Loading...
HomeMy WebLinkAbout2018-04-11 Regular Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES APRIL 11, 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. Rivenbark moved to excuse Mr. Norris from the meeting and Messrs. Watkins and Hackney until their arrival. Ms. Kusek seconded the motion, and it passed unanimously. Messrs. Hackney and Watkins arrived at 9:02 AM. 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 Excused Authority Larry Sneeden Cape Fear Public Utility Board Member Present Authority Cindee Wolf Cape Fear Public Utility Board Member Present Authority Patricia Kusek Cape Fear Public Utility Commissioner Present Authority Charlie Rivenbark Cape Fear Public Utility Councilmember Present Authority Kevin O'Grady Cape Fear Public Utility Councilmember Present Authority Skip Watkins Cape Fear Public Utility Commissioner 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 Carel Cape Fear Public Utility Director of Engineering Present Vandermeyden Authority John McLean Cape Fear Public Utility Chief Financial Officer Present Authority Cape Fear Public Utility Authority Page 1 MinutesAuthority BoardApril 11, 2018 Beth Eckert Cape Fear Public Utility Director of EMD Present Authority Denise Matroni Cape Fear Public Utility HR Director Present Authority Peg Hall-Williams Cape Fear Public Utility Chief Communication Officer Present Authority Gary McSmith Cape Fear Public Utility Asst. Director of Engineering Present Authority BillyJo Winslett Cape Fear Public Utility Human Resources Assistant Present Authority Erin Tremblay Cape Fear Public Utility Policy Specialist Present Authority Donna S. Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board Ray Cox Highfill Infrastructure Present Beth Markesino Present Heidi Cox Division of Water Quality Present George House Brooks Pierce law firm Present III. ADOPTION OF AGENDA Ms. Kusek 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 - Mar 14, 2018 9:00 AM RESULT: ACCEPTED \[UNANIMOUS\] SECONDER: Kevin O'Grady, Deans Hackney AYES: Brown, Corder, Adams, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Norris V. PUBLIC HEARING 1. Adoption of System Development Charges for Fiscal Year 2018-2019 Mr. McLean presented the Fiscal Year 2019 recommended system development charges. North Carolina law now specifies parameters for the establishment of the charges and requires a public hearing. Mr. McLean explained the methodology and calculation used to determine the SDCs. The calculation analyzes existing infrastructure costs and does not include any future system expansion. The calculation determines the equity held by existing and potential customers and assigns a value to be paid by future customers. The methodology uses the depreciated cost of infrastructure and does not include debt service, conveyed property, items paid for by grants or third parties. The equity value is divided by the projected number of new and existing equivalent residential units (ERU) for the next fiscal year. An ERU is defined as a 5/8-inch water meter. Cape Fear Public Utility Authority Page 2 MinutesAuthority BoardApril 11, 2018 The FY19 water SDC is $1,830, which is $240 more than FY18. The FY19 sewer SDC is $1,800, which is $330 less than FY18. Most new customers pay both water and sewer SDCs and would realize a $90 net savings over FY18. Mr. McLean answered questions from Board members regarding the projected number of ERUs for FY19, grant funding, and New Hanover County participation in sewer projects. Mr. Brown called the public hearing to order at 9:25. There were no speakers. Mr. Rivenbark moved to close the public hearing. Ms. Kusek seconded the motion, and it passed unanimously. The public hearing closed at 9:25 AM. Mr. Brown recommended that the Board delay the vote on the FY19 SDCs until the May meeting so that staff could provide feedback on Board questions. The Board agreed. RESULT: NO ACTION REQUIRED Next: 5/2/2018 9:00 AM VI. WATER QUALITY UPDATE Mr. Flechtner presented the water quality report. Levels of GenX remain below the NC Health and Human Services health goal of 144 parts per trillion (ppt). The health goal considers the safe lifetime exposure of a compound for the most vulnerable citizens. He reported that GenX is only one of the unregulated compounds or contaminants that can be found in water sources. CFPUA has two water stations available where customers may fill their own containers with groundwater at no cost to them. A station has been opened at Veteran' Park in the southern part of the county in addition to the site at the Ogden Park. The water stations are open from 8:00 AM to 8:00 PM daily. Customers have taken approximately 200 gallons daily from the Ogden water station. That site will be upgraded into a more permanent installation. Work continues on the Aquifer Storage and Recovery project. Water stored in the ASR has been removed and treated at Southside Wastewater plant. Water in the ASR is at 28 ppt for GenX, and groundwater near Wrightsville Beach's #11 well is at 48 ppt. Staff is working with state regulatiors to determine how and when the ASR can be placed in use again. Water sampling at Sweeney tests for 20 per-fluorinated compounds that have standards. Levels of ten other compounds are being estimated because there are no testing methods for those substances. GenX is 12 percent of the per-fluorinated compounds in Sweeney water. UNC-W scientists sample raw and finished water at the Sweeney plant weekly. They have detected five new compounds that have not previously been reported upon in scientific literature. CFPUA should receive the university's final report this summer. We do not know the effects of non-point sources on contaminant levels in the river, the potential for accumulation of