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HomeMy WebLinkAbout2017-06-14 Regular Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES JUNE 14, 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 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 Commissioner Present Authority Charlie Rivenbark Cape Fear Public Utility Councilman Present Authority Kevin O'Grady Cape Fear Public Utility Councilman Present Authority Skip Watkins Cape Fear Public Utility Commissioner Excused 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 Carel Cape Fear Public Utility Director of Engineering Present Vandermeyden Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Denise Matroni Cape Fear Public Utility HR Director Present Authority Beth Eckert Cape Fear Public Utility Director of EMD Present Authority John McLean Cape Fear Public Utility Chief Financial Officer Present Authority Cape Fear Public Utility Authority Page 1 MinutesAuthority BoardJune 14, 2017 Karen Durso Cape Fear Public Utility Property Acquisition Present Authority Specialist Lindsey Hallock Cape Fear Public Utility Executive Administrator Present Authority Linda Miles MIles Firm, PLLC CFPUA Consulting Attorney Present Richard King City of Wilmington Present George House Brooks Pierce Present Tony Boahn McKim & Creed Present Diane Stadiem Present Victoria Spagnoli Present Harper Peterson Present John Greene Present Mack Coyle Present Jim Iannucci New Hanover County Present III. ADOPTION OF AGENDA Ms. Kusek moved to adopt the Agenda. Mr. Rivenbark seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - May 10, 2017 9:00 AM RESULT: ACCEPTED \[UNANIMOUS\] MOVER: Larry Sneeden, Secretary SECONDER: William Norris, Treasurer AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Corder EXCUSED: Watkins GenX presentation Mr. Flechtner addressed the Board concerning the GenX water issues. He reported that staff is keenly aware and as concerned about the matter as the public. He assured Board members that they would receive the latest information. He provided a brief timeline of the North Carolina State University report. In August 2015, CFPUA teamed with NCSU to study GenX in the Cape Fear River. CFPUA received a draft of the paper in May 2016. CFPUA received the final manuscript in September 2016, and the paper was published in November 2016 in the journal ENVIRONMENTAL SCIENCE AND TECHNOLOGY LETTERS. Dr. Knappe was the lead author, and two CFPUA staff members were among the co-authors. From November 2016 through April 2017, CFPUA staff discussed the GenX issue and next steps with Dr. Knappe. In April 2017, Dr. Knappe presented information about GenX and PFOAs to CFPUA and NCDEQ representatives. CFPUA staff researched health impacts and the Chemours discharge permit and engaged in discussions with NCDEQ. In June 2017 the Executive Committe approved a letter requesting assistance from the state. Mr. Flechtner reported that the County had organized a meeting with Chemours for June 15 with representatives of New Hanover, Brunswick, and Pender Counties, the City of Wilmington, CFPUA, and county health departments. He assured the Board that CFPUA Cape Fear Public Utility Authority Page 2 MinutesAuthority BoardJune 14, 2017 would continue to press for answers from Chemours and for guidance and regulation from the appropriate agencies. CFPUA has engaged the services of George House, with the Brooks, Pierce law firm. Mr. House's specialty is environmental issues. Mr. Flechtner assured the Board and visitors that CFPUA's water continues to meet all federal and state standards of water quality. Public Comments - 4 minute limit per speaker Mr. Mack Coyle spoke regarding the GenX issues. He stated that he is a political activist who wishes to partner with CFPUA on this water quality concern. He praised CFPUA staff for their professionalism and helpfulness. He expressed concern about what he saw as the secretness of the Thursday meeting with Chemours. He outlined steps his citizen activists would take to publicize the issue. Mr. Brown stated that CFPUA shares Mr. Coyle's desire for transparency. Ms. Kusek assured Mr. Coyle that the information gleaned from the Chemours meeting would not be hidden and that a Wilmington Star-News reported would be in the meeting and would share information with other media outlets. Mr. John Greene spoke regarding GenX. Mr. Greene is a local attorney. He expressed concern for his own family's health and that of other citizens and stated that the presence of GenX in the river and the inability to remove it from treated water was reminiscent of the situation in West Virginia involving DuPont and the PFOAs that were GenX' predecessors. He wished to remind CFPUA that there would be a fundamental conflict of interest between it and Chemours. He stated that his main concern was the potential bio-persistence in the human body of up to six years and that he did not want 300,000 people in the community to be test subjects. Mr. Harper Peterson spoke. Mr. Peterson asked who knew about GenX and when did they know about it, specifically when did CFPUA staff become aware of its presence in the water. He asked why it took news media to make the information public. He reminded the Board that the community and