Loading...
02-10-2010 CAPE FEAR PUBLIC UTILITY AUTHORITY REGULAR MEETING FEBRUARY 10, 2010 Members Present: Gene Renzaglia, Chairman Jim Hunter, Vice-Chairman Kathryn Johnston, Secretary Burrows Smith, Treasurer Ron Sparks, Councilman Charlie Rivenbark, Councilman Bill Caster, County Commissioner Bobby Greer, County Commissioner J.C. Hearne, II John Tunstall Staff Present: Matt Jordan, CEO Nancy Gallinaro, COO Cheryl Spivey, CFO Linda A. Miles, Consulting Attorney Karen Durso, Assistant to Mr. Jordan Martha Zeigler, Customer Service Director Frank Styers, Engineering Director Beth Eckert, Environment and Safety Director Carey Disney Ricks, P.R./PIO Haskell Rhett, Strategic Planning Officer Tom Morgan, H.R. Director Graham Fripp, Property Acquisition Specialist Mike Richardson, Drinking Water Superintendent Ken Vogt, Wastewater Treatment Superintendent Bill Pinnix, Engineering Manager Jim Flechtner, Engineering Manager Christene Pyne Mitchell, Project Manager Donna S. Pope, Clerk CFPUA 2.10.2010 Draft of Minutes for Board review 1 Guests Present: Michelle Purcell C Will Breazeale Jennifer M. Caslin, Food Bank of Central and Eastern N.C. Tommy Taylor, United Way Jim Iannuci, New Hanover County Randy Plummer, HDR Engineering Call to Order and Determination of a Quorum: Mr. Renzaglia called the meeting to order and declared a quorum present. Adoption of the Agenda: Staff recommended the addition of Item iii to the Engineering Report, authorization to purchase an easement for a portion of the Northeast Interceptor. Mr. Tunstall moved to adopt the Agenda with the requested addition. Mr. Caster seconded the motion, and it passed unanimously. Approval of Minutes: Ms. Johnston reported that she had reviewed the minutes of the January 13, 2010, Authority meeting and recommended no changes. She moved to approve the minutes. Mr. Smith seconded the motion, and it passed unanimously. Presentation by the United Way and the Food Bank of Central and Eastern North Carolina: Ms. Caslin and Mr. Taylor commended the Authority on its participation in a holiday-season food drive and gave a brief overview of hunger needs in the region. They presented Mr. 373 pounds of food through employee and Board participation. Mr. Renzaglia accepted the Certificate, stating that it was a testimony to staff efforts for the community. Mr. Smith thanked Ms. Ricks for her coordination and work on the food drive. CFPUA 2.10.2010 Draft of Minutes for Board review 2 Public Comments: cation for a deferral from mandatory connection in the Middle Sound Loop Road service extension. Messrs. Renzaglia and Jordan directed Engineering staff to talk to Ms. Purcell regarding her concerns. reference. Mr. Breazeale complimented Board members on their dedication and asked them not to support earmarked funding. New Business: Engineering Report: 1995/1998 Annexation Area/Masonboro Sound Update: Ms. Mitchell provided an update on status on extension of service to the Masonboro Sound Road area, a portion of the 1995/1998 City annexations. Approximately 2-5 percent of customers in the area do not have public water, and 95-98 percent do not have sewer service. There were questions from the Board regarding connection fees, pump station location, and easements. Contract amendment with McKim & Creed for extended professional services associated with the construction of the North School Campus pump station: Staff recommended a contract amendment in the amount of $25,000.00 for continued construction phase professional services associated with the construction of the Northern School Campus pump station. The requested amount is funded by the CIP. Mr. Flechtner answered clarification questions from Authority members regarding the project and liquidated damages against a contractor who was behind schedule. Mr. Sparks not already been done. Mr. Sparks moved to authorize Mr. Jordan to execute the contract amendment in the amount of $25,000. Mr. Caster seconded the motion, and it passed unanimously. CFPUA 2.10.2010 Draft of Minutes for Board review 3 Easement from Smith Creek Land, LLC, for portion of Northeast Interceptor: Staff recommended the purchase of a 30-foot permanent sewer easement containing 2.71 acres from Smith Creek Land, LLC, in the amount of $260,222.00. The site contains a large portion of property needed for the easement south of the Martin Luther King Parkway and west of Kerr Avenue for the northern portion of the Northeast Interceptor. Board members asked for clarification regarding the appraisals used, the consistency of the