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Home My WebLink AboutCFPUA 6 10 2015 CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES JUNE 10, 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 at 9:00 AM and 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 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 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 Leslie Ogilvie 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 Cheryl Spivey Cape Fear Public Utility Chief Financial Officer Present Cape Fear Public Utility Authority Page 1 Minutes Authority Board June 10, 2015 Authority Tom Morgan Cape Fear Public Utility HR Director Present Authority Beth Eckert Cape Fear Public Utility Director of EMD Present Authority Mike McGill Cape Fear Public Utility Chief Communications 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 Julia Vosnock Cape Fear Public Utility Procurement Manager Present Authority Kent Harrell Cape Fear Public Utility Engineering Manager Present Authority Gary McSmith Cape Fear Public Utility Engineering Manager Present Authority John Payne Cape Fear Public Utility Internal Auditor Present Authority Jude Eden Cape Fear Public Utility Server Administrator Present Authority Clifford Snow Present Richard King City of Wilmington Present Barbara McClure New Hanover County Present Jim Burke N.C. Treasury Present Jim Iannucci New Hanover County Present Tony Boahn McKim & Creed Present III. ADOPTION OF AGENDA Mr. Rivenbark moved to adopt the day's Agenda. Mr. O'Grady seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - May 13, 2015 9:00 AM RESULT: ACCEPTED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Cindee Wolf AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Zapple V. STATE TREASURER'S AWARD PRESENTATION 1. State Treasurer's Award for Excellence in Accounting and Financial Management Ms. McClure and Mr. Burke presented Ms. Vosnock with the North Carolina State Treasurer's Award for Excellence in Accounting and Financial Management. Ms. Vosnock led a team in revamping and improving the Authority's contract bidding Cape Fear Public Utility Authority Page 2 Minutes Authority Board June 10, 2015 process. The Board and Ms. Spivey thanked Ms. Vosnock for her hard work and dedication. RESULT: REVIEWED VI. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER There were no public speakers. VII. SPEAKER UPDATE FROM THE MAY 13, 2015 BOARD MEETING Mr. Flechtner updated the Board on the speaker from the May 13 meeting, Mr. James Yopp. The Board approved an eminent domain action on the subject property at the May meeting. Ms. Miles mailed the 30-day notice letter to Hoosier Daddy, LLC, the property owner. Staff continues to work with the developer, Mr. Yopp, and the property owner to resolve issues. Bids for the associated wastewater project will open on June 11. VIII. CONSENT AGENDA There was no question on the Consent Agenda. Mr. Brown moved to approve Consent, and Mr. Norris seconded. The Consent Agenda passed unanimously. 1. Determination of Sufficiency of Petition for Water Service in Avenel Subdivision RESULT: ADOPTED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Zapple 2. Authorization for the Executive Director to Execute a $97,000 Contract Amendment with Norris and Tunstall Consulting Engineers, P.C. for Professional Design and Bidding Services for the Replacement of Pump Station 8 RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Zapple 3. Authorization for the Executive Director to Execute a $229,650 Agreement with McKim & Creed, Inc. for Professional Design and Bidding Services for the Upgrade to Pump Station 69 Motts Creek Cape Fear Public Utility Authority Page 3 Minutes Authority Board June 10, 2015 RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Zapple 4. Laboratory Contract with Eurofins Eaton Analytical, Inc., Pace Analytical Services, and Environmental Testing Solutions, Inc. RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Zapple 5. Amendment with Sawyer Sherwood and Associate, PC for Sweeney Maintenance Building Rehabilitation RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Zapple 6. Approval of Budget Ordinance #15-015 for Sale of Capital Assets RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Zapple 7. Approval of Budget Ordinance #15-016 Recognizing Additional System Development Charges RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Zapple 8. Authorization for the Executive Director to Execute a $220,000 Contract with Paramounte Engineering for Mandatory Connection Surveying, Construction Administration and Observation Cape Fear Public Utility Authority Page 4 Minutes Authority Board June 10, 2015 RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Zapple 9. Authorization for the Executive Director to Execute a $39,590 Contract with Lumina Builders Incorporated for the ERP and GIS Office Renovation Project RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Zapple 10. U.S. Highway 421 Corridor Utilities Interlocal Agreement RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Zapple 11. Purchase of New Vactor RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Zapple 12. Approval of Budget Ordinance#15-017 for Supplemental Revenues & Appropriations of Retiree Expenditures RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Zapple 13. Transfer of Operating Funds to Operating Contingency Cape Fear Public Utility Authority Page 5 Minutes Authority Board June 10, 2015 RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Zapple 14. Emergency Construction Services Contract RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Zapple IX. NEW BUSINESS A. Administrative Reports i. Attorney's Report Ms. Miles had no report but requested a brief closed session to discuss potential claims. ii. Executive Director's Report Mr. Flechtner directed the Board to the Agenda packet for the Environmental and Safety reports. Staff continues a good record of compliance and safety. There were no questions regarding the reports. 1. Environmental Report 2. Safety Performance Report B. Committee Reports i. Executive Committee Ms. Kusek reported that the Committee met on June 3 and that the minutes were in the Agenda packet. A. Minutes 1. Executive Committee Minutes of June 3, 2015 B. Correspondence Review Mr. Flechtner reported that a staff committee is being organized to review all standardized correspondence used by the Authority. The Committee will review content, tone, and timing of correspondence to ensure that it reflects the Authority and its mission appropriately. Cape Fear Public Utility Authority Page 6 Minutes Authority Board June 10, 2015 C. Development Process Messrs. Vandermeyden and Flechtner updated the Board on staff initiatives and cooperation with the development community, the city, county, and state agencies. Staff has developed a guidance document for customer use that explains the steps of plan review and other relevant processes. Engineering staff is working with the Business Alliance for a Sound Economy (BASE), and Customer Service staff is working with the realtors' association. Board members commended staff on the customer service initiatives and correspondence review. ii. Long Range Planning Committee Mr. Sneeden reported that the Committee met on May 28 and that the minutes were in the Agenda packet. Mr. Vandermeyden highlighted items discussed by the Committee. The Petition for water service for the Avenel community was on the Consent Agenda. 35 of 66 parcels were represented by homeowner signatures, meeting the petition and assessment ordinance requirement. The next step will be for staff to develop the actual cost for the project for review by the Long Range Planning Committee and full Board. A public hearing will follow, and property owners will be asked to present a second petition for service after they receive cost information. Staff is reviewing the mandatory connection deferral policy and the guidelines for mandatory connection exemptions. The Committee will consider revisions suggested by staff. 1. Long Range Planning Committee - Regular - May 28, 2015 3:00 PM iii. Finance Committee 1. Finance Committee - Regular Meeting - Jun 3, 2015 9:00 AM 2. Write Offs - June 2015 Ms. Irick presented the write-off for unpaid terminated utility accounts through June 2012 and discharged bankruptcy utility accounts through December 2014, in the amount of $142,700.94. City staff had reviewed and agreed to its write- off amount. Ms. Irick answered questions from Board members. Mr. Brown moved to approve the item. Mr. O'Grady seconded the motion, and it passed unanimously. Cape Fear Public Utility Authority Page 7 Minutes Authority Board June 10, 2015 RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: Kevin O'Grady AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Zapple 3. June 2015 Monthly Financial Reports The May financial data was provided in the Agenda packet. Ms. Spivey reported that revenues were strong, with level water sales through a 12-month period. Expenditures were on track as expected. Invoices for FY2015 will be received and processed through August, so year-end data will be slightly different. Mr. O'Grady remarked that the medical reserve expenditures highlighted the need for a wellness program in FY2016. Mr. Flechtner reported that funds are budgeted for wellness initiatives. Messrs. O'Grady and Rivenbark reported that the City experienced good results from its wellness program, and they answered questions from Board members regarding the City program. RESULT: REVIEWED 4. FY16 Recommended Budget Submitted for Adoption Ms. Spivey presented the budget for the fiscal year beginning July 1, 2015. The total Operating fund is $76,071,200; the System Development fund is $3,600,000, and the Capital Projects fund is $17,664,342. Mr. Norris moved to adopt the Fiscal Year 2016 Budget as presented. Mr. Rivenbark seconded the motion, and the FY2016 Budget was adopted unanimously. Ms. Kusek reminded the Board that no rate increase was included in the budget and commended