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HomeMy WebLinkAboutCFPUA 9 11 2013 Regular Meeting Cape Fear Public Utility Authority September 11, 2013 Regular Meeting Board Members Present: Jim Quinn, Chairman Pat Kusek, Vice-Chair Mike Brown, Treasurer Jim Brumit, Secretary Cindee Wolf Larry Sneeden Bill Norris Neil Anderson, Councilman Tom Wolfe, Commissioner Woody White, Commissioner Board Member Absent: Charlie Rivenbark, Councilman Staff Present: Jim Flechtner, Interim CEO Mike Richardson, Interim COO Cheryl Spivey, CFO Mike McGill, CCO Frank Styers, Engineering Director Beth Eckert, Environmental Director Nancy Johnson, Customer Service Director Tom Morgan, HR Director Karen Durso, Assistant to the CEO John Payne, Internal Auditor Jim Craig, Utility Services Superintendent Julie McLawhon, Budget&Finance Manager Julia Vosnock, Procurement Manager Guests Present: Mr. and Mrs. Hurst Patsy Hurst West Helen Juanita Clemmons Jason Bell Dwight Jessup CFPUA Minutes- September 11, 2013 Page 1 Guests, continued: Jim Iannucci, New Hanover County Heidi Cox, N.C. Public Water Supply Carter Hubard, W.K. Dickson Tony Boahn, McKim & Creed Ryan McAlister, BASE Jonathan Spiers,Port City Daily Opening Comments and Determination of a Quorum: The Cape Fear Public Utility Authority held its monthly meeting on Wednesday, September 11, 2013. The Board met in the New Hanover County Lucie Harrell Conference Room, 230 Government Center Drive, Wilmington, North Carolina. Mr. Quinn called the meeting to order at 9:00 a.m., declared a quorum present, and welcomed everyone in attendance. Mr. Anderson moved to excuse Mr. Rivenbark from the meeting. Ms. Wolf seconded the motion, and it passed unanimously. Mr. White reported that he would need to leave the meeting early. Adoption of the Agenda: Ms. Kusek moved to adopt the day's Agenda, and Mr. Brumit seconded the motion. Mr. Flechtner recommended the addition of an agreement with the N.C. Department of Transportation to the CEO's Report. Ms. Kusek revised her motion to include the additional item, and Mr. Brumit accepted the revised motion. The Agenda was adopted unanimously. William A. Norris Oath of Office: The Board welcomed Mr. Norris to the Authority, and Ms. Durso administered the Authority Oath to Mr. Norris. Mr. Norris is a City of Wilmington appointee. Approval of Minutes: Mr. Brumit moved to approve the August 14, 2013, Minutes. Ms. Kusek seconded the motion, and it passed unanimously. Keith Betts Recognition of Service: Mr. Anderson moved to adopt a Resolution recognizing and thanking Mr. Betts for his service as a Board member. Ms. Kusek seconded the motion, and it passed unanimously. CFPUA Minutes- September 11, 2013 Page 2 Public Comments: Messrs. Bell and Jessup and Ms. Clemmons and Ms. West spoke regarding the Masonboro Sound Road sewer project. Speakers expressed concerns for the environment and asked the Board to consider an alternative site for the pump station. Mr. Jessup distributed information regarding CAMA notification. Ms. Clemmons presented a petition in opposition to the proposed pump station location. Consent Agenda: The Board considered the Consent Agenda, as follows: 1. Authorization to advertise and sell various items on GovDeals and donate unsold items to local non profits, with revenues going into the General Operating Fund; 2. Authorization of a contract and change orders with ,State Utility Contractors for emergency construction services, at a budget impact of 5300,000; 3. Authorization for the Engineering Department to proceed with a sole purchase bid for pump station control panel component units and authorization to purchase the components as a sole source for in-house replacement and maintenance; -l. Authorization for the Engineering Department to proceed with a .sole purchase bid to allow ,Smith & Loveless as a sole source and authorization to purchase the ,Smith & Loveless brand vacuum pump assemblies as a sole source for in-house repairs, at a budget impact of 5120,000; 5. Authorization for the Engineering Department to proceed with a .sole purchase bid to allow the Motorola ACE 3600 unit as a sole source and authorization to purchase the Motorola units as a sole source for in-house replacement, at a budget impact up to 5200,000; 6 Authorization for a Budget Amendment and Budget Ordinance recognizing New Hanover County's contribution to the Heritage Park andMarquis Hills Septic to Sewer Projects; 7. Authorization of a change order with ,State Utility Contractors, Inc., for the Burnt Mill Creek Phase I and 2 ,Sewer Improvements Project for cathodic protection, at a budget impact of S106,964.43; 8. Authorization of a contract with East Coast Contracting, Inc.for the construction of the Kerr Avenue Greater Loop, Contract No. I Waterline Project, at a budget impact of S1,536,953.48; 9. Alithorizatlon for a contract amendsvent with Paramounte Engineering, Inc., foi" additional construction inspection services as part of the Kerr Avenue Greater Loop Contract Number I Waterline Project, at a budget impact of S20,775; CFPUA Minutes- September 11, 2013 Page 3 10. Authorization for a change order with ( a.Ienn Construction & Rehabilitation Services, Inc. to perform a portion of planned sanitary sewer rehabilitation