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HomeMy WebLinkAboutCFPUA 2 19 2014 Regular meeting CAPE FEAR PUBLIC UTILITY AUTHORITY FEBRUARY 19, 2014 REGULAR MEETING Authority Members Present: Jim Quinn, Chairman Pat Kusek, Vice-Chair Jim Brumit, Secretary Cindee Wolf Bill Norris Charlie Rivenbark, Councilman Tom Wolfe, Commissioner Woody White, Commissioner Authority Members Absent: Mike Brown, Treasurer Larry Sneeden Staff Present: Jim Flechtner, Executive Director Mike Richardson, Interim Chief Operations Officer Beth Eckert, Environmental Management Director Cheryl Spivey, Chief Financial Officer Frank Styers, Engineering Director Tom Morgan, H.R. Director Ken Vogt, Wastewater Treatment Superintendent Mike McGill, Chief Communications Officer Karen Durso, Assistant to the Executive Director John Payne, Internal Auditor Loria Potter, Interim Customer Service Director Phil Brower, Engineering Manager Julie McLawhon, Budget & Finance Manager Melinda Hoggard, Financial Systems Analyst Julia Vosnock, Procurement Manager Donna S. Pope, Clerk Attorney Present: Linda A. Miles, the Miles Firm, PLLC Guests Present: Diane Williams, Assistant Regional Engineer, N.C. Public Water Supply Tony Boahn, McKim & Creed Dan Dawson, W.K. Dickson Media representatives Opening Comments and Determination of a Quorum: Mr. Quinn welcomed attendees and declared a quorum present. Mr. Rivenbark moved to excuse Messrs. Brown and Sneeden. Mr. White seconded the motion, and it passed unanimously. Adoption of the Agenda: #&05! &%"25!29 ˜þ ‘“þ -).54%3 0 ¦¤ 1 motion, and the Agenda was unanimously adopted. Approval of Minutes: Mr. Brumit moved to approve the Minutes of the January 8, 2014, Regular meeting. Ms. Kusek seconded the motion, and the Minutes were approved unanimously. Distinguished Budget Presentation Award: On behalf of the Finance Committee and the full Board, Ms. Kusek presented the Distinguished Budget Presentation Award to Ms. Spivey, Ms. McLawhon, and Ms. Durso. Finance and Administration staff received the recognition and award from the Government Finance Officers Association. The award reflects a commitment to the highest principles in government accounting. This is the second year that the Authority has received the award. Public Comment: There were no public speakers. Consent Agenda: Mr. Quinn presented the Consent Agenda, as follows: 1. Contract amendment with ASR Systems, LLC, for the Aquifer Storage and Recovery Well project, not to exceed $135,000; 2. Budget Calendar for FY2014-2015; 3. Revision to the standard operating procedure for post-issuance monitoring of compliance for tax-exempt debt; 4. Approval of a cash-flow based investment program and designation of Park Sterling Bank as an Official Depository for Authority funds; 5. Sole source ITRON transmitters for meter reading, at an estimated cost of $77,100; 6. Sole source SENSUS water meter purchase, at an estimated cost of $172,970; 7. Two-year contract with Municipal Sales, Inc., for root control services, at a cost of $47,495 annually; 8. Contract amendment with McKim & upgrades, to be billed hourly, not to exceed a total of $114,600; 9. Change order with State Utility Contractors, Inc. to adjust the final contract quantities for the Burnt Mill Creek Phase 2 sewer improvements, at a budget impact of $36,533.22. from the Consent Agenda. Mr. Rivenbark moved to approve Consent Agenda Items 1 through 6, 8, and 9. Ms. Wolf seconded the motion, and the Consent Agenda was approved with the exception of Items 1 and 7. Contract amendment with ASR Systems, LLC, for the Aquifer Storage and Recovery Well project, not to exceed $135,000. reported that he ha Storage and Recovery site. Mr. Styers reported that staff has been working with property owners in the area and has developed a plan to address concerns depending on whether the well is an irrigation well or a geothermal well. Mr. McGill reported to the Board regarding outreach, mailings and additional communications with area residents, property owners, and the Department of Environment and Natural Resources. The Authority supplies all domestic water for use in the area, and none of the wells are used for drinking water or other inside household use. Staff is moving forward with the second stage of the ASR project. to the Board when all concerns are Rivenbark seconded the motion. The contract amendment