Loading...
HomeMy WebLinkAboutSeptember 14 2016 Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES SEPTEMBER 14, 2016 Lucie Harrell Conference Room Regular Meeting 9:00 AM 230 GOVERNMENT CENTER DRIVE WILMINGTON, NC 28403 I. CALL TO ORDER Mr. Brown called the meeting to order at 9:00 AM and declared a quorum present. II. DETERMINATION OF A QUORUM 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 Excused Authority Jennifer Adams Cape Fear Public Utility Present Authority Chuck Davis Cape Fear Public Utility Present Authority Charlie Rivenbark Cape Fear Public Utility Excused 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 John McLean Cape Fear Public Utility Chief Financial Officer Present Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Carel Director of Engineering Cape Fear Public Utility Present Vandermeyden Authority Tom Morgan Cape Fear Public Utility HR Director Present Authority Mike Richardson Cape Fear Public Utility Water Resources Manager Present Cape Fear Public Utility Authority Page 1 Minutes Authority Board September 14, 2016 Authority Mike McGill Cape Fear Public Utility Chief Communications Officer Present Authority Leslie Ogilvie Cape Fear Public Utility Assistant to the Executive Present Authority Director Julia Vosnock Cape Fear Public Utility Procurement Manager Present Authority Ken Vogt Cape Fear Public Utility WWT Superintendent Present Authority Matthew Tribett Cape Fear Public Utility Project Manager Present Authority Jill Deaney Cape Fear Public Utility Present Authority Donna Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board Linda Miles The Miles Firm, PLLC CFPUA Consulting Attorney Present Ava Richardson Present Heidi Cox NC Public Water Supply Present Jim Iannucci New Hanover County Present Dave Mayes City of Wilmington Present James Fredley Present III. ADOPTION OF AGENDA Ms. Kusek moved to approve the day's Agenda. Mr. O'Grady seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Aug 10, 2016 9:00 AM RESULT: ACCEPTED \[UNANIMOUS\] MOVER: Larry Sneeden, Secretary SECONDER: Patricia Kusek, Vice-Chair AYES: Brown, Kusek, Sneeden, Norris, Adams, Davis, O'Grady, White, Zapple EXCUSED: Wolf, Rivenbark V. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER Mr. Fredley spoke regarding mandatory connection in Heritage Park and legislation limiting mandatory connection for water. Mr. Fredley submitted his written notes to the Clerk. The Board discussed House Bill 44, which was adopted as Session Law in 2015, and Ms. Miles answered questions regarding legal opinions on the subject. VI. SPEAKER UPDATE FROM THE AUGUST 10 BOARD MEETING Mr. Flechtner reported that staff had met with Mr. Halecki, who spoke at the August Authority meeting. VII. CONSENT AGENDA Cape Fear Public Utility Authority Page 2 Minutes Authority Board September 14, 2016 Mr. Zapple requested clarification on Items 2, 5, 7, 10, 12, and 13. Mr. Sneeden asked that Item 9 be pulled from the Consent Agenda and because he would be requesting recusal from that vote. Mr. Brown requested the same for Item 12. Following clarification questions and a brief discussion, Mr. Norris moved to approve Items 1, 2, 3, 4, 5, 6, 7, 8, 10, 11, and 13. Ms. Kusek seconded the motion, and it passed unanimously. 1. Ordinance Revision Clarifying Private and Public Pump Station Permitting RESULT: APPROVED \[UNANIMOUS\] MOVER: William Norris, Treasurer SECONDER: Patricia Kusek, Vice-Chair AYES: Brown, Kusek, Sneeden, Norris, Adams, Davis, O'Grady, White, Zapple EXCUSED: Wolf, Rivenbark 2. Loan Policy Revision RESULT: APPROVED \[UNANIMOUS\] MOVER: William Norris, Treasurer SECONDER: Patricia Kusek, Vice-Chair AYES: Brown, Kusek, Sneeden, Norris, Adams, Davis, O'Grady, White, Zapple EXCUSED: Wolf, Rivenbark 3. Purchase of New JCB 100c Excavator RESULT: APPROVED \[UNANIMOUS\] MOVER: William Norris, Treasurer SECONDER: Patricia Kusek, Vice-Chair AYES: Brown, Kusek, Sneeden, Norris, Adams, Davis, O'Grady, White, Zapple EXCUSED: Wolf, Rivenbark 4. Chemical Sole Source Purchase Authorization RESULT: APPROVED \[UNANIMOUS\] MOVER: William