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HomeMy WebLinkAboutCFPUA 4.12.2017 CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES APRIL 12, 2017 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. Mr. Rivenbark moved to excuse Ms. Adams, Ms. Wolf, and Mr. Sneeden. Mr. Watkins seconded the motion, and it passed unanimously. II. DETERMINATION OF A QUORUM Attendee Name Organization Title Status Arrived Mike Brown Cape Fear Public Utility Chair Present Authority Jennifer Adams Cape Fear Public Utility Vice-Chair Excused Authority Larry Sneeden Cape Fear Public Utility Secretary Excused Authority William Norris Cape Fear Public Utility Treasurer Present Authority Cindee Wolf Cape Fear Public Utility Excused Authority Chuck Davis Cape Fear Public Utility Present Authority Patricia Kusek 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 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 Beth Eckert Cape Fear Public Utility Director of EMD Present Authority Kristine Irick Customer Service Director Cape Fear Public Utility Present Authority Mike McGill Chief Communications Officer Cape Fear Public Utility Present Authority Cape Fear Public Utility Authority Page 1 Minutes Authority Board April 12, 2017 Carel Cape Fear Public Utility Director of Engineering Present Vandermeyden Authority John McLean Cape Fear Public Utility Chief Financial Officer Present Authority John Payne Cape Fear Public Utility Budget/Finance Manager Present Authority Julia Vosnock Cape Fear Public Utility Procurement Manager Present Authority Ramona Burns Cape Fear Public Utility Accounting Manager Present Authority Melinda Hoggard Cape Fear Public Utility Financial Systems Analyst Present Authority Tymekia Askew Cape Fear Public Utility Present Authority Sherri Alexander Cape Fear Public Utility Present Authority Teresa Horsboll Cape Fear Public Utility Buyer Present Authority Chris Bolton Cape Fear Public Utility ERP Systems Administrator Present Authority Bob Martin Cape Fear Public Utility ERP Analyst Present Authority Ken Vogt Cape Fear Public Utility WWT Superintendent Present Authority Linda Miles Miles Firm, PLLC CFPUA Consulting Attorney Present Tony Boahn McKim & Creed Present Dave Cowell City of Wilmington Present Jim Iannucci New Hanover County Present Karen Foster Present Donna Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board III. ADOPTION OF AGENDA Mr. O'Grady 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 - Mar 8, 2017 9:00 AM RESULT: ACCEPTED \[UNANIMOUS\] MOVER: William Norris, Treasurer SECONDER: Patricia Kusek AYES: Brown, Norris, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder EXCUSED: Adams, Sneeden, Wolf V. PRESENTATION 1. GFOA Certificate of Achievement for Excellence in Financial Reporting Cape Fear Public Utility Authority Page 2 Minutes Authority Board April 12, 2017 Mr. Norris presented Finance staff with the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting. The Association is an organization of government accounting officials from the U.S. and Canada, and the certificate is its highest form of recognition. This is the eighth consecutive year CFPUA has received the award. The full Board thanked and congratulated Mr. McLean and Finance staff members. RESULT: NO ACTION REQUIRED VI. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER Ms. Karen Foster spoke regarding a water meter issue at her property on Bayshore Drive. She reported that she had spoken with Ms. Irick and Mr. McGill before the Board meeting and believed that staff would resolve her concerns. She thanked the Board for its time. VII. SPEAKER UPDATE FROM THE MARCH 8, 2017 BOARD MEETING Mr. Flechtner reported that Mr. Brenner of the Avenel subdivision homeowners group spoke at the March meeting. The Long Range Planning Committee reviewed his concerns at its regular meeting and would present a recommendation to the full Board during the Committee report. VIII. CONSENT AGENDA Mr. O'Grady asked for clarification on Item 1, the Ordinance Declaration of Intent. He then moved the Consent Agenda. Mr. Norris seconded the motion, and the Consent Agenda was adopted unanimously. 