Loading...
HomeMy WebLinkAboutCFPUA 06 8 2011 CAPE FEAR PUBLIC UTILITY AUTHORITY REGULAR MEETING JUNE 8, 2011 Members Present: Gene Renzaglia, Chairman J.C. Hearne, II, Vice-Chairman Michael C. Brown, Secretary Brian Berger, Commissioner Rick Catlin, Commissioner Charlie Rivenbark, Councilman Ron Sparks, Councilman Patricia Kusek Cynthia Wolf Jim Quinn Member Absent: Burrows Smith, Treasurer Staff Present: Mat Jordan, Chief Executive Officer Nancy Gallinaro, Chief Operating Officer Cheryl Spivey, Chief Financial Officer Karen Durso, Assistant to CEO Beth Eckert, Environment and Safety Director Frank Styers, Engineering Director Tom Morgan, H.R. Director Nancy Johnson, Customer Service Director Carey Disney Ricks, CCO Julia Vosnock, Procurement Manager Melinda Hoggard, Accounting Manager Julie McLawhon, Finance and Accounting Manager Sherri Alexander, Fiscal Support Specialist Tymekia Askew, Administrative Assistant Carol Davis, Payroll Specialist John Malone, Water Treatment Supervisor Anthony Colon, Chief Water Treatment Operator Jim Flechtner, Engineering Manager Tige Brubaker, Project Manager Kent Harrell, Senior Project Engineer CFPUA JUNE 8, 2011 Page 1 Graham Fripp, Property Acquisitions Specialist Jim Craig, Utility Services Superintendent Mike Richardson, Water Treatment Superintendent Ken Vogt, Wastewater Treatment Superintendent Steve Mongeau, Program Manager Kipp Glazier, Community Compliance Assistant Superintendent Donna S. Pope, Clerk Attorney Present: Linda A. Miles, the Miles Firm, PLLC Guests Present: Jim Iannucci, New Hanover County Eric Williams, HDR Diane Williams, NC DENR Heidi Cox, NC DENR Richard Morgan Jerry Brown Kevin Maurer, Wilmington Star News Opening Comments, Determination of a Quorum, and Adoption of the Agenda: Mr. Renzaglia called the meeting to order at 9:00 a.m. and declared a quorum present. Mr. Jordan presented the Agenda and noted a change to Item 8 on the Consent Agenda, with supporting documentation being distributed to Authority members. Ms. Wolf moved to adopt the Agenda with the revision to the Consent Agenda. Mr. Sparks seconded the motion, and it passed unanimously. Presentations: Ms. Gallinaro presented John Malone and Anthony Colon with a Certificate of Achievement for Wellhead Protection from the North Carolina Rural Water Association and the North Carolina Division of Environment and Natural Resources. Mr. Renzaglia presented Ms. Spivey and Finance staff with a Certificate of Achievement for Excellence in Financial Reporting for the Fiscal Year ending June 30, 2010. The award was CFPUA JUNE 8, 2011 Page 2 made by the Association of Finance Officers for the United States and Canada. Ms. Spivey thanked her staff members for their work and dedication, Public Comment: Mr. Richard Morgan, an attorney for property owners, requested that he be allowed to speak consideration of a request for condemnation on the Agenda. The Board granted his request. Mr. Jerry Brown, a resident of the Porters Neck Area, commended the Authority on the quality of the water from the nano-filtration plant and thanked the Board for making irrigation rates competitive. He suggested better communication regarding the change in irrigation rates. Mr. Chad instead of on the back. Consent Agenda: Mr. Renzaglia presented the Consent Agenda as follows: 1.Authorization for the CEO to execute a construction contract with Barnhill Construction Company for work associated with the Middle Sound Paving Project, at a cost of $106,900.45, as provided in the CIP 2. services for sedans, SUVs, and vans, under 10,000 gross vehicle weight rating (GVWR) trucks and vans 10,000 GVWR to 26,000 GVWR trucks 26,000 VGWR and up, stuck vehicles and equipment recovery (hauling) and with Ace Wrecker Services for trailers for 12 months with the option to renew for up to four additional 12-month terms 3.Authorization for the CEO to execute a contract amendment with AB Blake Electrical for additional conduit work associated with the circuit installation at Northside Wastewater Treatment Plan, at a cost of $2,521.00 4.Authorization for the CEO to execute a contract with T&L Truck Repair, Inc. for routine maintenance for medium duty vehicles and non-routine maintenance for medium duty vehicles for 12 months with the option to renew