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HomeMy WebLinkAboutCFPUA Regular Meeting 5 13 2015 CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES MAY 13, 2015 Lucie Harrell Conference Room Regular Meeting 9:00 AM 230 GOVERNMENT CENTER DRIVE WILMINGTON, NC 28403 I. CALL TO ORDER II. DETERMINATION OF A QUORUM Ms. Kusek called the meeting to order and declared a quorum present. Mr. Norris moved to excuse Messrs. O'Grady, Rivenbark, and White. Mr. Brumit seconded the motion, and it passed unanimously. 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 Excused Authority Charlie Rivenbark Cape Fear Public Utility Excused Authority Woody White Cape Fear Public Utility Excused Authority Rob Zapple 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 Property Acquisition Specialist Present Authority Donna Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board Leslie Ogilvie Cape Fear Public Utility Assistant to the Executive Present Authority Director Frank Styers Cape Fear Public Utility Chief Operations Officer Present Cape Fear Public Utility Authority Page 1 Minutes Authority Board May 13, 2015 Authority Carel Vandermeyden Cape Fear Public Utility Director of Engineering 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 Julie McLawhon Cape Fear Public Utility Budget/Finance 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 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 Tymekia Askew Cape Fear Public Utility Fiscal Support Specialist Present Authority Viktoriya Cape Fear Public Utility IT Help Desk Technician Present Rumyantseva Authority Kent Harrell Cape Fear Public Utility Engineering Manager Present Authority Teresa Horsboll Cape Fear Public Utility Buyer Present Authority John Payne Cape Fear Public Utility Internal Auditor Present Authority David Sickle Cape Fear Public Utility Network Administrator Present Authority James Yopp Hoosier Daddy, LLC Present Heidi Cox N.C. Public Water Supply Present Tony Boahn McKim & Creed Present Jim Iannucci New Hanover County Present Richard King City of Wilmington Present III. ADOPTION OF AGENDA Ms. Wolf moved to adopt the day's Agenda, with Item VII, B, iii, C, the condemnation of a sewer easement at 1305 Rock Hill Road, being moved from its original placement on the Agenda to immediately follow the Consent Agenda. Mr. Brumit seconded the motion, and the revised Agenda was adopted unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Apr 8, 2015 9:00 AM Cape Fear Public Utility Authority Page 2 Minutes Authority Board May 13, 2015 RESULT: ACCEPTED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Larry Sneeden AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, Zapple EXCUSED: O'Grady, Rivenbark, White V. PRESENTATION 1. Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting for the Fiscal Year Ended June 30, 2014 Mr. Brown presented the Government Finance Officers' Association award for the Comprehensive Annual Final Report for Fiscal Year 2014. Ms. McLawhon accepted the award and introduced Finance staff members, Ms. Askew, Ms. Burns, Ms. Hoggard, Ms. Vosnock, and Ms. Horsboll. She thanked Finance staff and members of all departments for the work that resulted in the award. VI. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER Mr. James Yopp spoke regarding the condemnation recommendation on the Agenda. Mr. Yopp represented Hoosier Daddy, LLC, the owner of 1305 Rock Hill Road and the Sunset Reach community, which is in planning and development. Mr. Yopp expressed concern about the time frame and phasing of the project and the use of a portion of the property for a water line to serve an adjacent development. VII. CONSENT AGENDA Mr. Brumit moved to approve the Consent Agenda. Mr. Sneeden seconded the motion, and it passed unanimously. 1. Wilmington Development Partners, LLC / Improvements Associated with the Porters Neck Walmart RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Larry Sneeden AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, Zapple EXCUSED: O'Grady, Rivenbark, White 2. Resolution Supporting House Bill 186 and Water Allocation Permitting in North Carolina RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Larry Sneeden AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, Zapple EXCUSED: O'Grady, Rivenbark, White 3. Monkey Junction Annexation Termination of ILA with City of Wilmington Cape Fear Public Utility Authority Page 3 Minutes Authority Board May 13, 2015 RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Larry Sneeden AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, Zapple EXCUSED: O'Grady, Rivenbark, White 4. Meter Services and Meter Reading Consolidation and Relocation RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Larry Sneeden AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, Zapple EXCUSED: O'Grady, Rivenbark, White 5. Networking Infrastructure Budget Ordinance RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Larry Sneeden AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, Zapple EXCUSED: O'Grady, Rivenbark, White 6. Budget Amendment #15-013 Ordinance - Recognizing Revenue from Damage Claims Reimbursement, Making Supplemental Revenues and Appropriations to the Operating Fund for the Fiscal Year Ending June 30, 2015 RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Larry Sneeden AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, Zapple EXCUSED: O'Grady, Rivenbark, White 7. Emergency Construction Services Contract RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: William Norris, Larry Sneeden AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, Zapple EXCUSED: O'Grady, Rivenbark, White 8. Approval of Budget Ordinance #15-012 to Cover Increased Employee Health Insurance Costs Fund for the Fiscal Year Ending June 30, 2015 Cape Fear Public Utility Authority Page 4 Minutes Authority Board May 13, 2015 RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Larry Sneeden AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, Zapple EXCUSED: O'Grady, Rivenbark, White 9. Revision to SOP-FIN1000.442 Finance and Accounting Policy RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Larry Sneeden AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, Zapple EXCUSED: O'Grady, Rivenbark, White 10. System Development Charge Calculations RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Larry Sneeden AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, Zapple EXCUSED: O'Grady, Rivenbark, White 11. Approval of Promissory Note for NC Drinking Water State Revolving Fund and Budget Ordinance #15-010 RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Larry Sneeden AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, Zapple EXCUSED: O'Grady, Rivenbark, White 12. Authorization for the Executive Director to Execute a $124,109 Contract with W.K. Dickson for Engineering Services for a New Pump Station on Edgewater Club Road RESULT: APPROVED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Larry Sneeden AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, Zapple EXCUSED: O'Grady, Rivenbark, White 13. Condemnation 1. Condemnation - Sewer Utility Easement - 1305 Rock Hill Road - Walnut Hills Pump Station Improvement & Force Main Project Cape Fear Public Utility Authority Page 5 Minutes Authority Board May 13, 2015 Ms. Wolf and Mr. Brown asked to be recused from the discussion and vote because their companies did business with Hoosier Daddy LLC. Mr. Brumit moved to recuse Ms. Wolf and Mr. Brown. Mr. Norris seconded the motion, and it passed unanimously. A quorum remained. Mr. Vandermeyden presented the agenda item and a map showing the site in question. He explained that there would be a pump station and a force main for the Sunset Reach subdivision that would connect to the Authority force main. Messrs. Vandermeyden and Yopp answered questions from Authority members. Mr. Vandermeyden reported that staff had offered the appraised value but had been unable to reach an agreement with the developer and owner. The easement is needed to complete the Walnut Hills Wastewater Plant improvement project and the associated force main. The project needed to move forward, with construction expected to begin in August. He reported that the project could be staged to begin the construction at the Sunset Reach site as requested by Hoosier Daddy, LLC, representatives. Mr. Yopp addressed additional topics that had become part of the negotiation discussions. Ms. Miles provided information regarding the history of the subdivision through previous owners. She reported that Hoosier Daddy, LLC, might have an issue with another developer but that issue would not be relevant to the condemnation. Following Board discussion, Mr. Brumit moved to approve the condemnation of a sewer utility easement on 1305 Rock Hill Road at the appraised value of $16,000. Mr. Norris seconded the motion, and it passed unanimously. RESULT: APPROVED [6 TO 0] MOVER: James Brumit, Secretary SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Norris, Sneeden, Zapple EXCUSED: O'Grady, Rivenbark, White RECUSED: Brown, Wolf VIII. NEW BUSINESS A. Administrative Reports i. Attorney's Report Ms. Miles had no report and did not require a closed session. ii. Executive Director's Report Cape Fear Public Utility Authority Page 6 Minutes Authority Board May 13, 2015 Mr. Flechtner reported that the current balance in the CFPUA