1. Ordinance Adoption RESULT: APPROVED AND RECOMMENDED \[UNANIMOUS\] Next: 5/10/2017 9:00 AM MOVER: Kevin O'Grady SECONDER: William Norris, Treasurer AYES: Brown, Norris, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder EXCUSED: Adams, Sneeden, Wolf 2. Approval of Budget Ordinance 17-009 to Increase Appropriations for Retiree Health Benefits RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: William Norris, Treasurer AYES: Brown, Norris, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder EXCUSED: Adams, Sneeden, Wolf 3. Water Meter & AMR Equipment Cape Fear Public Utility Authority Page 3 Minutes Authority Board April 12, 2017 RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: William Norris, Treasurer AYES: Brown, Norris, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder EXCUSED: Adams, Sneeden, Wolf 4. Easement Termination - 2645 Carolina Beach Road RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: William Norris, Treasurer AYES: Brown, Norris, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder EXCUSED: Adams, Sneeden, Wolf 5. Easement Termination - 5039 Gingerwood Drive RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: William Norris, Treasurer AYES: Brown, Norris, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder EXCUSED: Adams, Sneeden, Wolf 6. Resolution to Accept State Grant for Wastewater Asset Inventory and Assessment RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: William Norris, Treasurer AYES: Brown, Norris, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder EXCUSED: Adams, Sneeden, Wolf 7. Approval of Budget Ordinance 17-010 - State Grant for Wastewater Asset Inventory and Assessment RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: William Norris, Treasurer AYES: Brown, Norris, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder EXCUSED: Adams, Sneeden, Wolf 8. Authorization for the Executive Director to Execute a $3,121,128.22 Change Order with Pedal Valves, Inc. for the Comprehensive Meter Replacement Phase 2 project Cape Fear Public Utility Authority Page 4 Minutes Authority Board April 12, 2017 RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: William Norris, Treasurer AYES: Brown, Norris, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder EXCUSED: Adams, Sneeden, Wolf 9. Authorization for the Executive Director to Execute a $216,750.00 Contract Amendment with Cape Fear Engineering for the Comprehensive Meter Replacement Phase 2 project RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: William Norris, Treasurer AYES: Brown, Norris, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder EXCUSED: Adams, Sneeden, Wolf 10. Authorization for the Executive Director to Execute a $1,695,880.00 Construction Contract with TA Loving Company for the 13th Street & Lake Shore Drive Sanitary Sewer Replacement & Rehabilitation Project RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: William Norris, Treasurer AYES: Brown, Norris, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder EXCUSED: Adams, Sneeden, Wolf 11. Authorization for the Executive Director to Execute a $132,300 Contract Amendment with Criser Troutman Tanner Consulting Engineers for the 13th Street & Lake Shore Drive Sanitary Sewer Replacement & Rehabilitation Project RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: William Norris, Treasurer AYES: Brown, Norris, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder EXCUSED: Adams, Sneeden, Wolf 12. Authorization for the Executive Director to Execute a $50,500 Contract Amendment with WithersRavenel for Design and Bidding Services for the Quail Woods Pump Station 137 Decommission Project. Cape Fear Public Utility Authority Page 5 Minutes Authority Board April 12, 2017 RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: William Norris, Treasurer AYES: Brown, Norris, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder EXCUSED: Adams, Sneeden, Wolf 13. Authorization for the Executive Director to Execute a $75,500 Contract Amendment with Hazen for Design and Bidding Services for the Westbrook Tank Aeration Project. RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: William Norris, Treasurer AYES: Brown, Norris, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder EXCUSED: Adams, Sneeden, Wolf IX. NEW BUSINESS A. Administrative Reports i. Attorney's Report Ms. Miles had no report. ii. Executive Director's Report Mr. Flechtner referred the Board to the monthly environmental, safety, and key indicator reports in the Agenda packet. He then announced staffing changes and introduced Denise Matroni, CFPUA's new Human Resources Director. Ms. Matroni came to the Authority from UNC-Wilmington and formerly worked with the City of Wilmington. Mr. Flechtner reported that Ms. Ogilvie has completed her graduate degree and is moving to Maine for a new career. He introduced Lindsey Hallock, who will be moving into the position of Executive Administrator. Ms. Hallock is an internal transfer within CFPUA. On behalf of the Board, Mr. Brown thanked Ms. Ogilvie for her work and welcomed Ms. Hallock and Ms. Matroni. 