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HomeMy WebLinkAboutCFPUA 6 12 2013 Regular Meeting CAPE FEAR PUBLIC UTILITY AUTHORITY JUNE 12, 2013 REGULAR MEETING Members Present: Pat Kusek, Vice-Chair Jim Brumit, Secretary Mike Brown, Treasurer Cindee Wolf Keith Betts Larry Sneeden Tom Wolfe, Commissioner Woody White, Commissioner Charlie Rivenbark, Councilman Neil Anderson, Councilman Member Absent: Jim Quinn, Chairman Staff Present: Matt Jordan, CEO Jim Flechtner, COO Cheryl Spivey, CFO John Payne, Internal Auditor Karen Durso, Assistant to CEO Frank Styers, Engineering Director Beth Eckert, ESMD Director Mike McGill, CCO Tom Morgan, HR Director Nancy Johnson, Customer Service Director Christene Mitchell, Engineering Manager Gary McSmith, Engineering Manager Kent Harrell, Engineering Manager Julie McLawhon, Budget & Finance Manager Melinda Hoggard, Financial Systems Analyst Julia Vosnock, Procurement Manager Cord Ellison, IT Manager CFPUA June 12, 2013 MINUTES Page 1 Mike Richardson, Water Resources Manager Jim Craig, Utility Services Superintendent Donna S. Pope, Clerk Guests: Mary Outlaw Karen Casteel James Poole Jonathan Spiers Ryan McAlister Richard Wynche Carter Hubard Eric Williams Call to Order, Determination of a Quorum, and Opening Comments: Ms. Kusek called the Authority to order at 9:00 a.m. and welcomed those in attendance. She declared a quorum present. Adoption of the Agenda: Mr. Brown moved to adopt the Agenda. Mr. Betts seconded the motion, and it passed unanimously. Approval of Minutes: Mr. Brumit moved to approve three sets of Authority meeting minutes, as follows: May 8, 2013, Regular Meeting; May 15, 2013, Budget Hearing and Workshop; and May 23, 2013, Special Meeting. Mr. Brown seconded the motion, and it passed unanimously. CFPUA June 12, 2013 MINUTES Page 2 Public Comment: Mr. James Poole spoke regarding billing dates and retroactive billing at the rates that went into effect on May 1, 2013. Ms. Outlaw spoke regarding problems with her well since 2011. Mr. Jordan asked Mr. Flechtner to assist Ms. Outlaw. Ms. Casteel spoke regarding sewer charges for water used to fill pools. Mr. Jordan asked Ms. Johnson to assist Ms. Casteel. Consent Agenda: The Board considered the Consent Agenda, as follows: 1. Resolution identifying the CEO or his successor as an authorized official to execute documents pertaining to NC State Revolving Loan; 2. Resolution adding Jim Flechtner, Chief Operations Officer, as an authorized signer on the CF'PUA Bank of America account, and to allow one of the authorized signers to remove another authorized signer upon the signer's termination of employment or incapacity, as allowed by law and CF'PUA policy, 3. Resolution designating an Interim CEO in the event of absence or incapacity, 4. Audit contract with Thompson, Price, Scott, Adams& Company, at a cost of$31,720.00, 5. Construction contract with T.A. Loving Company for 300 Street sewer rehabilitation, at a cost of$1,289,656.75, 6. In terlocal Agreemen t with th e City of Wilmington for reco very of costs of road work associated with 30" Street project, in the amount of$245,085.00 to be received from City, CFPUA June 12, 2013 MINUTES Page 3 7 Construction contract with T.A. Loving for Smith Creek "Alan dale"pump station removal, at a cost of$2,161,145.00, 8. Construction contract with Layne Inliner, LLC, for McCumber's Ditch sewer rehabilitation, in the amount of$1,053,835.00, 9. Interlocal Agreement with the City of Wilmington for recovery of costs of stormwater and road work associated with McCumber's Ditch project, in the amount of$81,455.00 to be received from City, 10. Authorization for the CEO to reject all bids for the Greenfield Lake Outfall rehabilitation project and rebid the project, 11 . Contract amendment with Cavenaugh &Associates, P.A. for design services for the Comprehensive Meter Replacement Program, at a budget impact of$206,500.00, 12. Acceptance of Capital Contributions from NNP-IV Cape Fear River, LLC, as part of an existing developer agreement, in the amour t of$2,589,819.00, 13. Resolution writing off uncollectible accounts, in the amount of $331,803.23, and 14. Adoption of System Development Charge calculations and assumptions for purposes of Authority Growth Policy and its aim ual SDC calculation, effective July 1, 2013. Mr. Rivenbark asked for clarification on Items 5, 7, and 10 or to pull the items for further discussion. Mr. Styers answered questions about Items 5 and 7. Mr. Jordan reported that the Finance Committee had discussed Item 10, and a report on the Authority bidding process would be given during the Finance Committee report. Mr. Rivenbark moved to adopt and approve the Consent Agenda, as presented. CFPUA June 12, 2013 MINUTES Page 4 Fiscal Year 2014 Budget: Ms. Spivey presented the Budget for the Fiscal Year beginning July 1, 2013. The FY2014 Budget includes an Operating Fund of $72,775,200, System Development Funds of $3,000,000, and Capital Projects Funds of $24,338,007. The Capital Project budget includes a $5.9 million transfer from the 2013 Operating Fund and will require $18.4 million in future bond sales. The FY2014 Budget includes 294.5 employee positions, including two new jobs in the Engineering Department and one in Customer Service. The Budget includes a market adjustment of one percent and merit adjustments of up to two percent, along with some employee reclassifications. Mr. Ellison presented two technology items that had been added as a result of Board feedback, and those were digital devices and software for use in agenda preparation and Board meetings and GPS devices on Authority vehicles. Mr. Rivenbark moved to approve the Fiscal Year 2014 Budget and adopt the Budget Ordinance. Mr. Brumit seconded the motion, and the FY2014 Budget was approved and adopted unanimously. Administrative Reports: Attorney's Report. Ms. Miles reported that Authority, City, and County representatives had all signed the EPA Consent Decree and were