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HomeMy WebLinkAbout2019-11-13 Regular Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES NOVEMBER 13, 2019 Lucie Harrell Conference Room Annual Meeting 9:00 AM 230 GOVERNMENT CENTER DRIVE WILMINGTON, NC 28403 I. CALL TO ORDER Attendee Name Organization Title Status Arrived William Norris Cape Fear Public Utility Chair Present Authority Wesley Corder Cape Fear Public Utility Vice-Chair Present Authority Deans Hackney Cape Fear Public Utility Secretary Present Authority Jennifer Adams Cape Fear Public Utility Treasurer Present Authority Jessica Cannon Cape Fear Public Utility Present Authority Patricia Kusek Cape Fear Public Utility Present Authority Larry Sneeden Cape Fear Public Utility Present Authority Hollis Briggs Cape Fear Public Utility Present Authority Kevin O'Grady Cape Fear Public Utility Present Authority Charlie Rivenbark Cape Fear Public Utility Present Authority Rob Zapple Cape Fear Public Utility Present Authority Jim Flechtner Cape Fear Public Utility Executive Director Present Authority Linda Miles Miles Firm, PLLC CFPUA Consulting Attorney Present Carel Cape Fear Public Utility Deputy Executive Director Present Vandermeyden Authority John McLean Cape Fear Public Utility Chief Financial Officer Present Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Lindsey Hallock Cape Fear Public Utility Director of Public and Present Authority Environmental Policy Beth Eckert Cape Fear Public Utility Director of EMD Present Authority Denise Matroni Cape Fear Public Utility HR Director Present Authority Vaughn Hagerty Cape Fear Public Utility Public Information Officer Present Cape Fear Public Utility Authority Page 1 MinutesAuthority BoardNovember 13, 2019 Authority Cammie Bellamy Cape Fear Public Utility Deputy PIO Present Authority Donna S. Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board Heidi Cox State of NC Present Brett Russell City of Wilmington Present II. DETERMINATION OF A QUORUM Mr. Norris called the meeting to order at 9:00 AM with all members present. III. ADOPTION OF AGENDA Mr. Hackney moved to adopt the agenda. Mr. Rivenbark seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Oct 9, 2019 9:00 AM RESULT: ACCEPTED \[UNANIMOUS\] MOVER: Deans Hackney, Secretary SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Norris, Corder, Hackney, Adams, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple V. PUBLIC COMMENTS There were no public comments. There were no speakers at the October meeting, so no follow-up was necessary. VI. PRESENTATION 1. 2019 CAFR Audit Mr. McLean presented the Comprehensive Annual Financial Report for fiscal year 2019. CFPUA received a clean audit opinion for the fiscal year. CFPUA's net position is $566,528,416, an increase of $23.7 million over FY18. Investment revenue was $11.8 million. $11.1 million in privately-built infrastructure was conveyed to the system during the fiscal year. CFPUA paid down $13.2 million in principal on its debt. Board members thanked Mr. McLean for the report and congratulated staff on a job well done. RESULT: REVIEWED 2. 2019 Annual Report Mr. Flecthner expressed pleasure in bringing the 2019 Annual Report to the Board and thanked Jacqueline Valade, Cammie Bellamy, and Vaughn Hagerty for their work in Cape Fear Public Utility Authority Page 2 MinutesAuthority BoardNovember 13, 2019 producing the Report. 2019 was a good year for CFPUA, and staff and the Board continued the Authority mission of protecting the environment and public health in bringing the best services possible to our customers. CFPUA has heightened the water and sewer systems' resiliency, using experience from lessons learned during Hurricane Florence in 2018. Resiliency programs include increased fuel capacity at treatment plants and replacement of aging generators. Staff has developed enhanced communication tools to alert customers to issues within the system, including text alerts. Staff has shown an continuing focus on aging infrastructure, with projects to rehabilitate or replace lines in the older parts of the service area, while expanding services. The Highway 421 project has been completed, providing water and sewer to an industrial corridor long unserved by public utilities. Since January of this year, Customer Service staff has answered over 80,000 phone calls and maintained a service level of 98.7 percent, with 95 percent of phone calls being answered within five minutes. CFPUA's bills represent 1.67 percent of the median household income for the area and falls within the mid-range for comparable