1. Environmental Report RESULT: REVIEWED 2. Key Indicators Report RESULT: REVIEWED 3. Safety Performance Report Cape Fear Public Utility Authority Page 6 Minutes Authority Board April 12, 2017 RESULT: REVIEWED B. Committee Reports i. Executive Committee 1. 4.5.17 Executive Committee Minutes The Committee minutes were in the Agenda packet. RESULT: REVIEWED ii. Long Range Planning Committee 1. Long Range Planning Committee - Regular - Mar 20, 2017 3:00 PM The Committee minutes were in the Agenda packet. RESULT: NO ACTION REQUIRED 2. Avenel Stormwater Committee Request and Authority Response Mr. Styers presented the item. On an aerial map, he indicated the Avenel community and its position in a low-lying "bowl" area. The original subdivision plans included a drainage swale that was never constructed. Mr. Styers showed photographs of CFPUA's lift station and explained that the wet well was 14 inches above the floor. During storms, water has risen to the second step of the entrance to the pump station. The neighborhood storm water system is located to the north of the pump station in the median of the street. Mr. Styers reported that the storm water system de-waters but cannot prevent flooding. The Avenel homeowners group inquired about the maintenance of the storm water pump and requested that CFPUA provide for its maintenance. Mr. Styers outlined the actions taken by CFPUA to ensure the safety of its sewer pump station. The gravity sewer has been examined by closed circuit television to identify deficiencies, and any deficiencies have been repaired. Staff has verified the adequacy of sewer inserts and sealed the manholes that have bolt- down covers. Staff is evaluating the pressure system hydraulics. Messrs. Flechtner and Styers answered clarification questions from Board members regarding the sewer inserts, the bolt-down covers for manholes, and the topography of the area. Mr. Brown read the Long Range Planning Committee's recommendation, as follows: Cape Fear Public Utility Authority Page 7 Minutes Authority Board April 12, 2017 Denial of the property owners' request to assume maintenance of the storm water pump as the system was permitted to the homeowners' association by the State and because New Hanover County ordinances allocate responsibility for storm water to developers and homeowners' associations. Mr. Watson asked if the homeowners' association had insurance to cover the storm water system. Mr. Flechtner explained that was difficult for CFPUA to know and reported that someone has been maintaining the system over the years. CFPUA cannot maintain storm water systems. The homeowners have had discussions with County staff about the storm water system. Mr. Norris moved the Committee recommendation. Mr. O'Grady seconded the motion, and it passed unanimously. RESULT: REVIEWED 3. Resolution Opposing House Bill 292 Mr. Styers presented the item and explained the Water Resources Commission 2015 designation of a portion of the Cape Fear River from Toomer's Creek south to Snow's Cut as a supplemental swamp. Beginning in 2000, the City and CFPUA worked with the Lower Cape River Program and other stakeholders to model and determine the maximum daily load of constituents in the river, and the research was used by the State in making the supplemental swamp designation. The designation takes into account tidal flows and the brackish nature of the river. House Bill 292 seeks to disapprove the rules that resulted in the supplemental swamp designation and reinstate the previous rules. The long term impacts of the disapproval of the rules upon the river or upon CFPUA effluent discharges is not known. Staff believes that the current rules and CFPUA's treatment standards protect water quality in the river. Staff and Ms. Miles answered questions about the supplemental designation and what is known about House Bill 292. The sponsors of the bill are from counties upstream and further inland. Mr. Watkins stated that he has some issues with opposing State legislation. Following discussion, Mr. O'Grady moved to adopt the Resolution in opposition to House Bill 292. Ms. Kusek seconded the motion, and it passed unanimously. Cape Fear Public Utility Authority Page 8 Minutes Authority Board April 12, 2017 RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Patricia Kusek AYES: Brown, Norris, Davis, Kusek, Rivenbark, O'Grady, Watkins, Corder EXCUSED: Adams, Sneeden, Wolf iii. Finance Committee 1. Finance Committee - Regular Meeting - Apr 5, 2017 9:00 AM The Committee minutes were in the Agenda