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HomeMy WebLinkAboutCFPUA 4 11 2014 Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES APRIL 9, 2014 Lucie Harrell Conference Room Regular Meeting 9:00 AM 230 GOVERNMENT CENTER DRIVE WILMINGTON, NC 28403 I. CALL TO ORDER Mr. Quinn called the meeting to order at 9:07 a.m. Ms. Kusek m Mr. Norris seconded the motion, and it passed unanimously. II. DETERMINATION OF A QUORUM Mr. Quinn declared a quorum present. Attendee Name Organization Title Status Arrived Jim Quinn Cape Fear Public Utility Chairman Present Authority Cindee Wolf Cape Fear Public Utility Present Authority James Brumit Cape Fear Public Utility Secretary Present Authority Mike Brown Cape Fear Public Utility Treasurer Present Authority Larry Sneeden Cape Fear Public Utility Present Authority Thomas Wolfe Cape Fear Public Utility Commissioner Present Authority Woody White Cape Fear Public Utility Commissioner Present Authority Patricia Kusek Cape Fear Public Utility Vice-Chair Present Authority Charlie Cape Fear Public Utility Councilman Excused Rivenbark Authority William Norris Cape Fear Public Utility Present Authority Kevin O'Grady Cape Fear Public Utility Councilman Present Authority Jim Flechtner Cape Fear Public Utility Executive Director Present Authority Frank Styers Cape Fear Public Utility Chief Operations Officer Present Authority Cheryl Spivey Cape Fear Public Utility Chief Financial Officer Present Authority Beth Eckert Cape Fear Public Utility Director of EMD Present Authority Tom Morgan Cape Fear Public Utility HR Director Present Authority Cape Fear Public Utility Authority Page 1 Minutes Authority Board April 9, 2014 Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Karen Durso Cape Fear Public Utility Assistant to the Executive Director Present Authority John Payne Cape Fear Public Utility Internal Auditor Present Authority Gary McSmith Cape Fear Public Utility Interim Director of Engineering Present Authority Mike Richardson Cape Fear Public Utility Water Resources Manager Present Authority Mike McGill Cape Fear Public Utility Chief Communications Officer Present Authority Julie McLawhon Cape Fear Public Utility Budget/Finance Manager Present Authority Julia Vosnock Cape Fear Public Utility Procurement Manager Present Authority Ken Vogt Cape Fear Public Utility WWT Superintendent Present Authority Kevin Boyett Cape Fear Public Utility Maintenance Supervisor Present Authority Cord Ellison Cape Fear Public Utility IT Manager Present Authority Lawrence Cape Fear Public Utility IT Helpdesk Technician Present Caddell Authority Donna Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board Linda Miles Miles Firm, PLLC Attorney Present Tony Boahn McKim & Creed Present Richard Wyche Rummel, Klepper, Kahl Present Heidi Cox State of NC Present Gary Shepard Present Ashley Withers Wilmington Star-News Present III. ADOPTION OF AGENDA Ms. Kusek moved to adopt the day's Agenda. Mr. Wolfe seconded tn, and the Agenda was adopted unanimously. IV. APPROVAL OF MINUTES 1. March 12, 2014 Regular Board Meeting and Public Hearing Minutes Mr. Brumit moved to approve the Minutes of the March 12, 2014, R Public Hearing, as presented. Ms. Wolfe seconded the motion, and the minutes were approved unanimously. Cape Fear Public Utility Authority Page 2 Minutes Authority Board April 9, 2014 RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Cindee Wolf AYES: Quinn, Wolf, Brumit, Brown, Sneeden, Wolfe, White, Kusek, Rivenb O'Grady V. PUBLIC COMMENTS There were no public speakers. VI. MARCH 12, 2014 SPEAKER UPDATE Mr. Flechtner updated the Board on items referenced by Mr. Caiso Public Comment period. Groundwater and aquifer studies are un Geological Survey and Groundwater Management Associates, with the this summer. VII. CONSENT AGENDA Mr. O'Grady requested that Item 4 be removed from the Consent Ag Quinn requested that Item 9 be removed from the Consent Agenda for a staff update before the vote. 1. Authorization for the Executive Director to Execute an Amendment Agreement with the Town of Wrightsville Beach RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: Kevin O'Grady, Councilman AYES: Quinn, Wolf, Brumit, Brown, Sneeden, Wolfe, White, Kusek, Rivenb O'Grady 2. Authorization for the Executive Director to Execute a Utility Ag Carolina Department of Transportation RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: Kevin O'Grady, Councilman AYES: Quinn, Wolf, Brumit, Brown, Sneeden, Wolfe, White, Kusek, Rivenb O'Grady 3. Authorization for the Executive Director to Execute a $50,000 Co Brothers for Light