purchase price with neighboring easements acquired by the Authority, and if the easement chosen needs. Mr. Sparks moved to authorize Mr. Jordan to proceed with the easement purchase. Mr. Caster seconded the motion, and it passed unanimously. The Authority recessed at 10:05 a.m. and reconvened at 10:20 a.m. Strategic Planning: Approval of CFPUA Strategic Plan: Mr. Rhett distributed the Strategic Plan for Board approval. The Plan was fine-tuned based on suggestions made by Authority members at their December workshop and had been presented to stakeholder representatives for input in January. Mr. Smith moved to approve the Strategic Plan, and Mr. Hunter seconded the motion. Ms. Johnston requested clarification regarding stakeholder ions had been invited, and some neighborhood representatives attended the stakeholder input session. Also among the attendees were City and County representatives, other agencies, environmental and development groups. Mr. Caster attended the input session as a Board member and added that he saw the Strategic Plan as a living, flexible document that can change over time. Mr. Renzaglia called the question, and the Strategic Plan was approved unanimously. Resolutions to Authorize Application and Request to the Seventh District Congressional Representative for Federal Funding: Mr. Rhett presented a Resolution to Approve Application for Federal Funds for the Northeast Interceptor Project. Mr. Sparks moved to approve the Resolution. The motion died for lack of a second, and the request was not approved. CFPUA 2.10.2010 Draft of Minutes for Board review 4 Mr. Rhett presented a Resolution to Approve Application for Federal Funds for the Asset Management Program. Mr. Sparks moved to approve the Resolution. The motion died for lack of a second, and and the request was not approved. appeared that the Board had reacted to a political speech but the Authority was not supposed to be a political organization and members were not present to support a campaign. The question was where the Authority would get money, and passing the Resolutions did not guarantee funding. Mr. Caster responded that he did not support the funding process. Mr. Renzaglia said he could not allow a political debate. There had been an opportunity to apply for funds to move projects forward. The Resolutions had been turned down at this time, but funding resolutions may be brought back for projects in the future. Operations Report: Mr. Vogt provided an overview of the uses of reclaimed water which are permitted by the State of North Carolina. The effluent from the Northside Wastewater Treatment Plant meets Class B standards. Class B permitted uses include irrigation, bulk reclaim, wetland augmentation, and certain food chain crops. The following uses are not currently permitted: aquifer storage and recharge, aquifer recharge, direct potable reuse, indirect potable reuse, and stream augmentation. Several Authority members pointed out that indirect potable reuse already happens along the river from upstream users. Revisions to the North Carolina Administrative Code regarding reclaimed water have been under consideration for several years. Staff supported consideration of bulk reclaim use for irrigation purposes, which would allow effluent to be Public Information/Public Relations Report: Ms. Ricks reported on outreach initiatives conducted in January. The Nano Filtration Facility hosted the N.C. Water works Operators Association Southeast Section meeting. Staff members have volunteered with the Wilmington Area Rebuilding Ministry (WARM) to assist in repairing and rehabilitating homes for senior citizens and disabled citizens in the community. National Engineers Week will be February 14 20, with outreach to school groups. On March 6, 2010, CFPUA 2.10.2010 Draft of Minutes for Board review 5 CFPUA staff will participate Boy Scout Day at Hugh McRae Park. Mr. Jordan spoke on Marty addressed the Leadership Wilmington panel. Kent Harrell met with 350 residents of the Porters Neck Homeowners Association regarding extension of water service. Ms. Miles had nothing to report. Mr. Jordan presented the Environment and Safety Report for January 2010. There were two accidents, one personal injury and the other vehicular There were three small Sanitary Sewer Overflows, one caused by paper products, one by a power failure, and the third a pipe failure. Staff maintains a proactive standard of maintenance, reviewing any incident to prevent future failures. Board members asked clarification questions regarding January