for up to four additional 12-month terms CFPUA JUNE 8, 2011 Page 3 5.Authorization for the CEO to execute a contract with T&L Truck Repair, Inc. for routine maintenance for heavy-duty vehicles and trailers and non-routine maintenance for medium duty vehicles and trailers for 12 months with the option to renew for up to four additional 12-month terms 6.Approval to revise the CFPUA Fee Schedule regarding the Hauled and Miscellaneous Waste Fee 7.Authorization and supporting Resolution to write off certain uncollectible utility accounts 8.Authorization for the CEO to enter into a unit price contract with suppliers for the procurement of wastewater treatment chemicals for a period of six months Mr. Quinn requested that Items 4 and 5 be removed from the Consent Agenda for discussion. By consensus, Items 4 and 5 were moved to the Finance Committee report. Ms. Miles and Mr. Flechtner answered clarification questions regarding Item 1. Mr. Sparks moved to approve Consent Agenda items 1, 2, 3, 6, 7, and 8. Mr. Brown seconded the motion, and it passed unanimously. New Business, Administrative Reports: Chief Finance Officer Presentation of Fiscal Year 2012 Budget Adoption and Ordinance: Ms. Spivey presented a brief overview of the recommended Budget for the Fiscal Year beginning July 1, 2012. Mr. Brown moved to approve the Budget as recommended for Fiscal Year 2012. Ms. Kusek seconded the motion, and it passed unanimously. Engineering Report: System-Wide Connection Deferral Policy: Mr. Styers presented a recommended system-wide connection deferral policy. The Authority Ordinance provides for mandatory connection. A deferral policy was developed for use during the Middle Sound mandatory connection period, and the policy has been refined for use system- CFPUA JUNE 8, 2011 Page 4 wide. The Finance Committee had requested that the deferral policy be presented to the full Authority. The recommended policy would provide for deferral of connection for up to six and one-half years from the date the mandatory connection notice is sent. Property owners with existing wells and septic systems that operate properly would be eligible but would be required to pay or finance system development charges and tap fees within the 180-day mandatory connection period. The Authority provides financing of 90 percent of the fees over eight years at five percent interest. Deferred property owners would also be required to pay a bi-monthly deferral availability rate equal to the fixed meter rate. Mr. Styers and Ms. Miles answered clarification questions from Authority members. Mr. Rivenbark asked if the deferral would run with the land or the owner. Ms. Miles advised that deferrals would run with the land. Several Authority members expressed concerns regarding the cost of the system development charges and tap fees and discussed methods to lessen the impact of those costs on customers. Members requested data regarding the number of potential customers affected by mandatory connection. Ms. Wolf moved to approve the deferral policy as developed and recommended by staff, with the understanding that it can be amended in the future. Mr. Rivenbark seconded the motion. Discussion continued regarding deferral and financing options. Mr. Catlin presented a substitute motion to send the Connection Deferral Policy back to the Finance Committee for further review. Mr. Hearne seconded the motion. Ms. Kusek, Ms. Wolf, and Messrs. Renzaglia, Brown, Hearne, Catlin, Berger, Rivenbark, and Quinn voted in favor of the motion. Mr. Sparks opposed the motion. The motion carried, nine to one. Revision to Voluntary Termination of Service, Article VI, Section 6.7 of the Authority Ordinance : Mr. Styers and Ms. Miles presented clarification language for the ordinance, as follows: Any person proposing to discontinue the use of Authority water and/or sewer service on a long term or permanent basis must give notice of such purpose to the Customer Service Department in writing. Any such customer will be charged for the use of such water and/or sewer until notice is received and acted upon within a reasonable amount of time by the Authority. Discontinuation of service shall not be allowed for any residential CFPUA JUNE 8, 2011 Page 5 structure or until unless the structure is deemed