in the Waltmoor Road area, at a budget impact of 5393,220; 11. Authorization for a contract with HDR Engineering, Inc. of the Carolinas for design of the Pump,Station 10 Force Main Replacement Project, at a cost of 5300,900; 12. Approval of a Resolution exempting the Pump Station 8 Capacity Expansion Project from the provisions of N.C.G.X 143-6 1.31 143-6 1.34 (Mini-Brooks Act) and approval of a Resolution to give award preference for the project to local firms; and 13. Approval of a Resolution exempting miscellaneous pump station improvement projects from the provisions of N.C.G.X 143-64.31 143-64.34 (Mini-Brooks Act) and approval of a Resolution to give award preference for the project to local firms. Ms. Kusek moved to approve the Consent Agenda, as presented. Mr. Brown seconded the motion, and it passed unanimously. New Business,Administrative Reports: Engineering Report. Contract with State Utility Contractors, Inc., for construction of the Masonboro,Sound Water and,Server Extension Project, in the amount of S2,524,305. Mr. Styers presented an overview of the 1998 Masonboro Sound Annexation area, along with detailed maps of the site on Masonboro Sound Road which has been identified as the best location for a wastewater pump station. Mr. Styers explained the topographical challenges that preclude the pump station being located further to the West. He reported that a more westerly location would require a wider construction easement, a deeper wet well, and deeper pipes which could be problematic to maintain and clean with a vactor vacuum. Mr. Styers answered questions from Authority members regarding the project design, expected wastewater flow to the pump station, and addressing specific concerns raised by the day's public speakers. Mr. Ellison answered questions regarding the SCADA controls and monitoring safeguards that would be in place at the site. Mr. McGill clarified the process of notification to property owners. After much discussion, Mr. Sneeden moved to approve the contract, to hold another public information meeting within 30 days to explain the project further, and to address design concerns as necessary through change orders to the contract. Mr. Brumit seconded the motion, and it passed unanimously. Contract with Hazen and,Sawver, P.C.,for the ,SCADA Svstem Evaluation and Design Project, at a cost of S281,400. CFPUA Minutes- September 11, 2013 Page 4 Mr. Styers presented the item, and Mr. Ellison answered questions regarding the development of a comprehensive enterprise-wide SCADA system. Mr. Sneeden moved to approve the contract. Mr. Anderson seconded the motion, and it passed unanimously. Attorney's Report. Ms. Miles advised that she would have a short report during the closed session. She further reported that she had researched a question from the August meeting regarding the Authority's ability to recover financial damages from a contractor who damaged a utility line. She reported that the N.C. Legislature had passed a new law this year that created a 15-member Notification Committee and that all such claims would go before the Committee in the future. "Ordinary negligence" would result in training, "gross negligence" would result in a $1,000 fine, and "willful negligence" would result in a $2,500 fine. Appeals would first be heard by the N.C. Utilities Commission, followed by a party filing in Superior Court if in disagreement with the Commission's findings. All utility providers in North Carolina, public or private, are subject to the Committee procedure. CEO's Report. Mr. Flechtner referred the Board to the Environmental and Safety Reports in the Agenda packet and presented the Department of Transportation agreement that had been added to the Agenda. Agreement with N.C. DOT for the replacement of valve boxes on Highirav 132 (College Road), in the amount of S8,400.00. Mr. Flechtner recommended approval of the agreement. Ms. Kusek moved for approval. Ms. Wolf seconded the motion, and it passed unanimously. New Business, Committee Reports: Executive Committee. Mr. Quinn reported that the Committee continues to streamline the monthly Board Agenda. Mr. Payne presented audit reports for Fuel Cards and Billing and Collections. He explained the methodology of exception tracking he employs and provided his FY2014 Audit Schedule. Mr. Payne further reported on the development of a fraud hotline. The Authority recessed at 10:20 a.m. and reconvened at 10:32 a.m. Human Resources Committee. Ms. Kusek reported that the Committee had a productive meeting with Mr. Anzivino of Springsted and that she was confident the Board had made a good choice of executive search firms. Mr. Morgan distributed a summary and timeline from Mr. Anzivino. Mr. Anzivino will report to the full Board at the October meeting. Mr. Anzivino projected a completion date by the end of CFPUA Minutes- September 11, 2013 Page 5 November 2013. Mr. Morgan distributed a Springsted questionnaire through which Board members could provide further input for the Executive Director search. The questionnaire will be emailed to Board members. The Board briefly discussed methods to obtain public and stakeholder input into the Executive Director search. Long Range Planning Committee. Ms. Wolf reported