customers were CFPUA's real partners. He expressed concern about CFPUA'S Board not being accountable to the public. Ms. Victoria Spignoli spoke regarding GenX. She stated that she is a local educator and a cancer survivor. She asked where citizens could obtain copies of the Chemours discharge permit, and she asked the Board and staff to remember that they were on the same team with the community and citizens. She requested that CFPUA protect its customers. V. PRESENTATION OF THE FY18 BUDGET 1. FY18 Recommended Budget Submitted for Adoption Cape Fear Public Utility Authority Page 3 MinutesAuthority BoardJune 14, 2017 RESULT: APPROVED \[8 TO 2\] MOVER: William Norris, Treasurer SECONDER: Cindee Wolf, Board Member AYES: Adams, Sneeden, Norris, Wolf, Davis, Rivenbark, O'Grady, Corder NAYS: Brown, Kusek EXCUSED: Watkins VI. PUBLIC HEARING ON THE FY18 BUDGET Mr. Flechtner introduced the recommended FY2018 budget, which supports CFPUA's mission to provide stewardship, sustainability, and service. He thanked staff for their dedication. He reported that there has been no significant increase in the operating budget over the nine years CFPUA has been providing water and sewer services. Mr. McLean provided budget highlights. The recommended budget of $79.5 million is $3.9 million over last year and includes a $4.4 million transfer to capital projects. Mr. McLean reviewed the recommended rate increases of 86 cents to the water fixed charge, 18 cents to water consumption, 2 cents to sewer consumption, with no change to the sewer fixed charge. For the average customer using 8,000 gallons per bimonthly billing cycle, the increase would be $15.48 annually, or 2.05 percent. Mr. McLean reported that the rate increases were in keeping with the Board's financial policy of increased pay-go funding of capital projects. Gradual rate increase from FY18 through FY23 would allow CFPUA to maintain cash funding of $18 million annually. Mr. McLean answered clarification questions from Mr. O'Grady about the consumption figures used in the budget assumptions. Mr. Brown opened the Budget Hearing. There were no speakers for the budget. Mr. Norris moved to close the budget hearing. Mr. Rivenbark seconded the motion, and it passed unanimously. Ms. Kusek stated that she could not support a rate increase in light of the GenX concerns. Board members asked what were options for the budget if not adopted as recommended. Messrs. Flechtner and McLean reported that the budget could be retooled to generate less pay- go capital. Ms. Miles reported that the budget must be adopted by June 30 and that a special meeting could be held for the budget adoption if it were revised. Mr. O'Grady stated that he understood Ms. Kusek's concern but believed that the budget and rates had been well presented by staff and that the Board should not waiver in its goal of building pay go capital. He again expressed concern that the consumption numbers used for the budget might be low and perhaps that figure could be revisited. Ms. Wolf stated that she believed the budget had been well-vetted and should move forward. Mr. Norris moved to approve the FY18 Budget as presented by staff and recommended by the Finance Committee. Ms. Wolf seconded the motion. Ms. Wolf, Ms. Adams, and Messrs. Davis, Cape Fear Public Utility Authority Page 4 MinutesAuthority BoardJune 14, 2017 Sneeden, O'Grady, Rivenbark, Norris, and Carder voted in favor of the motion. Ms. Kusek and Mr. Brown were opposed. The motion carried, eight to two. VII. CONSENT AGENDA 1. Audit Services Contract RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Vice-Chair SECONDER: Kevin O'Grady, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Corder EXCUSED: Watkins 2. Authorization for the Executive Director to Execute a $103,191.43 Contract Amendment with McKim & Creed, Inc. for the PS#9/11 and Water St. Infrastructure Improvements Project. RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Vice-Chair SECONDER: Kevin O'Grady, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Corder EXCUSED: Watkins 3. System Development Charges for Certain Mandatory Connections Areas RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Vice-Chair SECONDER: Kevin O'Grady, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Corder EXCUSED: Watkins 4. Amendment to U.S. Highway 421 Utilities Design, Permitting and ROW Acquisitions Interlocal Agreement RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Vice-Chair SECONDER: Kevin O'Grady, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Corder EXCUSED: Watkins 5. Budget Ordinance 17-011 Related to the Amendment to the U.S. Highway 421 ILA Cape Fear Public Utility Authority Page 5 MinutesAuthority BoardJune 14, 2017 RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Vice-Chair SECONDER: Kevin O'Grady, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Corder EXCUSED: Watkins 6. Authorization for the Executive Director to Execute a Sewer Capacity Reservation Agreement with Whiskey Navajo Development Partners, LLC for the Whiskey Branch Subdivision RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Vice-Chair SECONDER: Kevin O'Grady, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Corder EXCUSED: Watkins 7. Authorization for the Executive