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Home My WebLink AboutCFPUA 5 14 2014 CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES MAY 14, 2014 Lucie Harrell Conference Room Regular Meeting 9:00 AM 230 GOVERNMENT CENTER DRIVE WILMINGTON, NC 28403 I. CALL TO ORDER Mr. Quinn welcomed Authority members to the day's meeting. He r members advise the Nominating Committee of their interest in off year. Messrs. Quinn, Rivenbark, and White serve on the Nominating Committee. II. DETERMINATION OF A QUORUM Mr. Quinn declared a quorum present. Ms. Wolf moved to excuse M O'Grady. Ms. Kusek seconded the motion, and it passed unanimous Attendee Name Organization Title Status Arrived Jim Quinn Cape Fear Public Utility Chairman Present 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 Present Authority William Norris Cape Fear Public Utility Present Authority Larry Sneeden Cape Fear Public Utility Present Authority Kevin O'Grady Cape Fear Public Utility Excused Authority Charlie Rivenbark Cape Fear Public Utility Excused Authority Woody White Cape Fear Public Utility Present Authority Thomas Wolfe Cape Fear Public Utility Present Authority Jim Flechtner Cape Fear Public Utility Executive Director Present Authority Linda Miles Cape Fear Public Utility Attorney Present Authority Karen Durso Cape Fear Public Utility Assistant to the Executive Present Authority Director Donna Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board Cape Fear Public Utility Authority Page 1 Minutes Authority Board May 14, 2014 Frank Styers Cape Fear Public Utility Chief Operations Officer Present Authority Beth Eckert Cape Fear Public Utility Director of EMD Present Authority Cheryl Spivey Cape Fear Public Utility Chief Financial Officer Present Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Julie McLawhon Cape Fear Public Utility Budget/Finance Manager Present Authority Ramona Burns Cape Fear Public Utility Accounting Manager Present Authority Carel Cape Fear Public Utility Director of Engineering Present Vandermeyden Authority Tom Morgan Cape Fear Public Utility HR Director Present Authority Julia Vosnock Cape Fear Public Utility Procurement Manager Present Authority Lawrence Caddell Cape Fear Public Utility IT Helpdesk Technician Present Authority Gary McSmith Cape Fear Public Utility Engineering Manager Present Authority John Payne Cape Fear Public Utility Internal Auditor Present Authority Kent Harrell Cape Fear Public Utility Engineering Manager Present Authority Mike McGill Cape Fear Public Utility Chief Communications Officer Present Authority Mike Richardson Cape Fear Public Utility Water Resources Manager Present Authority Heidi Cox Public Water Supply Present Dan Dawson W.K. Dickson Present Tony Boahn McKim & Creed Present Jim Iannucci New Hanover County Present III. ADOPTION OF AGENDA There were no additions to the day's Agenda. Ms. Kusek moved to Brown seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Apr 9, 2014 9:00 AM RESULT: ACCEPTED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Patricia Kusek, Vice-Chair AYES: Quinn, Kusek, Brumit, Brown, Wolf, Norris, Sneeden, White, Wolfe EXCUSED: O'Grady, Rivenbark V. PUBLIC COMMENTS Cape Fear Public Utility Authority Page 2 Minutes Authority Board May 14, 2014 There were no speakers. There was no follow-up report from the April meeting because there were no speakers in April. VI. CONSENT AGENDA 1. Authorization for the Executive Director to Execute a $45,000.00 Davenport & Company for Financial Advisory Services Mr. Sneeden asked for clarification on the savings the Authority- funding bonds issued by the City of Wilmington which are now in Ms. Spivey explained the re-funding process and its timing to minimize negative arbitrage. RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: Patricia Kusek, Vice-Chair AYES: Quinn, Kusek, Brumit, Brown, Wolf, Norris, Sneeden, White, Wolfe EXCUSED: O'Grady, Rivenbark 2. Approval of Budget Ordinance and Amendment #14-012 - Reclassification of Revenue for ASR RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: Patricia Kusek, Vice-Chair AYES: Quinn, Kusek, Brumit, Brown, Wolf, Norris, Sneeden, White, Wolfe EXCUSED: O'Grady, Rivenbark 3. Approval of Budget Ordinance and Amendment #14-007 Sale of Capital Assets RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: Patricia Kusek, Vice-Chair AYES: Quinn, Kusek, Brumit, Brown, Wolf, Norris, Sneeden, White, Wolfe EXCUSED: O'Grady, Rivenbark 4. Authorization to Sole Source Sensus Water Meters and Itron AMR E RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: Patricia Kusek, Vice-Chair AYES: Quinn, Kusek, Brumit, Brown, Wolf, Norris, Sneeden, White, Wolfe EXCUSED: O'Grady, Rivenbark 5. Authorization to Purchase Sensus Water Meters