The URL can be used to link to this page

Home My WebLink About2017-11-08 Regular Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES NOVEMBER 8, 2017 Lucie Harrell Conference Room Annual Meeting 9:00 AM 230 GOVERNMENT CENTER DRIVE WILMINGTON, NC 28403 I. CALL TO ORDER The Cape Fear Public Utility Authority held its Annual meeting on November 8, 2017. Mr. Brown called the meeting to order at 9:00 AM. He congratulated Messrs. O'Grady and Rivenbark on their re-election. Attendee Name Organization Title Status Arrived Mike Brown Cape Fear Public Utility Chair Present Authority Wesley Corder Cape Fear Public Utility Vice-Chair Present Authority Jennifer Adams Cape Fear Public Utility Secretary Present Authority William Norris Cape Fear Public Utility Treasurer Excused Authority Larry Sneeden Cape Fear Public Utility Present Authority Chuck Davis Cape Fear Public Utility Excused Authority Cindee Wolf 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 Excused 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 Carel Cape Fear Public Utility Director of Engineering Present Vandermeyden Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Peg Hall-Williams Cape Fear Public Utility Chief Communication Officer Present Authority Beth Eckert Cape Fear Public Utility Director of EMD Present Cape Fear Public Utility Authority Page 1 MinutesAuthorityBoardNovember 8, 2017 Authority Denise Matroni Cape Fear Public Utility HR Director Present Authority Lindsey Hallock Cape Fear Public Utility Executive Administrator/Deputy Present Authority Communications Officer Donna Pope Cape Fear Public Utility Clerk/Executive Secretary to the Board Present Authority Ed West Brooks Pierce law firm Present Heidi Cox NC Public Water Supply Present Jim Iannucci New Hanover County Present Richard King City of Wilmington Present April Adams Cherry Bekaert CPAs Present Ted Cole Davenport & Associates Present Elli Klein Present Mack Coyle Present Harper Peterson Present II. DETERMINATION OF A QUORUM Mr. Brown declared a quorum present. Ms. Kusek moved to excuse Messrs. David, Norris, and Watkins. Mr. Rivenbark seconded the motion and it passed unanimously. III. ADOPTION OF AGENDA Mr. O'Grady moved to adopt the day's Agenda. Ms. Kusek seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Oct 11, 2017 9:00 AM Ms. Adams requested a correction to the vote on the Resolution to the State of North Carolina in the October 11 minutes. She moved to approve the minutes, as corrected. Mr. O'Grady seconded the motion, and it passed unanimously. RESULT: ACCEPTED \[UNANIMOUS\] MOVER: Jennifer Adams, Secretary SECONDER: Kevin O'Grady AYES: Brown, Corder, Adams, Sneeden, Wolf, Kusek, Rivenbark, O'Grady EXCUSED: Norris, Davis, Watkins V. PUBLIC COMMENTS- 4 MINUTE LIMIT PER SPEAKER Ms. Klein and Messrs. Coyle and Peterson spoke regarding water quality issues, CFPUA's lawsuit regarding GenX, and working with state agencies. VI. PRESENTATIONS 1. Presentation of the FY17 CAFR Ms. Adams presented the FY2017 audit results. CFPUA received an unmodified, clean audit, the highest level of audit possible for a governmental agency. No adjusting Cape Fear Public Utility Authority Page 2 MinutesAuthorityBoardNovember 8, 2017 journals were needed in the audit. She explained one past journal entry involving inventory capitalization and reviewed the required communications between the auditor and the Board and the methodology used in the audit. She reported that CFPUA has good internal controls and thanked Finance staff for their cooperation and assistance during the audit. The Comprehensive Annual Financial Report is available on the CFPUA website. RESULT: REVIEWED 2. Presentation of Annual Report Mr. Flechtner presented the 2017 Annual Report. He noted growth in the system, including the receipt of $16.45 million in grant funding in 2017 and noted the high level of regulatory compliance. He reported that the cost of operating the system was 5.3 percent lower than 2008 prior to CFPUA's creation. Sanitary Sewer Overflows decreased from 156 to 68 in the five years prior to consolidation of services, and the amount of gallons in SSOs decreased by 94 percent. Mr. Flechtner compared Sanitary Sewer Overflows during CFPUA's nine years of operation with SSOs prior to its creation. He thanked all employees for their dedication to their work and thanked Ms. Hall Williams for her work on the Annual Report. The full report is available on the CFPUA website and will be distributed in the community. RESULT: REVIEWED VII. CONSENT AGENDA 1. Authorization for the Executive Director to Execute a $1,222,037 Contract with T.A. Loving Company for a Construction Contract for the Pump Station 8 