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HomeMy WebLinkAbout2018-06-13 Regular Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES JUNE 13, 2018 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 and declared a quorum present. Ms. Wolf moved to excuse Messrs. Norris, Sneeden, and Watkins. Mr. Rivenbark seconded the motion, and it passed unanimously. 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 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 Deans Hackney Cape Fear Public Utility CFPUA 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 Cape Fear Public Utility Customer Service Director Present Authority Peg Hall-Williams Cape Fear Public Utility Chief Communication Officer Present Authority Denise Matroni Cape Fear Public Utility HR Director Present Cape Fear Public Utility Authority Page 1 MinutesAuthority BoardJune 13, 2018 Authority Carel Cape Fear Public Utility Director of Engineering Present Vandermeyden Authority John McLean Cape Fear Public Utility Chief Financial Officer Present Authority BillyJo Winslett Cape Fear Public Utility Human Resources Assistant Present Authority Linda Miles Miles Firm, PLLC CFPUA Consulting Attorney Present Donna Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board Beth Markesino Present Harper Peterson Present Heidi Cox NC Public Water Supply Present Dave Cowell City of Wilmington Present Teresa Loman Criser, Troutman Present III. ADOPTION OF AGENDA Ms. Kusek moved to adopt the day's agenda. Mr. Rivenbark seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - May 9, 2018 9:00 AM RESULT: ACCEPTED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Charlie Rivenbark AYES: Brown, Corder, Adams, Wolf, Kusek, Rivenbark, O'Grady, Hackney EXCUSED: Norris, Sneeden, Watkins V. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER Ms. Markesino shared her experience at Chemours' public information meeting in St. Pauls, NC, the night before. She thanked CFPUA Board and staff for their work to protect the environment and the drinking water supply. VI. SPEAKER UPDATE FROM THE MAY 9 BOARD MEETING No follow-up was needed for the May speakers. VII. CONSENT AGENDA 1. Authorization for the Executive Director to Execute a $89,500 Contract Amendment with WithersRavenel for Design and Bidding Services for the Castle Hayne Water Expansion. Cape Fear Public Utility Authority Page 2 MinutesAuthority BoardJune 13, 2018 RESULT: APPROVED \[UNANIMOUS\] MOVER: Charlie Rivenbark SECONDER: Patricia Kusek AYES: Brown, Corder, Adams, Wolf, Kusek, Rivenbark, O'Grady, Hackney EXCUSED: Norris, Sneeden, Watkins 2. Authorization for the Executive Director to Execute a $658,273.70 Construction Contract with Michels Corporation for the Find-It-Fix-It Downtown Gravity Sewer Rehabilitation Phase 2 Project. RESULT: APPROVED \[UNANIMOUS\] MOVER: Charlie Rivenbark SECONDER: Patricia Kusek AYES: Brown, Corder, Adams, Wolf, Kusek, Rivenbark, O'Grady, Hackney EXCUSED: Norris, Sneeden, Watkins 3. Authorization for the Executive Director to Execute a $30,000 Contract Amendment with McKim & Creed, Inc. for Forcemain 14 Design Coordination with the City's River Road Culvert Replacement Project RESULT: APPROVED \[UNANIMOUS\] MOVER: Charlie Rivenbark SECONDER: Patricia Kusek AYES: Brown, Corder, Adams, Wolf, Kusek, Rivenbark, O'Grady, Hackney EXCUSED: Norris, Sneeden, Watkins 4. Authorization for the Executive Director to execute a $108,800 contract with HDR, Inc. for a Preliminary Engineering Report for the Greenfield Lake Forcemain Evaluation project. RESULT: APPROVED \[UNANIMOUS\] MOVER: Charlie Rivenbark SECONDER: Patricia Kusek AYES: Brown, Corder, Adams, Wolf, Kusek, Rivenbark, O'Grady, Hackney EXCUSED: Norris, Sneeden, Watkins 5. Approval for Write Off of Uncollectible Accounts RESULT: APPROVED \[UNANIMOUS\] MOVER: Charlie Rivenbark SECONDER: Patricia Kusek AYES: Brown, Corder, Adams, Wolf, Kusek, Rivenbark, O'Grady, Hackney EXCUSED: Norris, Sneeden, Watkins 6. Johnson Controls Contract Amendment Cape Fear Public Utility Authority Page 3 MinutesAuthority BoardJune 13, 2018 RESULT: APPROVED \[UNANIMOUS\] MOVER: Charlie Rivenbark SECONDER: Patricia Kusek AYES: Brown, Corder, Adams, Wolf, Kusek, Rivenbark, O'Grady, Hackney EXCUSED: Norris, Sneeden, Watkins 7. Authorization for the Executive Director to Execute a $484,424.00 Construction Contract with