packet. RESULT: NO ACTION REQUIRED 2. April Finance Report and Customer Service Update Mr. McLean presented the April financial data. With 75 percent of the fiscal year complete, revenues are at 81.3 percent, system development charges at 121.5 percent, and expenditures under budget at 62 percent. RESULT: NO ACTION REQUIRED 3. FY18 Preliminary Budget Review Mr. Flechtner introduced the budget review for the fiscal year beginning July 1, 2017. The recommended budget is consistent with financial policies adopted by the Board in 2016 regarding the use of cash reserves, debt coverage, and debt issuance. Over a four to five year period, CFPUA will be able to finance capital projects with cash, or "pay-go," with the exception of large projects such as the Southside Wastewater rehabilitation. The FY18 Budget is the leanest in Authority history, but it addresses system needs and is sensitive to the financial impacts upon customers. The budget includes three new positions in Operations to address departmental needs and cyber-security. Mr. Flechtner thanked staff for their work on the budget and for responsible management of the budget since 2008. Mr. McLean presented the expenditure portion of the budget. Revenues will be reviewed at the May meeting. The FY18 recommended Budget is $4 million above FY17, with a $14.9 milion transfer of cash reserves to the CIP budget. No debt issuance is planned for FY18. Debt service for existing bonds accounts for $24.3 million. The budget includes the second phase of the last class and compensation study, a one percent market adjustment, and a three percent merit pool, as recommended by the HR Committee. The budget includes a four percent increase in medical insurance, a ten percent increase for dental insurance, and a Cape Fear Public Utility Authority Page 9 Minutes Authority Board April 12, 2017 mandatory .25 percent increase in employer contributions to the local government retirement system. Staff recommended a 2.2 percent rate increase, which equals $2.77 bimonthly for the average customer, or less than $18 annually. The rate increase was modeled to support a gradual building of reserves to support pay-go capital funding. Mr. O'Grady requested that clearly defined policy decisions be provided to support the rates. The line item budget was included in the agenda packet for review. The Finance Committee will review the budget again on May 3, with a presentation to the full Board on May 10, a budget workshop and hearing on May 17. The final budget will go to the Finance Committee at its June 7 meeting and to the full board for adoption on June 14. Mr. Brown observed that the recommended budget was very lean. Mr. Norris thanked Messrs. McLean and Flechtner for the presentation and for staff's work on the budget. RESULT: REVIEWED 4. Shell Buildings Ms. Irick presented the item. CFPUA's policy or shell buildings to have one master meter, with the property owner or management company being responsible for service to individual units. She explained that many shell buildings, commonly known as strip malls, were constructed prior to the Authority's existence and contained meters for individual units. The new policy for consolidated units in shell buildings would allow owners or property managers to request the removal of unused meters and the elimination of the associated fixed meter charge where units had been combined. Mr. Rivenbark stated that it was a good recommendation but that the policy could affect condominium conversions and restaurant properties. Following clarification questions, Board member consensus was that commercial realtors be advised of the recommended policy prior to it being placed into use. RESULT: REVIEWED X. OLD BUSINESS There was no old business. XI. AUTHORITY Q&A / CLOSING COMMENTS Ms. Kusek reported that she and Mr. Rivenbark recently attended a County meeting regarding upgraded permitting software that would allow for "one stop shopping" for builders or Cape Fear Public Utility Authority Page 10 Minutes Authority Board April 12, 2017 developers seeking approvals from the County, City, and CFPUA. Mr. Rivenbark added that turn around time could be as fast as four to seven business days. XII. CLOSED SESSION There was no closed session. XIII. ADJOURNMENT There was no further business to come before the Board, and Mr. Rivenbark moved to adjourn. Mr. Norris seconded the motion, and it passed unanimously. The meeting adjourned at 10:00 AM. The next regular CFPUA meeting will be Wednesday, May 10, 2017. The Board will meet at 9:00 AM 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 11