HomeMy WebLinkAboutCFPUA 6 11 2014 Regular Meeting
CAPE FEAR PUBLIC UTILITY AUTHORITY
AUTHORITY BOARD
MINUTES
JUNE 11, 2014
Lucie Harrell Conference Room Regular Meeting 9:00 AM
230 GOVERNMENT CENTER DRIVE
WILMINGTON, NC 28403
I. CALL TO ORDER
Ms. Kusek called the meeting to order and declared a quorum pres
II. DETERMINATION OF A QUORUM
Attendee Name Organization Title Status Arrived
Jim Quinn Cape Fear Public Utility Chairman Excused
Authority
Patricia Kusek Cape Fear Public Utility Vice-Chair Present
Authority
James Brumit Cape Fear Public Utility Secretary Present
Authority
Mike Brown Cape Fear Public Utility Treasurer Present
Authority
Cindee Wolf Cape Fear Public Utility Authority Member Present
Authority
William Norris Cape Fear Public Utility Authority Member Present
Authority
Larry Sneeden Cape Fear Public Utility Authority Member Present
Authority
Kevin O'Grady Cape Fear Public Utility City Councilman Present
Authority
Charlie Rivenbark Cape Fear Public Utility City Councilman Present
Authority
Woody White Cape Fear Public Utility County Commissioner Present
Authority
Thomas Wolfe Cape Fear Public Utility County Commissioner Present
Authority
Jim Flechtner Cape Fear Public Utility Executive Director Present
Authority
Linda Miles Miles Firm, PLLC Attorney Present
Karen Durso Cape Fear Public Utility Assistant to the Executive Present
Authority Director
Beth Eckert Cape Fear Public Utility Director of EMD Present
Authority
Frank Styers Cape Fear Public Utility Chief Operations Officer Present
Authority
Cheryl Spivey Cape Fear Public Utility Chief Financial Officer Present
Authority
Carel Cape Fear Public Utility Director of Engineering Present
Vandermeyden Authority
Cape Fear Public Utility Authority Page 1
Minutes Authority Board June 11, 2014
Tom Morgan Cape Fear Public Utility HR Director Present
Authority
John Payne Cape Fear Public Utility Internal Auditor Present
Authority
Julie McLawhon Cape Fear Public Utility Budget/Finance Manager Present
Authority
Tymekia Askew Cape Fear Public Utility Fiscal Support Specialist Present
Authority
Sherri Alexander Cape Fear Public Utility Senior Accounting Technician Present
Authoirty
Ramona Burns Cape Fear Public Utility Accounting Manager Present
Authority
Melinda Hoggard Cape Fear Public Utility Financial Systems Analyst Present
Authority
Julia Vosnock Cape Fear Public Utility Procurement Manager Present
Authority
Teresa Horsboll Cape Fear Public Utility Buyer Present
Authority
Marcy Martin Cape Fear Public Utility Payroll Specialist Present
Authority
Mike Richardson Cape Fear Public Utility Water Resources Manager Present
Authority
Mike McGill Cape Fear Public Utility Chief Communications Officer Present
Authority
Kent Harrell Cape Fear Public Utility Engineering Manager Present
Authority
Kristine Irick Cape Fear Public Utility Customer Service Director Present
Authority
Loria Potter Cape Fear Public Utility Billing & Collections Manager Present
Authority
Donna Pope Cape Fear Public Utility Clerk/Executive Secretary to Present
Authority the Board
Steve Thomas URS Corporation Present
Jim Iannucci New Hanover County Present
Engineering Dept.
Heidi Cox N.C. Water Quality Division Present
Tony Boahn McKim & Creed Present
Landon Weaver Bill Clark Homes Present
Timothy Cashman Citizen Present
III. ADOPTION OF AGENDA
Mr. Sneeden moved to adopt the day's Agenda. Mr. Rivenbark seco
Agenda was uanimously adopted.
IV. APPROVAL OF MINUTES
1. Authority Board - Regular Meeting - May 14, 2014 9:00 AM
The minutes were approved and accepted as presented.
