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HomeMy WebLinkAboutCFPUA 11 12 2014 CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES NOVEMBER 12, 2014 Lucie Harrell Conference Room Annual Meeting 9:00 AM 230 GOVERNMENT CENTER DRIVE WILMINGTON, NC 28403 I. CALL TO ORDER The Cape Fear Public Utility Authority held its Annual Meeting o 2014. Ms. Kusek called the meeting to order at 9:00 AM. She re be late and Mr. White would be absent. Mr. Wolfe moved to excuse Mr. White from the meeting and to excuse Mr. Brown until his arrival. Mr. Rivenbar passed unanimously. II. DETERMINATION OF A QUORUM Ms. Kusek declared a quorum present. 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 9:20 Authority AM 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 Excused 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 Present Cape Fear Public Utility Authority Page 1 Minutes Authority Board November 12, 2014 Authority the Board Frank Styers Cape Fear Public Utility Chief Operations Officer Present Authority Carel Cape Fear Public Utility Director of Engineering Present Vandermeyden 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 John Payne Cape Fear Public Utility Internal Auditor Present Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Julie McLawhon Cape Fear Public Utility Budget/Finance Manager Present Authority Julia Vosnock Cape Fear Public Utility Procurement Manager Present Authority Heidi Cox N.C. Public Water Supply Present Don Betz Lower Cape Fear Water Sewer Present Authority Steve Coggins Rountree & Losee Present Greg Adams Thompson, Price, Scott & Present Adams Karen Hansen Terminal Road Properties Present Christine Point Terminal Road Properties Present Richard King City of Wilmington Present Claus Platt Present Faith Platt Present Sandy Wood Present Hill Rogers Present Carter Hubbard Present Lydia Coutre Wilmington Star-News Present III. ADOPTION OF AGENDA Mr. Flechtner requested that Item 6 on the Consent Agenda be moved to the Engineering Report. Mr. Rivenbark moved to adopt the Agenda with Item 6 bei Agenda to the Engineering Report. Mr. Wolfe seconded the motion unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Oct 8, 2014 9:00 AM Mr. Brumit moved to approve the Minutes of the October 8, 2014, seconded the motion, and the Minutes were unanimously approved. Cape Fear Public Utility Authority Page 2 Minutes Authority Board November 12, 2014 RESULT: ACCEPTED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Riv EXCUSED: White V. PUBLIC COMMENTS - LIMIT 4 MINUTES PER SPEAKER Ms. Platt spoke regarding property she and her husband own on Mason Landing Road in the Middle Sound Loop area, the cost of connecting to the Authority communications with staff. She reported that the home she and h property had been vacant and without electricity for one year and three months because it is not connected to the system. Ms. Platt reported that it would connect to the sewer and requested reimbursement or assistance. Mr. Sneeden moved to move Item 1 from the Engineering Report to follow Ms. Platt's comments, so that Mr. Vandermeyden could report on the issue. M motion, and it passed unanimously. Mr. Vandermeyden reported that the sewer was designed by the Cou in 2004. The County did not install a sewer tap because the property undeveloped tract. The sewer line is located on the opposite si Platts' home. The North Carolina Department of Transportation w an open cut through the road, and connection would require a bore beneath th costs and would be at the Platts' expense. Mr. Vandermeyden re communications with the Platts and answered questions from Board After discussion, Mr. Sneeden moved to refer the matter to the L Committee for review. Mr. Quinn seconded the motion, and it pas Sneeden invited the Platts to the committee meeting on November ed the Board for its time. Mr. Coggins spoke regarding his clients' property located on Ter topic of a condemnation discussion on the Agenda. He reported t expansion of water and sewer into the 421 corridor. He reported that the property was environmentally clean, featured a railroad spur, and was histori water port, making it unique. He reported that his clients had purchase the property for $2.9 million. His clients had concerns about the location of th proposed water line on the property and its proximity to the pie that he understood the project deadlines faced by the Authority Authority allow additional time for negotiations with Authority staff b condemnation action. The Board deferred