Loading...
HomeMy WebLinkAboutApril 13 2016 Meeting MinutesMINUTES APRIL 13, 2016 Lucie Harrell Conference Room Regular Meeting 9:00 AM 230 GOVERNMENT CENTER DRIVE Ns U a lw�N tu WILMINGTON, NC 28403 fwanim dneurnf. Attendee Name Organization Title Status Arrived Patricia Kusek Cape Fear Public Utility Chair Present Authority James Brumit Cape, Fear Public Utility Vice-Chair Present Authority Mike Brown Cape Fear Public Utility Secretary Present Authority Larry Sneeden Cape Fear Public Utility Treasurer Present Authority Jim Quinn Cape Fear Public Utility Present Authority Cindee Wolf Cape Fear Public Utility Present Authority Charlie Rivenbark Cape Fear Public Utility Present Authority William Norris Cape Fear Public Utility Present Authority Kevin O'Grady 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 Frank Styers Cape Fear Public Utility Chief Operations officer Present Authority Cared Vandermeyden Cape Fear Public Utility Director of Engineering Present Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Melinda Hoggard Cape Fear Public Utility Interim 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 I Minutes Authority Board April 13, 2016 Leslie Ogilvie Cape Fear Public Utility Assistant to the Executive Present Authority Director John Payne Cape Fear Public Utility Budget/Finance 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 Tymekia Askew Cape Fear Public Utility Finance Department Present Authority Sherri Alexander Cape Fear Public Utility Finance Department Present Authority Teresa Horsboll Cape Fear Public Utility Buyer Present Authority Ramona Burns Cape Fear Public Utility Accounting Manager Present Authority Karen Durso Cape Fear Public Utility Property Acquisition Specialist Present Authority Viktoriya Cape Fear Public Utility IT Help Desk Technician Present Rumyantseva Authority Donna Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board Linda Miles Miles Firm, PLLC Consulting Attorney Present Tom Wolfe Present Richard King Wilmington, City of Assistant City Manager Present Jim lannuccl New Hanover County Engineering Department Present Heidi Cox North Carolina, State of Division of Water Resources Present Nick Fountain Young Moore & Henderson, Present PA Joey Mitchell Xtra Light Manufacturing Vice-President Present Ted Cole Davenport & Company Present Ill. ADOPTION OF AGENDA Mr. Flechtner requested that Item 4 from the Consent Agenda be removed from Consent for discussion. He recommended that the following items be removed from the Consent Agenda: Items 8, 9, 10, 11, 12, 13, 14, 15, 16, 18, 20, 22, 24, 26, 28, 29, 30, 31, 32, 33, 34, 35, 36, and 37. Mr. Rivenbark moved to adopt the agenda with Item 4 removed from Consent for discussion and the other recommended items removed the agenda completely, Mr. O'Grady seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Mar 9, 2016 9:00 AM Cope Fear Public Utility Authority Page 2 Mi:nutes Authority Board April 13, 2016 RESULT: ACCEPTED [UNANIMOUS] MOVER: Mike Brown, Secretary SECONDER: William Norris AYES: Kusek, Brumit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, White, Zapple V. PUBLIC COMMENTS -4 MINUTE LIMIT PER SPEAKER Mir. Nick Fountain and Mr. Joey Mitchell spoke regarding the bids for the Comprehensive Meter Replacement Phase 2 Project, Item 6 on the Consent Agenda. A. Closed Session Mr. White moved to enter closed session to discuss the bid issue raised by Messrs. Fountain and Mitchell and receive advice from legal counsel and to discuss a personnel matter. Mr. O'Grady seconded the motion, and it passed unanimously. Following discussion of two matters in closed session, Mr. Rivenbark moved to return to open session. Mr. Brown seconded the motion, and it passed unanimously. The Board returned to open session, took a brief recess, and reconvened at 10:00 AM. Mr. Rivenbark moved to recommend that Item 6 on the Consent Agenda be continued for staff to gather more information for Board consideration, Mr. Brumit seconded the motion, and it passed unanimously. VI. SPEAKER UPDATE FROM THE MARCH 9, 2016 BOARD MEETING Mr. Flechtner reported that staff had met with representatives of cell phone companies regarding the improvements needed to the Northchase water tower and that no further information has been received from the companies. Staff will move forward with the repairs that are needed prior to the start of hurricane season in June. The second speaker in March discussed a leak adjustment. Staff had' reviewed the account and determined that the adjustment was correct. VII. PRESENTATION 1. Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting for the Fiscal Year Ended June 30, 2015 Mr. Sneeden presented the Governmental Finance Officers Association Award for Excellence for the FY2015 Comprehensive Annual Finance Report and recognized Ms. McLawhon, Ms. Hoggard, Ms. Vosnock, Ms. Askew, Ms, Alexander, and Ms. Burns of the Finance Department, RESULT: REVIEWED VIII. CONSENT AGENDA Cape Fear Public Utility Authority Page 3 Minutes, Authority Board April 13, 2016 ..................................... Mr. Brown moved to approve the Consent Agenda, Items 1 -3, 5, 7, 17, 19, 21, 23, 25, and 27, Mr. Rivenbark seconded the motion, and it passed unanimously. 1. Approval of Budget Ordinance #16-019 for Sale of Capital Assets RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Secretary SECONDER: Charlie Rivenbark AYES: Kusek, Brurnit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, White, Zapple 2. Budget Amendment #16-020 Ordinance - Recognizing Revenue from Damage Claims Reimbursement, Making Supplemental Revenues and Appropriations to the Operating Fund for the Fiscal Year Ending June 30, 2016 RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Secretary SECONDER; Charlie Rivenbark AYES-. Kusek, Brurnit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, White, Zapple 3. Audit Services Contract RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Secretary SECONDER: Charlie Rivenbark AYES: Kusek, Brurnit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, White, Zapple 4. Emergency Construction Contract Mr. Styers presented the item and requested approval in the amount of $550,000. Mr. Norris moved to approve the contract as recommended by staff. Mr. Sneeden seconded the motion, and it passed unanimously, RESULT: APPROVED [UNANIMOUS] MOVER: William Norris SECONDER: Larry Sneeden, Treasurer AYES: Kusek, Brurnit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, White, Zapple 5. NCDOT Land Purchase at 633 Groundwater Way Cape Fear Public Utility Authority Page 4 Minutes Authority Board April 13, 2016 RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Secretary SECONDER: Charlie Rivenbark AXES: Kusek, Brumit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, White, Zapple 6, Deject All Bids Received for the Comprehensive Meter Replacement Phase 2 Project, Mr. Rivenbark moved to recommend that Item 6 on the Consent Agenda be continued for staff to gather more information for Board consideration. Mr. Brumit seconded the motion, and it ,passed unanimously. RESULT: TABLED [UNANIMOUS] Next: 5/4 /2016 B :OO AM .. MOVER: Charlie Rivenbark SECONDER: Janes Brumit, Vice -Chair AXES: Kusek, Brumit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, White, Zapple 7. Authorization for the Executive Director to Execute a $418,275 Construction Contract with Integrity Builders, LLC For the Sweeney Meter Services Building RESULT. APPROVED [UNANIMOUS] MOVER: Mike Brown, Secretary SECONDER: Charlie Rivenbark AXES: Kusek, Brumit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, White, Zapple 8. Resolution Authorizing Grant Application for Kings Bluff Pump Station Pump Replacement under the Connect NC Bond Act of 2015 RESULT: WITHDRAWN 9. Resolution Authorizing Loan Application for Kings Bluff Pump Station Pump Replacement under the Connect NC Bond Act of 2015 RESULT: WITHDRAWN 10. Resolution Authorizing Grant Application for Interconnect Monterey Heights Water System to Surface Water Project under the Connect NC Bond Act of 2015 RESULT: WITHDRAWN 11. Resolution Authorizing Loan Application for Interconnect Monterey Heights Water System to Surface Water Project under the Connect NC Bond Act of 2015 .. Cape Fear Public Utitity Authority Page Minutes Authority Board April 13, 2016 RESULT: WITHDRAWN 12. Resolution Authorizing Grant Application for Oakdale Connector Water Line Project under the Connect NC Bond Act of 2015 RESULT, WITHDRAWN 13, Resolution Authorizing Loan Application for Oakdale Connector