that Committee members were extremely excited to present the recommended Growth Policy. She thanked Authority members and staff for their time and dedicated work in developing the policy and stated that it had been a dynamic process and the policy itself would be a dynamic document that could be adapted over time. Mr. Styers presented the Growth Policy and summarized the process used to develop the policy, including a February 2013 Board workshop with attendance and input from stakeholder groups. Categories of growth addressed in the policy include: • New connections within the existing service area. • Petition for service by an existing community. • Board decisions to expand service or oversize facilities for capacity. • City or County requests to extend service. • Acquisition of existing utility facilities. • New major single customer within the existing service area. • Bulk sales or wholesale service to a new major single customer outside the existing service area. Mr. Styers summarized the Debt Recovery Allowance (DRA), defined as the cost the Authority can spend on a new customer without raising rates on existing customers. The DRA is a tool that can be used to establish guidelines and limits on the amount the Authority contributes to a project. The DRA is presently calculated at $3,144 per service. Ms. Wolf moved to adopt the Growth Policy, as recommended, and Ms. Kusek seconded the motion. The Growth Policy was unanimously adopted. Mr. Quinn thanked Ms. Miles and Mr. Styers for their extensive work in developing the policy. Mr. Brumit moved to excuse Mr. White. Mr. Wolf seconded the motion, and it passed unanimously. Mr. White left the meeting at 10:50 a.m. CFPUA Minutes- September 11, 2013 Page 6 Finance Committee. Mr. Brown and Ms. Spivey directed Board members to the monthly financials and Customer Service report in the Agenda. They reported that water consumption and sales continue to trend downward. As a result of declining consumption, the August Statement of Revenues for water sales is $600,000 below budget. It is offset by an increase in System Development Charges, so that Operating Revenues are $65,000 below budget. Each department has identified four percent of its FY2014 Budget, and that amount has been frozen. The four percent reduction will be shown in the October financial statements. The Board briefly discussed the possibility of scheduling the Finance and Executive Committees and regular Authority meeting to later dates each month to accommodate full and accurate financial reporting. Ms. Pope asked that any change in the regular Authority meeting date be held until January so that she could coordinate with County staff for the use of the Harrell Conference Room. Staff and the Finance Committee will continue to monitor revenue trends. Old Business: There was no old business. Questions & Answers and Closing Comments: Mr. Sneeden commended staff member Jimmy Wallace for his prompt and concerned response to a safety issue with a manhole. Mr. Brumit commended staff for a superb month in the safety report. He stated that he would be unable to attend the Authority Service Award presentation but wanted to publicly thank staff for a j ob well done. Mr. Anderson stated that he learned a lot during the day's pump station discussion and reminded everyone of the environmental positives resulting from public sewer. Mr. Norris reported that he had greatly appreciated the tour of Authority facilities Mr. Flechtner and staff provided as part of his orientation as a Board member. Ms. Kusek stated that tours for schools, civic organizations, and neighborhood associations were good educational tools and did a great deal to foster understanding and acceptance. Mr. Flechtner reported that staff continues to look for best practices system wide to increase revenues and manage costs over the long term. CFPUA Minutes- September 11, 2013 Page 7 Closed Session: Mr. Anderson moved to enter closed session to receive advice on a pending legal issue and an update on the EPA Consent Order from counsel. Mr. Brumit seconded the motion, and it passed unanimously. The Authority entered closed session at 11:05 a.m. Ms. Miles, Ms. Spivey, Ms. Pope, and Messrs. Flechtner and McGill remained in the meeting. The Board received a report from Ms. Miles. Return to Open Session: Ms. Kusek moved to return to open session. Mr. Anderson seconded the motion, and it passed unanimously. The Authority entered open session at 11:17 a.m. Mr. Wolfe moved to adopt Budget Ordinance BA14-006 and the related budget amendment for legal services in the amount of $12,000.00. Ms. Kusek seconded the motion, and it passed unanimously. Adjournment: Mr. Anderson moved to adjourn. Ms. Kusek seconded the motion, and it passed unanimously. The meeting adjourned at 11:20 a.m. The next regular meeting of the Cape Fear Public Utility Authority will be Wednesday, October 9, 2013, commencing at 9:00 a.m. The Authority will meet in the Lucie Harrell Conference Room, located in New Hanover County's Bruce Shell Administrative Building, 230 Government Center Drive, Wilmington, North Carolina. Respectfully submitted, Donna S. Pope Clerk to the Board CFPUA Minutes- September 11, 2013 Page 8 CFPUA Minutes- September 11, 2013 Page 9