staff. Mr. Flechtner recognized staff and the Finance Committee for their work in preparing and reviewing the budget. RESULT: ADOPTED [UNANIMOUS] MOVER: William Norris SECONDER: Charlie Rivenbark AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Zapple iv. Communications Committee A. Minutes 1. Communication Committee Minutes of June 4, 2015 Cape Fear Public Utility Authority Page 8 Minutes Authority Board June 10, 2015 B. Website Update Mr. McGill unveiled the redesign of the Authority website. He recognized Ms. Eden for their partnership on the project and for her skill in upgrading the original website internally since 2008 at very little cost. He thanked Ms. Irick for her contributions to the redesign. Staff worked with the current vendor to develop the website at a cost of approximately $20,000. Mr. McGill highlighted the customer service improvements to the design and demonstrated site navigation. The new website will be on the internet June 17. Mr. McGill and Ms. Eden answered questions from Board members regarding the redesigned website. Mr. Rivenbark asked for information on the boil water advisory notices used on the website. Mr. McGill reported that the State of North Carolina designates when an advisory is required. The recent notices have been precautionary and were planned in connection to a water valve replacement project. Mr. McGill reported that the Committee reviewed staff's recommendation regarding promotion of the petition for service process. All ordinances, including the Petition and Assessment ordinance, are available through the website. Projects and mandatory connection information are found under quick links. X. OLD BUSINESS Ms. Kusek reminded Authority members that corporate officers will be elected at the July meeting and requested that any member interested in serving as an officer let the Nominating Committee know. XI. AUTHORITY Q&A / CLOSING COMMENTS There were no questions or additional comments. XII. CLOSED SESSION Mr. Rivenbark moved to enter closed session to receive advice from legal council and discuss possible claims against the Authority. Mr. Norris seconded the motion, and it passed unanimously. The Authority recessed at 9:50 AM and reconvened in closed session at 10:02 AM. Ms. Miles reported to the Board. XIII. OPEN SESSION 1. Sewer Lien Mr. Rivenbark moved to return to open session. Mr. White seconded the motion, and it passed unanimously. The Authority returned to open session at 10:10 AM. Ms. Miles reported that a local act passed in 2014 granting the town of Spindale and the Authority the ability to file liens in the judgment records of the Clerk of Court for unpaid accounts, using the ╜■ ŉś▓ foreclosure method for collection, the same way in which Cape Fear Public Utility Authority Page 9 Minutes Authority Board June 10, 2015 counties can collect unpaid taxes. A supporting ordinance revision was presented for Board approval. Ms. Irick reported that the procedure would be used for active accounts over 120 days past due that only receive sewer service from the Authority. For sewer-only accounts, the Authority cannot disconnect water service and will not disconnect sewer services because of potential environmental impacts. Property owners would be notified before the liens were filed and could pay the charges and avoid the lien. Liens would be updated periodically and remain active for ten years in the same manner as a court judgment and could be renewed. Ms. Miles reported that the city of Greensboro has used the lien and ╜■ ŉś▓ method of collection for utility accounts for approximately 60 years with a 90 percent collection rate. She answered questions from Board members regarding the local legislation and other statutes regarding liens for water and sewer charges. She explained the potential for claims against the Authority. Mr. Zapple expressed concern about the possibility of foreclosure. Ms. Miles explained that the foreclosure language was in the legislation and must be included in the ordinance. Any foreclosure action would be brought to the Board for prior approval. Staff does not anticipate foreclosing on properties, but liens would be paid when a property sold or the owner refinanced. After discussion, Mr. Brown moved to approve the sewer lien ordinance. Mr. Brumit seconded the motion, and it passed unanimously. Staff will update the Board on progress with collections under the new ordinance and procedure. RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: James Brumit, Secretary AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, White, Zapple XIV. ADJOURNMENT Mr. Norris moved to adjourn. Mr. Rivenbark seconded the motion, and it passed unanimously. The Authority adjourned at 10:40 AM. The next regular meeting of the Cape Fear Public Utility Authority will be Wednesday, July 8, 2015. The Authority will meet in the Lucie Harrell Conference Room, 230 Government Center Drive, Wilmington, North Carolina, and will convene at 9:00 AM. Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 10