regional utilities. Notable projects currently under way are the Sweeney water treatment enhancements to address PFAS in the Cape Fear River source water and the raw water line partnership with Brunswick County and the Lower Cape Fear Water & Sewer Authority. The Sweeney plant enhancements should be complete in early 2022. Mr. Flechtner reminded the Board that CFPUA staff work around the clock. He expressed honor at being able to serve alongside so many dedicated and professional coworkers. Board members thanked Mr. Flechtner for the Annual Report and commended staff on their hard work. RESULT: REVIEWED VII. CONSENT AGENDA 1. Leak Adjustment Ordinance Revision RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Larry Sneeden AYES: Norris, Corder, Hackney, Adams, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple 2. Fee Schedule Revision - 3" Fireline Cape Fear Public Utility Authority Page 3 MinutesAuthority BoardNovember 13, 2019 RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Larry Sneeden AYES: Norris, Corder, Hackney, Adams, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple 3. Late Fee Ordinance Revision RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Larry Sneeden AYES: Norris, Corder, Hackney, Adams, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple 4. Well Meter Ordinance Revisions RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Larry Sneeden AYES: Norris, Corder, Hackney, Adams, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple 5. Authorization for the Executive Director to Execute a $577,504 Construction Contract with Bio-Nomic Services Inc. for the Carolina Place Gravity Sewer Rehabilitation RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Larry Sneeden AYES: Norris, Corder, Hackney, Adams, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple 6. Authorization for the Executive Director to Execute a $350,000.00 Construction Change Order #1 with Prism Contractors, Inc. for the Gravity Sewer, CCTV and Lining Project RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Larry Sneeden AYES: Norris, Corder, Hackney, Adams, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple 7. Authorization for the Executive Director to Execute a $240,085.00 Construction Change Order No. 2 with Carolina Civil Works, Inc. for the Find-It Fix-It 2019 Water and Sewer Repairs Project Cape Fear Public Utility Authority Page 4 MinutesAuthority BoardNovember 13, 2019 RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Larry Sneeden AYES: Norris, Corder, Hackney, Adams, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple 8. Authorization for the Board Chair to Enter into a $751,913.25 Interlocal Agreement with the City of Wilmington for the North Waterfront Park Project. RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Larry Sneeden AYES: Norris, Corder, Hackney, Adams, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple 9. Ordinance Appropriating Capital Reserves for the North Waterfront Park Project RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Larry Sneeden AYES: Norris, Corder, Hackney, Adams, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple 10. Authorization for the Executive Director to Execute a $380,106.78 Purchase Contract with Harrington Industrial Plastics for the replacement membranes for the Richardson Water Treatment Plant RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Larry Sneeden AYES: Norris, Corder, Hackney, Adams, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple 11. Ordinance Appropriating Capital Reserves for the Richardson Raw Water Supply, Chemistry and Membrane Project RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Larry Sneeden AYES: Norris, Corder, Hackney, Adams, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple VIII. NEW BUSINESS Cape Fear Public Utility Authority Page 5 MinutesAuthority BoardNovember 13, 2019 A. Administrative Reports i. Attorney's Report Ms. Miles had no report and did not require a closed session. ii. Executive Director's Report 1. Key Indicators Report RESULT: REVIEWED 2. Environmental Report RESULT: REVIEWED 3. Safety Report RESULT: REVIEWED 4. Customer Service Update 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 - Oct 24, 2019 3:00 PM RESULT: NO ACTION REQUIRED 2. Low-Pressure Sewer in Development Mr. Vandermeyden presented the item. Low-pressure sewer systems are also known as grinder pumps. Individual homes have grinder pumps that feed into the sewer system. CFPUA has allowed private low-pressure systems for existing homes where topography, proximity to bodies of water