordan had told Mr. Drexler that the Authority had checks and balances in place on the billing but that customers may sometimes need to take the initiative to review bills and learn about the system. Mr. Drexler urged the Authority to review bills and make sure they catastrophic 4 courtesies to him and Mrs. Drexler. Mr. Renzaglia advised the Board that Mr. Jordan and several staff members had worked with the Drexlers. Mr. Greer asked that staff research the issue of meters not reading correctly and explain this to the Board at a future date. Frank Montgomery advised the Authority that he lives in the Hickory Knoll subdivision and had built a second house on an empty lot he owned He had spoken with Mr. Greer, who had encouraged him to address the Authority. Mr. Montgomery and other property owners in his subdivision had received a letter from Coastal Carolina Construction Company around April 2008 stating that sewer lines being built to serve the Deer Crossing subdivision would be available for use by owners in the Hickory Knoll area within 90-120 days. Because of that information and subsequent conservations with , Mr. Montgomery did not install a septic system to service the new house he began in May 2008. His building was completed, except for sewer installation, in mid-December 2008. There is still no sewer available. Mr. Montgomery had recently talked with Mr. Styers and Mr. Pinnix, Authority Engineering staff, who had explained that the Authority must approve and accept the sewer construction before anyone can connect to it. Mr. Montgomery expressed his appreciation to them and to Mr. Greer for their concern and assistance. He had decided to install a septic tank so that he may use his new house and requested that the Authority grant him a grace period of three to five years, should the Authority enforce mandatory connection in the future. A grace period would allow him to recoup the monies he has spent for his septic system. Mr. Greer asked that this item be researched and clarified for the Board at the next meeting. Mr. Quinn asked what procedure a property owner such as Mr. Montgomery should follow to being misinformed or misled and explained that the Deer Crossing system must be certified by the State before the Authority can approve and accept it, and that the responsibility for Mr. Styers added that this was not a project being built by the Authority, but that customers could contact Authority Engineering staff with questions regarding availability of services. Mr. Jordan directed Engineering staff to work with Mr. Montgomery regarding an application for a waiver regarding mandatory connection. He further stated that he would direct staff to 5 communicate with developers and Authority contractors to advise Engineering staff of contacts with customers so that customers will have accurate information. There were no further public comments. Mr. Renzaglia asked Mr. Jordan if there was any additional follow-up information from customer comments at the March 18 meeting, and there was none. Presentation by New Hanover Soil and Water Conservation District. Mr. David P. Thomas, Jr., Chairman of the New Hanover Soil and Water Conservation District and Ms. Jennifer D. Braswell, Director of the District, presented the Cape Fear Public Utility copy of the Resolution is attached hereto and incorporated herein by reference. Mr. Thomas commended the Authority on a doing a difficult job and stated that the Authority rate structure was to the benefit of New Hanover County. The Resolution also suggested that the rate structure be further adjusted to fully reflect benefits to those customers using minimum amounts of water and discharging minimum amounts of effluents into the sewer system. On behalf of the Authority, Mr. Renzaglia thanked the Soil and Water Conservation District. Consent Agenda. Mr. Renzaglia presented the five items on the Consent Agenda, as follows: 1.Approval of an Interlocal Agreement between Cape Fear Public Utility Authority and the City of Wilmington relating to the Greenville Avenue Bike Lane Project. 2.Authorization for the Chief Executive Officer to execute an amendment to the on-call engineering contract with Paramounte Engineering Inc., for the Kerr Avenue Water Main project. Budget impact $10,700, provided for in the CIP. 3.Board acceptance of recorded Offers of Dedication on various plat maps for streets, rights-of-way, and easements offered for public utilities and drainage use. 4.Authorization for the Chief Executive Officer to execute a contract with McKim & Creed for professional services associated with preparation of construction and bid documents for the replacement of Pump Station 11, located on Market Street between Front and Water Street. Budget impact $133,400, provided for in the CIP. 6 5.Authorization for the Chief Executive Officer to execute a contract with Heartland Contracting, LLC, of Indian Trail, North Carolina, for construction of the Environmental and Safety Management Department Laboratory Facility. Budget impact $3,370,956, provided for in the CIP. Mr. Renzaglia asked for clarification regarding Item 2, the Paramount Engineering amendment. He asked if there had been a contingency in the original contract. Mr. Flechtner responded that there is no contingency in design contracts and the amendment involved services beyond the scope of the initial contract. Mr. Greer moved to approve the Consent Agenda. Mr. Caster seconded the motion, and it passed unanimously. Mr. Renzaglia called a recess at 10:00 a.m. The Authority reconvened at 10:08 a.m. New Business. Administrative Reports. 