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CFPUA 07 13 2011 CAPE FEAR PUBLIC UTILITY AUTHORITY REGULAR MEETING JULY 13, 2011 Members Present: J.C. Hearne, II, Vice-Chairman and Presiding Officer Mike Brown, Secretary Burrows Smith, Treasurer Jim Quinn Ron Sparks, Councilman Rick Catlin, Commissioner Brian Berger, Commissioner Cindee Wolf Pat Kusek Members Absent: Gene Renzaglia, Chairman Charlie Rivenbark, Councilman Staff Members Present: Matt Jordan, Chief Executive Officer Nancy Gallinaro, Chief Operating Officer Cheryl Spivey, Chief Financial Officer Karen Durso, Assistant to Mr. Jordan Beth Eckert, Environmental and Safety Director Frank Styers, Engineering Director Tom Morgan, H.R. Director Carey Disney Ricks, Chief Communications Officer Julia Vosnock, Procurement Manager Loria Potter, Billing and Collections Supervisor Jim Flechtner, Engineering Manager Jonathan Ham, Project Engineer Tige Brubaker, Project Manager Craig Lundin, Project Manager Jamison Fair, Project Manager Chris Bowling, Project Manager Jim Craig, Utility Services Superintendent Mike Richardson, Water Treatment Superintendent Ken Vogt, Wastewater Treatment Superintendent CFPUA July 13, 2011 Regular Meeting Page 1 Gil DuBois, Pipeline Construction Manager Donna S. Pope, Clerk Attorney Present: Linda A. Miles, the Miles Firm, PLLC Guests Present: Betty Patrick Carolyn Hinson Jim Iannucci, New Hanover County Tyler Newman, BASE Carter Hubard, W.K. Dickson Tony Boahn, McKim and Creed Ray Cox, HIEPC Eric Williams, HDR Opening Comments, Determination of a Quorum, and Adoption of the Agenda: Mr. Hearne called the meeting to order at 9:00 a.m. and declared a quorum present. Mr. Brown moved to approve the Agenda. Ms. Wolf seconded the motion, and it passed unanimously. Approval of June Minutes: Mr. Brown moved to approve the minutes of the June 8, 2011, meeting. Ms. Kusek seconded the motion, and it passed unanimously. Public Comment and septic system. Ms. Hinson presented documentation regarding the costs to connect to the Authority system and requested assistance. After clarification questions and comments from Authority members, the Board directed Engineering staff to assist Ms. Patrick in finding options and a solution. Consent Agenda: Mr. Hearne presented the Consent Agenda, as follows: CFPUA July 13, 2011 Regular Meeting Page 2 1. Approval of a Local Preference Policy. 2.Authorization for the Chairman to execute a revision to the Interlocal Agreement with the City of Wilmington for the North Third Street Improvement Project, at a budget impact of $182,637.88. 3.Authorization for the CEO to execute Contract Amendment No. 6 with Black & Veatch International Company for professional services associated with the expansion of the Sweeney Water Treatment Plant, at a cost not to exceed $664,000. 4.Resolutions to approve the pursuit of Clean Water State Revolving Fund Monies for two projects in the Fiscal Year Capital Improvements Program: Upper Smith Creek Outfall and Allandale Pump Station removal, in the amount of $2,500,000; and Between the Creeks Pump Station upgrade/removal, in the amount of $387,000. 5.Authorization for the CEO to execute a change order with T.A. Loving Company for the 30-inch Effluent Force Main Project, at a budget impact of $237,375. 6.Authorization for the CEO to purchase one 185 horsepower pump for use as a spare pump for Pump Station No. 89, at a budget impact of $56,177. 7.Authorization for Procurement to advertise and sell items on Gov.Deals. Mr. Quinn wished to remove Item 7 from the Consent Agenda, and Mr. Jordan suggested placing that item in the Finance report. Mr. Sparks moved to approve the Consent Agenda, Items 1 6. Mr. Smith seconded the motion, and it passed unanimously. Engineering Report: The Authority recognized Jonathan Ham on his selection of Young Engineer of the Year by the Professional Engineers of North Carolina, an 1800-member professional organization. Mr. Styers presented two Engineering items for approval. 1.Approval of an Interlocal Agreement between the Cape Fear Public Utility Authority and the Town of Wrightsville Beach relating to odor and corrosion control. CFPUA July 13, 2011 Regular Meeting Page 3 Mr. Styers and Ms. Miles answered clarification questions from Board members regarding the location of the dosing station and the chemicals used for odor and corrosion control. Mr. Smith moved to approve the Interlocal Agreement with Wrightsville Beach. Ms. Kusek seconded the motion, and it passed unanimously. 