or wetlands, or poor soils have made deep gravity sewer impractical and difficult to install. It has also been allowed for some commercial customers. There are situations where low- pressure sewer would be a good solution for failing septic systems. Cape Fear Public Utility Authority Page 6 MinutesAuthority BoardNovember 13, 2019 The proposed revision would allow for publicly-owned low-pressure sewer in new development where gravity sewer is not feasible, with specific criteria that must be met before the low-pressure system can be approved. An engineering report would need to be submitted to CFPUA outlining the reasons low-pressure sewer is needed. Appropriate easements will be provided to CFPUA for access to the systems. A fee schedule for maintenance of the grinder pumps will be developed. Outreach and educational material will be in place for developers, builders, and homeowners using low-pressure systems. Mr. Sneeden reported that the Long Range Planning Committee had vetted the proposed ordinance revision over several meetings. Following questions and discussion, Mr. Sneeden moved to approve the item. Ms. Adams seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden SECONDER: Jennifer Adams, Treasurer AYES: Norris, Corder, Hackney, Adams, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple iii. Finance Committee 1. Finance Committee - Regular Meeting - Nov 6, 2019 9:00 AM RESULT: NO ACTION REQUIRED 2. Monthly Financial Report Mr. McLean presented the financial data through September 2019. Expenditures were higher than revenues due to a large debt service payment in August. The total unrestricted fund balance is $87.7 million. Consumption and the total number of equivalent residential units are performing above budget. RESULT: REVIEWED 3. Resolution Establishing a Capital Reserve Fund Ms. Adams introduced items requiring a vote. The operating surplus for FY 2019 is $5,622,172. Staff and the Finance Committee recommended creating a capital reserve fund to provide a funding source for the Monterey Heights New Groundwater Well and Connection Piping Project ($1,500,000), the Groundwater Well Rehabilitation Project ($1,000,000) and the Pump Station 14 Force Main Replacement Project (1,813,603). The remaining $1,308,569 was recommended to fund the cost of interim filter media Cape Fear Public Utility Authority Page 7 MinutesAuthority BoardNovember 13, 2019 replacement in Fiscal Year 2021 through the adoption of Budget Ordinance 20- 006. Mr. McLean answered questions from Board members regarding the use of surplus funds to reduce rates or system development charges. Following discussion, Ms. Kusek moved to approve the item. Ms. Adams seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Jennifer Adams, Treasurer AYES: Norris, Corder, Hackney, Adams, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple 4. Ordinance Appropriating Fiscal Year 2019 Operating Surplus RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Jennifer Adams, Treasurer AYES: Norris, Corder, Hackney, Adams, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple 5. Ordinance Appropriating Series 2019 Bond Proceeds Mr. McLean reported that the bond sale closed on November 7. The budget ordinance allocates the bond proceeds. Mr. Zapple moved to approve the budget ordinance. Mr. Sneeden seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek, Rob Zapple SECONDER: Larry Sneeden AYES: Norris, Corder, Hackney, Adams, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple iv. Sustainability Committee 1. Sustainability Committee Meeting Minutes Dr. Cannon reported that the Committee held its first meeting on October 22. She thanked the Executive Committee for creating the new Committee and Ms. Adams and Mr. Zapple for participating. She reported that staff has many initiatives in progress to address sustainability and that the Committee will look to the future for programs to reduce CFPUA's carbon footprint. Cape Fear Public Utility Authority Page 8 MinutesAuthority BoardNovember 13, 2019 RESULT: REVIEWED IX. OLD BUSINESS There was no old business. X. AUTHORITY Q&A / CLOSING COMMENTS There were no closing comments or questions. XI. ADJOURNMENT Mr. Rivenbark moved to adjourn. Mr. Briggs seconded the motion, and it passed unanimously. The Board adjourned at 10:10 AM. The next regular meeting of CFPUA will be Wednesday, December 11, 2019. The Board will meet at 9:00 AM in the Lucie Harrell Conference Room, New Hanover County Building, 230 Government Center Drive, Wilmington, North Carolina. Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 9