Cape Fear Public Utility Authority Page 2
Minutes Authority Board June 11, 2014
RESULT: ACCEPTED [UNANIMOUS]
MOVER: Mike Brown, Treasurer
SECONDER: Cindee Wolf, Authority Member
AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark,
EXCUSED: Quinn
V. PRESENTATION
1. Government Finance Officers Association Certificate of Achievement
Financial Reporting for the Fiscal Year Ended June 30, 2013
Mr. Brown presented Ms. Spivey and Finance Department staff with
Achievement for Excellence in Financial Reporting from the Government Finance
Officers Association. The Award was presented for the Comprehen
Report for the Fiscal Year Ending June 30, 2013. The Authority
for its fifth consecutive year, each year since beginning operations in 2008.
Ms. Spivey thanked all Finance staff for their dedication and wo
McLawhon in particular for her work in managing the Authority Bu
reporting.
The Board commended Ms. Spivey and Finance staff on a job well done.
VI. PUBLIC COMMENTS
Mr. Timothy Cashman spoke regarding the base charges on a proper
He requested that the charges be suspended until he completed co
the house. He shared photographs showing the condition of the property. Mr.
Ms. Miles confirmed that the Authority considers a property habi
service. Board members explained that the base charge representy of water,
including fire protection. Mr. Rivenbark suggested that the re
service and the installation of a temporary pole for constructio
solution to Mr. Cashman's concern.
VII. CONSENT AGENDA
There were no questions from Authority members regarding the Con
moved to approve the Consent Agenda, as presented. Ms. Wolf sec
passed unanimously.
1. Authorization for VantageSouth Bank to Become an Official Depository for CFPUA Funds
Cape Fear Public Utility Authority Page 3
Minutes Authority Board June 11, 2014
RESULT: ADOPTED [UNANIMOUS]
MOVER: James Brumit, Secretary
SECONDER: Cindee Wolf, Authority Member
AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark,
EXCUSED: Quinn
2. Write Off Uncollectible Utility Accounts
RESULT: ADOPTED [UNANIMOUS]
MOVER: James Brumit, Secretary
SECONDER: Cindee Wolf, Authority Member
AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark,
EXCUSED: Quinn
3. Approval of Budget Ordinance and Amendment #14-013 for Sale of Capital Assets
RESULT: ADOPTED [UNANIMOUS]
MOVER: James Brumit, Secretary
SECONDER: Cindee Wolf, Authority Member
AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark,
EXCUSED: Quinn
4. Approval of Budget Ordinance and Amendment #14-014 Recognizing Additional System
Development Charges
RESULT: ADOPTED [UNANIMOUS]
MOVER: James Brumit, Secretary
SECONDER: Cindee Wolf, Authority Member
AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Wolfe
EXCUSED: Quinn
5. Surplus Items to be Sold on GovDeals
RESULT: APPROVED [UNANIMOUS]
MOVER: James Brumit, Secretary
SECONDER: Cindee Wolf, Authority Member
AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark,
EXCUSED: Quinn
6. Motor Fleet and Large Equipment-Replacement of Vehicle & Upgrade to CCTV
Equipment
Cape Fear Public Utility Authority Page 4
Minutes Authority Board June 11, 2014
RESULT: APPROVED [UNANIMOUS]
MOVER: James Brumit, Secretary
SECONDER: Cindee Wolf, Authority Member
AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Wolfe
EXCUSED: Quinn
7. Authorization for the Executive Director to Execute a $472,750.0
2 with McKim and Creed, Inc. for the Marquis Hills Area Sewer Ex
RESULT: APPROVED [UNANIMOUS]
MOVER: James Brumit, Secretary
SECONDER: Cindee Wolf, Authority Member
AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark,
EXCUSED: Quinn
8. Authorization for the Executive Director to Execute an $8,674,88
Contract with T. A. Loving Company for the Marquis Hills Area Sewer Extension Proj
RESULT: APPROVED [UNANIMOUS]
MOVER: James Brumit, Secretary
SECONDER: Cindee Wolf, Authority Member
AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark,
EXCUSED: Quinn
9. Authorization for the Executive Director to Execute the Third Am
Sharing Agreement with Bill Clark Homes of Wilmington, LLC.