passed unanimously. #&05! &%"25!29 ˜þ ‘“þ -).54%3 0 ¦¤ 2 Two-year contract with Municipal Sales, Inc., for root control services, at a cost of $47,495 annually. Mr. Flechtner reported that staff is confident with the choice of chemicals and root control services. Mr. Rivenbark moved to approve the contract. Mr. Brumit seconded the motion, and it passed unanimously. New Business, Administrative Reports: Engineering Report - Effluent Force Main Project Update and recommendation for a construction contract change order with T.A. Loving Company for the Northside Wastewater Treatment Plant Effluent Force Main project, at a budget impact of $1,606,300.65. Mr. Styers presented the item and answered questions from Board members. An additional 30-inch force main is necessary to carry treated wastewater from the Northside plant to its discharge on the river. When the Martin Luther King Parkway was constructed, two 42-inch casings were constructed by the DOT contractor for later use when the force mains were built. One of the casings is no longer suitable for use due to poor soils and settling of fill beneath the casing. The recommended change order includes the cost of a 520 linear foot horizontal directional drill at a deeper level to install the force main beneath the highway. Once the force main is completed, the Northside plant will be re-certified by the State to treat and convey 16 million gallons of effluent per day. Following clarification questions, Mr. Brumit moved to approve the change order with T.A. Loving. Ms. Kusek seconded the motion, and it passed unanimously. Ms. Miles had no report for open session and requested a closed session at the end of the meeting to discuss a personnel item. Mr. Flechtner referred Board members to the Environmental and Safety Reports in the Agenda packet. He then reported on the impacts of winter weather events on Authority operations in the last month. There were 22 water main breaks over an 11-day period, caused by extreme temperature fluctuations over a short time period. During the most recent ice storm and power outages, 35 pump stations operated on generator power. Crews worked through the night to maintain power at the pump stations. Approximately 1,200 employee work hours were expended between the two weather events. Mr. Flechtner praised employees for their dedication, expertise, and hard work in difficult circumstances. Ms. Kusek commended staff and suggested that the Authority do something in appreciation for those who worked during the storms. New Business, Committee Reports: Executive Committee. Mr. Quinn reported that the Executive Committee met on February 5. The Committee agreed upon assignments to various Board Committees and had notified Authority members of their new assignments. Mr. Quinn further reported that the Executive Committee considered the Executive Director contract and voted unanimously to endorse the contract, which would be considered by the Board in closed session. Human Resources Committee. Ms. Kusek reported that the Committee would report in the closed session. She reminded Authority members that the Committee needed evaluation feedback for the Clerk and for the legal services contract review. Communications Committee. Mr. McGill reported that the Committee met on January 9 and would meet in the future on an as-needed basis, with updates to the full Board which stands for strengths, weaknesses, opportunities, and thr Committee. Mr. McGill has expanded outreach and has received recommendations from staff and from Board members for groups which would be amenable to receiving a presentation on the Authority. the as a cover for a grease holder. The caps are cost effective and are printed with the Authority name, logo, and instructions for use. Mr. emergency notification system and that approximately 2,500 residents received boil water notices through the County system. #&05! &%"25!29 ˜þ ‘“þ -).54%3 0 ¦¤ 3 Mr. McGill thanked Jim Tayson and Bob Mazzeo for agreeing to be interviewed by television reporters to discuss water main breaks and pump stations. Messrs. Flechtner, Richardson, and McGill attended a community meeting in the Flemington area to explain the Flemington water line project and answer questions from residents. information about services as well as advisories through Twitter. Long Range Planning Committee. Ms. Wolf and Mr. Styers