compounds in CFPUA's facilities and transmission system, and the effects of accumulation in the environment. The pilot study of additional treatment options at the Sweeney plant is nearing its final stages. While the ultimate answer is to keep Cape Fear Public Utility Authority Page 3 MinutesAuthority BoardApril 11, 2018 contaminants out of raw water from their sources, the pilot study will help the Board and staff chart a path forward regarding treatment of water from the river. Granular activated carbon filtering (GAC) and ion exchange show effectiveness in removing per-fluorinated compounds from water. GAC is the most promising option for the Sweeney plant. No existing technology can remove 100 percent of contaminants from the finished water. Staff anticipates making treatment recommendations to the Board at the May meeting. Staff makes weekly updates to the community and media outlets and will do more frequent updates as needed. CFPUA looks forward to working with community groups and citizens to address concerns and provide optimal drinking water. Mr. Flechtner answered questions from Board members concerning treatment options and other utilities in similar situations. He reported that, to his knowledge, CFPUA is the only utility in the state conducting the studies and a pilot treatment programs. Some utilities in other parts of the country use GAC technology. In order to function properly, reverse osmosis (RO) requires a larger volume of source water than CFPUA can draw from the river. VII. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER Ms. Markesino spoke regarding water quality and unregulated compounds. She urged CFPUA to continue interacting with customers and partnering with the community. VIII. SPEAKER UPDATE FROM THE MARCH 14, 2018 BOARD MEETING Mr. Flechtner reported that Ms. Miles has contacted legal counsel for the March speaker and would update the Board in closed session. IX. CONSENT AGENDA Following clarification on Item 10, Mr. Sneeden moved to approve the Consent Agenda. Ms. Kusek seconded the motion, and it passed unanimously. 1. Authorization for the Executive Director to Execute a $2,374,844.09 Construction Contract with Pedal Valves, Inc. for the Comprehensive Meter Replacement Phase 3 project. RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden, Board Member SECONDER: Patricia Kusek, Commissioner AYES: Brown, Corder, Adams, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Norris 2. Authorization for the Executive Director to execute a $360,010 contract with Cape Fear Engineering for the Comprehensive Meter Replacement Phase 3 project. Cape Fear Public Utility Authority Page 4 MinutesAuthority BoardApril 11, 2018 RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden, Board Member SECONDER: Patricia Kusek, Commissioner AYES: Brown, Corder, Adams, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Norris 3. Authorization for the Executive Director to Execute a $66,500 Contract Amendment with WithersRavenel for Construction Administration and Construction Observation for the Quail Woods Pump Station 137 Decommission Project. RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden, Board Member SECONDER: Patricia Kusek, Commissioner AYES: Brown, Corder, Adams, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Norris 4. Authorization for the Executive Director to Execute a $355,524 Construction Contract with Carolina Civilworks for the Pump Station 137 Quail Woods Decommission Project. RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden, Board Member SECONDER: Patricia Kusek, Commissioner AYES: Brown, Corder, Adams, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Norris 5. Colony Tire Contract Amendment RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden, Board Member SECONDER: Patricia Kusek, Commissioner AYES: Brown, Corder, Adams, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Norris 6. Veterans Park Elevated Water Tank Improvements Cape Fear Public Utility Authority Page 5 MinutesAuthority BoardApril 11, 2018 RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden, Board Member SECONDER: Patricia Kusek, Commissioner AYES: Brown, Corder, Adams, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Norris 7. Resolution - Sale of Aqua-Tec Combination Vacuum/Jet Truck RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden, Cindee Wolf SECONDER: Patricia Kusek, Commissioner AYES: Brown, Corder, Adams, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Norris 8. Audit Services Contract RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden, Board Member SECONDER: Patricia Kusek, Commissioner AYES: Brown, Corder, Adams, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Norris 9. Insurance Broker and Risk Management Services RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden, Board Member SECONDER: Patricia Kusek, Commissioner AYES: Brown, Corder, Adams, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Norris 10. Authorization for the Executive Director to Execute a $304,517 Construction Contract with Baker Roofing Company for the EMD Roof Replacement Project. Mr. Vandermeyden answered clarification questions about the contract. Cape Fear Public Utility Authority Page 6 MinutesAuthority BoardApril 11, 2018 RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden, Board Member SECONDER: Patricia Kusek, Commissioner AYES: Brown, Corder, Adams, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Norris X. 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, the Chisom v. CFPUA case, and CFPUA v. Chemours, DuPont, and the state. She reported that the HR Committee needed to discuss a personnel item in closed session. ii. Executive Director's Report Mr. Flechtner reported that the key indicator report, quarterly CIP update, safety and environmental reports were in the agenda packet. There were no question on the reports. 