Norris, Treasurer SECONDER: Patricia Kusek, Vice-Chair AYES: Brown, Kusek, Sneeden, Norris, Adams, Davis, O'Grady, White, Zapple EXCUSED: Wolf, Rivenbark 5. Emergency Construction Services Contract Renewal Cape Fear Public Utility Authority Page 3 Minutes Authority Board September 14, 2016 RESULT: APPROVED \[UNANIMOUS\] MOVER: William Norris, Treasurer SECONDER: Patricia Kusek, Vice-Chair AYES: Brown, Kusek, Sneeden, Norris, Adams, Davis, O'Grady, White, Zapple EXCUSED: Wolf, Rivenbark 6. Kings Bluff Raw Water Bar Screen RESULT: APPROVED \[UNANIMOUS\] MOVER: William Norris, Treasurer SECONDER: Patricia Kusek, Vice-Chair AYES: Brown, Kusek, Sneeden, Norris, Adams, Davis, O'Grady, White, Zapple EXCUSED: Wolf, Rivenbark 7. Authorization for the Executive Director to Execute a $30,600 Contract Amendment with McKim & Creed for the Force Main 12 Project RESULT: APPROVED \[UNANIMOUS\] MOVER: William Norris, Treasurer SECONDER: Patricia Kusek, Vice-Chair AYES: Brown, Kusek, Sneeden, Norris, Adams, Davis, O'Grady, White, Zapple EXCUSED: Wolf, Rivenbark 8. Authorization for the Executive Director to Execute a $31,400 Contract Amendment with HDR for the Pump Station 10 Force Main Project. RESULT: APPROVED \[UNANIMOUS\] MOVER: William Norris, Treasurer SECONDER: Patricia Kusek, Vice-Chair AYES: Brown, Kusek, Sneeden, Norris, Adams, Davis, O'Grady, White, Zapple EXCUSED: Wolf, Rivenbark 9. Authorization for Design-Build Procurement - Southside Wastewater Treatment Plant Interim Rehabilitation Project. Mr. Norris moved to recuse Mr. Sneeden due to a conflict of interest for his company. Ms. Adams seconded the motion, and it passed unanimously. Mr. Zapple moved to adopt the item. Mr. Norris seconded the motion, and it passed unanimously. Cape Fear Public Utility Authority Page 4 Minutes Authority Board September 14, 2016 RESULT: APPROVED \[8 TO 0\] MOVER: Rob Zapple SECONDER: William Norris, Treasurer AYES: Brown, Kusek, Norris, Adams, Davis, O'Grady, White, Zapple EXCUSED: Wolf, Rivenbark RECUSED: Sneeden 10. Authorization for the Executive Director to Execute a $650,000 Design Build Contract with Crowder Construction Company for the Heat Exchanger Replacement project. RESULT: APPROVED \[UNANIMOUS\] MOVER: William Norris, Treasurer SECONDER: Patricia Kusek, Vice-Chair AYES: Brown, Kusek, Sneeden, Norris, Adams, Davis, O'Grady, White, Zapple EXCUSED: Wolf, Rivenbark 11. Authorization for the Executive Director to Execute $315,376 Design-Build Agreement with Garney Construction for the Alandale Dr/Kerr Ave Manhole Replacement RESULT: APPROVED \[UNANIMOUS\] MOVER: William Norris, Treasurer SECONDER: Patricia Kusek, Vice-Chair AYES: Brown, Kusek, Sneeden, Norris, Adams, Davis, O'Grady, White, Zapple EXCUSED: Wolf, Rivenbark 12. Authorization for the Executive Director to Execute a $1,497,500 Design Contract with Black and Veatch for the US Highway 421 Corridor Water and Wastewater Utilities project Mr. White moved to recuse Mr. Brown due to a conflict of interest with his company. Mr. Davis seconded the motion, and it passed unanimously. Mr. Zapple asked if the project was being designed to distribute reclaimed water and suggested that the item go to the Long Range Planning Committee for discussion of reclaimed water infrastructure. Mr. Flechtner reported that reclaimed water was not included in the scope because of budgeting constraints. He recommended that the design contract be approved as presented to keep the project on schedule and reported that the contract could be amended in the future as needed. Mr. Zapple supported studying the use of reclaimed water in the project and suggested that it could be beneficial to industrial users along the 421 corridor. Mr. White stated that it could be costly and that the decision to build the reclaimed water infrastructure could not be made until further study had been conducted. Ms. Adams observed that CFPUA should determine if there would be a demand for the product. Mr. Flechtner reported that capacity is not an issue now but could be in the future and that planning Cape Fear Public Utility Authority