AC Schultes of Carolina, Inc. for the Laney Outfall Manhole Rehabilitation Project RESULT: APPROVED \[UNANIMOUS\] MOVER: Charlie Rivenbark SECONDER: Patricia Kusek AYES: Brown, Corder, Adams, Wolf, Kusek, Rivenbark, O'Grady, Hackney EXCUSED: Norris, Sneeden, Watkins 8. Lab Testing Contracts RESULT: APPROVED \[UNANIMOUS\] MOVER: Charlie Rivenbark SECONDER: Patricia Kusek AYES: Brown, Corder, Adams, Wolf, Kusek, Rivenbark, O'Grady, Hackney EXCUSED: Norris, Sneeden, Watkins VIII. NEW BUSINESS A. Administrative Reports i. Attorney's Report Ms. Miles had no report but requested a closed session to discuss CFPUA v. Chemours and DuPont and a personnel matter. ii. Executive Director's Report Mr. Flechtner referred the Board to the key indicator, environmental, and safety report. He reported that accidents were up, and staff is investigating and will address the accident rate. 1. Key Indicators Report RESULT: REVIEWED 2. Environmental Report Ms. Eckert answered questions regarding the Ph figures at the Sweeney plant. Cape Fear Public Utility Authority Page 4 MinutesAuthority BoardJune 13, 2018 RESULT: REVIEWED 3. Safety Report RESULT: REVIEWED B. Committee Reports i. Executive Committee 1. Minutes of the June 6, 2018 Executive Committee Meeting Mr. Brown referred the Board to the June committee minutes. He reported that Ms. Kusek had joined the Communications Committee, creating a vacancy on the Finance Committee. Officers will be elected at the July Board meeting, and the Nominating Committee will be Ms. Kusek and Messrs. Rivenbark and Brown. Mr. Brown asked Board members to review their committee appointments and let Ms. Pope know if they wish to change committees or serve as an officer. RESULT: NO ACTION REQUIRED ii. Long Range Planning Committee There was no Long Range Planning Committee meeting in May. iii. Finance Committee The Finance minutes were in the packet, and Ms. Adams asked staff to present reports and the recommended budget. 1. Finance Committee - Regular Meeting - Jun 6, 2018 9:00 AM RESULT: NO ACTION REQUIRED 2. Customer Service Report Ms. Irick thanked Ms. Kusek for spending time in the Customer Service Department and extended an invitation to any Board member to do the same. She presented a "day in the life" of a customer service representative. The department has five new employees. Customer Service receives 1,542 voice mails and emails and 500 phone calls daily, with a 95.22 percent service level. RESULT: REVIEWED 3. June Finance Report Mr. McLean presented the May financial data. Revenues exceeded expenditures by $5.9 million. There will be a $4.5 million debt service payment in June. Cape Fear Public Utility Authority Page 5 MinutesAuthority BoardJune 13, 2018 Mr. McLean reported that there would be a surplus of cash at year's end. In accordance with CFPUA's financial policies, cash can be designated as a capital reserve, used to pay debt, used to fund retiree health care, or remain as undesignated fund balance. Mr. McLean will recommend that FY2018 surpluses be designated as capital reserve, in anticipation of Sweeney enhancements. Mr. McLean reported that CFPUA has spent $1.94 million to date on GenX, including the ASR project. $185,000 was paid by state grant. RESULT: NO ACTION REQUIRED 4. FY19 Recommended Budget and Public Hearing Mr. Flechtner introduced the FY2019 recommended budget. The budget provides the resources necessary to responsibly operate the water and sewer systems and meet customer needs. The budget takes direction from the Board's financial policies and is the leanest since CFPUA's assumption of operations in 2008. The budget supports CFPUA's mission to provide high quality services at the lowest practicable cost and reinforces the guiding principles of sustainability, stewardship, and service. Mr. McLean thanked staff, the Finance Committee, and the full Board for months of work and review to produce the budget. The FY2019 budget is $2.2 million more than FY2018. When compared to CFPUA's first budget in FY2008 with an adjustment for inflation, the budget is lower. The operating budget is $81,755,129, and the capital projects budget is $54,939,995. The budget includes salary adjustments, 4.25 new employees, and a required increase to the local government retirement system. $650,000 of the budget is allocated to GenX, most of which is estimated