discussion to the Operations report, when the item would be presented by Mr. Styers. Cape Fear Public Utility Authority Page 3 Minutes Authority Board November 12, 2014 VI. OCTOBER 8 SPEAKER UPDATE Mr. Flechtner provided an update on the speakers from the Octobe Joe Priest addressed the Board concerning a ditch on his propert requested that the Authority consider clearing the ditch or requr Cape Water & Sewer Authority to do so. Authorization for Mr. Flechtner to write to on the Consent Agenda. Messrs. Wolfe and Quinn reported that the LCFWSA Board had previ Priest's request and had voted not to clean the ditch. Mr. Rivenbark urged LCFWSA to reconsider the request. The second speaker during the October meeting represented the Dr Drayton Square request had been reviewed by the Long Range Plann reported in the Committee minutes. VII. CONSENT AGENDA Mr. Rivenbark moved to approve the Consent Agenda, excepting Ite the motion, and it passed unanimously. 1. Resolution in Support of Water and Sewer Availability RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark SECONDER: Mike Brown, Treasurer AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Riv EXCUSED: White 2. Pender County Interlocal Agreement Amending Meter Calibration Re RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark SECONDER: Mike Brown, Treasurer AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Riv EXCUSED: White 3. Raw Water Transmission Main Easement Maintenance RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark SECONDER: Mike Brown, Treasurer AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Riv EXCUSED: White 4. Authorization for the Executive Director to Execute a $3,676,581 Contract with Dellinger, Inc. for the Barnard's Creek Permanent Upgrades Project Cape Fear Public Utility Authority Page 4 Minutes Authority Board November 12, 2014 RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark SECONDER: Mike Brown, Treasurer AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Riv EXCUSED: White 5. Authorization for the Executive Director to Execute a Sewer Capacity Agreement with Forks Development, LLC RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark SECONDER: Cindee Wolf AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, Wolfe EXCUSED: White 6. Authorization for the Executive Director to Execute a Sewer Cap Agreement with Developer Scotts Hill Holdings, LLC The item was discussed and voted upon during the Engineering Rep RESULT: APPROVED [UNANIMOUS] MOVER: Jim Quinn, Vice Chair SECONDER: Charlie Rivenbark AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Riv EXCUSED: White 7. Authorization for the Executive Director to Execute a Sewer Cap Agreement with Developer Aftew Properties, LLC RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark SECONDER: Mike Brown, Treasurer AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Riv EXCUSED: White 8. Authorization for Yadkin Bank to Become an Official Depository for CFPUA Funds RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark SECONDER: Mike Brown, Treasurer AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Riv EXCUSED: White 9. Investment of Bond Proceeds Cape Fear Public Utility Authority Page 5 Minutes Authority Board November 12, 2014 RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark SECONDER: Mike Brown, Treasurer AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Riv EXCUSED: White 10. Interlocal Agreement with Lower Cape Fear Water and Sewer Authority RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark SECONDER: Mike Brown, Treasurer AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Riv EXCUSED: White 11. Emergency Construction Services Contract RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark SECONDER: Mike Brown, Treasurer AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Riv EXCUSED: White 12. Authorization for the Executive Director to Execute a Contract A Black & Veatch International Company for Construction Administration and the Raw Water Meter Vault Modification Project. RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark SECONDER: Mike Brown, Treasurer AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, Wolfe EXCUSED: White 13. Kerr Avenue Greater Loop Contract Amendment 6 RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark SECONDER: Mike Brown, Treasurer AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, Wolfe EXCUSED: White VIII. NEW BUSINESS A. 2014 Annual Report Presentation Mr. Flechtner presented the Annual