awaiting its execution by the EPA and Department of Justice. She further requested a closed session at the end of the meeting to discuss a claim and a personnel matter. CEO's Report. Mr. Jordan presented the Environmental Performance Report for April 2013. There were no sanitary sewer overflows, and all systems operated without violations. The report included new graphs for biological oxygen demand and suspended solids. CFPUA June 12, 2013 MINUTES Page 5 There was one employee accident in April. Mr. House, the Safety Program Manager, is in the process of conducting safety audits in each department. Committee Reports: Executive Committee. Ms. Eckert presented the Sponsorship Policy developed by staff. The policy closely followed one developed by the N.C. School of Government and had been reviewed by legal counsel. An example of a sponsorship program would be the recycling of cooking oils with a local grocery store and a biodiesel fuel company. Ms. Wolf commended staff members for their initiative in developing the sponsorship idea and moved to adopt the policy. Mr. Brumit seconded the motion, and it passed unanimously. Long Range Planning Committee. Ms. Wolf and Mr. Styers reported on the May 23 Committee meeting. The Committee reviewed a draft of the growth policy and provided feedback to staff. The Committee received reports on the Newland agreement, Mayfaire area sewer capacity, flow tracking and allocation, the possibility of sewer expansion into the Hampstead area of Pender County, and Authority staff collaboration with the State and County to develop an aquifer sustainability database. A full Committee report and minutes were provided in the Agenda packet. Mr. Styers presented a revision to the Authority's Connection Deferral Policy. Staff recommended the revision so that the operation of the Authority's system would not be impeded by close proximity to a well or septic tank. Ms. Wolf moved to approve the revision to the Connection Deferral Policy. Mr. Sneeden seconded the motion, and it passed unanimously. Ms. Kusek recessed the meeting at 9:55 a.m., and the Authority reconvened at 10:05 a.m. Finance Committee, ERP Needs Assessment. Mr. Ellison provided the results of the ERP Needs Assessment conducted by Plante Moran. CFPUA June 12, 2013 MINUTES Page 6 Christine Cunliffe and Mark Warner of Plante Moran were available via internet conference. Plante Moran analyzed the Authority's software needs and capabilities, reviewed documentation, and interviewed staff in several departments. The study concluded that the current H T E system was not viable in the long run and lacks integration with other software systems used by staff, such as Maximo Asset Management. Staff has relied on "shadow systems," duplication of tracking, and paper documentation in addition to H T E. Plante Moran and the staff team working on the needs assessment recommended going to market for new financial software. The Finance Committee endorsed the recommendation. Messrs. Ellison and Jordan answered questions from Board members. Construction Bid Process. Ms. Vosnock reviewed the Authority's bid process and reported that staff is revising and streamlining the process while remaining in compliance with North Carolina law. As part of the analysis the bidding process, staff will survey contractors and other governmental bodies. Through the revised process, Engineering staff will specify which subcontractors must be listed and what additional qualifications are needed for the General Contractor. Staff will abide by the Minority Business Enterprise Policy adopted by the Board in 2008 for construction, building, and repair project bids over $300,000. Mr. Jordan reported that he had asked Mr. Payne, the Internal Auditor, to serve as the hearing officer for bid appeals or protests and that Mr. Payne had heard his first appeal. Ms. Vosnock and Mr. Jordan answered clarification questions. Customer Service Update. Ms. Johnson reported that staff has developed an optional pre-bill option to assist customers in splitting payments into two months. Customers who request the service will receive a letter notifying them that they can pay one-half of their previous month's bill as prepayment for the next bill. The balance should be paid by the due date to avoid late fees. Staff can accommodate up to 250 customers with the service internally. May Financial Data. Ms. Spivey referred Board members to the complete May financial information in the Agenda. She reported that CFPUA June 12, 2013 MINUTES Page 7 revenues continue to be slightly lower than budgeted and stated that she anticipated Fiscal Year 2013 water revenues to be slightly below budget. Fiscal Year 2013 expenditures are significantly below budget and will offset any revenue shortfall. Closed Session. Mr. Rivenbark moved to enter closed session to discuss a legal claim and a personnel issue. Mr. Betts seconded the motion, and it passed unanimously. The Authority entered closed session at 10:35 a.m., with Ms. Miles, Ms. Pope, and Messrs. Jordan, Morgan, and McGill in attendance. The Board received a report from Ms. Miles and provided direction. The Board discussed a personnel item and provided direction to the Human Resources Committee. Open Session and Adjournment. Mr. Rivenbark moved to return to open session. Mr. Betts seconded the motion, and it passed unanimously. The Authority entered open session at 10:39 a.m. Mr. Betts moved to adjourn. Mr. Rivenbark seconded the motion, and it passed unanimously. The meeting adjourned at 10:40 a.m. The next regular meeting of the Cape Fear Public Utility Authority will be held on Wednesday, July 10, 2013. The meeting will begin at 9:00 a.m. and will be held in the Lucie Harrell Conference Room, New Hanover County Bruce Shell Administrative Building, 230 Government Center Drive, Wilmington, North Carolina. Respectfully submitted, Donna S. Pope Clerk to the Authority CFPUA June 12, 2013 MINUTES Page 8 CFPUA June 12, 2013 MINUTES Page 9