Duty Fleet Maintenance Cape Fear Public Utility Authority Page 3 Minutes Authority Board April 9, 2014 RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: Kevin O'Grady, Councilman AYES: Quinn, Wolf, Brumit, Brown, Sneeden, Wolfe, White, Kusek, Rivenb O'Grady 4. Customer Service Deposit Policy Mr. O'Grady asked if the new non-residential deposit would be applied retroactively. Ms. Irick reported that it would apply to new accounts and expla credited to a customer's account after one year if the account ianding. Mr. O'Grady moved to approve the policy. Ms. Kusek seconded, and th unanimously. RESULT: APPROVED [UNANIMOUS] MOVER: Kevin O'Grady, Councilman SECONDER: Patricia Kusek, Vice-Chair AYES: Quinn, Wolf, Brumit, Brown, Sneeden, Wolfe, White, Kusek, Rivenbark, Norris, O'Grady 5. 2014 Winter Storm Expenses RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: Kevin O'Grady, Councilman AYES: Quinn, Wolf, Brumit, Brown, Sneeden, Wolfe, White, Kusek, Rivenb O'Grady 6. Thirtieth Street Sewer Rehabilitation Change Order 1 RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: Kevin O'Grady, Councilman AYES: Quinn, Wolf, Brumit, Brown, Sneeden, Wolfe, White, Kusek, Rivenb O'Grady 7. Authorization for the Executive Director to Execute a $660,286.10 Construction with T&H Construction of NC, Inc. for the Bald Eagle Lane Water Cape Fear Public Utility Authority Page 4 Minutes Authority Board April 9, 2014 RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: Kevin O'Grady, Councilman AYES: Quinn, Wolf, Brumit, Brown, Sneeden, Wolfe, White, Kusek, Rivenbark, O'Grady 8. Authorization for the Sole Source Purchase and Installation of E Replacement Equipment for the Dystor Facility at the James A. Lo WWTP RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: Kevin O'Grady, Councilman AYES: Quinn, Wolf, Brumit, Brown, Sneeden, Wolfe, White, Kusek, Rivenb O'Grady 9. Authorization for the Executive Director to Execute a $4,592,697ion Contract with State Utility Contractors, Inc. for the Northeast Rehabilitation Phase 2 Project. Mr. Quinn asked staff to report on the Northeast Interceptor (NE part in the Authority's formation. Mr. Styers reported that, upon completion, the NEI can be used to divert flow from the Southside Wastewater Treatme Northside Wastewater Plant. Interconnections can be used in eme manage capacity. Mr. Quinn moved to approve the contract for Phase 2 of the NEI rehabilitation. Mr. Brumit seconded the motion, and it passed unanimously. RESULT: APPROVED [UNANIMOUS] MOVER: Jim Quinn, Chairman SECONDER: James Brumit, Secretary AYES: Quinn, Wolf, Brumit, Brown, Sneeden, Wolfe, White, Kusek, Rivenbark, Norris, O'Grady 10. Greenfield Lake Outfall Rehabilitation Amendment 1 to Interlocal of Wilmington RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: Kevin O'Grady, Councilman AYES: Quinn, Wolf, Brumit, Brown, Sneeden, Wolfe, White, Kusek, Rivenbark, Norris, O'Grady VIII. NEW BUSINESS Cape Fear Public Utility Authority Page 5 Minutes Authority Board April 9, 2014 A. Administrative Reports i. Attorney Report Ms. Miles had no report. ii. Executive Director Report Mr. Flechtner referred the Board to the Safety and Environmental Agenda material. The February safety performance and environment repor staff was available to answer any questions. 1. Environmental Report 2. Safety Performance Report B. Committee Reports i. Executive Committee Committee minutes were in the Agenda packet for informational purposes. 1. April 2, 2014 Executive Committee Meeting Minutes 2. Internal Audit Report Mr. Payne presented his Audit Report, which included the schedul risk levels of specific audits, and his tracking mechanism. In October, Mr. Payne instituted a fraud hotline, and he reported on hotline items. T Auditor reviews any appeals arising out of the bid process. Mr. the procedure for requesting an internal audit and the scoping aliverables form developed by Mr. Brumit and staff. In the first quarter of Mr. Payne completed a collections and delinquent account audit a inventory audit. Mr. Payne encouraged Board members to contact him directly with regarding his report. Mr. Quinn thanked Mr. Payne and recommend Board members take advantage of the internal audit request polic ii. Human Resources Committee 1. HR Committee Minutes Committee minutes were in the Agenda packet. Mr. Morgan reported that the Committee met on March 17 and discussed several items, as follow 1. Compensation options for FY2015. 