Director to Execute a $120,000 Contract Amendment with Black and Veatch for the Collection System Infiltration and Inflow Monitoring Project RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Vice-Chair SECONDER: Kevin O'Grady, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Corder EXCUSED: Watkins 8. Ordinance Revision for Capacity Allocations for Reimbursement Agreements RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Vice-Chair SECONDER: Kevin O'Grady, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Corder EXCUSED: Watkins 9. Authorization for the Executive Director to Execute a $1,560,000 Contract with McKim & Creed for the Kings Bluff Raw Water Transmission Main Project Cape Fear Public Utility Authority Page 6 MinutesAuthority BoardJune 14, 2017 RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Vice-Chair SECONDER: Kevin O'Grady, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Corder EXCUSED: Watkins 10. Authorize the Executive Director to Execute a $400,000 Change Order with CaJenn Construction Company for the Find it-Fix it Echo Farms & Basin 36 Outfalls Gravity Sewer Rehab RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Vice-Chair SECONDER: Kevin O'Grady, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Corder EXCUSED: Watkins 11. Acquisition of 3900 River Road RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Vice-Chair SECONDER: Kevin O'Grady, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Corder EXCUSED: Watkins 12. Heavy Duty Vehicle & Trailer Maintenance Contract RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Vice-Chair SECONDER: Kevin O'Grady, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Corder EXCUSED: Watkins 13. Enterprise Software Replacement Project Change Order 001 RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Vice-Chair SECONDER: Kevin O'Grady, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Corder EXCUSED: Watkins 14. HGACBuy Interlocal Contract For Cooperative Purchasing Cape Fear Public Utility Authority Page 7 MinutesAuthority BoardJune 14, 2017 RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Vice-Chair SECONDER: Kevin O'Grady, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Corder EXCUSED: Watkins 15. Write Off June 2017 RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Vice-Chair SECONDER: Kevin O'Grady, Councilman AYES: Brown, Adams, Sneeden, Norris, Wolf, Davis, Kusek, Rivenbark, O'Grady, Corder EXCUSED: Watkins VIII. NEW BUSINESS There was no new business. A. Administrative Reports i. Attorney's Report Ms. Miles had no report for open session but requested a closed session to receive Board direction on a real property negotiation and advice from legal counsel regarding a claim. ii. Executive Director's Report The monthly reportd were in the Agenda packet. There were no questions from the Board. 1. Environmental Report RESULT: REVIEWED 2. Safety Report RESULT: REVIEWED 3. Key Indicators Report RESULT: REVIEWED B. Committee Reports i. Executive Committee 1. Minutes of the Executive Committee June 7, 2017 Cape Fear Public Utility Authority Page 8 MinutesAuthority BoardJune 14, 2017 RESULT: REVIEWED ii. Communications Committee 1. Communications Committee Minutes RESULT: REVIEWED iii. Long Range Planning Committee Mr. Vandermeyden presented a walk-in item and requested approval. The item was an Interlocal Agreement with New Hanover County for a preliminary engineering report for the G.E./I-140 area water line. Ms. Kusek moved to approve the item. Mr. Davis seconded the motion, and it passed unanimously. Mr. McLean presented the supporting budget ordinance recognizing appropriations of $60,000 from the County. Ms. Wolf moved to approve the budget ordinance. Mr. Norris seconded the motion, and it passed unanimously. 1. Long Range Planning Committee - Regular - May 25, 2017 3:00 PM RESULT: NO ACTION REQUIRED iv. Finance Committee 1. Finance Committee - Regular Meeting - Jun 7, 2017 9:00 AM RESULT: NO ACTION REQUIRED 2. June Finance Report and Customer Service Update Mr. McLean presented the May financial data and two new reports from the Finance Committee and answered clarification questions. RESULT: NO ACTION REQUIRED IX. OLD BUSINESS There was no old business. X. CLOSED SESSION Mr. Rivenbark moved to enter into closed session to discuss and direct staff and legal counsel regarding real property negotiations and to discuss a claim potential claim and receive advice from legal counsel. Ms. Kusek seconded the motion, and it passed unanimously. The Board entered closed session at 10:07 AM. Mr. Rivenbark moved to return to open session. Ms. Kusek seconded the motion, and the Board returned to open session at 10:59 AM. Cape Fear Public Utility Authority Page 9 MinutesAuthority BoardJune 14, 2017 XI.AUTHORITY Q&A / CLOSING COMMENTS There were no closing comments. XII. ADJOURN Mr. Norris moved to adjourn. Mr. O'Grady seconded the motion, and it passed unanimously. The Board adjourned at 11:00 AM. The next regular meeting of the Cape Fear Public Utility Authority will be Wednesday, July 12, 2017. The Board will meet in the Lucie Harrell Conference Room, 230 Government Center Drive, Wilmington, North Carolina, at 9:00 AM. Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 10