Page 5 Minutes Authority Board September 14, 2016 for reclaimed water use takes considerable time. Mr. Sneeden stated that the Long Range Planning Committee could discuss the options further. Mr. Zapple moved to direct the Long Range Planning Committee to review reclaimed water use for the 421 project. Mr. Sneeden seconded the motion, and it passed unanimously. Ms. Adams moved to approve the Black & Veatch contract, as presented and recommended by staff and the Finance Committee. Mr. Zapple seconded the motion, and it passed unanimously. RESULT: APPROVED \[8 TO 0\] MOVER: Jennifer Adams SECONDER: Rob Zapple AYES: Kusek, Sneeden, Norris, Adams, Davis, O'Grady, White, Zapple EXCUSED: Wolf, Rivenbark RECUSED: Brown 13. Enterprise Resource Planning (ERP) Update RESULT: APPROVED \[UNANIMOUS\] MOVER: William Norris, Treasurer SECONDER: Patricia Kusek, Vice-Chair AYES: Brown, Kusek, Sneeden, Norris, Adams, Davis, O'Grady, White, Zapple EXCUSED: Wolf, Rivenbark VIII. NEW BUSINESS A. Administrative Reports i. Attorney's Report Ms. Miles had no report and advised that a closed session would be needed to discuss a personnel matter. ii. Executive Director's Report 1. Environmental Report The Environmental Report was in the packet, and staff was available for questions. RESULT: REVIEWED 2. Key Indicators Report The Key Indicators Report was in the packet. There were no questions from the Board. Cape Fear Public Utility Authority Page 6 Minutes Authority Board September 14, 2016 RESULT: REVIEWED 3. Safety Performance Report The Safety Performance Report was in the packet, and staff was available for questions. RESULT: REVIEWED 4. Resolution Recognizing Michael E. Richardson Mr. Flechtner announced that Mr. Richardson is retiring in September after 22 years of combined service with the City of Wilmington and CFPUA. Mr. Richardson began his career in the field 41 years ago and went to work for the City in 1994. He oversaw two expansions of the Sweeney Water Treatment Plant and was a guiding force behind the Aquifer Storage and Recovery project and the Nano-filtration water plant. He was instrumental in connecting the City and County systems into a integrated system for CFPUA. Mr. Richardson is a leader in the industry at both the state and national levels, winning 12 significant awards for the provision of drinking water. Mr. Flechtner stated that Mr. Richardson's retirement is a significant loss for the Authority. He added that he has known Mr. Richardson for 22 years as a colleague and a friend and that he has learned and benefited greatly from their relationship. Mr. Flechtner presented a resolution recognizing Mr. Richardson and naming the nano-filtration plant the Michael E. Richardson Nano-Filtration Plant. Ms. Kusek moved to adopt the resolution, and Mr. Norris seconded the motion. Mr. White observed that he always knew he would learn something when Mr. Richardson stepped up to the podium. Mr. Davis praised and complimented Mr. Richardson, stating that he had worked with him at the City. Mr. Richardson said that he was honored and had been privileged to work with the staff and Board. He thanked the City, County, and Authority for creating CFPUA and for supporting staff. Mr. Brown asked for a vote, and the motion passed unanimously. Mr. Richardson received a standing ovation from those present. RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek, Vice-Chair SECONDER: William Norris, Treasurer AYES: Brown, Kusek, Sneeden, Norris, Adams, Davis, O'Grady, White, Zapple EXCUSED: Wolf, Rivenbark iii. Operations Report Cape Fear Public Utility Authority Page 7 Minutes Authority Board September 14, 2016 Mr. Styers updated the Board on biological oxygen demand (BOD) issues at the Northside plant. The BOD has gone back to a normal reading, and engineers continue to study and analyze data to determine a cause. The Board recessed at 10:07 AM and reconvened at 10:17 AM. B. Committee Reports i. Executive Committee 1. Executive Committee Minutes The minutes were in the Agenda packet. RESULT: REVIEWED ii. Human Resources Committee 1. Human