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HomeMy WebLinkAboutCFPUA 8 14 2013 CAPE FEAR PUBLIC UTILITY AUTHORITY AUGUST 14, 2013 REGULAR MEETING Members Present: Jim Quinn, Chairman 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 Staff Present: Jim Flechtner, Interim Chief Executive Officer Frank Styers, Engineering Director Beth Eckert, Environmental Services Director Cheryl Spivey, Chief Financial Officer Mike Richardson, Interim Chief Operating Officer and Water Treatment Superintendent Karen Durso, Assistant to the CEO John Payne, Internal Auditor Christene Pyne Mitchell, Engineering Manager Kent Harrell, Engineering Manager Gary McSmith, Engineering Manager Nancy Johnson, Customer Services Director Tom Morgan, Human Resources Director Jim Craig, Utility Services Superintendent Cord Ellison, Information Technology Manager Robert Daughtry, Utilities Collection Systems Manager Donna S. Pope, Clerk to the Board Attorney Present: Linda A. Miles, the Miles Firm, PLLC CFPUA 8.14.2013 Page 1 Guests Present: Julie Wilsey, NHC Airport Authority Tyler Newman, City of Wilmington Jim Iannucci, New Hanover County Heidi Cox, Division of Water Quality Diane Williams, Division of Water Quality Tony Boahn, McKim & Creed Sam Wilson, Wrightsville Beach Lumina News Jonathan Spiers,Port City Daily Gareth McGrath, Wilmington,Star News Dan Dawson, W.K. Dickson Call to Order and Opening Comments: Mr. Quinn called the meeting to order at 9:02 a.m. and declared a quorum present. He announced that Mr. Betts would be moving out of the county for a career opportunity and would be resigning his position on the Authority. The Board thanked Mr. Betts for his service to the Authority. Mr. Betts expressed his appreciation of the Wilmington and New Hanover County community and his pleasure at having served on the Authority. The City of Wilmington will appoint a citizen to complete Mr. Betts' term on the Board. Adoption of the Agenda: Ms. Wolf moved to adopt the day's Agenda. Mr. Rivenbark seconded the motion, and the Agenda was adopted unanimously. Approval of Minutes: Mr. Brumit moved to approve the Minutes of the July 10, 2013, Authority meeting, and Mr. Rivenbark seconded the motion. Following a clarification question from Mr. Sneeden, the Minutes were unanimously approved as written. Public Comments: There were no speakers. July 10, 2013, Speaker Update: Mr. Flechtner reported that staff had successfully assisted Mr. English, who spoke at the July meeting. CFPUA 8.14.2013 Page 2 Consent Agenda: The Consent Agenda was presented, as follows: 1. Authorization for the Interim CEO to execute a contract with T.A. Loving Company for construction of the Kirkland Capacity Expansion project, at a cost of 5334,823.00. 2. Authorization for the Interim CEO to execute a contract amendment with HDR Engineering, Inc.,for the Country Haven Pump Station upgrades, at a cost of S9,800. 3. Authorization for the Interco? CEO to execute a contract frith HDR Engineering for the Walnut Hills Wastewater Treatment Plant Decommissioning project at a cost of S865,700.00. 4. Authorization for the Interim CEO to execute a contract with T.A. Loving Compai v for construction of the NEI Northside Force Main Phase IB project, at a cost of 57,861.549.72. 5. Authorization for the Interim CEO to execute a contract amendment with Norris & Tunstall Consulting Engineers, P.C,.for the 30'x'Street Server Rehabilitation project, at a cost of S25,362.50. 6. Authorization for the Interim CEO to execute a contract amendment with W.K Dickson & Co., Inc.,for the Greenfield Lake Outfall Rehabilitation project, at a cost of S45,2 10.00. 7. Authorization for the Interim CEO to execute a contract with Hazen & Sawver for the Northside Wastewater Treatment Plant Alum,Sludge,Storage project, at a cost of S47,870.00. 8. Authorization for the Interim CEO to execute a change order with State Utility Contractors, Inc.,for the Burnt Mill Creek Phase 2 Server Improvements project,for rehabilitation of the Pump Station 10 wet well, not to exceed S300,000.00. 9. Authorization for the Interim CEO to execute an hourly contract amendment with McKim & Creed, Inc.,for the Northside Wastewater Treatment Plant Effluent Force Main, Phase 2, 30-inch Directional Drill, at a cost of Sl12,530.00. 10.Authorization for the Interim CEO to execute a Promissory Note with the North Carolina Drinking Water State Revolving Fund for post-construction start-up activities at the Aquifer Storage & Recovery site located at Westbrook, with no impact to the current fiscal year budget. 11.Authorization for the Interim CEO to execute a contract renewal with Glover Instrumentation & Controls, Inc., for 12 months, with the option to renely for ip to three additional 12-month terms, at a cost of 5113,000.00. CFPUA 8.14.2013 Page 3 12.Authorization for the Interim CEO to execute North Carolina Department of Transportation Agreement No. 4348 for replacement of water valve boxes along ,South College Road, at a cost of S8,400.00. 