1.Public Relations/Public Information Report. Ms. thly newsletters and encouraged them to share that information with others. She drew their attention to the Spring 2009 edition of the North Carolina Chapter of the American Water Works Association N.C. Currents publication , which profiles CFPUA Drinking Water Superintendent Mike Richardson and discusses highlights of his career in water treatment, which started in 1975. Ms. Gallinaro and Mr. McAbee will provide an Operations overview and update and a preliminary budget discussion to the New Hanover County Commissioners on April 20 and to Wilmington City Council on April 21. 7 Trenchless Technology A recent edition of features the Authority in an article entitled, N.C. Currents will contain an interview with Ms. Ricks. The Authority will be a presenter at the Earth Day celebration to be held in Hugh McRae Park on April 18 and will sponsor a shower head exchange on May 9 in the parking lot of Ms. Ricks distributed a copy of a letter which will be mailed to all customers regarding billing. The Third Street sanitary sewer installation project will continue for about five more weeks. The Department of Transportation and the Authority have established a detour away from Third Street between Church and Castle Streets. Ms. Ricks also did a press release regarding the work and the street closures, and a notice regarding the closures is on the Authority website, and local media has covered it. Staff also did a mailing to area residents and put fliers on doors in the affected area. 2.Environment and Safety Report. Ms. Eckert reviewed the Authority accident report from July 2008 through March 31, 2009. Accident rates continue to improve, and all accidents are reviewed by the Accident Report Committee. The Authority will conduct defensive driving classes for employees on May 5 and 6. The Authority received a Notice of Violation and a $4,000 fine from the N.C. Department of Environment and Natural Resources following an inspection of the Southside Waste Water Treatment Plant. The violation resulted from Authority staff moving dechlorination equipment from the Northside plant to Southside without obtaining Authorization to Construct from DENR. Ms. Eckert and staff have met with regional DENR representatives to review Authority permits to ensure that such an omission does not recur. There were five reportable Sanitary Sewer Overflows (SSOs) in March. Operations staff exhibited a swift and excellent response, and educational materials have been distributed in the areas where the SSOs originated. The Authority also has a pro-active cleaning program and has identified areas where overflows are likely to occur for cleaning and efforts from compliance staff. If any amount of material from an overflow goes into a storm drain or a 8 body of water, the incident is reportable to the State. If 1,000 gallons spill on the ground, the overflow is reportable. There were clarification questions from Board members, and Mr. Renzaglia requested that 3.Engineering Report. Mr. Styers distributed a spreadsheet representing pump station capacity. Thirty stations are at 80 percent or more of their permitted capacity. Ten pump stations are allocated in excess of 100 percent. The Authority Capital Improvement Plan addresses pump station upgrades, and Authority staff also considers cost-sharing agreements with developers to upgrade capacity where advantageous. Twelve pump stations do not need upgrades because the sewer sheds they serve have reached their density of development or the pump stations need very small upgrades that can be completed by Operations staff. regulations and that the pump stations actually have a capacity to pump a higher amount. Mr. Caster was excused from the meeting at 10:30 a.m. A quorum was still present. 4. Mr. Sheffield distributed a draft copy of Senate Bill 907, Water Resource Policy Act of 2009. The purpose of this proposed legislation is to allocate water supplies within the state of North Carolina. In eastern North Carolina, this would largely affect surface water. The bill defines presumptively reasonable uses, based upon prior allocation and historical withdrawals of water. Mr. Rhett has been closely following the progress of the bill, and Mr. Jordan serves on a committee of the North Carolina Chapter of the American Water Works Association which has provided input on behalf of utility providers. There were clarification questions from the Board, and Mr. Renzaglia requested a concise summary of the bill. Mr. Sheffield advised that he had two condemnation items to be discussed in closed sessions. 