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HomeMy WebLinkAbout2018-02-14 Regular Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES FEBRUARY 14, 2018 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 with a quorum present. Mr. O'Grady moved to excuse Ms. Wolf until her arrival. Mr. Norris 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 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 Present Authority Larry Sneeden Cape Fear Public Utility Board Member Present Authority Cindee Wolf Cape Fear Public Utility Board Member Present 9:02 Authority AM Patricia Kusek Cape Fear Public Utility Commissioner/Board Member Present Authority Charlie Rivenbark Cape Fear Public Utility Councilman/Board Member Present Authority Kevin O'Grady Cape Fear Public Utility Councilman/Board Member Present Authority Skip Watkins Cape Fear Public Utility Commissioner/Board Member Present Authority Deans Hackney Cape Fear Public Utility Board Member Present Authority Jim Flechtner Cape Fear Public Utility Executive Director Present Authority Linda Miles Miles Firm PLLC CFPUA Consulting Attorney Present 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 Cape Fear Public Utility Authority Page 1 MinutesAuthority BoardFebruary 14, 2018 Authority Lindsey Hallock Cape Fear Public Utility Director of Public and Present Authority Environmental Policy Denise Matroni Cape Fear Public Utility HR Director Present Authority Carel Cape Fear Public Utility Director of Engineering Present Vandermeyden Authority John McLean Cape Fear Public Utility Chief Financial Officer Present Authority Karen Durso Cape Fear Public Utility Property Acquisition Specialist Present Authority BillyJo Winslett Cape Fear Public Utility Human Resources Assistant Present Authority Donna Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board Beth Kline- Present Markesino Dorothy Coleman Present James Kadner Present Harper Peterson Present Heidi Cox NC Public Water Supply Present Jim Iannucci New Hanover County Present Engineering III. ADOPTION OF AGENDA Mr. Rivenbark moved to adopt the day's agenda. Mr. O'Grady seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Jan 10, 2018 9:00 AM RESULT: ACCEPTED \[UNANIMOUS\] MOVER: William Norris, Treasurer SECONDER: Kevin O'Grady, Councilman/Board Member AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney V. OATH OF OFFICE Ms. Durso administered the oath of office as an Authority member to Mr. Hackney. Mr. Brown welcomed Mr. Hackney to the Board. VI. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER Mr. Kadner requested that he be allowed to disconnect from CFPUA's water due to health concerns. Mr. Peterson requested that CFPUA send an updated letter to customers regarding water quality, the UNC-W study, and actions being taken at the state, federal, and court levels. Cape Fear Public Utility Authority Page 2 MinutesAuthority BoardFebruary 14, 2018 Ms. Coleman spoke regarding billing issues and her experience with customer service staff. Mr. Brown requested staff to assist Ms. Coleman. Ms. Kline-Markesino spoke regarding the unregulated compound issue and the importance of partnership between CFPUA and the community. She urged those present to contact state officials and hold discharging companies responsible. She thanked CFPUA Board and staff for their work and dedication. VII. SPEAKER UPDATE FROM THE JANUARY 10 BOARD MEETING Mr. Flechtner reported that the customer billing issue from the January meeting had been resolved. VIII. CONSENT AGENDA Mr. O'Grady asked for clarification on Item 3 and discussion on Item 6. Mr. Rivenbark moved to approve the Consent Agenda, excepting Items 3 and 6. Ms. Adams seconded the motion, and it passed unanimously. 1. Authorization for the Executive Director to Execute a $253,425 Cost Sharing Agreement Amendment with Water Street Ventures, LLC for Participation with Water and Sewer Improvements Associated with the River Place Development RESULT: ADOPTED \[UNANIMOUS\] MOVER: Charlie Rivenbark, Councilman/Board Member SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 2. Approval of Leak Adjustment Ordinance Revisions RESULT: ADOPTED \[UNANIMOUS\] MOVER: Charlie Rivenbark, Councilman/Board Member SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 3. Ordinance Reducing Capital Project Appropriations and Estimated Revenues Mr. O'Grady requested clarification on the item. Mr. McLean explained that funds had accumulated in the capital budget, and the Budget Ordinance reallocated funds. Mr. O'Grady moved to approve the item. Mr. Rivenbark seconded the motion, and it passed unanimously. Cape Fear Public Utility Authority Page 3 MinutesAuthority BoardFebruary 14, 2018 RESULT: ADOPTED \[UNANIMOUS\] MOVER: Kevin O'Grady, Councilman/Board Member SECONDER: Charlie Rivenbark, Councilman/Board Member AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 4. Approval of New Capital Project for the Water Meter Relocation Program RESULT: ADOPTED \[UNANIMOUS\] MOVER: Charlie Rivenbark, Councilman/Board Member SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 