1. Key Indicators Report RESULT: REVIEWED 2. Quarterly CIP Report RESULT: REVIEWED 3. Environmental Report RESULT: REVIEWED 4. Safety Report RESULT: REVIEWED B. Committee Reports i. Executive Committee 1. Minutes of the April 4, 2018 Executive Committee Meeting Cape Fear Public Utility Authority Page 7 MinutesAuthority BoardApril 11, 2018 RESULT: NO ACTION REQUIRED ii. Long Range Planning Committee 1. Long Range Planning Committee - Regular - Mar 22, 2018 3:00 PM RESULT: NO ACTION REQUIRED 2. FY-2019 Capital Improvements Plan Approval Mr. Vandermeyden presented the recommended FY19 capital projects. The budget is $54.9 million, and $29.3 million will be reimbursed by grants. 75 percent of the projects address aging infrastructure. The budget includes treatment enhancements for the Sweeney Water Treatment Plant. Mr. Rivenbark commended staff on the risk assessment matrix used to prioritize projects. Ms. Adams moved to adopt the FY19 CIP. Mr. Sneeden seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Secretary SECONDER: Larry Sneeden, Board Member AYES: Brown, Corder, Adams, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Norris iii. Finance Committee 1. Finance Committee - Regular Meeting - Apr 4, 2018 9:00 AM RESULT: NO ACTION REQUIRED 2. Monthly Financials Mr. McLean reported that revenues exceed expenditures by $3.4 million. Investment earnings, SDCs, and other revenues are above budget. A trend of less consumption per equivalent residential unit continues, but the number of customers has increased. CFPUA has spent $1.7 million on GenX-related expenses. $185,000 of GenX- related expenses was paid by a state grant. CFPUA has spent $320,500 on the removal of water from the aquifer storage site. RESULT: REVIEWED Next: 5/2/2018 9:00 AM 3. Customer Service Report Cape Fear Public Utility Authority Page 8 MinutesAuthority BoardApril 11, 2018 Ms. Irick updated the Board on customer service initiatives. New hires are on board, the work area has been renovated to accommodate them, and staff is training under an AWWA program that will provide customer service certification. She reported that the organization is shifting from being a utility that provides customer service to "a customer service organization that provides utilities." Board members praised the philosophical refresh. RESULT: REVIEWED 4. FY19 Preliminary Budget Review Mr. Flechtner introduced the budget review. After adjusting for inflation, CFPUA's operating budget has not increased in its ten years of operation. Sanitary sewer overflows have been reduced by 94 percent. Mr. McLean presented the expenditure budget recommended for FY19, beginning July 1, 2018. The budget of $81,710,993 follows the financial policies adopted by the Board, supporting pay-go capital funding. The FY19 budget is the first budget not to designate contingency funds. The reserve policy is designed to address emergency funding needs. The recommended budget includes a 1.5 percent market or cost of living adjustment for employees and a 2.5 percent merit pool. Debt service will decrease by $1.1 million. Mr. McLean presented a breakdown of the budget by department and showed the increase per department over FY18. The administration budget will increase by $500,000 to cover legal fees, much of which is related to the GenX issues. The recommended rate increase is 2.23 percent, equaling $2.82 every two months on the average bill. $1.43 of that increase can be attributed to GenX response. Staff answered questions from Board members regarding departmental budgets. Mr. McLean reviewed the remaining items on the budget calendar, and the Board provided input regarding the time and date of the budget hearing. RESULT: REVIEWED Next: 5/2/2018 9:00 AM iv. Human Resources Committee 1. Minutes of the March 22, 2018 Human Resources Committee RESULT: NO ACTION REQUIRED 2. Resolution to adopt updated Employee Personnel Policy and Procedures Manual Cape Fear Public Utility Authority Page 9 MinutesAuthority BoardApril 11, 2018 Ms. Matroni presented the revised and updated personnel manual. Following clarification questions on retirement contributions, Ms. Wolf moved the item as an HR Committee recommendation. Mr. O'Grady seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Cindee Wolf, Board Member SECONDER: Kevin O'Grady, Councilmember AYES: Brown, Corder, Adams, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Norris XI. OLD BUSINESS There was no old business. XII. AUTHORITY Q&A / CLOSING COMMENTS There were no questions or closing comments from Board members. XIII. CLOSED SESSION Mr. Rivenbark moved to enter into closed session to discuss CFPUA v. Chemours and DuPont, Chisum v. CFPUA, a claim against CFPUA, and a personnel item. Mr. Sneeden seconded the motion, and it passed unanimously. The Board entered closed session at 10:45 AM. The Board received reports from legal counsel and provided direction to counsel. The Board discussed a personnel item. Following the discussion, Mr. Watkins moved to return to open session. Ms. Kusek seconded the motion, and it passed unanimously. The Board returned to open session at 12:01 PM. XIV. ADJOURNMENT There was no further business to come before the Board, and Ms. Kusek moved to adjourn. Mr. Sneeden seconded the motion, and it passed unanimously. The meeting adjourned at 12:01 PM. The next regular meeting of CFPUA will be Wednesday, May 9, 2018. The Board will meet in the Lucie Harrell Conference Room, New Hanover County building, 230 Government Center Drive, Wilmington, North Carolina, and the meeting will begin at 9:00 AM. Respectfully submitted, Donna S. Pope Cape Fear Public Utility Authority Page 10