13.Approval of a Budget Amendment and the adoption of a Budget Ordinance to increase operating expenditures in the amount of S25,000.00 and decrease the operating contingency in the amount of S25,000,00 to fund the engagement of an executive search firm. Mr. Sneeden asked to remove Item 9 from the Consent Agenda for discussion. Mr. Wolfe moved to approve Consent Agenda items 1 -8 and 10 — 13. Mr. Rivenbark seconded the motion, and the items were approved unanimously. Mr. Sneeden requested clarification as to why staff recommended the highest cost option for Item 9. Mr. Flechtner explained that staff was hopeful that one of the two lower cost options would be successful but that staff believed it was important to keep the third option available so the project could move forward if the other options were not approved by CSX. The third option would only be used if absolutely necessary. Mr. Sneeden moved to approve Item 9. Mr. Wolfe seconded the motion, and it passed unanimously. New Business,Administrative Reports, Operations Report: Aquifer ,Storage and Recovery Update. Mr. Richardson provided a progress report on the Aquifer Storage and Recovery facility (ASR) located at the Westbrook tank site. The ASR currently utilizes one well reaching into the PeeDee Aquifer. From February through May of this year 23 million gallons of treated water was injected into the well, and withdrawals are expected to be 11 million gallons. Upon withdrawal, re-chlorination is the only treatment required before the water can be used. The major benefits of the ASR are the ability to store water in the winter for use during peak demand periods in the summer, the use of the stored water in an emergency situation, and the decrease in disinfection byproducts in stored water. Use of an ASR is also less expensive than storing water in an above-ground tank. Mr. Richardson hopes that the Authority will be able to develop more Aquifer Storage and Recovery sites in the future. Pump Station 34IHewlett's Creek Sanitary Sewer Overflow. Mr. Flechtner assured the Board that Authority staff members take overflows very seriously and have investigated to understand the causes of the spill, learn from the incident, and move forward with improved resiliency. Mr. Craig reported that two separate lightning strikes on July 29 caused electrical failures. The CFPUA 8.14.2013 Page 4 earliest strike disrupted SCADA transmissions between pump stations and the Southside Treatment plant. The second lightning strike at Pump Station 34 caused a generator malfunction. Mr. Craig reported that this was the second time in his 26-year career that he had witnessed such a combination of mechanical and electrical factors leading to a system failure and overflow. The overflow was detected at 3:17 p.m. on July 29, and normal power was restored to the pump station by 8:00 p.m. Mr. Craig answered questions from Board members regarding the timing of the electrical and mechanical failures and utility services staff work to stop the overflow and restore the pump station to proper working condition. Mr. Ellison answered questions from the Board regarding the telemetry and SCADA equipment and upgrades staff believes are important and necessary to the monitoring system. Future work to minimize and prevent future incidents include: • Installation of critical alarms for immediate notification at the Southside treatment plant. • Reconfiguration of the system so that interim pumps activate even if SCADA or pump station controls fail. • IT staff will obtain quotes for the replacement and modernization of the entire polling system and hardware at the Southside plant. • Contracting with a consultant to review the three critical pump stations in the system with "fresh eyes" to review, analyze, and advise on additional actions that may be necessary. New Business,Administrative Reports, Environmental Management Report: Easements and Encroachments. Ms. Eckert reported that the Authority has easements providing legal access and use of property belonging to others. Water and sewer lines are situated within the easements, and staff must have ease of access to Authority lines, meters, and other equipment within the easements. An encroachment is an obstruction that impedes access and impairs access for inspection, repairs, and emergency response. Some property owners may be unaware that they have encroached upon an easement, and staff works with property owners to minimize encroachments while maintaining the owner's use and enjoyment of the property. Staff is developing a systematic method to