Resources Committee Minutes Ms. Kusek moved to excuse Mr. White. Mr. Norris seconded the motion, and it passed unanimously. Mr. White left the meeting. The minutes were in the Agenda packet. Mr. Morgan reported that a personnel item discussion required a closed session in the day's meeting. Mr. Morgan presented State Health Plan (SHP) premium information for calendar year 2017. Staff had budgeted for a 5 percent increase for the year, and the plan increased only 3 percent. The North Carolina Legislature passed a bill requiring local governments to adopt the SHP funding ratio of 82/18 for employee coverage, with the employer paying 82 percent and the employee paying 18 percent. To maintain CFPUA's aggregate funding ratio of 80/20, the dependent and family funding ratio would become 77.5/22.5. Mr. O'Grady commented that the HR Committee had gone over the insurance information in depth and endorsed the recommendation. Mr. O'Grady moved to approve the funding ratios as presented. Mr. Norris seconded the motion, and it passed unanimously. Mr. Morgan updated the Board on retiree health insurance. He reported that other insurance plans would move to a calendar year schedule instead of fiscal year. CFPUA's insurance broker has secured 18-month contracts through 2017 on those plans. RESULT: REVIEWED iii. Long Range Planning Committee 1. Long Range Planning Committee - Regular - Aug 25, 2016 3:00 PM The minutes were in the Agenda packet. Cape Fear Public Utility Authority Page 8 Minutes Authority Board September 14, 2016 RESULT: NO ACTION REQUIRED 2. Budget Ordinance to Reduce Funding in Mandatory Connection Capital Projects Mr. Vandermeyden presented the item. The Board discussed mandatory connection and restrictions on expansion due to legislation. Mr. Sneeden moved to approve the reduction in funds for tap installations. Ms. Kusek seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden, Secretary SECONDER: Jennifer Adams AYES: Brown, Kusek, Sneeden, Norris, Adams, Davis, O'Grady, Zapple EXCUSED: Wolf, Rivenbark, White 3. Ordinance Revision for Cost Recovery Projects Mr. Vandermeyden presented the item and explained that the ordinance would enable CFPUA to utilize a cost-recovery mechanism from future development. Mr. Sneeden moved to approve the item. Ms. Adams seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden, Secretary SECONDER: Jennifer Adams AYES: Brown, Kusek, Sneeden, Norris, Adams, Davis, O'Grady, White, Zapple EXCUSED: Wolf, Rivenbark iv. Finance Committee 1. Finance Committee - Regular Meeting - Sep 7, 2016 9:00 AM The minutes were in the Agenda packet. RESULT: NO ACTION REQUIRED 2. September Finance Report and Customer Service Update Mr. McLean presented the August financial data. With 17 percent of the year finished, revenues are at 19.1 percent. Consumption is down 2 percent from August 2015. Expenditures are under budget. RESULT: NO ACTION REQUIRED 3. Grant Resolutions for Connect NC Bond Act of 2015 Applications Mr. Norris asked Mr. Vandermeyden to present the item. Cape Fear Public Utility Authority Page 9 Minutes Authority Board September 14, 2016 Mr. Vandermeyden reported that House Bill 943 projects. The Act provided favorable funding opportunities for wastewater projects for agencies operating with EPA Consent Decrees. CFPUA is eligible for up to $16.6 million in matching grants to restore high risk sewer collection pipes and pump stations. There are sufficient funds in cash reserves to match the $16.6 in grant monies. Staff identified projects eligible for matching grant funding in the Ten Year Capital Improvements Plan. If approved, the projects will be accelerated ahead of the Ten Year CIP. Board resolutions for each project are required to apply for the grant funding by the deadline of September 30, 2016, as follows: 1. Pump Station 10, which was built in 1967 and is located near the Northside plant, is one of the oldest pump stations in the system. It has been rehabbed previously and is susceptible to flooding because most of the equipment is below ground. 