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Home My WebLink About2017-07-12 Regular Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES JULY 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. II. DETERMINATION OF A QUORUM Mr. Brown declared a quorum present. Mr. Rivenbark moved to excuse Ms. Kusek and Mr. O'Grady. Ms. Wolf seconded the motion, and it passed unanimously. Attendee Name Organization Title Status Arrived Mike Brown Cape Fear Public Chair Present Utility Authority Jennifer Adams Cape Fear Public Vice-Chair Present Utility Authority Larry Sneeden Cape Fear Public Secretary Present Utility Authority William Norris Cape Fear Public Treasurer Present Utility Authority Cindee Wolf Cape Fear Public Board Member Present Utility Authority Chuck Davis Cape Fear Public Board Member Present Utility Authority Patricia Kusek Cape Fear Public Commissioner Excused Utility Authority Charlie Rivenbark Cape Fear Public Councilman Present Utility Authority Kevin O'Grady Cape Fear Public Councilman Excused Utility Authority Skip Watkins Cape Fear Public Commissioner Present Utility Authority Wesley Corder Cape Fear Public Board Member Present Utility Authority Jim Flechtner Cape Fear Public Executive Director Present Utility Authority Linda Miles Miles Firm, PLLC CFPUA Consulting Attorney Present Frank Styers Cape Fear Public Chief Operations Officer Present Utility Authority John McLean Cape Fear Public Chief Financial Officer Present Utility Authority Beth Eckert Cape Fear Public Director of EMD Present Utility Authority Carel Vandermeyden Cape Fear Public Director of Engineering Present Cape Fear Public Utility Authority Page 1 Minutes Authority Board July 12, 2017 Utility Authority Kristine Irick Cape Fear Public Customer Service Director Present Utility Authority Lindsey Hallock Cape Fear Public Executive Administrator/Assistant Present Utility Authority Communications O Donna Pope Cape Fear Public Clerk/Executive Secretary to the Present Utility Authority Board Ruth Ravitz Smith New Hanover County Present Jim Iannucci New Hanover County Present Richard King City of Wilmington Present Heidi Cox NC Public Water Present Supply Carter Hubbard WK Dickson Present Mike McGill Water PIO Present James A. Kadner Present Harper Peterson Present Eckel & Vaughn Present representatives Media Representatives Present III. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Jun 14, 2017 9:00 AM RESULT: ACCEPTED \[UNANIMOUS\] MOVER: Skip Watkins, Commissioner SECONDER: William Norris, Treasurer AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Rivenbark, Watkins, Corder EXCUSED: Kusek, O'Grady IV. PRESENTATION- UPDATE ON GENX Mr. Flechtner updated the group on activities related to the GenX water issue. CFPUA has engaged Black & Veatch, the designer of the Sweeney plant, to investigate and test additional treatment methods, including new filter materials and the use of reverse osmosis. CFPUA has engaged the services of Catlin Engineering to test and study the Aquifer Storage and Recovery area, which holds 49 million gallons of treated water from the Sweeney plant. Mr. Flechtner reported that CFPUA is participating in seven ongoing scientific studies. Staff has attended three public forums to discuss water issues and provide information to citizens. Mr. Flechtner thanked WHQR, Clean Cape Fear, and Messrs. Harper Peterson and Kemp Burdette for working with CFPUA to provide information to the community. Water at the Sweeney plant has been sampled three times since June 26. The first test results are available, and GenX is still present but at lower levels than previously. CFPUA continues to press NC DEQ and the EPA for action and is investigating its legal options. V. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER Cape Fear Public Utility Authority Page 2 Minutes Authority Board July 12, 2017 Mr. Kadnar spoke regarding high volumetric billing at his residence. He reported that the issue has gone on for several months and that he does not have a leak. The Board referred Mr. Kadnar to staff to investigate and assist him. Mr. McGill spoke in opposition to the Eckel & Vaughn contract amendment. Mr. Brown and other Board members responded. Mr. Peterson thanked Messrs. Brown and Flechtner for their participation in public forums. He stressed the need for community outreach and information to customers who might not receive the newspaper, watch television news, or use the internet. He encouraged CFPUA to continue to find avenues to reach out to the public. He spoke against the FY18 rate increase and stated that CFPUA would be under constant scrutiny. He asked when Mr. Kearns knew about the GenX test results and why there had been no statement from Mr. Richardson. VI. SPEAKER UPDATE FROM THE JUNE 14 BOARD MEETING Mr. Flechtner reported that four people spoke in June regarding the GenX issue. CFPUA actions regarding GenX had been provided in his earlier update. VII. CONSENT AGENDA Mr. Norris moved to approve the Consent Agenda, in its entirety. Mr. Rivenbark seconded the motion, and it passed unanimously. 