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HomeMy WebLinkAboutCFPUA 10 10 2012 Regular Meeting Cape Fear Public Utility Authority Regular Meeting October 10, 2012 Members Present: Jim Quinn, Chairman Pat Kusek, Vice-Chair Jim Brumit, Secretary Mike Brown, Treasurer Rick Catlin, Commissioner Charlie Rivenbark, Councilman Cindee Wolf Larry Sneeden Keith Betts Members Absent: Neil Anderson, Councilman Jason Thompson, Commissioner Staff Present: Matt Jordan, CEO Jim Flechtner, COO Cheryl Spivey, CFO Karen Durso, Assistant to the CEO Frank Styers, Engineering Director Beth Eckert, Environment& Safety Director Tom Morgan, H.R. Director Nancy Johnson, Customer Service Director Betty Redmond, Customer Service Center Manager Christene Pyne Mitchell, Engineering Manager Kent Harrell, Engineering Manager Ken Vogt, Wastewater Treatment Superintendent Kipp Glazier, Community Compliance Assistant Supervisor Jonathan Ham, Project Engineer John Malone, Water Treatment Supervisor Jim Craig, Utility Services Superintendent Julie McLawhon, Budget&Finance Manager Julia Vosnock, Procurement Manager CFPUA October 10, 2012 Minutes Page 1 Attorney Present: Linda A. Miles, the Miles Firm, PLLC Guests Present: Dianne Williams, N.C. Department of Natural Resources Eric Williams, HDR Engineering Tony Boahn, McKim & Creed Donnie Hall, NHC Fire Services Kate Queram, Wilmington,Star News 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. Rivenbark moved to excuse Messrs. Thompson and Anderson. Ms. Wolf seconded the motion, and it passed unanimously. Adoption of the Agenda: Mr. Brown moved to adopt the day's agenda. Mr. Rivenbark seconded the motion, and it passed unanimously. Mr. Betts' Oath of Office: Mr. Quinn introduced Mr. Betts and welcomed him to the Authority. Mr. Betts has served several years on the City Planning Commission and brings financial expertise to the Board. Ms. Pope administered the Authority Member oath to Mr. Betts. Mr. Betts stated that it was great to be a member of the Authority and he looked forward to learning about the organization. Approval of Minutes: Mr. Brumit moved to approve the minutes of the September 12, 2012, Authority meeting, as presented. Ms. Kusek seconded the motion, and it passed unanimously. Public Comments: There were no public speakers. CFPUA October 10, 2012 Minutes Page 2 Consent Agenda: Staff presented the Consent Agenda, as follows: 1. Adoption of Resolutions accepting two North Carolina Clean Water State Revolving Loans in the amounts of$1,750,000 for the 30'x' Street sewer rehabilitation project and $1,250,000 for the McCumber's Ditch sewer rehabilitation project; 2. Authorization for the CEO to execute a contract amendment with Paramounte Engineering, Inc.,for additional design services for the Castle Havne Water Main, Line C of the Kerr Avenue Great Loop project, in the amount of$18,950,provided in the CIP; 3. Authorization for the CEO to execute a contract amendment with Paramounte Engineering, Inc.,for additional design services for Line D of the Kerr Avenue Greater Loop project, in the amount of S14,950,provided in the CIP; 4. Authorization for the CEO to execute an amendment with Precision Cut �crviceS to renew the Utility Easement Hand Clearing contract far an additional 12 months, under the same terns and conditions, In the amount of 528,210,provided In the Utility,�crviceS operating budget; and 5. Approval of Revisions to Appendix D of the, Utility Regulations and Ordinance, the ,Sewer Use Ordinance. Mr. Brown moved to approve the Consent Agenda, as presented. Mr. Catlin seconded the motion, and it passed unanimously. New Business,Administrative Reports: Attorney's Report: Ms. Miles had no report for open session and requested a closed session to discuss a personnel matter. CEO's Report: Mr. Jordan referred the Board to Item 6 in the Agenda, the Environmental and ,Safety Management Report for August 2012. There were no sanitary sewer overflows in August, and all water and wastewater treatment plants operated with no violations. The Division of Water Quality audited Community Compliance and praised compliance staff. There was one recordable employee injury and one automobile accident during the reporting period. CFPUA October 10, 2012 