5. Strategic Plan. ans into a comprehensive, integrated Strategic Plan. 9 421 Corridor. Mr. Jordan summarized the proposed options to develop wastewater services along the 421 North corridor, as presented at the March 18 meeting. The southern basin areas will be the easiest to develop and will be largely developer-driven, including the Point Harbor agreement which has been transferred to the Authority by the City of Wilmington. Serving the northern basins along 421 will require the construction of a wastewater treatment plant and could include a partnership with Pender County. Mr. Jordan described this as Discussion continues with the State of North Carolina regarding the permit which expires in 2012. The state will require the completion of an Environmental Assessment and design drawings in order to renew the permit. The Interlocal Agreement which created the Authority directs that any expansion of services or future interlocal agreements outside New Hanover County must be approved by the County and the City of Wilmington. Michael Mack, Utilities Director for Pender County, has contacted Mr. Jordan requesting that representatives from the Authority and McKim & Creed appear before the Pender County Commissioners on April 20 to present the proposed plan. After extensive discussion by the Authority Board and input by the elected representatives on the Board, it was agreed that the New Hanover Commissioners and Wilmington Council should be fully aware of the 421 corridor objectives before a presentation is made to Pender County. Messrs. Sparks and Quinn requested a formal presentation before Council, and Mr. Quinn volunteered to discuss scheduling a presentation with City Manager Sterling Cheatham. Mr. Greer agreed with presentations to the County and City, but he reminded the Authority that New Hanover and Pender Counties had previously entered agreements regarding partnering on water and sewer services. Mr. Renzaglia directed Mr. Jordan to have staff prepare presentations for the Commissioners and Council regarding service expansion along the 421 corridor. Raw Water Line. Mr. Greer had received a letter from Richard Howard, Jr., of the contracting firm repairing the raw water line under the Cape Fear River, which recommended the continuation of that project at this time through the wetlands underneath the railroad trestle upon completion of the river crossing project. Mr. Howard had stated that such action would save money by using the same temporary plank road going through the wetlands and the equipment already in place. Mr. Flechtner of the Engineering Department explained that the Authority employed streamlined permitting and bidding processes because of the emergency nature of the river crossing segment raw water line. That repair was begun before the engineering assessment of the entire line was finished. The assessment has since been 10 finished. While there are repairs needed to the second section of line beneath the trestle, those repairs would not be considered an emergency by State regulatory agencies. In addition, the repairs to the second section of line do not necessitate replacing the pipe. Repairs to the structural support for the pipe line are required, and those repairs can be completed with less impact on the wetlands than previously thought. Mr. Renzaglia presented a question from Mr. Caster regarding an email he received from a citizen in the Spring Valley subdivision who was concerned about children riding dirt bikes on a piece of County or Authority-owned property to the West of the Spring Valley neighborhood. Ms. Gallinaro and Ms. Eckert reported that Kevin House, Safety Officer, was researching the ownership of the property, and staff will report back to Mr. Caster and the Board. The Authority recessed at 11:10 a.m. and reconvened at 11:25 a.m. 6.Finance Committee Report. Mr. Wells reminded the Authority that budget preparation and consideration is a critical time, and Board input is vital. The Board must remember its debt service obligations and the importance of maintaining its financial equilibrium. The Finance Committee has scheduled a Budget Workshop for April 29 at the Authority headquarters building, and Mr. Wells requested that all Authority members attend. Mr. McAbee distributed and gave a brief overview of tatement through March 31, 2009, a copy of which is attached hereto and incorporated by reference. conducted by the North Carolina League of Municipalities and the University of North Carolina. The study analyzed 521 water providers and 412 wastewater service providers, water th rates are in the lowest 40 percentile of the state, and its wastewater rates are in the lowest th 20 percentile. The Finance Committee reviewed what rates were needed to maintain the appropriate coverage of debt service and provide for maintenance and necessary capital projects, while keeping the FY 2010 budget as lean as possible. Staff continues to refine the operating budget for economies, and the Long Range Committee and staff will go through the CIP to determine what projects can be delayed, which would, in turn, stretch out the timeframe for subsequent bond issuance. 