2. Benefit renewals, which included carrier changes for dental, lif accidental death and dismemberment, and disability coverage, with no change in befit level and no increase in premium. Cape Fear Public Utility Authority Page 6 Minutes Authority Board April 9, 2014 3. Medical insurance. Mr. Morgan anticipated cost information on h renewals after Blue Cross compiles March claims data. 3. Attorney contract review. 4. Clerk and Internal Auditor revaluations. The Committee will meet again to review benefits and make recomm to the full Board. The Committee requested a closed session at meeting to discuss the Clerk and Internal Auditor evaluations. iii. Long Range Planning Committee The Committee met on March 27 and will hold its next meeting on Apri Committee Report and Minutes were in the Agenda, and Ms. Wolf re two items discussed at the meeting had been approved as part of Ms. Wolf has completed her service as Committee Chair, and Mr. Sneeden was appointed Chair by the Executive Committee. 1. Long Range Planning Committee Report iv. Finance Committee Mr. Brown reported that the Committee met on April 2 and will me at 9:00 a.m. to review and discuss the proposed FY2015 Budget. 1. Finance Committee - Regular Meeting - Apr 2, 2014 9:00 AM Committee Minutes were in the Agenda packet for informational pu 2. Organization Efficiencies and Rate Presentation Mr. Flechtner presented an overview of operational efficiencies and a comparison of Authority costs to the costs incurred by the City they operated separate water and sewer systems. Three-quarters of the operation expenses are fixed costs that do not fluctuate with usage. Debt service is the largest expense the Authority has incurred. completed capital projects planned or begun by the City and Coun invested in infrastructure improvements to maintain the system, capacity, and diminish sanitary sewer overflows. Through gravity s rehabilitation and replacement projects, staff has reduced infil into the sanitary sewer system, resulting in operating savings d wastewater treatment plants not needing to treat stormwater that has entered the system. Staff and the Finance Committee recommended no change to the fix for water or sewer and recommended an increase of 25 cents per 1 for water and 35 cents per 1,000 gallons for sewer use, for bills prepared on or after May 1, 2014. Cape Fear Public Utility Authority Page 7 Minutes Authority Board April 9, 2014 Mr. Brown moved to adopt the rates as recommended by staff and t Committee. Ms. Kusek seconded the motion, and it passed unanimo RESULT: ADOPTED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: Patricia Kusek, Vice-Chair AYES: Quinn, Wolf, Brumit, Brown, Sneeden, Wolfe, White, Kusek, Rivenb Norris, O'Grady 3. FY15 Preliminary Budget Summary Ms. Spivey reported that the Finance Committee has received a li for the proposed FY2015 Budget. The line item budget is available on t Authority website, and the Committee solicited questions or feed Board members before its next meeting on April 17. The recommended Budget will be submitted to the Board at the May 14 Regular Meeting, and a workshop and public hearing on the budget will be a.m. on May 21 in the Authority offices. The Budget will be sub Board approval at the June 11 meeting. 4. Monthly Financial Reports & Customer Service Update for the Month of March 2014 The March financial data was in the Agenda for Board review, and available to answer questions. 5. Information Items 1. Monthly Billing for Large Accounts 2. Consolidated Accounts IX. OLD BUSINESS There was no old business. X. AUTHORITY Q&A / CLOSING COMMENTS Mr. Quinn reminded the Board that next month's Agenda would be i Mr. Brumit commended staff on an excellent safety recorded and n in cost savings. Ms. Wolf thanked Mr. Brumit for his work on the audit request and scopi used by Mr. Payne. Ms. Kusek and Mr. Norris each thanked staff for assistance to cu Cape Fear Public Utility Authority Page 8 Minutes Authority Board April 9, 2014 Mr. Sneeden commended staff on operational efficiencies and stated that Authority efficiency is a message citizens need to hear. XI. CLOSED SESSION Ms. Kusek moved to enter into Closed Session to discuss personne the motion, and it passed unanimously. The Board entered into cession at 10:12 a.m., with Ms. Miles and Messrs. Flechtner and Morgan remaining. The the Human Resources Committee. XII. ADJOURNMENT The Board returned to open session, and Mr. Quinn adjourned the The next Regular meeting of the Cape Fear Public Utility Authority wil 2014. The meeting will be held in the Lucie Harrell Conference Administrative Building, 230 Government Center Drive, Wilmingtona. Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 9