5. Ordinance Revision with Criteria for Grinder Pump and Low Pressure Sewer Use RESULT: ADOPTED \[UNANIMOUS\] MOVER: Charlie Rivenbark, Councilman/Board Member SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 6. Recommendation to Approve Policy for Cost Recovery Projects Mr. O'Grady stated that the policy that it seemed contrary to the financial policies adopted in 2017 and questioned the use of bonds. Mr. Vandermeyden reported that developers would be providing the bonds. Ms. Miles stated that CFPUA would only use the policy when the project would benefit its system and the community. Following a brief discussion, Ms. Wolf moved to approve the item, and Ms. Kusek seconded the motion. Ms. Adams, Ms. Kusek, Ms. Wolf, and Messrs. Brown, Norris, Sneeden, Corder, Watkins, Rivenbark, and Hackney voted in favor of the motion. Mr. O'Grady was opposed. Motion carried, ten to one. RESULT: ADOPTED \[10 TO 1\] MOVER: Cindee Wolf, Board Member SECONDER: Patricia Kusek, Commissioner/Board Member AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, Watkins, Hackney NAYS: O'Grady 7. Adoption of a Resolution Authorizing the Executive Director to execute a Temporary Construction Easement Deed for the NCDOT Market St. Widening Project Cape Fear Public Utility Authority Page 4 MinutesAuthority BoardFebruary 14, 2018 RESULT: ADOPTED \[UNANIMOUS\] MOVER: Charlie Rivenbark, Councilman/Board Member SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 8. Emergency Construction Contract RESULT: ADOPTED \[UNANIMOUS\] MOVER: Charlie Rivenbark, Councilman/Board Member SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 9. Authorization for Executive Director to Sell 101 Little Creek Road to the Highest Qualified Bidder RESULT: ADOPTED \[UNANIMOUS\] MOVER: Charlie Rivenbark, Councilman/Board Member SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 10. Authorize the Executive Director to execute the contract amendment with Cape Fear Engineering in the amount of $9,500 for the Water Sampling Stations Project Phase 1. RESULT: ADOPTED \[UNANIMOUS\] MOVER: Charlie Rivenbark, Councilman/Board Member SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 11. Authorize the Executive Director to execute a $82,925 change order to the construction contract with A.C. Schultes for the Water Sampling Stations Project Phase 1. RESULT: ADOPTED \[UNANIMOUS\] MOVER: Charlie Rivenbark, Councilman/Board Member SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 12. Wireless Communications Sole Source Contract Approval for Pump Station SCADA Upgrades Cape Fear Public Utility Authority Page 5 MinutesAuthority BoardFebruary 14, 2018 RESULT: ADOPTED \[UNANIMOUS\] MOVER: Charlie Rivenbark, Councilman/Board Member SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 13. Authorization for the Executive Director to Execute a $295,702 Design Build Contract with Garney Construction Company for the Southside Wastewater Treatment Plant Ultra Violet Disinfection Project RESULT: ADOPTED \[UNANIMOUS\] MOVER: Charlie Rivenbark, Councilman/Board Member SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 14. Authorization for the Executive Director to Execute a $15,000 Contract Amendment with HDR Engineering, Inc. for the Pump Station 10 Maintenance Bypass Pump System Project. RESULT: ADOPTED \[UNANIMOUS\] MOVER: Charlie Rivenbark, Councilman/Board Member SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney IX. NEW BUSINESS A. Administrative Reports i. Attorney's Report Ms. Miles had no report for open session. She requested a closed session to discuss Chisum v. CFPUA, CFPUA v. Chemours, DuPont, and DEQ, and a claim against CFPUA. ii. Executive Director's Report Mr. Flechtner reported that CFPUA has created a Public and Environmental Policy department. Ms. Hallock will head the department, and one of its goals will be working with advisory and community groups. Mr. Flechtner answered questions regarding peak days for effluent flows. 1. Environmental Report Cape Fear Public Utility Authority Page 6 MinutesAuthority BoardFebruary 14, 2018 RESULT: REVIEWED 2. Key Indicators Report RESULT: REVIEWED 3. Safety Report RESULT: REVIEWED B. Committee Reports i. Executive Committee 1. Minutes of the February 7, 2018 Executive Committee Meeting RESULT: REVIEWED 2. CFPUA Board Resolution Messrs. Brown and Flechtner presented the item. Despite the Consent Order with North Carolina Department of Environmental Quality (DEQ), GenX discharges are still found in the Cape Fear River. The Executive Committee recommended a resolution requesting that DEQ immediately require all tenants of the Fayetteville Works site to cease operations resulting in the production of fluorochemical compounds. Mr. Rivenbark moved the Resolution. Ms. Kusek seconded the motion, and it passed unanimously. The Board directed staff to share the Resolution with the City, County, and other local governments receiving water from the river. RESULT: ADOPTED \[UNANIMOUS\] MOVER: Charlie Rivenbark, Councilman/Board Member SECONDER: Patricia Kusek, Commissioner/Board Member AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney ii. Long Range Planning Committee 1. Long Range Planning Committee - Regular - Jan 25, 2018 3:00 PM RESULT: NO ACTION REQUIRED 2. Raw Water Capacity Allocation Cape Fear Public Utility Authority Page 7 MinutesAuthority BoardFebruary 14, 2018 Mr. Vandermeyden presented the item. He reported that thecurrent available flow from the Cape Fear River is 106 million gallons per day (MGD). Lower Cape Fear Water & Sewer Authority (LCFWASA) receives 96 MGD through its line, and CFPUA 10 MGD through its Kings Bluff line. CFPUA currently receives 10 MGD from its line and 23 MGD from LCFWASA. Historically, the two agencies have been recognized as each having an allocation of 53 MGD daily. Modeling and projections indicate a demand of 118.6 MGD by the year 2062. In order to keep the future demand below 106 MGD, each entity using raw water from the river has agreed to reduce its allocation. CFPUA has agreed to reduce its allocation from 53 MGD to 48 MGD, Pender County to 5 MGD, and Brunswick County to 26 MGD. Staff answered questions from Board members regarding the reductions in demand, CFPUA's needs, and Pender County's interbasin transfer request. Messr. Watkins and Sneeden observed that the allocation discussion created a good compromise and exhibited a cooperative regional approach to water needs. Mr. Rivenbark stated that LCFWASA's planned construction of a 54-inch parallel raw water transmission main instead of 60 inches gave him some concern. Mr. Watkins agreed but stated that the 60-inch line's capacity would require additional permitting from the state. Mr. O'Grady recommended that CFPUA and other governmental units in Lower Cape Fear region encourage upstream users to review their capacity demands and come to an agreement regarding allocations. Ms. Wolf and Mr. Rivenbark reminded the Board that reclaimed water should be considered in the future. RESULT: REVIEWED iii. Finance Committee 1. Finance Committee - Regular Meeting - Feb 7, 2018 9:00 AM RESULT: NO ACTION REQUIRED 2. February Finance Update Mr. McLean presented the January financial data and answered questions from Board members. Revenues exceeded expenditures by approximately $2.3 million. The unrestricted fund balance is $114 million. System Development Charges (SDCs) and miscellaneous revenues are above budget. Mr. McLean reviewed the FY2019 budget calendar. The recommended SDCs are published on the website. The recommended water SDC is $2,400, an increase Cape Fear Public Utility Authority Page 8 MinutesAuthority BoardFebruary 14, 2018 of $240, and the recommended sewer SDC is $1,800, a decrease of $330. The April Board meeting will include a hearing on the SDCs. The May Board meeting will include the FY2019 Budget hearing. RESULT: NO ACTION REQUIRED 3. Customer Service Update Mr. Flechtner introduced the customer service update and praised employees for their hard work and dedication. Ms. Irick reported that IT has installed 12 additional phone lines for the 235 Government Center Drive office building. Upgrades for the phone system will include virtual hold technology where customers can receive a call back without using their place in the call queue and transfers to different divisions for quicker solutions. Coaching and training software will be included, as well as a "live chat" option on the website, and additional self-service options. Staff recommended eliminating the voice mail option to avoid duplication of calls. Ms. Irick answered questions from Board members regarding customer service data. The call center handled over 7,100 calls in January. Customer Service received over $126,000 in 2017. RESULT: REVIEWED 4. Enterprise Resource Planning (ERP) Implementation Project Update Mr. McLean reported on progress of the Enterprise Resource Planning project (ERP). Phase 1 of the three-phase project is completed. CFPUA and the vendor have agreed to "flip" phases 2 and 3 to accommodate the software migration to Microsoft's cloud platform. The vendor will make CFPUA whole for any expenses incurred for extended deadlines. RESULT: REVIEWED Next: 3/8/2018 9:00 AM X. OLD BUSINESS There was no old business. XI. AUTHORITY Q&A / CLOSING COMMENTS There were no additional comments. XII. CLOSED SESSION Mr. Norris moved to enter closed session to discuss Chisum v. CFPUA, CFPUA v. Chemours, DuPont, and DEQ, and a claim. Mr. Watkins seconded the motion, and it passed unanimously. The Board entered closed session at 10:40 AM. Cape Fear Public Utility Authority Page 9 MinutesAuthority BoardFebruary 14, 2018 Ms. Miles and Mr. Flechtner reported to the Board regarding the lawsuits and a claim. They received direction from the Board. Following discussion, Mr. O'Grady moved to return to open session. Mr. Brown seconded the motion, and it passed unanimously. XIII. ADJOURN Mr. Norris moved to adjourn. Mr. Rivenbark seconded the motion, and it passed unanimously. The meeting adjourned at 11:35 AM. The next regular CFPUA meeting will be Wednesday, March 14, at 9:00 AM. The Board will meet in the 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 10