Report for Fiscal Year 2014. Authority had continued to focus on short term and long term goas, meeting customer Cape Fear Public Utility Authority Page 6 Minutes Authority Board November 12, 2014 needs, working with the County and City on long-term projects, and proactively addressing infrastructure needs. He reported that the Authority operates t lower cost than two separate utilities could operate. The number of sanitary sewer overflows has been reduced by 45 pe of overflows reduced by 76 percent. The Authority has received State for the Sweeney and Northside plants. The Authority maintained a strong financial track record, and Standard and Poors upgraded the Authority's credit rating to AA+, the second highest rating Other highlights of the year included: Staff worked with the movie production MAX STEEL, which filmed a The production company donated $10,000 to CFPUA Assist after com Staff developed a portable water station that can be used at eve water free of charge and educate people about the advantages of The Authority entered into an agreement with Duke Progress Energy to de the Flemington area. The Authority is working closely with regulatory agencies and ot safeguard water quality and groundwater resources. The Authority continued its water meter replacement and automatic meter reading pilo program. All meters should be replaced within four years. Mr. Flechtner recognized Ms. Durso and Mr. McGill for their work Report and thanked all employees for the excellent jobs they performed every day. 1. 2014 Annual Report B. FY14 Audit Report Mr. Adams presented the Audit results for the Fiscal Year 2014, through July 2014. He reported that the auditors' was not limi there were no material errors or significant deficiencies in internal net position at the beginning of the fiscal year was $391,303,53 year's end was $411,206,335. There were no questions from Authority members for Mr. Adams. Ms. Spivey presented additional detail from the Comprehensive An FY2014 revenues were three percent higher than the revised budge million greater than FY2013. Expenditures were approximately 89 percent of budget. Debt service was the largest expense. The amount of $6.4 million was budget for cash-funded capital projects. Ms. Spivey recommended the transfer of million to the FY2016 budget for cash-funded capital projects. Cape Fear Public Utility Authority Page 7 Minutes Authority Board November 12, 2014 Ms. Spivey thanked Ms. McLawhon, the Authority financial team, a completing the Audit and CAFR a month early so that it could be offering documents. She reported that Standard & Poors had upgraded the Authority's rating from AA to AA+ and that the Authority had maintained its 1. Annual Audit Report C. Administrative Reports i. Engineering Report Mr. Vandermeyden presented Item 6 from the Consent Agenda, a Sewacity Reservation Agreement with Scotts Hill Village. The Long Range reviewed and recommended the item at its October 23 meeting. S developer had requested additional capacity of 800 gallons per d recommended approval of the agreement with the additional capacity. Mr. Quinn moved to approve the Agreement. Mr. Rivenbark seconde it passed unanimously. 1. 7510 Mason Landing Road Sewer Service Update This item was presented by Mr. Vandermeyden following public comment by Ms. Platt. 2. Masonboro Sound Project Update Mr. Vandermeyden updated the Board on the Masonboro Sound/1998 Annexation project. The sewer construction was completed on Jul certified in November. Water construction was complete on August 14 and certified in October. Paving and restoration is continuing but complete in approximately two weeks. Staff has developed the co punch list, and the project should be completely finished withinks after going over the punch list with the contractor. ii. Operations Report 1. Flemington Project Overview Mr. Styers presented a map and aerial depiction of the proposed water line crossing. Duke Progress Energy is participating in fhe water line. An Interlocal Agreement with the County and City for cost-sharing on a sewer line to serve the 421 corridor is on the Agenda. 