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HomeMy WebLinkAboutCFPUA 12 12 2012 CAPE FEAR PUBLIC UTILITY AUTHORITY REGULAR MEETING DECEMBER 12, 2012 Members Present: James Quinn, Chairman Pat Kusek, Vice-Chair James Brumit, Secretary Mike Brown, Treasurer Cindee Wolf Larry Sneeden Keith Betts Neil Anderson, Councilman Brian Berger, Commissioner Member Absent: Charlie Rivenbark, Councilman Staff Present: Matt Jordan, CEO Jim Flechtner, COO Cheryl Spivey, CFO Mike McGill, CCO Beth Eckert, Environment & Safety Director Frank Styers, Director of Engineering Tom Morgan, H.R. Director Nancy Johnson, Customer Service Director Karen Durso, Assistant to CEO Christene Mitchell, Engineering Manager Kent Harrell, Engineering Manager Mike Richardson, Water Resources Manager Ken Vogt, Wastewater Treatment Superintendent Jim Craig, Utility Services Superintendent Tige Brubaker, Project Manager Donna S. Pope, Clerk to the Board Attorney Present: Linda A. Miles, the Miles Firm, PLLC Guests Present: James Yopp Timothy Cashman Carter Hubard Tyler Newman CFPUA 12.12.2012REGULAR MEETING Page1 Guests, Continued: Eric Williams Diane Williams Kate Queram Call to Order, Determination of a Quorum, and Adoption of the Agenda: Mr. Quinn called the meeting to order at 9:04 a.m. and declared a quorum present. Mr. Brown moved to adopt the Agenda. Mr. Betts seconded the motion, and it passed unanimously. Oath of Office of Brian Berger: Ms. Durso administered the oath of office as an Authority member to Commissioner Berger, and the Board welcomed Mr. Berger. Approval of Minutes: Mr. Brumit presented the minutes from the November 14, 2012, Annual Meeting and moved to approve the minutes, with minor changes that had been noted by the Clerk. Ms. Kusek seconded the motion, and the minutes were approved unanimously. Public Comments: Mr. Yopp spoke regarding the Tarin Woods subdivision and hidesire to convey water and sewer infrastructure while maintaining its eligibility for participation in a cost-sharing agreement or to make a claim for expenses. Ms. Miles reported that she and engineering staff were working with Mr. Yopp and believe they may have a solution for him. Mr. Cashman requested written notice to the Health Department so that he could install a septic system and not be required to run a long and expensive line to connect to the sewer system. Mr. Jordan reported that he had spoken with Mr. Cashman before the meeting started and that Engineering staff would meet with Mr. Cashman to address his concerns. Consent Agenda: The Board reviewed the Consent Agenda, as follows: 1. Approval of a revision to the Authority Environmental Policy. 2. Authorization for the CEO to enter into a unit price contract with vendors for water and wastewater treatment chemicals for a period of 12 months, at an estimated savings of $83,000. 3. Approval of a Banking Resolution and Certificate of Incumbency for Bank of America. 4. Approval of a Supplemental Revenue and Appropriations Ordinance to the Capital Projects Funds for FY2013 in the amount of $553,645 in connection with the Bald Eagle Lane project. CFPUA 12.12.2012REGULAR MEETING Page2 5. Authorization for the CEO to execute a contract amendment with W.K. Dickson for additional design and construction phase services for sewer extensions in the Masonboro Sound area, part of the 1998 Annexation, at a budget impact of $21,975. 6. Authorization for the CEO to transfer budget appropriations in the amount of $2,555,642 from the Water CIP to Wastewater CIP, with no net budget impact. 7. Approval of an Interlocal Agreement between CFPUA and the Lower Cape Fear Water & Sewer Authority for infrastructure improvements, subject to final legal review by counsel for both authorities, at a cost up to $225,000. 8. Authorization of a sole source contract with Mechanical & Environment, Incorporated, for Mec Floc coagulant aid emulsion polymer for calendar year 2013, at an estimated operating expense of $75,000. 9. Approval of revised Resolutions for State Revolving Loans, as follows: Acceptance Resolution for th 30 for Between the Creeks Pump Station 28; Application Resolution for Greenfield Lake Outfall; and Application Resolution for Smith Creek, Alandale Pump Station. Ms. Kusek moved to approve the Consent Agenda as presented. Mr. Brown seconded the motion, and it passed unanimously. Mr. Anderson joined the meeting at 9:15 a.m. New Business, Administrative Reports: Operations Report, Disinfection Byproducts Presentation by Mike Richardson. Mr. Richardson reported on disinfectants used in water treatment, the byproducts of the treatment processes, Environmental Protection Agency regulations governing disinfection, the challenges posed by the use of disinfectants and their byproducts, and tools that can be used by Authority water treatment staff to control and monitor disinfection byproducts. Mr. Richardson answered clarification questions from Board members regarding bromides, choloramines, and regulatory changes. Ms. Miles had no report for open session. She requested a closed session at the end of the meeting to report on Pointe South LLC and Sanco v. New Hanover County and CFPUA, Tommy Davis Construction v. CFPUA and New Hanover County, and a potential claim. CEO Report. Mr. Jordan referred the Board to Exhibit 10, the Environmental and Safety