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HomeMy WebLinkAboutCFPUA 2.8.2017 CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES FEBRUARY 8, 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. Mr. Rivenbark moved to excuse Ms. Kusek and Mr. Norris. Ms. Wolf seconded the motion, and it passed unanimously. Attendee Name Organization Title Status Arrived Mike Brown Cape Fear Public Utility Chair Present Authority Patricia Kusek Cape Fear Public Utility Excused Authority Larry Sneeden Cape Fear Public Utility Secretary Present Authority William Norris Cape Fear Public Utility Treasurer Excused 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 Skip Watkins Cape Fear Public Utility Board Member Present Authority Joint Appointee Cape Fear Public Utility Board Member Excused Authority 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 Beth Eckert Cape Fear Public Utility Director of EMD Present Authority Tom Morgan Cape Fear Public Utility HR Director Present Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Cape Fear Public Utility Authority Page 1 Minutes Authority Board February 8, 2017 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 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 Dean Johnson Present III. ADOPTION OF AGENDA Ms. Wolf moved to adopt the day's Agenda. Ms. Adams seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Jan 11, 2017 9:00 AM RESULT: ACCEPTED \[UNANIMOUS\] MOVER: Larry Sneeden, Secretary SECONDER: Cindee Wolf AYES: Brown, Sneeden, Wolf, Adams, Davis, Rivenbark, O'Grady, Watkins EXCUSED: Kusek, Norris, Corder V. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER Mr. Dean Johnson spoke regarding a leak adjustment for a break near his property's water meter. Following clarification questions, the Board referred him to staff to investigate and resolve his concern. VI. PRESENTATIONS Mr. Watkins moved to adopt the Resolutions recognizing Messrs. White and Zapple. Mr. Rivenbark seconded the motion, and it passed unanimously. The Board and staff thanked both Commissioners for their service. 1. Resolution Recognizing Woody White RESULT: REVIEWED 2. Resolution Recognizing Rob Zapple Mr. Zapple thanked the Board, Mr. Flechtner, and staff for their work and dedication. He expressed his appreciation for the respect he had received from all levels of the Authority. He challenged the Board and staff to continue to improve public perception of CFPUA. Cape Fear Public Utility Authority Page 2 Minutes Authority Board February 8, 2017 RESULT: REVIEWED VII. CONSENT AGENDA Following clarification questions, Mr. O'Grady moved to approve the Consent AGenda. Mr. Sneeden seconded the motion, and it passed unanimously. 1. Environmental Policy Update Mr. O'Grady moved to approve the Consent Agenda. Mr. Sneeden seconded the motion, and it passed unanimously. RESULT: REVIEWED 2. Leak Adjustment Policy RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Larry Sneeden, Secretary AYES: Brown, Sneeden, Wolf, Adams, Davis, Rivenbark, O'Grady, Watkins EXCUSED: Kusek, Norris, Corder 3. Authorization for the Executive Director to Execute a $724,724 Contract with Michels Corporation for Construction Contract for the 4th Street Water Main Lining Project. Mr. Vandermeyden answered questions regarding the bids. The company receiving the bid has worked extensively in North Carolina and can mobilize a workforce efficiently. RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Larry Sneeden, Secretary AYES: Brown, Sneeden, Wolf, Adams, Davis, Rivenbark, O'Grady, Watkins EXCUSED: Kusek, Norris, Corder 4. Authorization for the Executive Director to Execute a $108,277 Contract Amendment with Hazen and Sawyer, P.C. for Construction Administration and Construction Observation Phase Services for the 4th Street Water Main Lining Project. RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Larry Sneeden, Secretary AYES: Brown, Sneeden, Wolf, Adams, Davis, Rivenbark, O'Grady, Watkins EXCUSED: Kusek, Norris, Corder 5. Authorization for the Executive Director to Execute a $966,165 Construction Contract with Herring & Rivenbark, Inc. Contractors for the Blue Clay Road Force Main Project. Cape Fear Public Utility Authority Page 3 Minutes Authority Board February 8, 2017 RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady AYES: Brown, Sneeden, Wolf, Adams, Davis, Rivenbark, O'Grady, Watkins EXCUSED: Kusek, Norris, Corder VIII. NEW BUSINESS A. Administrative Reports i. Attorney's Report Ms. Miles had no report. ii. Executive Director's Report Mr. Flechtner reported that CFPUA received $16.5 million in matching grants from the Connect NC Bond fund. He referred the Board to the Environmental and Safety reports and the quarterly Capital Projects report in the Agenda packet. 1. Environmental Report RESULT: REVIEWED 2. Key Indicators Report RESULT: REVIEWED 3. Safety Performance Report RESULT: REVIEWED 4. Quarterly CIP Report RESULT: REVIEWED B. Committee Reports i. Communications Committee 1. 1.11.17 Communications Committee Meeting Minutes RESULT: REVIEWED ii. Executive Committee 1. 