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HomeMy WebLinkAboutCFPUA 5.10.2017 Regular Meeting CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES MAY 10, 2017 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. Brown called the meeting to order at 9:00 AM and declared a quorum present. Attendee Name Organization Title Status Arrived Mike Brown Cape Fear Public Utility Chair Present Authority Jennifer Adams 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 Board Member Present Authority Chuck Davis Cape Fear Public Utility Board Member Present Authority Patricia Kusek Cape Fear Public Utility Board Member and Present Authority Commissioner Charlie Rivenbark Cape Fear Public Utility Board Member and Present Authority Councilmember Kevin O'Grady Cape Fear Public Utility Board Member and Present Authority Councilmember Skip Watkins Cape Fear Public Utility Board Member and Present Authority Commissioner Wesley Corder Cape Fear Public Utility Board Member 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 Cape Fear Public Utility Director of Engineering Present Vandermeyden Authority Beth Eckert Director of EMD Cape Fear Public Utility Present Authority Denise Matroni HR Director Cape Fear Public Utility Present Cape Fear Public Utility Authority Page 1 Minutes Authority Board May 10, 2017 Authority Julia Vosnock Cape Fear Public Utility Procurement Manager Present Authority Lindsey Hallock Cape Fear Public Utility Executive Administrator Present Authority Karen Durso Cape Fear Public Utility Property Acquisition Specialist Present Authority Linda Miles Miles Firm, PLLC CFPUA Consulting Attorney Present Dave Cowell City of Wilmington Present Jim Iannucci New Hanover County Present Heidi Cox State of North Carolina Present Donna Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board III. ADOPTION OF AGENDA Ms. Kusek moved to adopt the day's Agenda. Mr. Norris seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Apr 12, 2017 9:00 AM RESULT: ACCEPTED \[UNANIMOUS\] MOVER: Larry Sneeden, Secretary SECONDER: Skip Watkins, Board Member and Commissioner AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder V. PUBLIC HEARING Mr. Brown called the public hearing to order. There were no speakers. Mr. O'Grady moved to close the public hearing. Mr. Watkins seconded the motion, and it passed unanimously. 1. Ordinance Adoption Mr. O'Grady moved to adopt the Ordinance, as codified. Mr. Watkins seconded the motion, and it passed unanimously. RESULT: ADOPTED \[UNANIMOUS\] MOVER: Kevin O'Grady, Board Member and Councilmember SECONDER: William Norris, Treasurer AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder VI. PRESENTATION There were no special presentations. VII. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER There were no public speakers. Cape Fear Public Utility Authority Page 2 Minutes Authority Board May 10, 2017 VIII. SPEAKER UPDATE FROM THE APRIL 12 BOARD MEETING Mr. Flechtner reported that the issue reported by the speaker at the April meeting had been satisfactorily resolved. IX. CONSENT AGENDA Mr. Brown advised that Item 5 was being withdrawn from the Consent Agenda and that Item 6 was being removed for discussion. Mr. O'Grady moved to approve Items 1 through 4 and 7 through 12. Mr. Flechtner answered clarification questions on Item 7. Mr. O'Grady repeated his motion. Mr. Norris seconded the motion, and it passed unanimously. 1. Convenience Fee Mr. O'Grady moved to adopt the item. Mr. Norris seconded the motion, and it passed unanimously. RESULT: REVIEWED 2. Call Campaigns Mr. O'Grady moved to approve the item. Mr. Norris seconded the motion, and it passed unanimously. RESULT: REVIEWED 3. After Hour Reconnection Mr. O'Grady moved to approve the item. Mr. Norris seconded the motion, and it passed unanimously. RESULT: REVIEWED 4. Authorization for the Executive Director to Execute a $49,500 Contract Amendment with HDR, Inc. for the Pump Station 10 Project. RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady, Board Member and Councilmember SECONDER: William Norris, Treasurer AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder 5. Authorization for the Executive Director to transfer ownership of existing water mains on the Grace Baptist Church Inc. property to the property owner and execute a $7,715 cost sharing agreement to facilitate the transfer. RESULT: WITHDRAWN 6. Red Cross Street Rehabilitation Memorandum of Understanding with City of Wilmington Cape Fear Public Utility Authority Page 3 Minutes Authority Board May 10, 2017 Mr. Sneeden asked to be recused because of a conflict of interst. Mr. Norris moved to recuse Mr. Sneeden. Ms. Wolf seconded the motion, and it passed unanimously. Mr. Norris moved to approve the item. Mr. Watkins seconded the motion, and it passed unanimously. RESULT: APPROVED \[10 TO 0\] MOVER: William Norris, Treasurer SECONDER: Skip Watkins, Board Member and Commissioner AYES: Brown, Adams, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder RECUSED: Sneeden 7. Authorization for the Executive Director to Execute a $99,783.98 Change Order with T.A. Loving Company for the Marquis Hills Sewer Extension Project RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady, Board Member and Councilmember SECONDER: William Norris, Treasurer AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder 8. Authorization for the Executive Director to Execute a $208,000 Contract Amendment with Black and Veatch for the Sweeney WTP Ozone System Upgrade Project. RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady, Board Member and Councilmember SECONDER: William Norris, Treasurer AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder 9. Combined Light and Medium Duty Fleet Maintenance Contract RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady, Board Member and Councilmember SECONDER: William Norris, Treasurer AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder 10. 800 MHz Interoperable Radios Mr. O'Grady moved to approve the item. Mr. Norris seconded the motion, and it passed unanimously. RESULT: REVIEWED 11. Copier Purchase and Cost Per Copy Maintenance Agreement Cape Fear Public Utility Authority Page 4 Minutes Authority Board May 10, 2017 RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady, Board Member and Councilmember SECONDER: William Norris, Treasurer AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder 12. Financial Advisory Services Contract RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady, Board Member and Councilmember SECONDER: William Norris, Treasurer AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder X. NEW BUSINESS A. Administrative Reports i. Attorney's Report Ms. Miles had no report for open session. She requested a closed session to discuss CFPUA v. Hoosier Daddy, LLC, an eminent domain condemnation for sewer, and Hoosier Daddy, LLC, v. CFPUA, an inverse condemnation for water. ii. Executive Director's Report Mr. Flechtner referred the Board to the four reports in the Agenda and reported that all reports showed good results. There were no questions regarding the reports. 1. Key Indicators Report RESULT: REVIEWED 2. Safety Performance Report RESULT: REVIEWED 3. Environmental Report RESULT: REVIEWED 4. Quarterly CIP Report Cape Fear Public Utility Authority Page 5 Minutes Authority Board May 10, 2017 RESULT: REVIEWED B. Committee Reports i. Executive Committee Mr. Brown reported that the Committee met on May 3 and referred Board members to the Committee minutes in the Agenda packet. 1. Executive Committee Minutes 5.3.2017 RESULT: REVIEWED ii. Finance Committee 1. Finance Committee - Regular Meeting - May 3, 2017 9:00 AM RESULT: NO ACTION REQUIRED 2. May Finance Report and Customer Service Update Mr. McLean presented the May financial data. With 83 percent of FY2017 complete, revenues are over 90 percent, and SDCs are well above budget. Expenditures are under budget. RESULT: NO ACTION REQUIRED 3. FY17-18 Recommended Budget Revenues Presentation Mr. Flechtner introduced the budget discussion. In April, the Board reviewed the expenditure portion of the recommended FY2018 budget. The current presentation is focused on revenues. Revenues and appropriations are budgeted at $79,518,671. Mr. McLean presented an overview of how revenues are allocated within the budget. 