Water Line Project under the Connect NC Bond Act of 2015 RESULT- WITHDRAWN 14. Resolution Authorizing Grant Application for Middle Sound Loop Water Main Extension Project under the Connect NC Bond Act of 2015 RESULT- WITHDRAWN 15. Resolution Authorizing Loan Application for Middle Sound Loop Water Main Extension Project under the Connect NC Bond Act of 2015 RESULT: WITHDRAWN 16. Resolution Authorizing Grant Application for Southside Wastewater Treatment Plant Interim Rehabilitation Project under the Connect NC Bond Act of 2015 RESULT: WITHDRAWN 17. Resolution Authorizing Loan Application for Southside Wastewater Treatment Plant Interim Rehabilitation Project under the Connect NC Bond Act of 2015 RESULT. APPROVED [UNANIMOUS) MOVER: Mike Brown, Secretary SECONDER: Charlie Rivenbark AYES: Kusek, Brurnit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, White, Zapple 18. Resolution Authorizing Grant Application for Greenfield Lake Outfall Phase 3 Sewer Rehab/Replace Project under the Connect NC Bond Act of 2015 RESULT: WITHDRAWN 19. Resolution Authorizing Loan Application for Greenfield Lake Outfall Phase 3 Sewer Rehab/Replace Project under the Connect NC Bond Act of 2015 Cape "fe ar P:ublic Utility Authority loge 6 Minutes Authority Board April 13, 2016 RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Secretary SECONDER: Charlie Rivenbark AYES: Kusek, Brurnit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, White, Zapple 20. Resolution Authorizing Grant Application for Pump Station 10 Force Main Rehab/Replacement Project under the Connect NC Bond Act of 2015 RESULT- WITHDRAWN 21. Resolution Authorizing Loan Application for Pump Station 10 Force Main Rehab/Replacement Project under the Connect NC Bond Act of 2015 RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Secretary SECONDER- Charlie Rivenbark AYES: Kusek, Brurnit, Brown, Sneeden, Quinn, Wolf Rivenbark, Norris, O'Grady, White, Zapple 22. Resolution Authorizing Grant Application for Pump Station 12 Force Main Rehab/Replacement Project under the Connect NC Bond Act of 2015 RESULT: WITHDRAWN 23. Resolution Authorizing Loan Application for Pump Station 12 Force Main Rehab/Replacement Project under the Connect NC Bond Act of 2015 RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Secretary SECONDER: Charlie Rivenbark AYES: Kusek, Brumit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, White, Zapple 24. Resolution Authorizing Grant Applications for ARV Replacement Project under the Connect NC Bond Act of 2015 RESULT, WITHDRAWN 25. Resolution Authorizing Loan Application for ARV Replacement Project under the Connect NC Bond Act of 2015 Cape Fear Public Utility Authority Page 7 Minutes Authority Board April 13, 2016 RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Secretary SECONDER: Charlie Rivenbark AYES: Kusek, Brurnit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, White, Zapple 26. Resolution Authorizing Grant Application for PS137 - Quail Woods Replacement Project under the Connect NC Bond Act of 2015 RESULT: WITHDRAWN 27. Resolution Authorizing Loan Application for PS137 - Quail Woods Replacement Project under the Connect NC Bond Act of 2015 RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Secretary SECONDER: Charlie Rivenbark AYES: Kusek, Brurnit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, White, Zapple 28. Resolution Authorizing Grant Application for PS22 - Tangle Oaks 3 Replacement Project under the Connect NC Bond Act of 2015 RESULT- WITHDRAWN 29. Resolution Authorizing Loan Application for PS22 - Tangle Oaks 3 Replacement Project under the Connect NC Bond Act of 2015 RESULT. WITHDRAWN 30. Resolution Authorizing Grant Application for Red Cross Street Waterline Replacement Project under the Connect NC Bond Act of 2015 RESULT: WITHDRAWN 31. Resolution Authorizing Loan Application for Red Cross Street Waterline Replacement Project under the Connect NC Bond Act of 2015 RESULT: WITHDRAWN 32. Resolution Authorizing Grant Application for Red Cross Street Sewer Replacement Project under the Connect NC Bond Act of 2015 Cope fear Public Utility Authority Page 8 41inutes Authority Board Apri�t 13, 2016 RESULT: WITHDRAWN 33. Resolution Authorizing Loan Application for Red Cross Street Sewer Replacement