uninhabitable. For the purpose of this ordinance section, an uninhabitable residential structure is a unit or structure with no electrical service (meter) in place. Discontinuation of service shall not be allowed for any commercial or industrial building unless the premises shall have been condemned by New Hanover County or other governing body having jurisdiction over said premises. Mr. Catlin expressed concern regarding unused commercial properties during present economic circumstances. language and suggested removing tha for . Mr. Sparks moved to adopt the revision to Section 6.7, with the omission o revision of 30 days for action upon a request by the Authority. ys or the 180 day language. Mr. Berger seconded the amended motion. Ms. Wolf, Ms. Kusek, and Messrs. Renzaglia, Brown, Hearne, Sparks, Rivenbark, Quinn, and Berger voted in favor of the motion. Mr. Catlin opposed the motion. The motion carried, nine to one. The Authority recessed at 10:20 a.m. and reconvened at 10:30 a.m. Operations Report: Mr. Richardson presented the 2010 Water Quality Report and answered clarification questions from Authority members. There were no violations of drinking water standards in any of the report will be mailed to each customer. Copies will also be placed in several public facilities, Environment and Safety Report: Ms. Eckert presented the safety reports for March and April 2011. Accident rates have stabilized. There were three sanitary sewer overflows in March with very small amounts CFPUA JUNE 8, 2011 Page 6 released. One SSO was due to a pipe failure, and the other two were grease-related. Ms. Eckert answered clarification questions regarding the March and April reports. Ms. Eckert reported that the Authority received ten awards from the State of North Carolina Department of Labor at its recent regional meeting. Public Relations Report: Ms. Ricks reported that $1,000 had been disbursed through the CFPUA Assist program. Mr. Renzaglia requested information on how many customers had been assisted through the program. Ms. Ricks updated the Board on community education efforts. Educational opportunities include public service announcements on digital billboards at no cost, radio advertisements, staff entary schools, and collaborations with the Boy Scouts and the Kidsville publication distributed at area schools. Ms. Ricks reported that the May 2011 rates are posted on the website, including the change in irrigation charges. : Request for approval of a Resolution authorizing the Authority to initiate condemnation proceedings for an easement at 8006 Masonboro Sound Road, funded by the CIP under the 1998 Annexation Area Sewer Project, at a budget impact of $139,800.00. Mr. Renzaglia asked Mr. Richard Morgan, attorney for an owner of the subject property, to address the Authority. Mr. Morgan distributed a map of the property, which showed the location of a pump station proposed by the Authority and two alternate locations the owners believed would work for the pump station. The proposed site is located on the most valuable portion of the property and Mr. Morgan stated that the Fales family did not wish to stop the pump staThe family supported a pump station site closer to or adjacent to Masonboro Sound Road rather than on the waterfront area of their property. Mr. Fripp briefly summarized the process through which the site was selected, first by the City of Wilmington and then the Authority and noted the location of adjacent utility easements, as well as Army Corps of Engineers and Division of Natural Resources wetland areas. Mr. Fripp stated that the Fales family members had been cooperative in discussing alternatives designs and sites. CFPUA JUNE 8, 2011 Page 7 50 x 60 feet to 32 x 56 feet. Engineering and Operations staff explained the engineering and design behind the selection of the site and the hydraulic difficulties that could arise from the two alternative sites proposed by the family. Staff members believed that the recommended site was the best and most feasible location and stated they would do what was possible to minimize the impact of the pump station on the property. Closed Session: Mr. Brown moved to enter closed session to discuss negotiations and determination of property value. Mr. Berger seconded the