2. Condemnation of Utility Easements at 1920 Terminal Road for Flem Project Mr. Styers reported on the recommended route for the Flemington water line and where it would cross the Terminal Road property. The locati recommended because it is directly across from the Sweeney Water Cape Fear Public Utility Authority Page 8 Minutes Authority Board November 12, 2014 Plant. A temporary construction easement and two permanent easements across the property are needed, and the existing raw water line be modified to include a finished water line. The Authority can another existing easement on the property. Mr. Styers explained proposed route was recommended and answered questions from Authority members regarding the easement location. The Board discussed th brought forward by Mr. Coggins on behalf of Terminal Road Proper Board concerns with the condemnation. Ms. Miles and Mr. Styers reported that negotiations with the property owners are under way. They repor have had good communications with the owners and are optimistic settlement can be reached without filing the condemnation actiontaff and legal counsel recommended approval for condemnation proceedings project can meet all deadlines. Ms. Miles reported that the app condemnation would authorize a 30-day notice letter to the property owners and assured the Board that negotiations would continue. Following clarification questions and discussion, Mr. Sneeden mo the condem nation of utility easements at 1920 Terminal Road, ow Terminal Road Property, LLC. Ms. Wolf seconded the motion. Ms.k, Ms. Wolf, and Messrs. Quinn, Brumit, O'Grady, Sneeden, and Wolfe vot the motion. Messrs. Brown, Rivenbark, and Norris were opposed. carried, seven to three. RESULT: APPROVED [7 TO 3] MOVER: Larry Sneeden SECONDER: Cindee Wolf AYES: Kusek, Quinn, Brumit, Wolf, Sneeden, O'Grady, Wolfe NAYS: Brown, Norris, Rivenbark EXCUSED: White 3. Interlocal Agreement with City and County for Cape Fear River Se Mr. Styers presented the item and answered clarification questio Rivenbark moved to approve the Interlocal Agreement with New Hanove County and the City of Wilmington. Mr. Brumit seconded the moti passed unanimously. Ms. Kusek recessed the meeting at 10:35 AM and reconvened the me 10:50 AM. Cape Fear Public Utility Authority Page 9 Minutes Authority Board November 12, 2014 RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark SECONDER: James Brumit, Secretary AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, Wolfe EXCUSED: White iii. Attorney Report Ms. Miles had no report and did not require a Closed Session. iv. Executive Director's Report 1. Environmental Report The Environmental Report was in the Agenda for review. There we questions. 2. Safety Performance Report for October The Safety Performance Report was in the Agenda for review. The questions. 3. S.H.A.R.P. Recognition Update Mr. Morgan reported on the Authority's receipt of the North Caro Occupational Safety & Health Administration "Safety & Health Ach Recognition Program" award for the Sweeney and Northside plants. Authority is the only public agency to receive the award this ye Commissioner Cherie Berry attended the ceremonies at the plants, Brumit and Ms. Wolf represented the Board at the event. D. Committee Reports i. Executive Committee 1. Executive Committee Minutes The Committee met on November 5, and the Minutes were in the Age for review. ii. Long Range Planning Committee 1. Long Range Planning Committee Report iii. Finance Committee Mr. Brown congratulated staff on the presentations to Standard & Poors and Moody's. Ms. Spivey thanked the Board members who attended the rating age their support. Cape Fear Public Utility Authority Page 10 Minutes Authority Board November 12, 2014 Ms. Spivey reported on the results of the bond sale. The Author "new money," which will fund $23 million in capital projects already approved by the Board. The bonds have 26 maturities, with a life of 25.5 years. $3.45 percent, or $1.4 million annually. The Authority re-funded $40 million in tax- exempt bonds at 2.9 percent, with 20 maturities of 19.5 years. The re-funding of bonds saved a total of $9.9 million. The Authority re-funded $4.7 million in taxable bonds, with five maturities and a total savings of $329,000. Ms. Spivey was of the sale. 1. Finance Committee - Regular Meeting - Nov 5, 2014 9:00 AM 2. Monthly Finance Report- November 2014 IX. OLD BUSINESS There was no Old Business. X. AUTHORITY Q&A / CLOSING COMMENTS There were no questions. XI. ADJOURNMENT Mr. Norris moved to adjourn. Mr. Rivenbark seconded the motion, and it passed unanimously. The Authority adjourned at 11:15 AM. The next regular meeting of the Cape Fear Public Utility Authori December 10, 2014. The Board will meet in the Lucie Harrell Cone Room, New Hanover County Administration Building, 230 Government Center Drive, Wil and will convene at 9:00 AM. Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 11