Project under the Connect NC Bond Act of 2015 RESULT: WITHDRAWN 34. Resolution Authorizing Grant Application for Riverfront Historic District Sewer Replacement Project under the Connect NC Bond Act of 2015 RESULT: WITHDRAWN 35, Resolution Authorizing Loan Application for Riverfront Historic District Sewer Replacement Project under the Connect NC Bond Act of 2015 RESULT: WITHDRAWN 36. Resolution Authorizing Grant Application for Riverfront Historic District Waterline Replacement Project under the Connect NC Bond Act of 2015 RESULT: WITHDRAWN 37. Resolution Authorizing Loan Application for Riverfront Historic District Waterline Replacement Project under the Connect NC Bond Act of 2.015 RESULT: WITHDRAWN IX. NEW BUSINESS A. Administrative Reports L Attorney's Report Ms. Miles had no report, !I. Executive Director's Report Mr. Flechtner referred the Board to the Environmental and Safety reports in the agenda. Staff was available to answer questions. Mr. Flechtner reported that the passage of the ConnectNC bond referendum offered a tremendous opportunity to apply for project funding through grants and loans, which would have a lower interest that revenue bonds. Two projects associated with the Authority's EPA Consent Decree were eligible for reimbursement under ConnectNC and were agenda items in the Finance Committee Report. The projects are complete and in operation, and staff and legal counsel anticipate release from the Consent Decree in the near future. Cape Fear Public Utility. thority Page 9 Minutes Authority Board April 13, 2016 1. Environmental Report 2. Safety Performance Report B. Committee Reports L Executive Committee 1. April 6, 2016 Executive Committee Minutes The committee minutes were in the agenda packet, RESULT. REVIEWED ii. Long Range Planning Committee 1. Long Range Planning Committee - Regular - Mar 24, 2016 3:00 PM The committee minutes were in the agenda packet. RESULT: NO ACTION REQUIRED M. Finance Committee 1. Finance Committee -Regular Meeting -Apr 6, 2016 9:00 AM RESULT: NO ACTION REQUIRED 2. April Finance Report and Customer Service Update Ms. Hoggard presented the March financial data. Water consumption is 2.2 percent higher than the same period last year, and 2.07 percent higher than calendar year 2014. 3. Refunding Bonds - Adoption of Bond Order Mr. Cole updated the Board on the revenue bond sale and answered Board member questions. He anticipated that the Authority would retain its high AA bond rating. Bond counsel and the bond underwriters had reviewed IRS regulations and determined that it would be best not to maintain the debt reserve fund, which was established in 2008 when the Authority sold its first revenue bonds. The monies in the debt reserve fund can be used to decrease the amount of the 2016 bond sale. Mr. Norris moved to approve the item, as follows: Bond Order authorizing the issuance of not to exceed $210,000,000 water and sewer system refunding revenue bonds of the Cape Fear Public Utility Authority, Cape Fear Public Utility Authority Poge 10 Minutes Authority Board April 13, 2016 Mr, O'Grady seconded the motion, and it passed unanimously, RESULT-. APPROVED [UNANIMOUS] MOVER. Mike Brown, William Norris SECONDER: Kevin O'Grady AYES: Kusek, Brumit, Brown, Sneeden, Quinn, Woif, Rivenbark, Norris, O'Grady, White, Zapple oil Mr. Brown moved to approve the bond refunding through the following resolution: Resolution of the Cape Fear Public Utility Authority approving the application to the Local Government Commission for approval of water and sewer system refunding revenue bonds, requesting Local Government Commission approval of the Authority's water and sewer system refunding revenue bonds, Series 2016, and certain related matters. Mr. Norris seconded the motion, and it passed unanimously RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Secretary SECONDER: William Norris AYES: Kusek, Brumit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, White, Zapple 5. Refunding Certificates of Participation- Interlocal Agreement with City of Wilmington Mr. Rivenbark moved to approve the item, as follows: Resolution approving an Interlocal Agreement with the City of Wilmington, North Carolina, relating to the refunding by the Cape Fear Public Utility Authority of the