Management Report for October 2012. There was one sanitary sewer overflow of 625 gallons, caused by stone, debris, and asphalt particles that blocked a line. There were five employee accidents in October, including three automobile accidents that were caused when other drivers struck Authority vehicles. CFPUA 12.12.2012REGULAR MEETING Page3 New Business, Committee Reports: Executive Committee. Mr. Quinn reported that the Executive Committee met in December 5, 2012. The Committee recommended that the Authority direct staff to proceed with hiring an Internal Auditor. Mr. Brown moved to proceed with the hiring process for the Internal Auditor position. Mr. Brumit seconded the motion, and it passed unanimously. Mr. Quinn reported that staff had received a proposal from Municipal Financial Services Group (MFSG) to facilitate and assist in a retreat and other functions related to developing a growth policy. MFSG staff members were the original consultants who assisted the City, County, and Authority members and staff in the formation of the organiza beneficial to the sitting Board. The Executive Committee will review the scope of services and anticipates making a recommendation and an appropriations ordinance in January. Mr. Quinn asked Authority members to let the Clerk know of any scheduling conflicts in January and February, as full Board participation is vital for a retreat and workshop. Human Resources Committee. Ms. Kusek reported that the Committee met on December 4 and asked Mr. Morgan to summarize the meeting and the Committee recommendation. Mr. Morgan reported that the Committee reviewed revisions and updates to the Authority Personnel Policies and Procedures Manual, 2008 edition. There were four categories of revisions, as follows: 1. Deletion of obsolete information, such as information regarding the City of Wilmington and New Hanover County that was necessary during transition; 2. Clarification and technical corrections to existing policies and procedures; 3. Revisions and updates of policies and procedures to reflect practice, streamline processes, and achieve compliance with changes in Federal and North Carolina laws; and 4. Adding information and policies to accommodate the evolution of the organization, technology, and to allow flexibility in Human Resources administration. Ms. Wolf moved to approve the revised and updated Personnel Policies and Procedures Manual by Resolution. Mr. Anderson seconded the motion, and it passed unanimously. Mr. Morgan further reported that he had provided the Committee with a summary of employee benefits and the Committee requested more detailed data on benefits. No Board action was necessary at the meeting. Ms. Kusek thanked Mr. Morgan for his work on the personnel policy and procedure revisions. CFPUA 12.12.2012REGULAR MEETING Page4 Mr. Quinn recessed the meeting at 10:00 a.m. The Authority reconvened at 10:10 a.m. and Committee reports continued. Long Range Planning Committee. Ms. Wolf reported that the Committee met on November 15, 2012, and asked Mr. Styers to summarize the meeting for the Board. Mr. Styers reported that the Committee reviewed several items, as follows: 1. A request by Sidbury Farms for the Authority to consider a developer agreement for a lift station and force main in the Sidbury Road area that would connect to the force main planed by Chair Road Associates along Blue Clay Road. The Committee discussed capacity issues in the area. Staff will receive further information and a proposal from the developer to bring to the Committee. 2. Proposed capacity phasing for commercial development similar to the method used for residential development. The Committee directed staff to conduct further research, receive feedback from stakeholders, and refine the capacity phasing recommendation. Committee members did not wish to make Ordinance revisions that could hinder fast-moving development, while recognizing that some phasing could be beneficial to other property owners in need of capacity. 3. Capital Improvements Budget Calendar. The Committee will receive a pump station capacity report at its December 20 meeting. A draft Capital Improvements Program for FY2014 will be presented to the Committee on January 24, 2013, and a Board workshop on the CIP is scheduled for January 31. Committee approval of the CIP is anticipated on February 28, and the CIP will be presented to the Board by the Committee on March 13. 4. Annexation Area Service Update. Staff reported on service in the 1995 and 1998 City annexation areas. Mr. Rivenbark will extend an offer to City Council for Authority staff to report on annexation service at a future Council meeting. 