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HomeMy WebLinkAbout2019-05-08 Regular Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES MAY 8, 2019 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. Norris called the meeting to order at 9:00 AM with a quorum present. Ms. Adams moved to excuse Ms. Kusek and Messrs. Rivenbark, Corder, and Sneeden. Mr. O'Grady seconded the motion, and it passed unanimously. Attendee Name Organization Title Status Arrived William Norris Cape Fear Public Utility Chair Present Authority Wesley Corder Cape Fear Public Utility Vice-Chair Excused Authority Jennifer Adams Cape Fear Public Utility Secretary Present Authority Mike Brown Cape Fear Public Utility Treasurer Present Authority Jessica Cannon Cape Fear Public Utility Present Authority Larry Sneeden Cape Fear Public Utility Excused Authority Deans Hackney Cape Fear Public Utility Present Authority Patricia Kusek Cape Fear Public Utility Excused Authority Charlie Rivenbark Cape Fear Public Utility Excused Authority Kevin O'Grady Cape Fear Public Utility Present Authority Rob Zapple Cape Fear Public Utility 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 John McLean Cape Fear Public Utility Chief Financial Officer Present Authority Denise Matroni Cape Fear Public Utility HR Director Present Cape Fear Public Utility Authority Page 1 MinutesAuthority BoardMay 8, 2019 Authority Lindsey Hallock Cape Fear Public Utility Director of Public and Present Authority Environmental Policy BillyJo Winslett Cape Fear Public Utility Human Resources Assistant Present Authority Gary McSmith Cape Fear Public Utility Asst. Director of Engineering Present Authority Vaughn Hagerty Cape Fear Public Utility PIO Present Authority Linda Miles Miles Firm, PLLC CFPUA Consulting Attorney Present Michael Rich Cape Fear Public Utility IT Specialist Present Authority Rovenia Stringfield Present Mack Coyle Present Tom Newcomb Present Heidi Cox Present Brett Russell Present Donna Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board III. ADOPTION OF AGENDA Mr. Zapple 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 - Apr 10, 2019 9:00 AM RESULT: ACCEPTED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Jennifer Adams, Secretary AYES: Norris, Adams, Brown, Cannon, Hackney, O'Grady, Zapple EXCUSED: Corder, Sneeden, Kusek, Rivenbark V. PRESENTATION 1. Proposed FY 19-20 Operating Budget Mr. McLean presented an overview of the recommended budget for the fiscal year beginning July 1, 2019. The budget includes cost of living and merit increases and four additional employees. The total budget is $85,554,722, which is 4.6 percent above the FY19 budget. The budget will be presented for public hearing and adoption at the June 12 Authority meeting. RESULT: REVIEWED Next: 6/5/2019 9:00 AM VI. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER Mr. Matt Coyle spoke regarding PFAS and Chemours. Cape Fear Public Utility Authority Page 2 MinutesAuthority BoardMay 8, 2019 Ms. Rovenia Stringfield spoke regarding billing. Mr. Tom Newcomb spoke regarding PFAS treatment. VII. SPEAKER UPDATE FROM THE APRIL 10, 2019 BOARD MEETING The April speaker's topic did not require follow-up. VIII. CONSENT AGENDA 1. Environmental and Safety Policy RESULT: ADOPTED \[UNANIMOUS\] MOVER: Mike Brown, Treasurer SECONDER: Jennifer Adams, Secretary AYES: Norris, Adams, Brown, Cannon, Hackney, O'Grady, Zapple EXCUSED: Corder, Sneeden, Kusek, Rivenbark 2. Ordinance Appropriating Investment Earnings and Insurance Proceeds for Biosolids Disposal RESULT: ADOPTED \[UNANIMOUS\] MOVER: Mike Brown, Treasurer SECONDER: Jennifer Adams, Secretary AYES: Norris, Adams, Brown, Cannon, Hackney, O'Grady, Zapple EXCUSED: Corder, Sneeden, Kusek, Rivenbark 