45 percent of the budget is funded by wastewater (sewer) revenues, 42 percent through water revenues, SDCs 5 percent, other fees and charges 6 percent, and appropriated fund balance and investment earnings 1 percent each. The appropriated fund balance represents $540,000 from the monies established for retiree health insurance and will be used to fund FY2018 retiree premiums. Investment earnings are estimated at $700,000. Other charges for services are estimated based upon five years of receipts and include meter fees and penalties. The recommended system development charges (SDC) for the year are $1,590 for water and $2,130 for sewer. Mr. McLean presented the recommended rates for FY2018, as follows: Cape Fear Public Utility Authority Page 6 Minutes Authority Board May 10, 2017 Water fixed charge: $26.67 bimonthly, an increase of 86 cents over FY17 Water volumetric: $ 3.85/1,000 gallons, an increase of 18 cents over FY17 Sewer fixed charge: $29.10 bimonthly, no change from FY17 Sewer volumetric: $ 4.58/1,000 gallons, an increase of 2 cents over FY17 The average residential customer using 4,300 gallons monthly would see a $15.48 annual increase to his or her bill, a 2.05 percent overall increase. Mr. McLean reported that the use of current surplus instead of a rate increase would lead to steeper rate increases in future years. The rates are consistent with the financial policies adopted by the Board this fiscal year and support the Board's direction to move to annual pay-go capital funding in the amount of $18 million by FY2023. The recommended rates for FY18 compare favorably to other North Carolina public utilities. Mr. McLean answered clarification questions from Authority members regarding rates, average customer data, and the comparison information from the School of Government regarding other utility providers. Messrs. Watkins and O'Grady requested that staff message the rates to explain the financial policies and an emphasis on reduced debt in the future. The FY18 Budget will be presented for adoption at the June 14 Board meeting. RESULT: REVIEWED XI. OLD BUSINESS There was no old business. XII. AUTHORITY Q&A / CLOSING COMMENTS There were no closing comments or Board questions. XIII. CLOSED SESSION Mr. Watkins moved to enter closed session to discuss Hoosier Daddy, LLC v. CFPUA and CFPUA v. Hoosier Daddy, LLC. Mr. Norris seconded the motion and it passed unanimously. The Board entered closed session at 9:28 AM with Mr. Flechtner, Ms. Miles, and Ms. Pope in attendance. The Board received a report from legal counsel in closed session. Mr. Rivenbark moved to return to open session. Ms. Wolf seconded the motion, and it passed unanimously. The Board returned to open session at 9:45 AM. In open session, Ms. Kusek moved to settle both Hoosier Daddy, LLC v. CFPUA and CFPUA v. Hoosier Daddy, LLC, for a total amount of $100,000, including the amount deposited with the Clerk of Superior Court upon the filing of CFPUA v. Hoosier Daddy, LLC, with the following provisions: Cape Fear Public Utility Authority Page 7 Minutes Authority Board May 10, 2017 Hoosier Daddy, LLC, will build and maintain a fence with a gate across the easement, apply for a variance for the fence, and release CFPUA from any liability for damage to the fence; Hoosier Daddy, LLC, will build a sewer lift station meeting CFPUA standards as of April 24, 2017. Hoosier Daddy, LLC, will build a sewer force main connecting to the CFPUA force main; Hoosier Daddy, LLC, will build the sewer lift station to accommodate flows in addition to those anticipated from its subdivision, Sunset Reach. CFPUA will grant Hoosier Daddy a right of first refusal for 64,800 gallons per day (GPD) for a period of ten years; Hoosier Daddy, LLC, will convey the water and sewer infrastructure on its property to CFPUA and will convey easements to CFPUA to access the infrastructure. CFPUA will waive the one- year warranty period for the water system; and CFPUA's Executive Director shall have the authority to negotiate the timing of payment for system development fees for additional capacity reserved by Hoosier Daddy, LLC. Mr. Rivenbark seconded the motion, and it passed unanimously. XIV. ADJOURNMENT Mr. Corder moved to adjourn. Mr. Norris seconded the motion, and it passed unanimously. The Authority adjourned at 10:50 AM. The next regular meeting of the Board will be Wednesday, June 14, 2017, at 9:00 AM in the Lucie Harrell Conference Room, New Hanover County Administration Building, 235 Government Center Drive, Wilmington, North Carolina. Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 8