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Home My WebLink AboutJune 8 2016 Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES JUNE 8, 2016 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 Mr. Norris moved to excuse Mr. White. Mr. Sneeden seconded the motion, and it passed unanimously. 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 Cape Fear Public Utility Present Rivenbark Authority William Norris Cape Fear Public Utility Present Authority Kevin O'Grady Cape Fear Public Utility Present 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 Frank Styers Cape Fear Public Utility Chief Operations Officer Present Authority John McLean Cape Fear Public Utility Chief Financial Officer Present Authority Kristine Irick Cape Fear Public Utility Customer Service Director 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 1 Minutes Authority Board June 8, 2016 Mike McGill Cape Fear Public Utility Chief Communications Officer Present Authority Melinda Cape Fear Public Utility Interim Chief Financial Officer Present Hoggard Authority John Payne Cape Fear Public Utility Budget/Finance Manager Present Authority Leslie Ogilvie Cape Fear Public Utility Assistant to the Executive Director Present Authority Donna Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board Julie McLawhon Cape Fear Public Utility Present Authority Linda Miles Miles Firm, PLLC CFPUA Consulting Attorney Present Tony Boahn McKim & Creed Present Jim Iannucci New Hanover County Present Richard King City of Wilmington Present III. ADOPTION OF AGENDA Mr. Rivenbark moved to adopt the day's Agenda. Ms. Wolf seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. FY 17 Budget Workshop Minutes Mr. Brown moved to approve the minutes of the May 17 Budget Workshop. Mr. O'Grady seconded the motion, and it passed unanimously. Ms. Kusek commented that she hoped all Board members had reviewed the budget materials and that those who were unable to attend the workshop had asked questions of Mr. Flechtner regarding the budget. RESULT: REVIEWED 2. Authority Board - Regular Meeting - May 11, 2016 9:00 AM RESULT: ACCEPTED \[UNANIMOUS\] MOVER: Mike Brown, Secretary SECONDER: William Norris, Treasurer AYES: Kusek, Brumit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, Zapple EXCUSED: White V. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER There were no speakers. VI. SPEAKER UPDATE FROM THE MAY 11, 2016 BOARD MEETING Mr. Flechtner updated the Board on the May speaker's comments. VII. PRESENTATION OF FY 17 BUDGET Cape Fear Public Utility Authority Page 2 Minutes Authority Board June 8, 2016 Mr. McLean presented the recommended budget for the Fiscal Year beginning July 1, 2016. The Capital Improvement Project budget was approved by the Board in February, expenditures were reviewed in April, and revenues reviewed at the May Board meeting. The Board held a workshop on May 17. The recommended budget included the following: Water and sewer base rates and usage fees will not increase, and the System Development Charges (SDCs) will decrease. There were no questions from Authority members regarding the budget. VIII. PUBLIC HEARING ON THE FY 17 BUDGET Ms. Kusek opened the Public Hearing on the Budget. There were no speakers. Mr. Quinn moved to close the Public Hearing. Mr. Brown seconded the motion, and the hearing closed unanimously. 1. FY17 Recommended Budget Submitted for Adoption Mr. Sneeden moved to adopt the Budget for the Fiscal Year beginning July 1, 2016. Mr. Norris seconded the motion, and it passed unanimously. RESULT: ADOPTED \[UNANIMOUS\] MOVER: Larry Sneeden, Treasurer SECONDER: William Norris, Treasurer AYES: Kusek, Brumit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, Zapple EXCUSED: White IX. CONSENT AGENDA 1. Approval of Budget Ordinance #16-024 for Sale of Capital Assets RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Charlie Rivenbark AYES: Kusek, Brumit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, Zapple EXCUSED: White 2. Approval of Budget Ordinance #16-023 for Supplemental Revenues & Appropriations of Retiree Expenditures Cape Fear Public Utility Authority Page 3 Minutes Authority Board June 8, 2016 RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Charlie Rivenbark AYES: Kusek, Brumit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, Zapple EXCUSED: White 3. Budget Amendment #16-022 Ordinance Making Supplemental Revenues and Appropriations to the Operating Fund for the Fiscal Year Ending June 30, 2016 RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Charlie Rivenbark AYES: Kusek, Brumit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, Zapple EXCUSED: White 4. Approval of Budget Ordinance and Amendment #16-021 Recognizing Additional System Development Charges RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Charlie Rivenbark AYES: Kusek, Brumit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, Zapple EXCUSED: White 5. Third Party Collection Services RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Charlie Rivenbark AYES: Kusek, Brumit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, Zapple EXCUSED: White 6. U.S. Highway 421 Utilities Design, Permitting and Property Acquisitions Interlocal Agreement (ILA) and Budget Ordinance Mr. Brown asked to be recused because of a project his company is developing in the area. Mr. Sneeden moved to recuse Mr. Brown. Mr. O'Grady seconded the motion, and it passed unanimously. Mr. Zapple requested clarification of language on the agenda item. Mr. Zapple moved to approve the item and the related budget ordinance, and Mr. Rivenbark seconded the motion. The motion passed unanimously, with Mr. Brown recused. Cape Fear Public Utility Authority Page 4 Minutes Authority Board June 8, 2016 RESULT: REVIEWED 7. Riverside Developer Agreement Termination RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Charlie Rivenbark AYES: Kusek, Brumit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, Zapple EXCUSED: White 8. Authorization for the Executive Director to Execute a $110,778 Cost Sharing Agreement with Bill Clark Homes of Wilmington, LLC for Participation with Waterline Improvements Related to the Channel Watch Development. Mr. Vandermeyden answered clarification questions regarding CFPUA's share of the project costs. RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Charlie Rivenbark AYES: Kusek, Brumit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, Zapple EXCUSED: White 9. Authorization for the Executive Director to Execute a $33,600 Cost Sharing Agreement with Lipscomb Road Development, LLC for Participation with Sewer Pump Station Improvements Related to the Tralee Place Development. RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Charlie Rivenbark AYES: Kusek, Brumit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, Zapple EXCUSED: White 10. Mandatory Connection Revision Mr. Brumit requested clarification of the item. Mr. Vandermeyden reported that an ordinance revision in 2015 allowed 120 days for large private systems to connect to CFPUA lines in addition to the 180-day specified in the ordinance for other customers. The ordinance revision in the agenda item would eliminate the additional 120 days if a health hazard existed in the private system. Mr. Rivenbark moved to approve the mandatory connection ordinance revision. Mr. Zapple seconded the motion, and it passed unanimously. Cape Fear Public Utility Authority Page 5 Minutes Authority Board June 8, 2016 RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Charlie Rivenbark AYES: Kusek, Brumit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, Zapple EXCUSED: White X. NEW BUSINESS There was no new business. Ms. Kusek called for a vote on the FY2017 Budget. Mr. Sneeden moved to adopt the Budget as recommended by staff and the Finance Committee. Mr. Norris seconded the motion, and it passed unanimously. A. Administrative Reports i. Attorney's Report Ms. Miles had no report. ii. Executive Director's Report 1. Environmental Report The environmental report was in the Agenda packet, and there were no questions. RESULT: REVIEWED 2. Safety Performance Report Mr. Morgan explained the OSHA reportable accidents on the report and the Days Away/Restricted Duty (DART) information. Several employees were injured in a vehicular accident caused by another driver. Three employees were injured on the job in May. Mr. Morgan invited Board members to the SHARP awards to be presented to the Authority by Cherie Berry, the Commissioner of Labor. The recognition ceremony will be held on June 13 at 3:00 PM at the Environmental Services facility located at 628 Groundwater Way. RESULT: REVIEWED B. Committee Reports i. Executive Committee 1. Executive Committee Minutes of June 1, 2016 Cape Fear Public Utility Authority Page 6 Minutes Authority Board June 8, 2016 RESULT: REVIEWED ii. Long Range Planning Committee 1. Long Range Planning Committee - Regular - May 26, 2016 3:00 PM RESULT: NO ACTION REQUIRED iii. Finance Committee 1. Finance Committee - Regular Meeting - Jun 1, 2016 9:00 AM RESULT: NO ACTION REQUIRED 2. June Finance Report and Customer Service Update Mr. McLean presented financial data through the end of May. The operating revenues were at 99.68 percent of budget. Water and wastewater revenues at 98.59 percent, and System Development Charges at 159 percent. Operating expenses were under budget, and consumption trends favorable. Messrs. McLean and Flechtner answered questions from Board members on the data. Mr. O'Grady requested that staff and the Board review the financial models going forward so that customers may see a reflection of CFPUA's savings and good financial performance in rates. Ms.Kusek commented that the budget and financial models have a lot of components and that she anticipated Board discussion on the factors affecting the budget and bond ratings in FY2017. RESULT: NO ACTION REQUIRED 3. System Development Charges for Certain Mandatory Connections Areas Mr. Flechtner presented the item. The Board approved a reduction in SDCs for FY2017. Staff and Ms. Miles had reviewed the circumstances for mandatory connection areas in the current fiscal year and determined that a special class could be created. Mr. Flechtner recommended a revision to System Development Charges for homeowners in mandatory connection areas when the 180-day connection period extended past July 1, 2016. Those customers who have already paid will receive a rebate to make their payment equal to the FY2017 SDC, and customers who have financed the SDC will have the difference applied to their outstanding loan principal. After clarification questions, Ms. Wolf moved to approve the SDC revision. Mr. Brown seconded the motion, and it passed unanimously. The Board thanked staff for finding an equitable resolution and attention to customer concerns. Cape Fear Public Utility Authority Page 7 Minutes Authority Board June 8, 2016 RESULT: APPROVED \[UNANIMOUS\] MOVER: Cindee Wolf SECONDER: Mike Brown, Secretary AYES: Kusek, Brumit, Brown, Sneeden, Quinn, Wolf, Rivenbark, Norris, O'Grady, Zapple EXCUSED: White XI. OLD BUSINESS Mr. Brumit moved to increase the Executive Director's salary by 4 percent. Ms. Wolf seconded the motion, and it passed unanimously. XII. AUTHORITY Q&A / CLOSING COMMENTS There were no further questions or comments from Board members. XIII. ADJOURNMENT Mr. Rivenbark moved to adjourn. Mr. Brumit seconded the motion, and the Authority unanimously adjourned at 9:35 AM. The next regular Authority meeting will be Wednesday, July 13, 2016. The meeting will begin at 9:00 AM and will be held in the Lucie Harrell Conference Room, 230 Government Center Drive, Wilmington, North Carolina. Officers for FY2017 will be nominated and elected at the July meeting. Respectfully submitted, Donna S. Pope Cape Fear Public Utility Authority Page 8