Assist program managed by the Salvation Army is $1,300, with $500-600 pledged for the remainder of the year. 1. Environmental 2. Safety Performance Report Mr. Sneeden commended staff on the good safety record. B. Committee Reports i. Executive Committee Ms. Kusek reported that the Committee is developing the Board retreat, with September 16 as the recommended date and September 30 as a backup date. Ms. Kusek further reported that she and Messrs. White and Rivenbark would be the members of the Nominating Committee to recommend a slate of Authority officers for FY2016. She requested that any Board member interested in serving as an officer let the Nominating Committee know. 1. Executive Committee Meeting Minutes The May 6 Committee minutes were in the Agenda packet. ii. Long Range Planning Committee 1. Long Range Planning Committee - Regular - Apr 23, 2015 3:00 PM The April 23 Committee minutes were in the Agenda packet. RESULT: NO ACTION REQUIRED 2. Bulk Water Resale Criteria and Rates Mr. Sneeden reported that the Committee had discussed bulk water rates at its March and April meetings and had a recommendation for the Board. Mr. Vandermeyden presented the item and explained the process used to develop the definition of a bulk water customer and the rates. Ms. Miles reported the criteria met the definition of a customer class. Mr. Quinn moved to adopt the bulk water resale criteria and rates for inclusion in the FY2016 Budget. Mr. Zapple seconded the motion, and it passed uananimously. iii. Finance Committee A. Minutes 1. Finance Committee - Regular Meeting - May 6, 2015 9:00 AM Cape Fear Public Utility Authority Page 7 Minutes Authority Board May 13, 2015 The May 6 Committee minutes were in the Agenda packet. RESULT: NO ACTION REQUIRED B. FY16 Recommended Budget Mr. Brown reported that the May Committee minutes were in the Agenda packet. He asked Mr. Flechtner and Ms. Spivey to present the recommended FY2016 Budget for Board review and for the budget hearing. i. Budget Presentation Mr. Flechtner reported that the budget was sufficient to operate under less than optimal conditions, which would include hurricanes or other weather events. The recommended operating budget is $76,071,20 and includes $800,000 in contingency funds. Revenues are based on consumption, and no change in rates is recommended for FY2016. There are some changes to other fees for cost recovery. Department managers developed the budget with an increase of no more than 2 percent over FY2015. A 1.5 percent market adjustment and 2.5 percent merit adjustment was budgeted for salaries. The Authority increase to employee health care was 15 percent, and there was a 7 percent increase to dental coverage. The mandated Authority contribution to the Local Government Retirement System decreased from 7.07 percent to 6.67 percent. Ms. Spivey reported that revenues were budgeted to increase by 5 percent. A fund balance of $5.5 million would be transferred to capital programs. Ms. Spivey reviewed miscellaneous fee changes that were included in the budget. She answered questions about cost recovery fee charges and system development charges. Debt service for FY2016 will decrease, and debt coverage should be 1.52 for FY2016. Ms. Spivey and Ms. McLawhon answered clarification questions about debt service paid by New Hanover County. The full line item recommended budget for FY2016 was presented in the Agenda packet. 1. FY16 Recommended Budget Presentation and Workshop ii. Public Hearing on the Budget Mr. Brumit moved to open the budget hearing. Mr. Quinn seconded the motion, and it passed unanimously. The public hearing opened at 10:12 AM. The Clerk reported that there were no speakers on the budget. Mr. Brown moved to close Cape Fear Public Utility Authority Page 8 Minutes Authority Board May 13, 2015 the budget hearing. Mr. Zapple seconded the motion, and it passed unanimously. The hearing closed at 10:13 AM. C. Condemnation This item was moved to follow the Consent Agenda. The discussion will be found under Item 13. IX. OLD BUSINESS X. AUTHORITY Q&A / CLOSING COMMENTS There were no questions or further comments from Authority members. XI. CLOSED SESSION There was no closed session. XII. ADJOURNMENT There was no further business to come before the Authority, and Mr. Brumit moved to adjourn. Ms. Wolf seconded the motion, and the meeting adjourned unanimously. At 10:13 AM. The next regular meeting of the Cape Fear Public Utility Authority will be Wednesday, June 10, 2015. The meeting will be held in the Lucie Harrell Conference Room, 230 Government Center Drive, Wilmington, North Carolina, and will commence at 9:00 AM. Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 9