1. OCCP Contract FY18 Renewal RESULT: APPROVED \[UNANIMOUS\] MOVER: William Norris, Treasurer SECONDER: Charlie Rivenbark, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Rivenbark, Watkins, Corder EXCUSED: Kusek, O'Grady 2. Authorization for the Executive Director to Execute a $180,000 Contract Amendment with W.K. Dickson & Co., Inc. for the Downtown Gravity Phase 1 Asset Inventory and Assessment Project RESULT: APPROVED \[UNANIMOUS\] MOVER: William Norris, Treasurer SECONDER: Charlie Rivenbark, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Rivenbark, Watkins, Corder EXCUSED: Kusek, O'Grady 3. 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. Cape Fear Public Utility Authority Page 3 Minutes Authority Board July 12, 2017 RESULT: APPROVED \[UNANIMOUS\] MOVER: William Norris, Treasurer SECONDER: Charlie Rivenbark, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Rivenbark, Watkins, Corder EXCUSED: Kusek, O'Grady 4. Resolutions Accepting Low Interest State Loans for Capital Projects RESULT: APPROVED \[UNANIMOUS\] MOVER: William Norris, Treasurer SECONDER: Charlie Rivenbark, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Rivenbark, Watkins, Corder EXCUSED: Kusek, O'Grady 5. Asphalt Replacement & Repair Services Contract Amendment RESULT: APPROVED \[UNANIMOUS\] MOVER: William Norris, Treasurer SECONDER: Charlie Rivenbark, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Rivenbark, Watkins, Corder EXCUSED: Kusek, O'Grady 6. Authorization for the Executive Director to Execute a $330,987 Cost Sharing Agreement Amendment with Water Street Ventures, LLC for Participation with Water and Sewer Improvements Associated with the River Place Development RESULT: APPROVED \[UNANIMOUS\] MOVER: William Norris, Treasurer SECONDER: Charlie Rivenbark, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Rivenbark, Watkins, Corder EXCUSED: Kusek, O'Grady 7. Ordinance Revision to Refund System Development Charges under Certain Conditions RESULT: APPROVED \[UNANIMOUS\] MOVER: William Norris, Treasurer SECONDER: Charlie Rivenbark, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Rivenbark, Watkins, Corder EXCUSED: Kusek, O'Grady 8. Ordinance Revision for System Extensions and Cost Recovery Policy Cape Fear Public Utility Authority Page 4 Minutes Authority Board July 12, 2017 RESULT: APPROVED \[UNANIMOUS\] MOVER: William Norris, Treasurer SECONDER: Charlie Rivenbark, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Rivenbark, Watkins, Corder EXCUSED: Kusek, O'Grady 9. Bulk Sewage Conveyance and Treatment Rate with Criteria RESULT: APPROVED \[UNANIMOUS\] MOVER: William Norris, Treasurer SECONDER: Charlie Rivenbark, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Rivenbark, Watkins, Corder EXCUSED: Kusek, O'Grady 10. SAS Water Tank RESULT: APPROVED \[UNANIMOUS\] MOVER: William Norris, Treasurer SECONDER: Charlie Rivenbark, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Rivenbark, Watkins, Corder EXCUSED: Kusek, O'Grady 11. Authorization for the Executive Director to Enter into a $40,000 Amendment to the Contract with Eckel & Vaughan Mr. Norris moved to approve the contract amendment as part of the Consent Agenda. Mr. Rivenbark seconded the motion, and it passed unanimously. RESULT: REVIEWED VIII. NEW BUSINESS A. Administrative Reports i. Attorney's Report Ms. Miles had no report for open session. She requested a closed session to discuss a claim and for the Board to provide direction to legal counsel. ii. Executive Director's Report Mr. Flechtner referred the Board to the Environmental, Safety, Key Indicator, and Quarterly CIP reports in the Agenda packet. There were no questions. 1. July Environmental Report 2. Key Indicator Report Cape Fear Public Utility Authority Page 5 Minutes Authority Board July 12, 2017 3. Safety Report 4. Quarterly CIP Report B. Committee Reports i. Executive Committee Executive Committee Minutes July 5, 2017 RESULT: REVIEWED ii. Long Range Planning Committee 1. Long Range Planning Committee - Regular - Jun 22, 2017 3:00 PM RESULT: NO ACTION REQUIRED iii. Finance Committee 1. Finance Committee - Regular Meeting - Jul 5, 2017 9:00 AM RESULT: NO ACTION REQUIRED 2. July Finance and Customer Service Report Mr. McLean presented the financial data for June, representing the close of Fiscal Year 2017. Operating revenues exceeded expenditures by $5.6 million. The total fund balance was $136.9 million, and $125.9 million of the fund balance was unrestricted. Mr. McLean answered clarification questions regarding the spend-down of unrestricted cash. The amount of cash reserves to be maintained for adequate working capital is $70,000,000. RESULT: NO ACTION REQUIRED IX. OLD BUSINESS There was no old business. X. AUTHORITY Q&A / CLOSING COMMENTS The Board discussed the GenX issues, and Mr. Flechtner answered questions regarding public outreach. XI. CLOSED SESSION Mr. Norris moved to enter closed session to discuss a claim and provide direction to legal counsel. Mr. Rivenbark seconded the motion, and it passed unanimously. The Board entered closed session at 9:45 AM. Cape Fear Public Utility Authority Page 6 Minutes Authority Board July 12, 2017 Following a report from Ms. Miles and related Board discussion and direction, Ms. Wolf moved to return to open session. Mr. Norris seconded the motion, and it passed unanimously. The Board returned to open session at 10:20 AM. XII. ADJOURN Mr. Norris moved to adjourn. Mr. Rivenbark seconded the motion, and it passed unanimously. The meeting adjourned at 10:20 AM. The next regular CFPUA meeting is Wednesay, August 9, 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