2. Pump stations 5, 6, 13, 16, 21 and 29 and associated force mains are aging and present safety concerns. They are in the CIP for Fiscal Years 23 and 25. 3. Find-it, Fix-it gravity sewer projects can be addressed, focusing on sewer that is 40 years older and older and goes beneath main roads where sinkholes can develop. 4. Staff has identified an asset inventory and assessment project to analyze sewer infrastructure located in the historic downtown Wilmington area. Messrs. Vandermeyden and Flechtner answered clarification questions from Board members on the projects eligible for grants and the use of cash reserves for the matching funds. Following discussion, Ms. Kusek moved to approve the resolution for Pump Station 10. Mr. Norris seconded the motion, and it passed unanimously. Ms. Kusek moved to approve the resolution for Pump Stations 5, 6, 13, 16, 21, and 29 and the associated force mains. Mr. Norris seconded the motion, and it passed unanimously. Ms. Kusek moved to approve the resolution for gravity sewer find-it, fix-it projects. Mr. Norris seconded the motion, and it passed unanimously. Mr. Norris moved to approve the resolution for the asset inventory and assessment project for downtown sewer. Mr. O'Grady seconded the motion. Mr. Sneeden asked to be recused due to a conflict with his company. Mr. Norris Cape Fear Public Utility Authority Page 10 Minutes Authority Board September 14, 2016 moved to recuse Mr. Sneeden. Ms. Kusek seconded the motion, and Mr. Sneeden was recused unanimously. Mr. Brown askef or a vote on the original motion approving the resolution, and it passed unanimously. Mr. Norris moved to excuse Ms. Kusek. Mr. O'Grady seconded the motion, and it passed unanimously. Ms. Kusek left the meeting. RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek, Vice-Chair SECONDER: William Norris, Treasurer AYES: Brown, Kusek, Sneeden, Norris, Adams, Davis, O'Grady, White, Zapple EXCUSED: Wolf, Rivenbark 4. Capital Funding Strategies and Financial Sustainability Mr. McLean reviewed three strategies for funding capital plans and the strengths and weaknesses of each. CFPUA has two primary funding sources for capital projects, pay-go capital and debt funding. The use of each carries advantages and disadvantages. Pay-go can be used to reduce total debt, which would have a positive effect on CFPUA's bond rating. Debt funding can spread the cost of major projects over several years and reduce intergenerational inequity for customers. The rating agencies Moody's and Standard & Poor's have commended CFPUA's strong liquidity and debt coverage. The agencies supported the Board formally adopting policies to provide for greater coverage in the future as well as debt reduction. A proper balance of liquidity, reserves, pay-go and debt issuance is recommended. Mr. McLean answered questions from Authority members regarding pay-go versus debt fund. Board members discussed intergenerational inequity and rate affordability. Mr. McLean's report is incorporated herein by reference. The Board retreat on December 8 will focus on the development of formal financial policies. RESULT: REVIEWED IX. OLD BUSINESS There was no old business. X. AUTHORITY Q&A / CLOSING COMMENTS There were no questions or closing comments. XI. CLOSED SESSION Mr. Norris moved to enter closed session to discuss a personnel matter. Ms. Adams seconded the motion, and it passed unanimously. The Board entered closed session at 11:30 AM, with Ms. Miles, Messrs. Flechtner and Morgan, and Ms. Pope present. Cape Fear Public Utility Authority Page 11 Minutes Authority Board September 14, 2016 Mr. Zapple moved to return to open session. Mr. Norris seconded the motion, and it passed unanimously. The Board returned to open session at 11:45 AM. XII. ADJOURNMENT There was no further business for the Authority to conduct, and Ms. Adams moved to adjourn. Mr. Norris seconded the motion, and it passed unanimously. The meeting adjourned at 11:45 AM. The next regular CFPUA meeting will be Wednesday, October 12, 2016, at 9:00 AM. The Authority will meet 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 Page 12