for legal fees. Debt service will decrease by $1.1 million from FY2018. Transfers to capital will increase over FY2018 by $1.8 million, for a total of $16.7 million in capital transfers. The budget does not include a contingency appropriation. The water fixed charge will increase by $0.89 for a 5/8-inch residential-sized meter; water use by $0.17 per 1,000 gallons; and sewer use by $0.05 per 1,000 gallons. The average residential customer will see an approximate annual increase of $16.44. Mr. Rivenbark moved to open the public hearing on the budget. Ms. Kusek seconded the motion, and it passed unanimously. Ms. Markesino asked for clarification that the proposed rate increases did not include funding for the Sweeney Water Treatment Plant granular activated charcoal filter enhancements related to GenX. She asked when the enhancement project would take place. Mr. Brown replied that a final project cost would not be available until project Cape Fear Public Utility Authority Page 6 MinutesAuthority BoardJune 13, 2018 design is complete, and he estimated 18 months before the project would begin. The current budget does not include rate increases for the plant enhancements, and CFPUA is working to recover project costs from Chemours. Ms. Markesino thanked Mr. Brown, the Board, and staff. There were no other speakers, and Mr. Rivenbark moved to close the public hearing. Mr. O'Grady seconded the motion, and it passed unanimously. Ms. Adams moved to adopt the budget for the fiscal year beginning July 1, 2018. Mr. O'Grady seconded the motion, and it passed unanimously. Mr. Brown thanked staff and the Finance Committee for their work on the budget. RESULT: ADOPTED \[UNANIMOUS\] MOVER: Jennifer Adams, Secretary SECONDER: Kevin O'Grady AYES: Brown, Corder, Adams, Wolf, Kusek, Rivenbark, O'Grady, Hackney EXCUSED: Norris, Sneeden, Watkins IX. OLD BUSINESS There was no old business. X. AUTHORITY Q&A / CLOSING COMMENTS Ms. Adams commended staff for CFPUA being released from the EPA Consent Decree. Mr. Flecthner reported that the decree stemmed from sewer overflows that happened before CFPUA's creation in 2007 and its assumption of operations in 2008. The decree outlined projects and programs that CFPUA undertook to safeguard the system and greatly reduce sewer overflows. Mr. Flechtner thanked the Board for supporting investments in the system and programs to address the Consent Decree. The completion of the work and release from the decree reflect on the hard work of staff and legal counsel. Ms. Miles reported that some utilities operate under consent decrees for many years, with some decrees never being terminated. She reported that the penalties assessed to CFPUA by the EPA were quite low. Mr. Brown thanked all for their dedication and work to complete the decree's requirements and improve the sewer system, recognizing past and present Boards, all CFPUA staff, Ms. Miles and Mr. House's law firm. XI. CLOSED SESSION Ms, Kusek moved to enter closed session to discuss CFPUA v. Chemours and DuPont and provide direction to legal counsel and to discuss a personnel matter. Mr. Rivenbark seconded the motion, and it passed unanimously. The Board entered closed session at 9:50 AM and took a ten-minute break. The closed session continued at 10:00 AM, received a report from Ms. Miles and provided her with direction. The Board then discussed a personnel matter and approved April and May closed session minutes. Cape Fear Public Utility Authority Page 7 MinutesAuthority BoardJune 13, 2018 Following discussion, Mr. Rivenbark moved to return to open session. Ms. Adams seconded the motion, and it passed unanimously. The Board returned to open session at 10:30 AM. Ms. Wolf moved to approve a 2 percent salary increase for Mr. Flechtner. Mr. O'Grady seconded the motion, and it passed unanimously. Ms. Kusek moved to adjourn. Ms. Wolf seconded the motion, and it passed unanimously. The meeting adjourned at 10:31 AM. The next regular CFPUA meeting will be Wedesday, July 11, 2018. The Board will meet in the Lucie Harrell Conference Room, New Hanover County Building, 230 Government Center Drive, Wilmington, North Carolina. The agenda for the meeting will be posted on the CFPUA website prior to the meeting. Respectfully submitted, Donna S. Pope Clerk to the Board XII. ADJOURNMENT Cape Fear Public Utility Authority Page 8