address encroachments and define what action is needed to remove an encroachment. New Business,Administrative Reports,Attorney's Report: Ms. Miles had no legal issues to report. CFPUA 8.14.2013 Page 5 New Business, Administrative Reports, CEO Report: Mr. Flechtner reported that the Environmental and Safety reports were provided in the Agenda packet for Board members to review and that staff was available to answer any questions. Mr. Flechtner reported that the Authority had experienced a reduction in revenues since the FY2014 Budget was approved. Lower water use may be attributed to heavy rainfall during the summer. Department managers are identifying four percent budget reductions to address reduced revenues. Board members had requested data from similar agencies regarding savings resulting from the installation of GPS in agency vehicles. Staff did not find water and sewer system data but did find a similarly sized school system that recognized savings over time after using GPS. The Authority may realize savings in insurance rates should accidents decrease as a result of GPS tracking. The bid for GPS will close on August 22. Mr. Flechtner further reported that the bid closing for the e-agenda automation will close on August 23. New Business, Committee Reports: Executive Committee. Mr. Quinn reported that the Committee continues to discuss ways to streamline meetings. The Committee received a report from Mr. Payne, the Internal Auditor. Mr. Payne's first audit reports will be presented to the Board in September, and he will meet with the Committee on a quarterly basis. Haman Resources Committee. Ms. Kusek and Mr. Morgan reported that the Committee met on July 31 and discussed three topics related to the Chief Executive Officer position. Mr. Morgan had collected comments from Authority members and direct reports regarding qualifications and characteristics for the position. The executive search firm will develop the job description with Board members. After discussion, the Committee recommended that the job title be changed from "Chief Executive Officer" to "Executive Director." Mr. White moved to change the title to Executive Director. Mr. Betts seconded the motion, and it passed unanimously. Mr. Morgan and Ms. Miles reported that the Authority By-laws would need to be revised to reflect the title change. The Committee recommended a starting salary of $152,000 for the Executive Director but recommended that the Board seek input from the executive search firm regarding salary. CFPUA 8.14.2013 Page 6 The Committee requested proposals from five executive search firms and narrowed the list to two firms and an alternate. Representatives of one firm had been unable to accommodate the Authority's schedule for an interview but could still be considered for the job. The other two firms were scheduled for a video interview at the end of the day's meeting. The firm proposals and background material had been provided in the Agenda for Board review. Long Range Planning Committee. Ms. Wolf announced that the August 22 Committee meeting had been rescheduled for August 29. The Committee met on July 25 in the Authority offices. Ms. Wolf was unable to attend, and Mr. Sneeden chaired the meeting in her absence. The Committee report was provided in the Agenda, and Mr. Styers reported that the Committee expects to have the Authority growth policy finalized in September. Mr. Styers presented items the Committee recommended for approval, as follows: 1. Authorization for the Interim CEO to execute an Interlocal Agreement with the Neiv Hanover County Airport Authority for construction of a hater line from Castle Havne Road to Blue Clav Road, at a budget impact of S55,710.00. Airport representatives had requested the interlocal agreement to provide a second water source for fire flow, emergency use, and development of the business park located at the Airport. Mr. Rivenbark moved to approve the Interlocal Agreement and CFPUA participation. Mr. Sneeden seconded the motion, and it passed unanimously. 2. Authorization for the Interim CEO to execute an Interlocal Agreement with NeIr Hanover County for the Marquis Hills and Heritage Park septic to sewer projects, at an Authority cost of S4,264,000.00, as well as authorization for the Chairman, Sccretarv, and Interim CEO to execute the appropriate budget ordinance and budget amendivent recognizing the County's contribution to the projects. Ms. Kusek moved to approve the Interlocal Agreement, and Ms. Wolf seconded the motion. Mr. Rivenbark asked the Commissioner representatives to explain what fund the County would use to pay its debt service on the loans. Messrs. White and Wolfe reported that the loans carried a two percent interest rate with additional grant monies available and that the payments