Replacement Project. RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Kevin O'Grady AYES: Brown, Corder, Adams, Sneeden, Wolf, Kusek, Rivenbark, O'Grady EXCUSED: Norris, Davis, Watkins 2. Authorization for the Executive Director to Execute a $107,800 Contract Amendment with Norris and Tunstall for Construction Administration and Construction Observation Phase Services for the Pump Station 8 Replacement. Cape Fear Public Utility Authority Page 3 MinutesAuthorityBoardNovember 8, 2017 RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Kevin O'Grady AYES: Brown, Corder, Adams, Sneeden, Wolf, Kusek, Rivenbark, O'Grady EXCUSED: Norris, Davis, Watkins 3. Authorization for the Executive Director to Execute a $221,400 Contract Amendment with Cape Fear Engineering for Design and Bidding Services for the Monterey Heights Water Interconnect. RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Kevin O'Grady AYES: Brown, Corder, Adams, Sneeden, Wolf, Kusek, Rivenbark, O'Grady EXCUSED: Norris, Davis, Watkins 4. Matchpoint Proposal for Leak Detection Monitoring RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Kevin O'Grady AYES: Brown, Corder, Adams, Sneeden, Wolf, Kusek, Rivenbark, O'Grady EXCUSED: Norris, Davis, Watkins VIII. NEW BUSINESS A. Administrative Reports i. Attorney's Report Mr. West had no report and did not require a closed session. ii. Executive Director's Report 1. Environmental Report RESULT: REVIEWED 2. Key Indicators Report RESULT: REVIEWED 3. October 2017 Safety Report Cape Fear Public Utility Authority Page 4 MinutesAuthorityBoardNovember 8, 2017 RESULT: REVIEWED B. Committee Reports i. Executive Committee 1. Minutes for the November 1, 2017 Executive Committee Meeting ii. Communications Committee 1. Minutes for the October 11, 2017 Communications Committee Meeting iii. Long Range Planning Committee 1. Long Range Planning Committee - Regular - Oct 26, 2017 3:00 PM RESULT: NO ACTION REQUIRED iv. Finance Committee 1. Finance Committee - Regular Meeting - Nov 1, 2017 9:00 AM RESULT: NO ACTION REQUIRED 2. Monthly Financials and Customer Service Report RESULT: REVIEWED 3. Consideration of Proposals to Refund Outstanding Series 2011 Bonds Messrs. McLean and Cole presented the item and explained the advantages of re-funding the 2011 Revenue Bonds through a private bank sale. Staff received four proposals from interested banks that sell government bonds. CFPUA staff and Davenport representatives recommended the selection of Pinnacle Public Finance, with an interest rate of 3.04 percent and a favorable pre-payment provisions. Following clarification questions, Mr. O'Grady moved to approve the Resolution approving the private sale. Mr. Rivenbark seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Charlie Rivenbark AYES: Brown, Corder, Adams, Sneeden, Wolf, Kusek, Rivenbark, O'Grady EXCUSED: Norris, Davis, Watkins Cape Fear Public Utility Authority Page 5 MinutesAuthorityBoardNovember 8, 2017 4.Budgeting and Revenue Policy Revisions Mr. McLean presented the item and answered clarification questions. The recommended policy revisions will help to insulate revenues from swings in consumption. The recommended revision for determining System Development Charges meets requirements set forth by the General Assembly. Mr. O'Grady moved to approve the item. Ms. Adams seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Sneeden, Wolf, Kusek, Rivenbark, O'Grady EXCUSED: Norris, Davis, Watkins 5. Resolution and Ordinance Establishing the SSWTP Capacity Upgrade Capital Reserve Fund Mr. McLean presented the item and answered clarification questions. Designation of a reserve fund for the Southside project will allow monies to be set aside and reduce the amount of debt funding needed for the major project. Ms. Wolf moved to approve the item. Mr. Rivenbark seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Cindee Wolf SECONDER: Charlie Rivenbark AYES: Brown, Corder, Adams, Sneeden, Wolf, Kusek, Rivenbark, O'Grady EXCUSED: Norris, Davis, Watkins 6. Ordinance Related to the Appropriation of State Grants for the Monitoring and Treatment of GenX RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Cindee Wolf AYES: Brown, Corder, Adams, Sneeden, Wolf, Kusek, Rivenbark, O'Grady EXCUSED: Norris, Davis, Watkins IX. OLD BUSINESS There was no old business. X. AUTHORITY Q&A/ CLOSING COMMENTS XI. ADJOURN Mr. Rivenbark moved to adjourn. Ms. Kusek seconded the motion, and it passed unanimously. The meeting adjourned at 10:25 AM. The next regular meeting of the Board will be Cape Fear Public Utility Authority Page 6 MinutesAuthorityBoardNovember 8, 2017 Wednesday, December 13, 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 7