RESULT: APPROVED [UNANIMOUS]
MOVER: James Brumit, Secretary
SECONDER: Cindee Wolf, Authority Member
AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark,
EXCUSED: Quinn
10. Authorization for the Executive Director to Execute an $193,263
with URS Corporation - North Carolina for the Heritage Park Area Sewer Extension
Project
Cape Fear Public Utility Authority Page 5
Minutes Authority Board June 11, 2014
RESULT: APPROVED [UNANIMOUS]
MOVER: James Brumit, Secretary
SECONDER: Cindee Wolf, Authority Member
AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark,
EXCUSED: Quinn
11. Authorization for the Executive Director to Execute a $6,587,527.75 Construction
Contract with T. A. Loving Company for the Heritage Park Area Wa
Extension Project
RESULT: APPROVED [UNANIMOUS]
MOVER: James Brumit, Secretary
SECONDER: Cindee Wolf, Authority Member
AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, Wh
EXCUSED: Quinn
12. Authorization for the Executive Director to Execute a $20,000 Co
with W.K. Dickson for the Masonboro Sound Road Area Water and Se
Project
RESULT: APPROVED [UNANIMOUS]
MOVER: James Brumit, Secretary
SECONDER: Cindee Wolf, Authority Member
AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark,
EXCUSED: Quinn
13. Greenfield Lake Outfall Rehabilitation Amendment 1 to Interlocal Agreement with City
of Wilmington
RESULT: APPROVED [UNANIMOUS]
MOVER: James Brumit, Secretary
SECONDER: Cindee Wolf, Authority Member
AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark,
EXCUSED: Quinn
14. Authorization for the Executive Director to Execute a $144,994.87
Loving Company for the Smith Creek 'Alandale' Pump Station Remov
RESULT: APPROVED [UNANIMOUS]
MOVER: James Brumit, Secretary
SECONDER: Cindee Wolf, Authority Member
AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark,
EXCUSED: Quinn
15. Third Amendment to the Chair Road Utility Infrastructure Reimbur
Cape Fear Public Utility Authority Page 6
Minutes Authority Board June 11, 2014
RESULT: APPROVED [UNANIMOUS]
MOVER: James Brumit, Secretary
SECONDER: Cindee Wolf, Authority Member
AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark,
EXCUSED: Quinn
16. Authorization for the Executive Director to Execute a $66,300.00
with Skippers Well Drilling for Monitoring Wells and Well Logging at Westbrook ASR Site
RESULT: APPROVED [UNANIMOUS]
MOVER: James Brumit, Secretary
SECONDER: Cindee Wolf, Authority Member
AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark,
EXCUSED: Quinn
VIII. NEW BUSINESS
A. Administrative Reports
i. Attorney Report
Ms. Miles had no report and did not require a Closed Session dur
ii. Executive Director Report
Mr. Flechtner referred Board members to the Environmental and Sa
Agenda packet. Mr. Sneeden commended staff on a good safety and co
record.
1. Environmental Summary
2. Safety Performance Report
B. Committee Reports
i. Executive Committee
The Executive Committee met on June 4 for Agenda Review. The Mi
provided in the Agenda packet.
1. Executive Committee - Regular - Jun 4, 2014 2:00 PM
RESULT: NO ACTION REQUIRED
ii. Finance Committee
The Finance Committee met on June 4. The Committee minutes were
Agenda packet.