3. Authorization for the Executive Director to Execute a $115,700 Contract Amendment with Black & Veatch for the Sweeney Water Treatment Plant GAC Enhancement Project. RESULT: APPROVED \[UNANIMOUS\] MOVER: Mike Brown, Treasurer SECONDER: Jennifer Adams, Secretary AYES: Norris, Adams, Brown, Cannon, Hackney, O'Grady, Zapple EXCUSED: Corder, Sneeden, Kusek, Rivenbark 4. Authorization for the Executive Director to Execute an $845,380 Construction Contract with Carolina Civil Works, Inc. for the Find-It Fix-It 2019 Water and Sewer Repairs RESULT: APPROVED \[UNANIMOUS\] MOVER: Mike Brown, Treasurer SECONDER: Jennifer Adams, Secretary AYES: Norris, Adams, Brown, Cannon, Hackney, O'Grady, Zapple EXCUSED: Corder, Sneeden, Kusek, Rivenbark 5. Sole Source Purchase Franklin Miller Channel Grinder Cape Fear Public Utility Authority Page 3 MinutesAuthority BoardMay 8, 2019 RESULT: APPROVED \[UNANIMOUS\] MOVER: Mike Brown, Treasurer SECONDER: Jennifer Adams, Secretary AYES: Norris, Adams, Brown, Cannon, Hackney, O'Grady, Zapple EXCUSED: Corder, Sneeden, Kusek, Rivenbark 6. Authorization for the Executive Director to Execute a $129,950 Change Order with Atlantic Construction and Development for the Water Valve Replacement Project. RESULT: APPROVED \[UNANIMOUS\] MOVER: Mike Brown, Treasurer SECONDER: Jennifer Adams, Secretary AYES: Norris, Adams, Brown, Cannon, Hackney, O'Grady, Zapple EXCUSED: Corder, Sneeden, Kusek, Rivenbark 7. Auxiliary Generator Purchase Approval RESULT: APPROVED \[UNANIMOUS\] MOVER: Mike Brown, Treasurer SECONDER: Jennifer Adams, Secretary AYES: Norris, Adams, Brown, Cannon, Hackney, O'Grady, Zapple EXCUSED: Corder, Sneeden, Kusek, Rivenbark IX. NEW BUSINESS A. Administrative Reports i. Attorney's Report Ms. Miles did not have a report for open session. She requested a closed session to discuss a legal claim. ii. Executive Director's Report 1. Key Indicators RESULT: REVIEWED 2. Environmental Report Mr. Flechtner answered clarification questions regarding the 12-month rolling average for sanitary sewer overflows. The report includes SSOs related to Hurricane Florence in September 2018. There were no SSOs in April 2019. RESULT: REVIEWED 3. Safety Report Cape Fear Public Utility Authority Page 4 MinutesAuthority BoardMay 8, 2019 RESULT: REVIEWED B. Committee Reports i. Executive Committee 1. Executive Committee Meeting Minutes RESULT: REVIEWED ii. Long Range Planning Committee 1. Long Range Planning Committee - Regular - Apr 25, 2019 3:00 PM RESULT: NO ACTION REQUIRED 2. Ordinance Revision Allowing Variance to General Sewer System Extension Requirements Mr. Vandermeyden presented the item. In 2018, the ordinance was revised to allow isolated individual lots or very small subdivisions to use privately-owned grinder pumps in areas that were difficult to serve with gravity sewer. The recommended revision allows the owners of larger tracts that are difficult to serve with deep gravity lines to use grinder pumps. The Long Range Planning Committee had requested that staff plan strategies for maintenance and potential CFPUA ownership of the grinder pumps in the future. Following clarification questions, Ms. Adams moved to approve the Ordinance revision. Mr. Zapple seconded the motion, and it passed unanimously. RESULT: REVIEWED 3. FY-2020 Capital Improvements Plan Approval Mr. Vandermeyden presented the item, and Board members received notebooks providing detail on the FY2020 CIP projects. The CIP is $84.9 million, with are two large debt-funded projects. The first is the raw water line project in partnership with Lower Cape Fear Water & Sewer and Brunswick and Pender Counties. The second is the Sweeney enhancement project to install granular activated charcoal filters. All