motion, and it passed unanimously. The Authority entered closed session at 11:25 a.m. Authority members, the CEO, the Clerk, Ms. Miles, and Messrs. Fripp, Flechtner, Styers, and Craig remained in the meeting. Other staff members and visitors left the meeting room. Mr. Fripp and Ms. Miles reported on appraisals, determination of value, and negotiations with the owners and answered questions from Authority members. Open Session: Mr. Sparks moved to return to open session. Mr. Hearne seconded the motion, and it passed unanimously. The Authority returned to open session at 11:40 a.m. Mr. Renzaglia read the request and recommendation for a Resolution authorizing the initiation of condemnation proceeds for an easement at 8006 Masonboro Sound Road, Parcel Identification Number R07200-002-006-000. Mr. Sparks moved to authorize the request, and Mr. Rivenbark seconded the motion. Mr. Catlin stated that he would not support the condemnation because he would like to see what the screening would be before he could support the pump station site and stated that he wanted his concern on the record. He stated that he could not visualize the impact on the property. Mr. Rivenbark called the question. Messrs. Renzaglia, Rivenbark, Quinn, Sparks, and Hearne, Ms. Kusek, and Ms. Wolf voted to authorize the condemnation request. Messrs. Berger, Catlin, and Brown opposed the motion. The motion carried, seven to three. CFPUA JUNE 8, 2011 Page 8 : Mr. Jordan had no report. Mr. Hearne thanked Mr. Jordan and staff for the Budget preparation and presentation and commended Mr. Jordan on the Authority Mission Statement he had written as the foreword to the Budget document. Committee Reports: Finance Committee: Mr. Smith, Authority Treasurer, was absent, and Mr. Renzaglia requested Ms. Spivey to report for the Finance Committee. The Committee met on June 1, 2011. In addition to the FY2012 budget, the Committee reviewed the following items: hauled waste fee and extra strength surcharges, bulk user rates, revisions to change orders and contract amendments, local vendor preference, and fleet maintenance. The Committee recommended the following items for consideration by the full Board: Revisions to the approval process for certain change orders and contract amendments: Ms. Vosnock explained the purpose the revision was to facilitate work on small, time-sensitive contracts. Staff recommended that, for contracts originally less than $20,000, the CEO be given authorization to approve change orders and amendments that cause the aggregate to exceed 50 percent of the original contract. Any amendment or change order that caused those contracts to exceed $50,000 or more in total would go to the Board for consideration. Hearne seconded the motion. Mr. Berger requested a spreadsheet of all change orders to be added to the Agenda packets so the Board could maintain oversight. Mr. Jordan reported that a spreadsheet could be provided for information purposes but that if the Board wants oversight, the contract approval would need to go the Board for a vote. Mr. Renzaglia called the question, and the motion passed unanimously. CFPUA JUNE 8, 2011 Page 9 Local Vendor Preference: Ms. Vosnock and Ms. Miles provided a brief overview of the uses of a local preference policy. The Board received a memorandum regarding procurement processes and local preference in the Agenda packet. No North Carolina local governmental unit has a formal local preference policy. The Finance Committee requested that a policy be developed for Committee review at its July meeting. Two items were presented for consideration by the full Board that had been removed from the Consent Agenda. (1)Authorization for the CEO to execute a contract with T&L Truck Repair, Inc., for routine maintenance for medium duty vehicles and non-routine maintenance for medium duty vehicles for 12 months with the option to renew for up to four additional 12-month terms {Item 4 from the Consent Agenda}. Mr. Quinn stated that he had removed the vehicle maintenance contract requests from the Consent Agenda because he had concerns regarding accountability and the level of expertise regarding mechanics and vehicles of the staff members responsible for scheduling and monitoring maintenance. He believed the Authority needed a