Minutes Page 3 Mr. Jordan announced a new in-house publication Authority Matters prepared and distributed by Ms. Durso for the purpose of informing Board members of organizational activities and accomplishments. Mr. Jordan reported that he had emailed his Strategic Vision and Objectives to Authority members. Mr. Jordan announced that Mike McGill has accepted the position of Chief Communications Officer and will begin work on October 22. Mr. McGill worked in public relations and news production for 15 years in the Washington, D.C. area, including working for CNN. Mr. McGill worked for six years as Public Affairs Director for the Washington Suburban Sanitary Commssioner. He graduated from Syracuse University with degrees in political science and communications. Mr. Jordan thanked Ms. Kusek for serving on the interview panel for the position. New Business, Committee Reports: Executive C011nuittee: Interlocal Agreement frith Neir Hanover County for the Bald Eagle Lane area irater project, budget impact 5330,000, and supporting Ordinance making ,Supplemental Appropriations of the operating.fund and capital projects funds for FY 2013. Mr. Quinn asked Mr. Catlin to discuss the proposed Interlocal Agreement. Mr. Catlin reported that the Bald Eagle Lane area residents have experienced saltwater intrusion into their wells and that the saltwater issue will probably worsen. The total cost of the project will be $883,000, and the County will provide upsizing costs from its Fire Services budget. Mr. Hall reported that the upsizing would include larger pipes and fire hydrants. Mr. Sneeden moved to approve the Interlocal Agreement with New Hanover County and authorize the Chairman to execute the agreement. Ms. Kusek seconded the motion. Mr. Catlin and staff answered clarification questions from Authority members. Mr. Quinn asked for a vote, and the Interlocal Agreement was approved unanimously. Ms. Spivey presented Item 7-5, the Appropriations Ordinance to fund the Authority's portion of the Interlocal Agreement, and noted a correction to the revenues on the Ordinance. Mr. Rivenbark moved to approve the Ordinance and appropriate the funds for FY2013. Mr. Brown seconded the motion, and it passed unanimously. Internal Auditor: Mr. Jordan reported that department heads have identified five percent of their budgets for reductions. The five percent has been noted and cannot be spent without Mr. Jordan's authorization. The Executive Committee had discussed the position of Internal Auditor CFPUA October 10, 2012 Minutes Page 4 and recommended that the position not be filled at this time and be reconsidered in December. The Internal Auditor will report to the Board. Mr. Brumit asked for Ms. Spivey's comments regarding the auditor position. Ms. Spivey reported that she would not have requested the position if she did not believe it was important and that no one on staff currently does the work of the auditor. Mr. Brumit added that the auditor could identify areas where the budget could be reduced. Mr. Brumit moved to proceed with hiring the Internal Auditor. Mr. Brown seconded the motion. After discussion, Mr. Quinn asked for a vote. Ms. Wolf and Messrs. Brown and Brumit voted in favor of the motion. Ms. Kusek and Messrs. Quinn, Rivenbark, Catlin, Sneeden, and Betts were opposed. Motion failed, six to three. Long Range Planning Committee: Ms. Wolf and Mr. Styers reported on the Long Range Planning Committee meeting of September 27, 2012. The Committee endorsed staff's recommendation for plat approval language, as follows: I, (name of of,f cez), Review Off cer for the Cape Fear Public Utility AlzthorltV, New Hanover County, North Carolina, certifv that the map or plat to which this certif cation is affixed meets all Authority standards and requirements for the public utilities as set forth by ordinances. With the recordation of this plat, the Cape Fear Public Utility Authority accepts the owner's offer of dedication for the public water and/or sewer purposes all easements, common areas, and or rights of way shown on the plat as dedicated for public utility purposes. Approval of this plat does not guarantee the availability of water and sewer services from the Cape Fear Public Utility Authority. The