Cape Fear Public Utility Authority Page 3 Minutes Authority Board May 14, 2014 RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: Patricia Kusek, Vice-Chair AYES: Quinn, Kusek, Brumit, Brown, Wolf, Norris, Sneeden, White, Wolfe EXCUSED: O'Grady, Rivenbark 6. Hazen & Sawyer Amendment #1 for the Disinfection By-Products Compliance Project RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: Patricia Kusek, Vice-Chair AYES: Quinn, Kusek, Brumit, Brown, Wolf, Norris, Sneeden, White, Wolfe EXCUSED: O'Grady, Rivenbark 7. Authorization for the Executive Director to Execute a $275,500.0 Saffo Contractors Inc. for the Southside Waste Water Treatment P Equipment Painting Project. RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: Patricia Kusek, Vice-Chair AYES: Quinn, Kusek, Brumit, Brown, Wolf, Norris, Sneeden, White, Wolfe EXCUSED: O'Grady, Rivenbark 8. Authorization for the Executive Director to Execute a $1,392,35590 Construction Contract with Layne InLiner, LLC for Waltmoor Sewer Rehab Ph 3 (- Section 2) RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: Patricia Kusek, Vice-Chair AYES: Quinn, Kusek, Brumit, Brown, Wolf, Norris, Sneeden, White, Wolfe EXCUSED: O'Grady, Rivenbark 9. Authorization for the Executive Director to Execute a $1,641,201 Contract with CaJenn Construction & Rehabilitation Services, Inc Rehab Ph 2 & Motts Creek Interceptor CCTV (FIFI Contract a - Section 1) Cape Fear Public Utility Authority Page 4 Minutes Authority Board May 14, 2014 RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: Patricia Kusek, Vice-Chair AYES: Quinn, Kusek, Brumit, Brown, Wolf, Norris, Sneeden, White, Wolfe EXCUSED: O'Grady, Rivenbark 10. Authorization for the Executive Director to Execute a $1,200,600.00 Construction Contract with Water and Waste Systems Construction, Inc. for the Station Project RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: Patricia Kusek, Vice-Chair AYES: Quinn, Kusek, Brumit, Brown, Wolf, Norris, Sneeden, White, Wolfe EXCUSED: O'Grady, Rivenbark VII. NEW BUSINESS A. Administrative Report i. Attorney Report Ms. Miles had no report. ii. Executive Director Report Mr. Flechtner introduced Mr. Vandemeyden, the Authority's new Director of Engineering. Mr. Vandermeyden is a civil engineer with a degree University and extensive experience who came to the Authority fr Cincinnati. Mr. Flechtner recognized and thanked Mr. McSmith for his service as the Interim Director of Engineering. 1. Safety Performance Report for April 2014 The Safety reports were provided in the Agenda packet for Board were no questions. 2. Environmental Report The Environmental and Compliance reports were available in the Agenda packet. There were no questions from Board members. B. Committee Report i. Executive Committee Report The Executive Committee had no report. The minutes of the May 7 were provided in the Agenda packet. Cape Fear Public Utility Authority Page 5 Minutes Authority Board May 14, 2014 1. Executive Committee - Regular - May 7, 2014 2:00 PM RESULT: NO ACTION REQUIRED ii. Human Resources Committee Report Mr. Brumit asked Mr. Morgan to report to the full Board. The Co 25 to review employee medical insurance and employee compensation for the fiscal year beginning July 1, 2014. The Committee recommended a 2.5 percent merit raise, minus the $ Authority costs for employee medical insurance. Mr. Morgan answered questions regarding previous years' salary ajustments, the number of employees receiving merit increases in prior years, an adjustments to keep the pay plan current. Mr. Sneeden moved to approve the Committee recommendation for me Ms. Kusek seconded the motion, and it passed unanimously. 1. Human Resource Committee Report: Employee Medical Insurance Ren Employee Compensation, Consulting Attorney Contract Requirements Mr. Morgan reported that staff recommended the continuation of t Authority's current medical insurance plan. For FY15, the Authority cost would increase by 2.1 percent, employee costs would increase by 9 perc employee coverage and 5 percent for employee and dependent cover The Committee recommended renewing the employee medical insurance benefit plan for FY15 by continuing the Blue Cross and Blue Shie administered PPO plan with no benefit changes, and the Authority employer increase in cost of $43,481. The Committee recommended the increase in cost by reducing any FY15 salary increases by $43,481. There were no questions from Board members regarding the medical renewal. Ms. Kusek moved to approve the Committee recommendatio Norris seconded the motion, and it passed unanimously. RESULT: APPROVED [UNANIMOUS] MOVER: Patricia Kusek, Vice-Chair SECONDER: William Norris AYES: Quinn, Kusek, Brumit, Brown, Wolf, Norris, Sneeden, White, Wolfe EXCUSED: O'Grady, Rivenbark 2. April 25, 2014 HR Committee Minutes The Committee minutes were included in the Agenda packet for Board review. Cape Fear Public Utility Authority Page 6 Minutes Authority Board May 14, 2014 iii. Long Range Planning Committee Report Mr. Sneeden asked Mr. Styers to present the report. The Commit and received a staff report regarding the Marquis Hills and Heriewer projects and the Heritage Park water project. The projects are presented to the Board for contract award at the June 11 meeting funding portion for the projects is $4.2 million, and the total million. The Heritage Park project is expected to take approximately 18 month expected to take approximately two years. The Committee reviewed information regarding future sewer servic subdivision in the Northern section of the County. Staff will work with the developer to direct flow to the Country Haven force main and pump station. Mr. Styers thanked the Board for the experience of working as st Committee and welcomed Mr. Vandermeyden to his new role as Committee liaison. 1. Long Range Planning Committee Report 2. Long Range Planning Committee - Regular - Apr 24, 2014 3:00 PM RESULT: NO ACTION REQUIRED 3. Marquis Hills and Heritage Park Sewer Projects Update 4. Lee Hills Subdivision iv. Finance Committee Report 1. Finance Committee - Special Meeting - Apr 17, 2014 9:00 AM RESULT: NO ACTION REQUIRED 2. Finance Committee - Regular Meeting - May 7, 2014 9:00 AM RESULT: NO ACTION REQUIRED 3. FY15 Recommended Budget Mr. Brown reported that the Committee had met twice since the April Board meeting and had reviewed the recommended budget for the Fiscal Y beginning July 1, 2014. Mr. Flechtner presented an overview of the Authority's budget pr has historically budgeted expenditures at a level to operate and maintain the water and sewer systems with funding sufficient to accommodate a scenario." The budgeting method includes funds for fuel and cle would be needed in the event of a hurricane or other emergency event but are Cape Fear Public Utility Authority Page 7 Minutes Authority Board May 14, 2014 not used otherwise. Authority expenses have come in under budg-14 percent since the Authority's inception. Operating costs have b even though the Sweeney and Northside plants underwent major upg the Nano water treatment plant began operations. Rate adjustments have covered debt service and declining consump Funds that are not spent in the operating budget roll over into budget as "pay-go" funding for capital projects, decreasing the amount of money needed through bond issuance. Ms. Spivey reported that the minimum bond coverage required to i 1.20, meaning that revenues cover expenses plus an additional 20 debt service expenses. The Authority has maintained a higher debt coverage ratio of 1.47, which has been looked upon favorably by bond rati The Authority has an Aa2 bond rating, which allows it to borrow bonds at a low interest rate. Department managers spend only w and Ms. Spivey expects staff to continue to budget wisely and sp A change in the budgeting process that would base all expenditur spending, rathern than less than optimal conditions, would requi provided a higher debt coverage ratio, in he range of 1.5, to continue to ma a high bond rating and would increase the likelihood of a rate i Ms. Spivey reviewed highlights of the proposed budget. The ful presentation is included in the Agenda packet and included herein by reference. The total recommended budget for FY2015 is $78,007,111. The bud a transfer of $11,836,000 to capital projects from existing proj RESULT: NO ACTION REQUIRED Next: 5/21/2014 9:00 AM 4. Monthly Finance Report The April Financial and Customer Service Reports were in the Age There were no questions for Ms. Spivey or Ms. Irick. 5. System Development Charge Calculations The System Development Charge information was provided in the Ag packet. VIII. OLD BUSINESS There was no old business. IX. AUTHORITY Q&A / CLOSING COMMENTS There were no questions or comments from Board members. X. CLOSED SESSION Cape Fear Public Utility Authority Page 8 Minutes Authority Board May 14, 2014 Mr. Brumit moved to enter closed session to discuss contract neg the motion, and it passed unanimously. The Authority entered cl Ms. Kusek moved to return to open session. Mr. Norris seconded unanimously. The Authority returned to open session at 10:29 a. XI. ADJOURNMENT Ms. Kusek moved to adjourn. Mr. Norris seconded the motion, and adjourned at 10:30 a.m. The next regular meeting of the Cape Fear Public Utility Authori 2014. The meeting will be held in the Lucie Harrell Conference Room, New Hanover County Administration Building, 230 Government Center Drive, Wilmington Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 9