other projects will be funded with pay-go capital. The projected ten-year CIP is $257.5 million. Almost 70 percent of the ten-year plan will address aging infrastructure. Approximately $19 million is anticipated each year in pay-go funding. The Southside rehabilitation project is outside the ten-year projection. Cape Fear Public Utility Authority Page 5 MinutesAuthority BoardMay 8, 2019 Mr. Zapple moved the Committee recommendation for approval of the capital plan for the fiscal year beginning July 1, 2019. Ms. Adams seconded the motion, and it passed unanimously. RESULT: ADOPTED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Jennifer Adams, Secretary AYES: Norris, Adams, Brown, Cannon, Hackney, O'Grady, Zapple EXCUSED: Corder, Sneeden, Kusek, Rivenbark iii. Finance Committee 1. Finance Committee - Regular Meeting - May 1, 2019 9:00 AM RESULT: NO ACTION REQUIRED 2. Monthly Financial Report Mr. McLean presented the monthly financial data. Expenditures are tracking above revenues because CFPUA is spending down cash reserves. The current unrestricted fund balance is $95.6 million. Since 2017, CFPUA has spent $5.1 million on PFAS-related items and has $2.1 million encumbered towards PFAS expenses. $524,000 has been funded by state grants to address PFAS. Mr. McLean reported that the financial team is being put together for the Sweeney project, and a feasibility study will be issued. He expects the project to go to the bond market in October or November. Mr. McLean answered questions from Board members regarding financials and the Sweeney projections. 3. Monthly Customer Service Report Ms. Irick presented the April customer service data. The department achieved a 100 percent service level in April. RESULT: REVIEWED 4. Authorize the Executive Director to Release Easements Mr. Vandermeyden presented the item. Following a brief discussion, Mr. Brown moved the Committee recommendation for approval. Mr. Zapple seconded the motion, and it passed unanimously. Cape Fear Public Utility Authority Page 6 MinutesAuthority BoardMay 8, 2019 RESULT: APPROVED \[UNANIMOUS\] MOVER: Mike Brown, Treasurer SECONDER: Rob Zapple AYES: Norris, Adams, Brown, Cannon, Hackney, O'Grady, Zapple EXCUSED: Corder, Sneeden, Kusek, Rivenbark iv. Human Resources Committee 1. Updates to Employee Personnel Policies and Procedures Manual Mr. O'Grady moved the item as a Committee recommendation. Mr. Brown seconded the motion, and it passed unanimously. RESULT: REVIEWED X. OLD BUSINESS There was no old business. XI. AUTHORITY Q&A / CLOSING COMMENTS Mr. Zapple thanked staff for evaluating land application of biosolids and exploring other methods of disposal. He encouraged the Board and staff to continue to focus on the item and asked staff to provide periodic updates to the Board. XII. CLOSED SESSION Ms. Adams moved to enter closed discussion to discuss a legal claim. Mr. Zapple seconded the motion, and it passed unanimously. The Board entered closed session at 9:50 AM with Messrs. Flechtner and Vandermeyden and Ms. Miles, Ms. Eckert, Ms. Hallock, and Ms. Pope present. The Board received a report from legal counsel and staff and provided direction. Mr. Hackney moved to return to open session. Ms. Adams seconded the motion, and it passed unanimously. The Board returned to open session at 11:10 AM. XIII. ADJOURNMENT There was no further business to come before the Board, and Mr. Brown moved to adjourn. Ms. Adams seconded the motion, and it passed unanimously. The meeting adjourned at 11:11 AM. The next regular CFPUA meeting will be Wednesday, June 12, 2019. The Board will meet in the Lucie Harrell Conference Room, 230 Government Center Drive, at 9:00 AM. Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 7