2.Authorization for the CEO to execute a contract amendment for construction phase Creek pump station interim improvements, at a budget impact of $99,000. and the City of Wilmington. Mr. Smith moved to authorize Mr. Jordan to sign the contract amendment with McKim & Creed. Mr. Sparks seconded the motion, and it passed unanimously. Operations Report: Ms. Gallinaro introduced Gil DuBois, Water and Sewer Pipeline Construction Manager. Mr. areas, and rehabilitate critical infrastructure. During Fiscal Year 2011, 6,057 feet of lines were replaced, and 24 emergency and immediate need projects completed. Environmental and Safety Management Report: Ms. Eckert referred the Board to the May safety data provided in the Agenda booklet. She reported that the overall accident rate went down. There were no Sanitary Sewer Overflows. Public Relations Report: Ms. Ricks reported that the groundbreaking for the North Third Street improvement project is scheduled for July 26, 2011, at 10 a.m., at the corner of Market and Third Streets. Ms. Ricks announced the opening of 12 job shadowing opportunities for Board members and requested that Authority members contact her to choose a position to shadow. Mr. Jordan will participate in the job shadowing program this year. Ms. Ricks reported that other utilities and agencies : Ms. Miles requested a closed session at the end of the meeting to discuss the Environmental Protection Agency and a legal claim. CFPUA July 13, 2011 Regular Meeting Page 4 CEO Report: Mr. Jordan reported that he holds regular meetings with employee groups and invited Board members to join the meetings to meet employees and hear their questions. The next meeting will be July 20, and Ms. Kusek plans to attend. Mr. Jordan requested that interested members advise him ahead of time so that staff could determine if a quorum of the Board or a Committee would be present, in order to provide proper public notice of the meeting. report would be ready before the August Authority meeting and requested direction from Board members as to whether they wished the Executive Committee and interested Authority members to receive the report prior to the August meeting of the full Board. It was the consensus of Authority members present that the report should go directly to the Board meeting. The study recommendations can be discussed at length at the September Board retreat. The retreat is scheduled for the mornings of September 27 and 28 in the I.T. Training Room in the Authority Administration Building, 235 Government Center Drive. Mr. Jordan announced that Ms. Gallinaro has accepted a job with Palm Beach County, Florida. unty and City staff and the development of Asset Management and CMOM. Ms. Gallinaro thanked the Board, particularly the remaining members of the original Authority Board who had hired her in 2008. She stated that she was proud to have been part of the creation of the Authority for the good of the community. She thanked all Operations staff for their dedication and support. Board members thanked Ms. Gallinaro for her work for the Authority. Mr. Sparks recommended that a Board member meet with Ms. Gallinaro to conduct an informal exit interview and moved that Mr. Renzaglia be asked to interview Ms. Gallinaro. Mr. Smith seconded the motion, and it passed unanimously. fiber of character, stating that her employees consistently praised her and expressed their trust in her. The Authority recessed at 10:15 a.m. and reconvened at 10:25 a.m. CFPUA July 13, 2011 Regular Meeting Page 5 Nominating Committee Report: Mr. Smith reported that he and Mr. Rivenbark recommended the following slate of officers for Fiscal Year 2012: Jim Quinn, Chairman Mike Brown, Vice-Chairman Pat Kusek, Secretary Burrows Smith, Treasurer Mr. Hearne opened the floor for additional nominations. There were no nominations from the floor. Mr. Smith moved to approve the slate of officers recommended by the Nominating Committee. Mr. Hearne seconded the motion, and it passed unanimously. Finance Committee Report: Mr. Flechtner reported that staff had identified ten capital projects for which a modified consultant selection and award process would be beneficial. The recommended modified process would provide preference to engineering and surveying firms located within New Hanover County, with the express goals of reducing local unemployment, encouraging local industry, and obtaining cost savings for the Authority. The first step of instituting the modified selection process would be to pass a resolution exempting the identified projects from the