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HomeMy WebLinkAboutCFPUA Regular Meeting 10 8 2014 CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES OCTOBER 8, 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 at 9:00 AM. II. DETERMINATION OF A QUORUM Ms. Kusek noted that all Authority members were in attendance. Attendee Name Organization Title Status Arrived Patricia Kusek Cape Fear Public Utility Chair Present Authority Jim Quinn 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 Present Authority Charlie Rivenbark Cape Fear Public Utility Present 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 Frank Styers Cape Fear Public Utility Chief Operations Officer Present Authority Carel Cape Fear Public Utility Director of Engineering Present Vandermeyden Authority Cape Fear Public Utility Authority Page 1 Minutes Authority Board October 8, 2014 Cheryl Spivey Cape Fear Public Utility Chief Financial Officer Present Authority Tom Morgan Cape Fear Public Utility HR Director Present Authority Beth Eckert Cape Fear Public Utility Director of EMD Present Authority Julie McLawhon Cape Fear Public Utility Budget/Finance Manager Present Authority Melinda Hoggard Cape Fear Public Utility Financial Systems Analyst Present Authority Julia Vosnock Cape Fear Public Utility Procurement Manager Present Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Mike McGill Cape Fear Public Utility Chief Communications Officer Present Authority John Payne Cape Fear Public Utility Internal Auditor Present Authority Kevin House Cape Fear Public Utility Safety Program Manager Present Authority David Sickle Cape Fear Public Utility IT Network Administrator Present Authority Joe Priest Joe Priest Realty, Inc. Present John Monroe Drayton Square HOA Present Rick Newell Drayton Square HOA Present Richard King City of Wilmington Present Heidi Cox Public Water Supply Present Jim Iannucci New Hanover County Present III. ADOPTION OF AGENDA IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Sep 10, 2014 9:00 AM Mr. Brumit presented the minutes from the September 10 Authority meeting. Mr. Brown moved to approve the minutes, and Mr. Wolfe seconded the motion. The minutes were unanimously approved and accepted. RESULT: ACCEPTED [UNANIMOUS] AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Wolfe V. PUBLIC COMMENTS - LIMIT: 4 MINUTES PER SPEAKER Mr. Priest spoke regarding a ditch within the CFPUA and Lower Cape Fear Water & Sewer Authority (LCFWSA) easements on property he owns in Columbus County. He reported that the ditch was blocked, caused water to stand, and could be a health hazard. He had requested that LCFWSA clean its portion of the ditch, but LCFWSA did not clean the ditch. Mr. Priest asked for assistance from CFPUA in clearing the ditch or encouraging LCFWSA to clear it. Messrs. Priest Cape Fear Public Utility Authority Page 2 Minutes Authority Board October 8, 2014 and Flechtner answered clarification questions from Board members, and the Board directed staff to investigate and review the issue. Mr. Monroe spoke on behalf of the Drayton Square Homeowners Association. He reported that the community is residential only but that the HOA is billed as a commercial entity. The HOA had replaced its six-inch meter with a four-inch meter and repaired water lines. The HOA asked that the Authority exempt its system from the ordinance requirement for a backflow preventer. Following clarification questions, the Board directed staff to review Drayton Square's request. VI. CONSENT AGENDA Mr. Rivenbark requested that Item 8 be removed from the Consent Agenda for discussion. Mr. Brown moved to approve the Consent Agenda, Items 1 through 7. Mr. Norris seconded the motion, and Items 1 through 7 of the Consent Agenda were approved unanimously. 1. Approval of Budget Calendar for FY16 RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Wolfe 2. Authorization for Executive Director to Execute the Clean Water State Revolving Fund Final Promissory Note for Burnt Mill Creek Phase II, $3,025,992 RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Wolfe 3. Authorization for the Executive Director to Execute a Contract Amendment with Kimley- Horn & Associates, Inc. for the NEI Northside Force Main Phase 1B Project. RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Wolfe 4. Authorization for the Executive Director to Execute a Contract Amendment with Black & Veatch International Company for Construction Phase Services for Sweeney WTP Finished Water Reservoirs Rehabilitation Project Cape Fear Public Utility Authority Page 3 Minutes Authority Board October 8, 2014 RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Wolfe 5. Authorization for the Executive Director to Execute a Construction Contract with M.B. Kahn Construction Co., Inc. for the Sweeney WTP Finished Water Reservoirs Rehabilitation Project RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Wolfe 6. Purchase of Three Long Range CCTV Pipe Inspection Crawler Systems RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Wolfe 7. Maultsby Construction, Inc. Asphalt Replacement and Repair Contract Approval RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Wolfe 8. Water Emergency Management Plan Ordinance and Fee Schedule Revisions Mr. Rivenbark questioned the delegation of authority to declare a water emergency to the Water Resources Manager or designee and recommended that the decision should be made by the Executive Director only. Mr. Styers reported that the plan is updated periodically and that the delegation was intended to allow flexibility in declaring an emergency. Ms. Kusek agreed with Mr. Rivenbark. Mr. Rivenbark moved to approve the Water Emergency Management Plan, the associated Ordinance, and the Fee Schedule revisions, amended to reflect that the Executive Director be the sole person with authority to declare an emergency. Mr. Brumit seconded the motion, and it passed unanimously. Cape Fear Public Utility Authority Page 4 Minutes Authority Board October 8, 2014 RESULT: APPROVED AS AMENDED [UNANIMOUS] MOVER: Charlie Rivenbark SECONDER: James Brumit, Secretary AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Wolfe VII. NEW BUSINESS A. Administrative Reports i. Attorney Report Ms. Miles had no report for Open Session but requested a Closed Session to discuss litigation. ii. Executive Director's Report Mr. Flechtner referred Board members to the Environmental and Safety Reports in the Agenda. Mr. Brumit commended staff on the reduced number of accidents. Mr. Morgan reported that the Sweeney and Northside plants will receive the Safety & Health Achievement Recognition Program Award (SHARP) from the North Carolina Department of Labor on October 29. Board members are invited to attend the ceremonies. 