fleet manager and more centralized accountability. Ms. Gallinaro and Mr. Jordan reported that the Asset Management program would address and fleet maintenance. Mr. Renzaglia stated that the Authority needed to move forward with a maintenance contract. Mr. Sparks agreed that the maintenance contract recommendation should be voted upon but tability and record keeping. Mr. Sparks moved to authorize the CEO to execute a contract with T&L Truck Repair, Inc., for maintenance for medium duty vehicles for 12 months with the option to renew the contract for up to four additional 12-month terms. Ms. Wolf seconded the motion, and it passed unanimously. . (2)Authorization for the CEO to execute a contract with T&L Truck Repair, Inc., for routine maintenance for heavy-duty vehicles and trailers and non-routine maintenance for medium duty vehicles and trailers for 12 months with the option to renew for up to four additional 12-month terms {Item 5 from the Consent Agenda}. CFPUA JUNE 8, 2011 Page 10 Mr. Sparks voted to authorize the contract with T&L Truck Repair, Inc., as presented by staff. Ms. Wolf seconded the motion, and it passed unanimously. Monthly Financial Reports: Ms. Spivey referred Authority members to Exhibits 15-22 and 15-23 in the Agenda packet. At the end of June, the Authority had $68 million in assets, and $40.4 million in unrestricted cash. With 92 percent of the year lapsed, revenues were at 93.38 percent and expenditures at 73.33 percent. Revenues were $623,000 above expenditures. There were no questions from Authority members. Long Range Planning Committee: Messrs. Quinn and Styers reported that the Committee met on May 26 and reviewed the following items: Raw Water Supply: The Committee received a report from Don Betz, Director of the Lower Cape Fear Water and Sewer Authority (LCFWSA) and Tony Boahn of McKim & Creed, the engineers for LCFWSA. LCFWSA presented alternatives to the CFPUA proposal to locate a raw water pump station near the U.S. 421 water vault. Discussions will continue between representatives of the two Authorities. Mr. Renzaglia stated that LCFWSA was contractually obligated to deliver 23 million gallons of water per day to CFPUA and asked if LCFWSA was able to provide the contractually obligated amount. Mr. Styers reported that there had been times when LCFWSA was unable to deliver 23 million gallons per day. Messrs. Catlin and Quinn stated that LCFWSA could provide the water with the pump station. Mr. Renzaglia asked Mr. Richardson how much it cost CFPUA to produce water from its own intake, and Mr. Richardson reported that the cost was 9 cents per gallon. The cost from LCFWSA is 28 cents per gallon. Mr. Renzaglia asked if CFPUA could increase production from its water supply more cheaply and stated that he wanted to look at all possibilities. Automated Meter Reading Implementation (AMR): A business case evaluation is underway to evaluate AMR as a part of the enterprise-wide Asset Management Program. Staff presented additional options that could be used to produce monthly billing to the Committee. CFPUA JUNE 8, 2011 Page 11 System Growth Expansion: Mr. Quinn reported that expansion of the system would be an item for discussion at the Authority Board retreat. The Committee recommended input from stakeholder groups. County and City representatives will be invited to upcoming Committee meetings to discuss growth. Old Business and Adjournmentk: Mr. Renzaglia reminded Authority members that new officers should be elected at the July meeting. Messrs. Smith and Rivenbark comprise the Nominating Committee and will present a slate of officers to be voted upon. Mr. Renzaglia invited all Board members to advise the Nominating Committee of their interest in holding office. Nominations can also be made from the floor at the July meeting. There being no further business to come before the Authority, Mr. Rivenbark moved to adjourn. Mr. Catlin seconded the motion, and it passed unanimously. The meeting adjourned at 1:25 p.m. The next regular meeting of the Cape Fear Public Utility Authority will be Wednesday, July 13, 2011, in the Lucie Harrell Conference Room, New Hanover County Administration Building, 230 Government Center Drive. Respectfully submitted, Donna S. Pope, Clerk CFPUA JUNE 8, 2011 Page 12