would be made from the County's General Fund. Mr. White added that the City's contributions to the general fund are recognized and welcomed. Mr. Quinn asked for a vote, and the Interlocal Agreement was approved unanimously. CFPUA 8.14.2013 Page 7 Ms. Kusek moved to approve the budget ordinance and budget amendment supporting the Interlocal Agreement and sewer projects. Ms. Wolf seconded the motion, and it passed unanimously. Finance Committee: Mr. Brown advised that the Finance Committee documentation and staff reports were provided in the Agenda for Board review and staff was available to answer questions. Finance documents are also available on the CFPUA website. He reminded the Board that water sales continue to trend downward and should be monitored. Mr. Quinn called a recess at 10:35 a.m. and reconvened the meeting at 10:50 a.m. Mr. Quinn asked that Mr. Betts be formally excused from the remainder of the meeting. Mr. Rivenbark moved to excuse Mr. Betts. Ms. Kusek seconded the motion, and it passed unanimously. Mr. Betts left the meeting. New Business, Executive Search Firm Interviews: Representatives of two search firms were interviewed by Authority members via video conference. Ms. Kusek introduced Colin Baenziger of Colin Baenziger & Associates of Wellington, Florida, and John A. Anzivino of Springsted, Incorporated, of Richmond, Virginia. Each candidate summarized his company's history, background, and methodology, and their experiences working in North Carolina. Each candidate was interviewed separately and asked the following questions by Board members: 1. What single factor do You think is the most important for a search of this nature? 2. How will you establish the profile and qualifications of the candidate. Will you interview Board members, staff, etc.? 3. Give examples of similar positions you have filled and how your process worked. 4. Provide a brief description of how Your firm will evaluate the candidates. 5. Your proposal indicated that, once the person is placed,follow-up assistance is provided What are typical follow-up issues that you see on a regular basis? 6. Who within Your organization will actually be handling the search? What is the current search load for that person? 7. Some Board members have expressed interest in seeking candidates from the private sector in addition to the public sector. Do You have suggestions for placing a private sector person into a government setting? Each candidate was given the opportunity to ask questions of Board members. CFPUA 8.14.2013 Page 8 Following the interviews, Board members discussed their impressions of the candidates and also discussed available information regarding the firm that had been unable to interview, the Mercer Group. After discussion, Mr. Quinn moved to enter into a contract with Springsted, Incorporated, as the executive search firm. Mr. Brown seconded the motion, and it passed unanimously. Ms. Kusek moved to release the funding to pay for the Springsted contract and to authorize the Interim CEO to execute the contract. Mr. Rivenbark seconded the motion, and it passed unanimously. Ms. Kusek announced that the H.R. Committee meeting scheduled to follow the Board meeting was canceled. Old Business: There was no old business. Closing Comments: Mr. Wolf asked that legal counsel and staff investigate the possibility of pursuing claims against third parties who cause lines to break. Mr. Brumit congratulated staff on the second consecutive month with accident rates below industry standards. Mr. Rivenbark reported that the City had selected a replacement for Mr. Betts as an Authority member. Ms. Kusek thanked Mr. Morgan and H.R. Committee members for their work on the executive search firm selection and interview process. Ms. Miles advised that she would research assessments for third-party responsibility, as well as recent legislative changes regarding marking of utility lines. She further reported that she would review the Authority Bylaws and make revision recommendations in addition to the CEO title change. Ms. Miles will proposed changes to the Board for the required 30-day review before the Board can vote on the new Bylaws. There was no further business to come before the Board, and Mr. Rivenbark moved to adjourn. Mr. Anderson seconded the motion, and it passed unanimously. The meeting adjourned at 12:00 noon. CFPUA 8.14.2013 Page 9 The next regular meeting of the Cape Fear Public Utility Authority will be Wednesday, September 11, 2013. The meeting will commence at 9:00 a.m. and will be held in the Lucie F. Harrell Conference Room of the New Hanover County Brice Shell Government Center located at 230 Government Center Drive, Wilmington, North Carolina. Respectfully submitted, Donna S. Pope Clerk to the Board CFPUA 8.14.2013 Page 10