incidents. Authority members received wallet cards summarizing the Aut -party certification for Environmental Management requires us to hold ourselves accountable before state regulatory agencies step in. Long-Range Planning Report: Mr. Hunter referred the Board to Exhibit 5 in their Agenda packet and summarized the (1)Staff progress on a proposed ordinance revision to support non-standard developer agreements; (2)421 Wastewater Treatment Plant update; (3)A Capital Improvement Program review from Mr. Flechtner; (4)A report on Pump Station Capacity from Mr. Pinnix; and (5)A Strategic Plan update, a Federal Funding update, and a Land Use Plan update from Mr. Rhett. Finance Committee Report: Ms. Spivey reviewed the Authority Financial Report for January. Receivables are down, due to increased collection efforts and strict cutoff procedures. With 58 percent of the year lapsed, the Authority is at 53 percent of budget revenues and 56 percent of expenditures. CFPUA 2.10.2010 Draft of Minutes for Board review 6 approximately ½ percent. Ms. Spivey provided a chart of the Capital Improvement Program, with a breakdown of funding. Mr. Smith stated that, in its February 3 meeting, the Finance Committee endorsed the continuation of the cash-flow method of funding the Capital Improvement Program and that all Board members who were present at the February 3 workshop also endorsed that recommendation. Mr. Smith moved to continue the current method of cash-flow funding of the Capital Improvement Program, which commits the Authority to issuing bonds in Fiscal Year 2012, and to direct staff to prepare a Fiscal Year 2011 budget providing sufficient estimated operating revenues to produce a 1.2 debt coverage ratio. -flow funding would commit future boards to increasing rates. He would rather slow down, use pay-go capital, and increase rates as needed. He added that he was not available for the Finance Committee meeting, and, therefore, the entire Committee did not endorse the cash-flow method and future bond issues. He did not support borrowing more money. Mr. Sparks stated that, when the Authority was formed, commitments were made to the City and the County. He did not believe that City Council would forgive those commitments. He added that bond rating agencies received a rate prospectus from the Authority showing a 1.6 debt coverage ratio. Mr. Greer said he did not believe the Authority should renege on its commitments to the City or County but believed projects could be slowed. Mr. Rivenbark asked Ms. Spivey for clarification, stating that he was hearing conflicting statements. Ms. Spivey explained that there are large capital projects that cannot be completed without a commitment to a future bond sale. A debt ratio of 1.2 coverage in 2011 would be required to issue bonds in 2012. Following more discussion on funding methodology and philosophy, Mr. Renzaglia called the question. Ms. Johnston, Mr. Renzaglia, Mr. Hunter, Mr. Smith, Mr. Caster, Mr. Sparks, Mr. Rivenbark, Mr. Tunstall, and Mr. Hearne voted to continue the current method of cash-flow funding of the CIP, which will commit the Authority to issuing bonds in Fiscal Year 2012, and to direct staff to prepare a Fiscal Year 2011 budget providing sufficient estimated operating revenues to produce a 1.2 debt coverage ratio. Mr. Greer was opposed, and the motion carried nine to one. Mr. Caster left the meeting at 11:40 a.m. CFPUA 2.10.2010 Draft of Minutes for Board review 7 Landlord-Tenant Committee Report: Mr. Sparks reported that the Committee had met on January 25, 2010, and that minutes of that meeting had been handed out at the beginning of the Board meeting. The amount of money in question is around $4,000,000. Mr. Sparks anticipated another meeting of the Committee. There were no questions for Mr. Sparks. Old Business: There was no old business. Additional Discussion: Ms. Johnston recommended airwaves. Mr. Jordan advised that staff was investigating the possibility and that he had asked the County for an agreement to review. - Ms. Johnston expressed a continued concern about openness and transparency and suggested holding meetings at different times for more citizen participation. Mr. Renzaglia advised that staff was looking into the costs associated with filming Authority meetings. Mr. Renzaglia thanked all present for their time and commitment. There being no further business, Chairman Renzaglia adjourned the meeting at 11:50 a.m. Respectfully submitted, Donna S. Pope Clerk to the Board CFPUA 2.10.2010 Draft of Minutes for Board review 8