11 Mr. McAbee showed the Board a preliminary rate model the Finance Committee recommended with a five percent overall increase, an increase in the gallons used in the second tier from 18,000 gallons to 24,000 gallons, and a decrease in the sewer cap from 30,000 to 24,000. The result to residential bills would be a slight increase for lower usage, a slight decrease for higher usage up 50,000 gallons, a slight increase from 50,000-60,000 gallons and no change for use over 60,000 gallons. Mr. Renzaglia requested that Board members study and digest materials provided by Mr. McAbee before the budget workshop and reminded those present that the landlord-tenant billing question would also need to be addressed at the workshop. He further reminded the Board that the Authority was chartered to properly maintain the existing water and sewer systems, as well as to meet future growth. Mr. Jordan thanked Mr. McAbee for his hard work and dedication, stating that he continued Mr. Quinn was excused from the meeting at 12:00 noon. A quorum was still present. 7.Long-Range Planning Committee Report. Mr. Hunter referred the Bo which is attached hereto and incorporated herein by reference. He asked Mr. Sheffield if he had received the expected draft agreement from the attorney for Newland, and Mr. Sheffield responded that he had just received it by email during the meeting and would review at his earliest opportunity. Mr. Hunter commended Authority staff members for their work on stimulus applications. Mr. Rhett advised that he should receive a response regarding the applications within a few weeks. 8.Human Resources Committee Report. Ms. Johnston was absent due to illness, and Mr. Renzaglia asked Mr. Morgan, the Human Resources Director, to provide the committee report. The Committee met on March 26 for a closed session wherein committee members interviewed two candidates for the position of to change providers for the employee clinic, as he had negotiated a savings of $5,000 with a new urgent 12 care provider. The Authority will not renew its contract with the City of Wilmington for the use of its employee clinic. The Committee has subsequently met to interview additional candidates for the attorney position. 9.Nominations Committee. Mr. Renzaglia reported that Mr. Smith, Mr. Sparks, and Mr. Tunstall had agreed to serve on the Authority Nominations Committee to make recommendations for officers to be elected in July 2009 for FY 2010. Old Business. There was no old business and no questions or comments from Authority members. Closed Session. Mr. Smith moved to go into closed session. Mr. Tunstall seconded the motion, and it passed unanimously. At 12:20 p.m., the Authority moved into closed session to seek advice from legal counsel. In closed session, Mr. Sheffield and Mr. Fripp presented information regarding the condemnation of two properties for easement acquisition. After the discussion of the property issue, Messrs. Fripp and Jordan left the meeting so that the Authority could discuss a personnel matter. After the personnel discussion, Mr. Tunstall moved to return to open session. Mr. Wells seconded the motion, and it passed unanimously. The Authority moved back into open session at 1:05 p.m., and Mr. Jordan rejoined the meeting. Open Session. Mr. Smith and Mr. Tunstall asked to be recused from the votes on condemnation matters, and their requests were approved by the Board. Mr. Sparks moved to initiate condemnation proceedings as recommended by staff on the Walker property located at the corner of Wrightsville Avenue and Solera Road. Mr. Hunter seconded the motion. Messrs. Renzaglia, Wells, Hunter, Greer, and Sparks voted in favor of the condemnation; Messrs. Tunstall and Smith did not vote. The motion carried. 13 Mr. Sparks moved to initiate condemnation proceedings as recommended by staff on the Sneeden property located on Carolina Beach Road. Mr. Hunter seconded the motion. Messrs. Renzaglia, Wells, Hunter, Greer, and Sparks voted in favor of the condemnation. Messrs. Smith and Tunstall did not vote. The motion carried. Adjournment. Mr. Sparks moved to adjourn. Mr. Wells seconded the motion, and it passed unanimously. The Authority adjourned at 1:10 p.m. The next meeting of the Cape Fear Public Utility Authority will be on Wednesday, May 13, 2009, commencing at 9:00 a.m. and will be held in the Harrell Conference Room (Room 601), New Hanover County Administration Building. Respectfully submitted, Donna S. Pope, Clerk Cape Fear Public Utility Authority 14