1. Environmental Report 2. Safety Performance Report B. Committee Reports i. Executive Committee 1. Executive Committee Minutes Ms. Kusek reported that the Committee met on October 1 and held a lengthy discussion regarding back billing questions. Staff will continue to research and bring back through the Committee to the Board. ii. Long Range Planning Committee 1. Long Range Planning Committee - Regular - Sep 25, 2014 3:00 PM Mr. Sneeden reported that the Committee met on September 25 and referred Board members to the minutes in the Agenda packet. The Committee had no items for Board consideration. RESULT: NO ACTION REQUIRED iii. Finance Committee Cape Fear Public Utility Authority Page 5 Minutes Authority Board October 8, 2014 1. $75 Million Revenue and Refunding Bonds - Adoption of Bond Order Ms. Spivey presented the Bond Order and supporting documents. Revenue bonds are the primary funding source for the Authority's Capital Improvement Program, and the Authority plants to issue $23,000,000 of additional revenue bonds to meet the expanding needs for the water and sewer system and to ensure that the system remains in compliance with State and Federal requirements. In addition, in the current bond market, the Authority has the ability to reduce debt service expenditures by refunding approximately $48,000,000 of revenue bonds that were issued by the City in 2005. The Order authorizes the issuance of bonds not to exceed $75,000,000 and authorizes the Chair, Executive Director, and Chief Financial Officer to execute all documents necessary for the issuance of the bonds. Ms. Spivey reported that rating agency representatives will visit the Authority on October 10 and October 13, and the Authority will receive its ratings on or about October 20. The Bonds will be priced and sold at the end of October. Mr. Brown moved to approve the Bond Order as presented. Mr. Brumit seconded the motion, and it passed unanimously. RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: James Brumit, Secretary AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Wolfe 2. Amendment to Bond Counsel and Financial Advisor Contracts Mr. Flechtner presented the item. The Lower Cape Fear Water & Sewer Authority (LCFWSA) has proposed an expansion to its raw water system that could be used to address the region's raw water capacity needs. CFPUA has an agreement for up to 23 million gallons per day with LCFWSA in addition to CFPUA's own raw water line from King's Bluff in Bladen County. CFPUA's maximum needs in summer have been 17-18 MGD. At this time, CFPUA does not need additional capacity. The project proposed by LCFWSA is estimated to cost $65,000,000. Initially, Brunswick and Pender Counties were expected to participate in the project along with CFPUA. Pender has withdrawn from the project for growth capacity but will continue to obtain its present amounts of raw from LCFWSA. Input and analysis from the Authority's bond counsel and financial advisor is recommended for a full consideration of the project. Staff supported amendments to each contract, not to exceed $10,000. Board members discussed the driving forces behind the proposed raw water expansion and negotiations between the two authorities. After discuss, Mr. Cape Fear Public Utility Authority Page 6 Minutes Authority Board October 8, 2014 Brumit moved to amend the Parker, Poe and Davenport contracts not to exceed $10,000 each. Mr. Wolfe seconded the motion, and it passed unanimously. RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Thomas Wolfe AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Wolfe 3. Surplus Personal Property Policy Revision Ms. Vosnock presented the item. The recommended revision will allow the Executive Director to dispose of an item or group of items of personal property valued under $30,000 by public auction, private sale, or exchange. Mr. Brown moved to approve the surplus property policy revision. Mr. Brumit seconded the motion. After a brief discussion, Ms. Kusek called for a vote, and the motion passed unanimously. RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: James Brumit, Secretary AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Wolfe 4. Authorization of $73,976 Contract Amendment 1 for Purchase and Installation of Dystor Control Panel Mr. Flechtner presented the item and answered questions from Board members. Ms. Wolf moved to approve the contract amendment with Evoqua for the purchase and installation of the Dystor Control Panel. Mr. Brown seconded the motion, and it passed unanimously. RESULT: APPROVED [UNANIMOUS] MOVER: Cindee Wolf SECONDER: Mike Brown, Treasurer AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Wolfe 5. October 2014 Monthly Finance Report Ms. Spivey reported that the September financial data and customer service report were provided in the Agenda packet. Revenues were higher than expected, and expenditures were on target. There were no questions regarding the financial and customer service reports. VIII. OLD BUSINESS There was no old business. Cape Fear Public Utility Authority Page 7 Minutes Authority Board October 8, 2014 IX. AUTHORITY Q&A / CLOSING COMMENTS There were no questions from Board members. X. CLOSED SESSION Mr. Norris moved to enter into Closed Session to discuss the legal cases C.B. Windswept and Sanco v. CFPUA. Mr. Rivenbark seconded the motion, and it passed unanimously. The Authority entered into closed session at 9:50 AM, received a report from Ms. Miles and provided direction. XI. ADJOURNMENT Mr. Brown moved to return to Open Session. Mr. Rivenbark seconded the motion, and it passed unanimously. The Authority returned to Open Session at 10:05 AM. Ms. Kusek reminded the Board that the Employee Appreciation picnic would be on Friday, October 17, at Empie Park. The picnic will begin at 11:30 AM. Mr. Rivenbark moved to adjourn. Mr. White seconded the motion, and it passed unanimously. The Authority adjourned at 10:06 AM. The next regular meeting of the Cape Fear Public Utility Authority will be Wednesday, November 12, 2014. The meeting will begin at 9:00 AM and will be held in the Lucie Harrell Conference Room, 230 Government Center Drive, Wilmington, North Carolina. Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 8