approval would be signed by an appropriate Engineering staff member authorized to review plats for the Authority. Ms. Miles and staff answered clarification questions from Board members. Mr. Brown moved to approve the plat approval language. Mr. Rivenbark seconded the motion, and it passed unanimously. Mr. Styers reported that the FY2013 CIP was available in electronic format and had been distributed to Committee members. Mr. Rivenbark suggested that the Board and staff explore areas of study for the Internal Auditor. Mr. Jordan reported that staff is developing an audit plan to be presented to the Executive Committee and Board for review. CFPUA October 10, 2012 Minutes Page 5 Finance Committee: Mr. Brown and Ms. Spivey reported that the Finance Committee had met at 8:00 a.m. immediately preceding the full Board meeting. The Committee reviewed banking contract bids and supported a staff recommendation to enter into a five-year contract with Bank of America for core banking services with an option to renew for two additional five-year terms under the same terms and conditions. Ms. Spivey explained that core banking services cover the general checking account, the payroll checking account, and the investments account. Mr. Rivenbark moved to enter into the contract with Bank of America, and Ms. Kusek seconded the motion. The motion passed unanimously. Ms. Spivey reported that the Authority also solicited bids for lockbox services. No banks offered lockbox services with a New Hanover County location. Staff is analyzing lockbox services to determine if that service can be provided in-house at a reasonable cost and expects to have a recommendation in November. Monthly Financial Data: Ms. Spivey reported that the September water consumption was at an all time low. Consumption continued to decline in October, but at a low rate of .5 percent. Staff has identified five percent in budget reductions. Full financial data for October, detailed consumption charts, and customer service reports were provided in the Agenda attachments. Ms. Spivey reported that the auditors have completed their onsite field work and staff has prepared and delivered financial statements. The auditors should provide their report to the Finance Committee and Board in November. Old Business: There was no old business. Closed Session: Mr. Rivenbark moved to enter into closed session to discuss a personnel matter. Ms. Wolf seconded the motion, and it passed unanimously. The Authority entered closed session at 10:10 a.m. Ms. Miles and Ms. Pope remained in the meeting. The Board received a report and recommendation from the Human Resources Committee. CFPUA October 10, 2012 Minutes Page 6 Open Session: Ms. Kusek moved to return to open session. Mr. Rivenbark seconded the motion, and it passed unanimously. The Authority returned to open session at 10:50 a.m. Messrs. Jordan and Morgan and Ms. Queram rejoined the meeting. Ms. Kusek moved to approve the Human Resources Committee recommendation for a contract with Mr. Jordan. Ms. Wolf seconded the motion, and it passed unanimously. Mr. Jordan accepted the contract and stated that he had enjoyed working with Authority members and staff. He thanked Board members for their support of the organization and commended the hard work and exceptional dedication and talents of Authority staff. Mr. Jordan stated that he looked forward to continued successes for the Authority. Closing Comments and Adjournment: Mr. Quinn thanked Authority members for their time and work and again welcomed Mr. Betts. Mr. Betts stated that he had enjoyed his first meeting and looked forward to his service to the Authority. There was no further business to come before the Authority, and Mr. Rivenbark moved to adjourn. Ms. Kusek seconded the motion, and it passed unanimously. The Authority adjourned at 11:00 a.m. The next meeting of the Cape Fear Public Utility Authority will be Wednesday, November 14, 2012. The meeting will commence at 9:00 a.m. and will be held in the Lucie Harrell Conference Room of the New Hanover County Brice Shell Administration Building, 230 Government Center Drive, Wilmington, North Carolina. Respectfully submitted, Donna S. Pope Clerk to the Authority CFPUA October 10, 2012 Minutes Page 7