2.1.17 Executive Committee Meeting Minutes Cape Fear Public Utility Authority Page 4 Minutes Authority Board February 8, 2017 RESULT: REVIEWED iii. Human Resources Committee 1. 1.30.17 Human Resources Committee Meeting Ms. Wolf reported that the Committee would meet after the CIP workshop to review budget items. RESULT: REVIEWED iv. Long Range Planning Committee 1. Long Range Planning Committee - Regular - Jan 26, 2017 3:00 PM RESULT: NO ACTION REQUIRED 2. Budget Ordinance 17-007 to Fund Costs for the LCFWASA Raw Water Transmission Main Design Project Mr. Flechtner presented the items related to the raw water line. The concept of a parallel line from the raw water intakes in Bladen County has been discussed for several years. The LCFWASA transmission line break in October accentuated the need for a parallel line, and CFPUA, LCFWASA, and Brunswick renewed discussions on the project. Three items were presented in the agenda: a budget ordinance to fund design costs; the establishment of a capital project for the design project; and an interlocal agreement between the three parties for the design project. CFPUA will manage the project, and design costs will be shared equally by CFPUA and Brunswick County. Other entities may enter into agreement for the construction project. Following clarification questions regarding the project and timing, the items were presented for vote and approved unanimously. Mr. Brown commented that recent issues for OWASA and the Chapel Hill area accented the need for redundancy in water systems. RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden, Secretary SECONDER: Kevin O'Grady AYES: Brown, Sneeden, Wolf, Adams, Davis, Rivenbark, O'Grady, Watkins EXCUSED: Kusek, Norris, Corder 3. Approve a New Capital Project for the LCFWASA Raw Water Transmission Main Design Cape Fear Public Utility Authority Page 5 Minutes Authority Board February 8, 2017 RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden, Secretary SECONDER: Cindee Wolf AYES: Brown, Sneeden, Wolf, Adams, Davis, Rivenbark, O'Grady, Watkins EXCUSED: Kusek, Norris, Corder 4. Interlocal Agreement with Lower Cape Fear Water and Sewer Authority (LCFWASA) for the LCFWASA Raw Water Transmission Main Design Project RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden, Secretary SECONDER: Chuck Davis, Kevin O'Grady AYES: Brown, Sneeden, Wolf, Adams, Davis, Rivenbark, O'Grady, Watkins EXCUSED: Kusek, Norris, Corder v. Finance Committee 1. Finance Committee - Regular Meeting - Feb 1, 2017 9:00 AM RESULT: NO ACTION REQUIRED 2. February Finance Report and Customer Service Update Mr. McLean summarized the financial data. With 58 percent of the fiscal year complete, revenues are at 63 percent of budget and expenditures well under budget. RESULT: NO ACTION REQUIRED 3. Financial Policy Revisions Mr. McLean presented the item. The financial policy is the result of several months of research and development by Finance staff and Board discussion throughout the process. The new policy includes the designation of $67,000,000 in reserves. The reserve fund will be analyzed every three to five years by staff to ensure that tan appropriate amount is retained to cover emergencies or loss of business. At present, between $50-60 million is available for capital projects, and staff recommended spending that reserve over the next five to six years. Staff has determined that $18,000,000 annually is an appropriate amount to designate for pay-go capital. The second component of the financial policy is debt management. The continued issuance of debt could impose untenable rates or drastic expenditure cuts in future years. Staff recommended the use of debt funding for high-dollar projects and growth-related projects. Cape Fear Public Utility Authority Page 6 Minutes Authority Board February 8, 2017 In order to support debt service and continue to generate pay-go capital, staff recommends a 2.5 percent increase annually for the next six years. The increase constitutes $12/annually for the average customer. Following discussion, Mr. Sneeden moved to adopt the financial policy. Mr. Rivenbark seconded the motion, and it passed unanimously. Mr. Brown thanked staff for the work in developing the policy and Board members for their consideration and commitment to the process. RESULT: REVIEWED IX. OLD BUSINESS There was no old business. X. AUTHORITY Q&A / CLOSING COMMENTS Mr. Watkins reported that a North Carolina Administrative Law Judge ruled in favor of the Fayetteville Public Works Commission regarding the interbasin transfer issue. Mr. Rivenbark encouraged staff to address CFPUA manhole covers that are flush with streets. Mr. Brown reminded Board members that they would reconvene in the Authority offices for the FY2018 Capital Improvements Workshop. XI. CLOSED SESSION There was no closed session. XII. ADJOURNMENT Mr. Watkins moved to adjourn. Mr. Rivenbark seconded the motion, and it passed unanimously. The regular Board meeting adjourned at 9:40 AM. The next Board meeting will be Wednesday, March 8, 2017. The meeting will be held 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 7