outstanding refunding Certificates of Participation, Series 2006A, initially issued on behalf of the City of Wilmington, North Carolina. Mr. O'Grady seconded the motion, and it pass unanimously. RESULT: APPROVED [UNANIMOUS] MOVER, Charlie Rivenbark SECONDER: Kevin O'Grady AYES- Kusek, Brumit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, White, Zapple 6. Resolution Authorizing Grant Application for the NEI Consent Decree Projects under the Connect NC Bond Act of 2015 Cape Fear Public Utility Authority page I I Minutes Authority Board April 13, 2016 Mr. Vandermeyden presented the item and answered clarification questions RESULT: APPROVED [UNANIMOUS] MOVER: William Norris SECONDER: Mike Brown, Secretary AYES: Kusek, Brurnit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, White, Zapple 7. Resolution Authorizing Loan Application for the NEI Consent Decree Projects under the Connect NC Bond Act of 2015 RESULT: APPROVED [UNANIMOUS]! MOVER: William Norris SECONDER. Mike Brown, Secretary AYES; Kusek, Brumit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, White, Zapple 8. FY17 Preliminary Budget Review Mr. Flechtner presented an overview of expenditures for the recommended FY2017 Budget. No increase to water and sewer rates is anticipated in the budget. The budget was prepared with operating expenses to be no more than five percent greater than the actual expenditures of FY2015, and no more than two percent over the FY2016 approved budget. The expenditure analysis did not include salaries, benefits, debt service, and transfers to the Capital Improvement budget. The recommended expenditures are just under $40 million, Debt service is budgeted at $27.2 million. Savings from the upcoming bond re-funding will be recognized in the final budget presented for adoption. New Hanover County's contribution to debt service is $320,000 for FY2017 and will end in FY2018. The budget includes a contingency fund of $800,000, which requires Board approval before use. Mr. Flechtner reported that the Authority's operating expenses have not increased greatly since the assumption of operations in 2008, although the level of service provided has increased. Authority expenses have remained less than the combined total of the City and County systems prior to consolidation. The preliminary budget includes a two-year phase-in of the recent class and compensation study and a 1.75 percent merit pool for employees. Mr. Morgan provided data showing the Authority's savings in going from self-insurance to the State Health Plan. Ms. Hoggard summarized the Capital Improvement budget. Since the board approved the CIP in February, staff recognized the need for a new vactor truck to the CIP. The total CIP budget is $21,940,000. Cape Fear Public Utility Authority Page 12 Minutes Authority Board April 13, 2016 The public hearing for the final FY2017 Budget will be held during the June 8 Authority meeting, Following clarification questions, the Board requested a budget workshop in May. Mr. Rivenbark moved to excuse Mr. Zapple, who needed to leave the meeting. Ms. Wolf seconded the motion, and it passed unanimously. RESULT: REVIEWED iv. Human Resources Committee 1. April 5, 2016 Human Resources Committee Minutes The committee minutes were in the agenda packet. Mr. Brumit reported that all other HR items had been discussed in closed session, RESULT: REVIEWED v. Communications Committee 1. Communications Committee Minutes of March 9, 2016 The committee minutes were in the agenda packet, RESULT: REVIEWED X. OLD BUSINESS There was no old business, XI. AUTHORITY Q&A / CLOSING COMMENTS Mr. Rivenbark expressed concern about the possibility of lead in private water systems not connected to the Authority, X111. CLOSED SESSION The closed session was held earlier in the meeting. X111. ADJOURNMENT Mr. Rivenbark moved to adjourn. Mr. Norris seconded the motion, and the Authority unanimously adjourned at 11:02 AM. The next regular meeting of the Cape Fear Public Utility Authority will be Wednesday, May 11, 2016. The Authority will convene at 9:00 AM in the Lucie Harrell Conference Room, New Hanover County Administration Building, 230 Government Center Drive, Wilmington, North Carolina, Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Po ge 13