5. Lower Cape Fear Water & Sewer Authority Capital Planning. water demands and system capacity and the demands and capacity of LCFWSA. Ms. Wolf requested that Board members make note of the January 31 workshop and March 13 CIP presentations. The next meeting of the Long Range Planning Committee will be Thursday, December 20, 2012, at 3:00 p.m. Finance Committee. Mr. Brown reported that the Committee met on December 5, 2012, and reviewed several items, many of which had been approved as part of the Consent Agenda. He requested that Ms. Spivey complete the Finance report. Re-funding of Revenue Bonds. Ms. Spivey reported on the possibilities of re-funding revenue bonds. She explained that investors for government revenue bonds are guaranteed their interest rates for ten years. If bonds are re-funded before the ten year period ends, new bonds must be issued in amounts sufficient to place money into an account to pay off the old bonds and also pay the interest to the investors, creating CFPUA 12.12.2012REGULAR MEETING Page5 negative arbitrage. The 2005 Revenue Bonds issued by the City could be re-funded in advance for a savings of $7,338,432 over 21 years. Re-funding the bonds at their Call Dates would result in a savings of $11,556,115. Ms. Spivey recommended waiting until call dates to re-fund the 2005 bonds. Ms. Spivey further reported that interest rates are not expected to increase in the near future but should they increase, she would conduct another analysis of re-funding. Water Consumption and Distribution. Ms. Spivey reported that water consumption for the period of September November was stable. Consumption is 3.4 percent lower than calendar year 2011, but the budget reductions enacted by staff were sufficient to cover the decrease. Ms. Spivey reported that water distribution for November 2012 is greater than November 2013 and may result in increased revenues. Raw Water System Improvements Contract Award. Ms. Spivey asked Ms. Mitchell to present one item requiring Board action that was not finalized at the time the Finance Committee met. Ms. Mitchell distributed a report on bids received on December 6 for improvements to the raw water system. The project includes the replacement or abandonment of 24 air release valves, three isolation gate valves, three vacuum relief valves, four blowoff gate valves, and miscellaneous door repairs or door replacement for below-grade structures. The project includes the replacement of the flowmeter and surge relief valve ed Toomers Creek water pump station, demolition of some existing raw water piping and installation of new piping, two gate valves, a blowoff valve, and new pile supports for the new piping near the Toomers Creek site. Staff recommended that the contract be awarded to the lowest responsible bidder, East Coast Contracting, Inc., in the amount of $1,189,058.85. Mr. Quinn reminded Board members that the Authority owns its own pump station at Kings Bluff in Bladen County and a raw water line from Kings Bluff, which allows the Authority to maintain some independence in its water supply. improvement contract to East Coast Contracting, Inc. in the amount of $1,189,058.85. Mr. Betts seconded the motion, and it passed unanimously. Customer Service Report. Ms. Johnson reported that the Authority offers several payment options to Government Center Drive and in the City of Wilmington offices downtown, bank drafts, and direct mail to the Authority. Approximately 57 percent of payments are made through the lock box method, which are payments using the envelope provided with the bill. The lockbox function is currently provided by nverted to an in-house function for FY2014. A full analysis was provided in the Agenda packet. Paperless billing is not offered at this time but can be researched as a future payment option. Ms. Johnson reported that staff had thoroughly reviewed all payment plans. There are 222 payment plans for customers that are current with payments. Of current customers, 144 are delinquent in their payment plans. After the Christmas holiday, staff members will make calls to those active customers in default to CFPUA 12.12.2012REGULAR MEETING Page6 aske them to bring payment plans current and avoid service interruption. There are 538 inactive customers who are in delinquent status on payment plans. Those payment plans will be canceled and the amounts owed pursued through external collections. The full November Financial Reports were presented to the Board in the Agenda and will be placed on the Authority website. Closing Comments: The Board, Mr. Jordan, and Ms. Miles expressed appreciation to staff who would be working through the holidays and to all employees for their dedication. Closed Session: Ms. Kusek moved to enter into closed session to receive consult with legal counsel regarding Pointe South and Sanco v. New Hanover County and CFPUA, Tommy Davis Construction v. CFPUA and New Hanover County, and a potential claim. Mr. Brumit seconded the motion, and it passed unanimously. The Authority entered into closed session at 10:40 a.m. Ms. Miles, Ms. Pope, and Messrs. Jordan, Flechtner, Styers, and McGill remained in the meeting with the Board. The Board received a report from Ms. Miles and staff and provided direction to the attorney and staff. Open Session and Adjournment: Mr. Anderson moved to return to open session. Ms. Kusek seconded the motion, and it passed unanimously. The Authority returned to open session at 11:09 a.m. Mr. Brown moved to adjourn. Ms. Kusek seconded the motion, and it passed unanimously. The meeting adjourned at 11:10 a.m. The next meeting of the Cape Fear Public Utility Authority will be Wednesday, January 9, 2013. The meeting will be held in the Lucie Harrell Conference Room of the Bruce Shell County Administration Building, 230 Government Center Drive, Wilmington, North Carolina, and will commence at 9:00 a.m. Respectfully submitted, Donna S. Pope Clerk to the Authority CFPUA 12.12.2012REGULAR MEETING Page7