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HomeMy WebLinkAboutJuly 13 2016 Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES JULY 13, 2016 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, with all members in attendance. II. DETERMINATION OF A QUORUM A quorum was present. Attendee Name Organization Title Status Arrived Mike Brown Cape Fear Public Utility Chair Present Authority Patricia Kusek Cape Fear Public Utility Vice-Chair Present Authority Larry Sneeden Cape Fear Public Utility Secretary Present Authority William Norris Cape Fear Public Utility Treasurer Present Authority Cindee Wolf Cape Fear Public Utility Present Authority Jennifer Adams Cape Fear Public Utility Present Authority Chuck Davis Cape Fear Public Utility Present Authority Charlie Rivenbark 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 Quinn Outgoing Board Member Present Jim Brumit Outgoing Board Member Present Jim Flechtner Cape Fear Public Utility Executive Director Present Authority Frank Styers Cape Fear Public Utility Chief Operations Officer Present Authority Carel Cape Fear Public Utility Director of Engineering Present Vandermeyden Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Tom Morgan Cape Fear Public Utility HR Director Present Authority Cape Fear Public Utility Authority Page 1 Minutes Authority Board July 13, 2016 John McLean Cape Fear Public Utility Chief Financial Officer Present Authority Leslie Ogilvie Cape Fear Public Utility Assistant to the Executive Present Authority Director Mike McGill Cape Fear Public Utility Chief Communications Officer Present Authority Karen Durso Cape Fear Public Utility Property Acquisition Specialist Present Authority Elizabeth Severt Cape Fear Public Utility EMD Lead Auditor Present Authority Jill Deaney Lab Manager Present Matthew Tribett Cape Fear Public Utility Project Manager Present Authority Donna Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board Linda Miles Miles Firm, PLLC CFPUA Consulting Attorney Present Heidi Cox State of North Carolina Present Richard King City of Wilmington Present III. ADOPTION OF AGENDA Mr. Rivenbark moved to adopt the day's agenda. Mr. Norris seconded the motion, and it passed unanimously. IV. RECOGNITION RESOLUTIONS 1. Resolution Recognizing James G. Brumit Ms. Kusek presented Mr. Brumit with a resolution thanking him for his service as an Authority member since 2016. Mr. Brumit held the offices of Secretary and Vice-Chair, served on the Finance and Executive Committees, and served as Chair of the Human Resources Committee. Mr. Brumit expressed his pleasure in working with other Board members and staff and stated that he firmly believed that the creation of CFPUA was a good decision and in the best interest of the community. 2. Resolution Recognizing James L. Quinn, III Ms. Kusek presented Mr. Quinn with a resolution thanking him for his service as an original Authority member, stating that his corporate knowledge had been essential to the Board. Mr. Quinn served as Chairman and on several Board committees. Ms. Kusek thanked him for suggesting that she apply for an Authority appointment in 2011. Mr. Quinn thanked CFPUA staff and fellow Board members, stating that he regretted Mr. Brumit's departure from the Board. Mr. Quinn left a parting written statement to be shared with the Board. V. OATH OF OFFICE Ms. Ogilvie administered the oath of office as Authority members to Ms. Adams and Rev. Davis. Ms. Kusek welcomed them to the Board, and they joined the meeting. VI. ELECTION OF OFFICERS Cape Fear Public Utility Authority Page 2 Minutes Authority Board July 13, 2016 Mr. Rivenbark moved to elect the following officers for Fiscal Year 2017, as recommended by the Nominating Committee: Mike Brown, Chair Pat Kusek, Vice-Chair Bill Norris, Treasurer Larry Sneeden, Secretary Mr. White seconded the motion, and the officers were unanimously elected. Mr. Brown moved into the Chair's seat and led the remainder of the meeting. VII. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Jun 8, 2016 9:00 AM RESULT: ACCEPTED AS AMENDED \[UNANIMOUS\] MOVER: Cindee Wolf SECONDER: Charlie Rivenbark AYES: Brown, Kusek, Sneeden, Norris, Wolf, Adams, Davis, Rivenbark, O'Grady, White, Zapple VIII. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER There were no public speakers. Mr. Flechtner had no update from the June meeting because there were no speakers in June. IX. CONSENT AGENDA Mr. Zapple requested that Items 2, 3, 4, and 5 be removed from the Consent Agenda for clarification. 