1. Finance Committee - Regular Meeting - Jun 4, 2014 9:00 AM
Cape Fear Public Utility Authority Page 7
Minutes Authority Board June 11, 2014
RESULT: NO ACTION REQUIRED
2. FY15 Recommended Budget Submitted for Adoption
Mr. Brown introduced Mr. Flechtner and Ms. Spivey, and they pres
FY2015 Budget. Mr. Flechtner reported that the full Board had ed the
Budget and that it had been studied in depth and vetted by the F
Committee. He believed it to be a responsible budget that would
sustainability of the Authority's infrastructure and the provisi
community. He reported that operating expenses have remained steady since
the Authority assumed operations of water and sewer and recogniz
Authority staff for their commitment and for their work on the r
budget.
Ms. Spivey presented the Budget Ordinance for the Fiscal Year beginning July 1,
2014. The recommended Budget includs an Operating Fund of $78,0
System Development Fund of $4,000,000, and a Capital Projects Fu
$11,836,000. The CIP will be cash-funded for FY2015, reducing the amountof
revenue bonds needed in a future sale.
Ms. Kusek reported that the Budget had been well-vetted and a Public Hearing
held for customer comment. Mr. Rivenbark moved to adopt the FY2
Mr. Brumit seconded the motion, and the Budget was adopted unanimously.
Ms. Spivey thanked all Authority staff for their work preparing
special thanks to Julie McLawhon and Karen Durso for their work
documents.
Ms. Kusek reminded the Board that the Budget documentation conta
excellent information and departmental goals, which had been inc
Agenda.
RESULT: ADOPTED [UNANIMOUS]
MOVER: Charlie Rivenbark, City Councilman
SECONDER: James Brumit, Secretary
AYES: Kusek, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark,
White, Wolfe
EXCUSED: Quinn
3. Monthly Finance Report
The May financial data was provided in the Agenda packet. Ms. S
highlighted the rolling twelve-month consumption chart. Water consumption
for calendar year 2013 was used to determine the current rates. The decline in
consumption appeared to have stablized and usage is beginning to
Spivey anticipates that revenues will support the FY2015 Budget.
Cape Fear Public Utility Authority Page 8
Minutes Authority Board June 11, 2014
4. Deposit Status
Ms. Irick reported on revisions to the Authority's customer deposit policies. In
2012, the policy was revised to require a deposit for a customer
service who had an outstanding balance, was not the property own
to open an non-residential account. In 2013, the policy was revised to require
deposit for residential customers with multiple involuntary term
non-payment, for customers who had tampered with the meter, and for -
petition bankruptcy accounts. In April 2014, the policy was re
and assess non-residential deposits based on six months' actual usage. The
minimum deposit is $200, and deposits may be increased based upo
use. The policy will be applied to new accounts. The addition
will start billing in August, customers will be notified in writing, and payment
arrangements will be available. Data showing potential losses f
accounts was provided in the Agenda and reviewed by Ms. Irick.
Ms. Irick and Messrs. Flechtner and McGill answered clarificatio
Authority members regarding the deposit policy and planned commu
customers. Board members directed staff to communicate with cus
in advance of the initiation of deposit billing and to make it c
policy is intended to protect the majority of customers from the impact of
unpaid accounts affecting their rates.
IX. OLD BUSINESS
There was no old business.
X. AUTHORITY Q&A / CLOSING COMMENTS
Mr. Flechtner reported that the conversion to the automated Agenpproximately
8,000 pages of paper in the preparation of the June Agenda packe
Mr. Rivenbark reported that he had referred a customer to Ms. Ir
been well-pleased with his interaction with the Authority.
Mr. Sneeden commended the utility crews for their promptness, courtesy, and profession
when responding to cut lines and other emergency situations.
XI. ADJOURNMENT
Mr. Rivenbark moved to adjourn. Mr. Norris seconded the motion,
The Authority adjourned at 9:40 a.m.
The next Regular Meeting of the Cape Fear Public Utility Authori
July 9, 2014. The Board will meet in the Lucie Harrell Conferen
County building located at 230 Government Center Drive and will commence the meeting at
9:00 a.m. The July meeting will include the election of corpora
Respectfully submitted,
Cape Fear Public Utility Authority Page 9
Minutes Authority Board June 11, 2014
Donna S. Pope
Clerk to the Board
Cape Fear Public Utility Authority Page 10