reported that the Committee met on January 23 and reviewed the ASR Systems change order that was approved on the Consent Agenda. The Committee reviewed the ten-year Capital Improvement Program, which would be the subject of the workshop following the Authority meeting. Mr. Styers reported that staff has added a capital project to address disinfection byproducts since the Committee met. Finance Committee. Ms. Spivey reported that the Committee met on February 5 and held a preliminary rate discussion. The Committee will meet to discuss rates at 9:00 a.m. on February 27 and anticipates bringing rates to the Board for consideration in March, with an April vote for bills on or after May 1. Ms. Spivey referred the Board to an analysis of the five largest accounts written off in January and the January financial data in the Agenda packet. Personal Guarantee on Customer Accounts. Ms. Miles presented the item, which had been recommended by the Finance Committee and discussed by the Executive Committe ability to require personal guarantees for accounts of limited liability companies and other business entities. Ms. Miles reported that there is no case law on the topic but that two conflicting theories exist. The first theory would allow the Authority to require a personal guarantee as part of its contract and in support of the solvency of a public agency. The second theory holds that one of the legal purposes of a limited liability company or a corporation is to avoid personal liability. The second school of thought further holds that the Authority has a monopoly, creating have no other option for water and sewer service for customers. Ms. Miles reported that she and Ms. Potter had surveyed regional utilities, and no other utility requires a personal guarantee. She further reported that, in the current fiscal year, the Authority increased its deposit for commercial entities to an amount equal to 90 days, with the goal of addressing losses from commercial accounts. She reported that another possibility would be to allow the option of a either a personal guarantee or a larger deposit to an LLC or corporation. Ms. Spivey and Ms. Miles answered clarification questions. The Board discussed the concept of revisiting a commercial account some months after its creation to analyze usage and adjust the deposit requirements. Board members agreed that staff did not yet have enough data from the new deposit policy to analyze its effectiveness. Mr. Quinn believed that the new Customer Service Director should review the question and provide insight. After discussion, Mr. Rivenbark moved not to require personal guarantees for limited liability companies and corporations at present but to revisit accounts, review the deposit policy, and review the personal guarantee concept in six months. Ms. Kusek seconded the motion, and it passed unanimously. Recess and Closed Session: Mr. Wolfe moved to enter closed session to discuss a personnel matter. Mr. Rivenbark seconded the motion, and it passed unanimously. Mr. Quinn recessed he meeting at 9:55 a.m., and the Board reconvened in a closed session at 10:03 a.m. Ms. Miles, Mr. Morgan, and Ms. Pope remained in the meeting. The Board received a report from legal counsel. Open Session: #&05! &%"25!29 ˜þ ‘“þ -).54%3 0 ¦¤ 4 Ms. Kusek moved to return to open session. Mr. Rivenbark seconded the motion, and it passed unanimously. The Authority returned to open session at 10:10 a.m., and Mr. Flechtner, other staff members, and visitors rejoined the meeting. Ms. Kusek moved to approve the employment contract with Mr. Flechtner as Executive Director, with an annual salary of $152,000 effective December 10, 2013. Mr. Wolfe seconded the motion, and the contract was approved unanimously. Mr. Quinn thanked the Human Resources Committee members for their work on the contract and during the interview process. Adjournment: Mr. Rivenbark moved to adjourn. Ms. Kusek seconded the motion, and it passed unanimously. The Authority adjourned at 10:12 a.m. The next regular meeting of the Cape Fear Public Utility Authority will be held on Wednesday, March 12, 2014. The meeting will be held in the Lucie Harrell Conference Room, New Hanover County Administration Building, 230 Government Center Drive, Wilmington, North Carolina. Respectfully submitted, Donna S. Pope Clerk to the Board #&05! &%"25!29 ˜þ ‘“þ -).54%3 0 ¦¤ 5