1. Authorization to Create a Capital Improvement Project to Upgrade Sewer Pump Station 130 - Tidalholm. RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden, Secretary SECONDER: Charlie Rivenbark AYES: Brown, Kusek, Sneeden, Norris, Wolf, Adams, Davis, Rivenbark, O'Grady, White, Zapple 2. Recommended Ordinance Revision Corresponding to the Approved FY 16-17 Rates and Fee Schedule Messrs. Zapple and O'Grady questioned the practice of charging the locate meter and service cleanout fees, commenting that owners of older properties might have difficulty locating their service connections. Mr. Vandermeyden explained that the service was more frequently applied to new development where the connections had been covered during construction, grading, or paving. Staff makes two attempts to locate the meter or cleanout at no cost. After discussion, Mr. Zapple moved to approve the ordinance Cape Fear Public Utility Authority Page 3 Minutes Authority Board July 13, 2016 revision and associated fees with the deletion of the sewer cleanout locate fee of $55. Mr. Rivenbark seconded the motion, and it passed unanimously. RESULT: APPROVED AS AMENDED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Charlie Rivenbark AYES: Brown, Kusek, Sneeden, Norris, Wolf, Adams, Davis, Rivenbark, O'Grady, White, Zapple 3. Authorization for the Executive Director to Execute a $75,624 Cost Sharing Agreement with Rachels Place, LLC for Participation with Waterline Improvements Related to the Rachel's Place Development. Mr. Vandermeyden explained that the agreement will allow CFPUA to expand in accordance with master planning for the northern part of the county. RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek, Vice-Chair SECONDER: Rob Zapple AYES: Brown, Kusek, Sneeden, Norris, Wolf, Adams, Davis, Rivenbark, O'Grady, White, Zapple 4. Authorization for the Executive Director to Execute a $5,620,555.58 Construction Contract with Pedal Valves, Inc. for the Comprehensive Meter Replacement Phase 2 project. Mr. Vandermeyden answered clarification questions regarding the meter replacement program and the type of meters being used. RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Patricia Kusek, Vice-Chair AYES: Brown, Kusek, Sneeden, Norris, Wolf, Adams, Davis, Rivenbark, O'Grady, White, Zapple 5. Odor and Corrosion Control Program Contract FY17 Renewal Ms. Miles and Messrs. Flechtner and Styers answered clarification questions regarding the contract renewal and the Iran Divestment regulation. RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Patricia Kusek, Vice-Chair AYES: Brown, Kusek, Sneeden, Norris, Wolf, Adams, Davis, Rivenbark, O'Grady, White, Zapple X. NEW BUSINESS Cape Fear Public Utility Authority Page 4 Minutes Authority Board July 13, 2016 A. Administrative Reports i. Attorney's Report Ms. Miles had no report and did not require a closed session. ii. Executive Director's Report 1. Environmental Report The environmental report was in the agenda packet. There were no questions regarding the data provided. RESULT: REVIEWED 2. Safety Performance Report Mr. Morgan reported that Cherie Berry of the N.C. Department of Labor presented the Environmental Services Department and the Southside Wastewater Treatment Plant with the Safety and Health Achievement Recognition Program (SHARP) award on June 13. CFPUA is one of five public utilities which has received the award, with the Nano plant and Administration building previously receiving the award. Mr. Morgan thanked Messrs. Sneeden and Norris for attending the presentation. Mr. Brown congratulated CFPUA staff for the award. Mr. Morgan presented updated data showing CFPUA's accident rates when accidents beyond employee control are removed from the calculation. RESULT: REVIEWED B. Committee Reports i. Executive Committee 1. July 6, 2016 Executive Committee Minutes The Committee minutes were in the agenda packet. RESULT: REVIEWED ii. Nominating Committee 1. Minutes of the Nominating Committee June 22, 2016 Ms. Kusek reported that the Committee's recommendation had been voted upon with the officer election. The minutes were in the packet. Cape Fear Public Utility Authority Page 5 Minutes Authority Board July 13, 2016 RESULT: REVIEWED iii. Finance Committee 1. Finance Committee - Regular Meeting - Jul 6, 2016 9:00 AM The minutes of the July 6 Finance Committee meeting were in the packet. RESULT: NO ACTION REQUIRED 2. July Finance Report and Customer Service Update The June and preliminary FY2016 year-end data was in the agenda packet. Mr. McLean reported that SDC revenues were $6.1 million, and revenues over expenditures were $9 million. Surplus revenues will be transferred to capital projects, reducing the amount of debt required to fund projects. RESULT: NO ACTION REQUIRED 3. General Strategy to Improve Financial Condition Mr. McLean presented an overview of his report on strategies for optimizing CFPUA's financial condition. Maintaining system sustainability over the long term is an important consideration, as well as continued good ratings from Moody's and Standard & Poor's. The adoption of financial policies by the Board is recommended, including cash management, debt management, and capital budgeting. The financial strategy discussion will continue through the Finance Committee and as a topic for a future Board retreat. Mr. O'Grady requested that the SDC calculation be one of the items considered in the financial strategy discussion. RESULT: REVIEWED XI. OLD BUSINESS There was no old business. XII. AUTHORITY Q&A / CLOSING COMMENTS Mr. Brown welcomed Ms. Adams and Rev. Davis to the Authority. XIII. CLOSED SESSION There was no closed session. XIV. ADJOURNMENT Ms. Kusek moved to adjourn. Mr. Rivenbark seconded the motion, and it passed unanimously. The Authority meeting adjourned at 9:45 AM. The next regular Board meeting will be Cape Fear Public Utility Authority Page 6 Minutes Authority Board July 13, 2016 Wednesday, August 10, 2016. The Board 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 7