Mini-Brooks Act. Ms. Miles explained that Mini- Brooks provides for consultant selection based on qualifications, not price.The modified process would still require qualification-based selection within the pool of local applicants and price would not be discussed until after a local firm is selected based on qualifications. Ms. Miles advised that there was no North Carolina case law regarding local preference policies. The process had been developed using guidelines from the North Carolina School of Government. Ms. Miles and Mr. Flechtner answered clarification questions from Authority members. Staff presented two recommended Resolutions in connection with the Modified Consultant Selection Process, as follows: 1.Resolution to exempt the following FY2012 Capital Improvement Projects from the provisions of N.C.G.S. 143-64.31 143.64.34, known as the Mini-Brooks Act: th 30 Street Water and Sewer Replacement Greenfield Lake Outfall Rehabilitation CFPUA July 13, 2011 Regular Meeting Page 6 Between the Creeks Sewer Improvements Southern Transmission Mains, divided between four separate design projects Lords Creek Interconnections Water Valve Replacement 2.Resolution giving preference in awarding professional services contracts to local firms for the FY2012 capital improvements: th 30 Street Water and Sewer Replacement Greenfield Lake Outfall Rehabilitation Between the Creeks Sewer Improvements Southern Transmission Mains, divided between four separate design projects Lords Creek Interconnections Water Valve Replacement Mr. Catlin moved to approve both Resolutions. Mr. Brown seconded the motion, and it passed unanimously. Ms. Spivey presented Item No. 7 from the Consent Agenda, Authorization to advertise and sell items on GovDeals. Mr. Quinn stated that he would like to find a reasonable avenue wherein the Authority could donate surplus items to local charities and non-profits. Ms. Miles explained that N.C.G.S. 162A, which governs water and sewer authorities, does not provide specific authority to donate property in the same fashion as cities or counties. Mr. Catlin requested that Ms. Miles determine what would be needed for a local bill to go to the state Legislature amending the statute to allow donations. After discussion, Mr. Spark moved to table the item and direct staff to develop a process selling items on GovDeals, with the ability to donate items that do not sell. Mr. Catlin seconded the motion, and it passed unanimously. Mr. Berger asked if Board members and employees could bid on GovDeals. Ms. Vosnock reported that employees could bid on their own time, outside of work. She did not know if the CFPUA July 13, 2011 Regular Meeting Page 7 Mr. Smith reminded the Board that Item 3 from the Finance Committee Report had not been addressed. He moved to adopt the Modified Consultant Selection Process for Certain FY2012 Capital Improvement Projects. Mr. Catlin seconded the motion, and it passed unanimously. Customer Service Update: Ms. Potter reported that the City of Wilmington had approved the collection contract with Penn Credit. The contract is in legal review. Staff targets the end of August to the beginning of s that are not collected going to Penn Credit at the end of September or first week of October. Ms. Potter reported that the new billing vendor, PCI Group, sent out the first round of bills in the new format on July 11. She explained the bill layout and thanked the following staff members for their work in designing the bill format Karen Durso, Carey Disney Ricks, Joan Watkins, Aundria Miracle, Donna Stringfield, Rachel Shelton, and Shelly Bryant. Ms. Potter reported that City rates for solid waste and stormwater would go into effect on September 1, 2011. Ms. Potter reported that staff has received 93 inquiries for irrigation meters since the rate for irrigation was lowered. Four new irrigation meters have been installed. Messrs. Jordan and Craig explained the costs associated with new taps. Monthly Financial Report: Ms. Spivey referred the Board to the June financial data provided in the Agenda packet. She stated that the data showed where the Authority stands at year end on a budgetary basis. Revenues for usage before June 30 and expenditures incurred before June 30 would be accrued and booked for Fiscal Year 2011 and shown on the Audit. The preliminary year-end data reflects revenues at 104 percent of budget. FY2010 revenues ended at 97 percent of budget. Expenditures were at 80.53 percent of budget, and Ms. Spivey expected the final amount of expenditures for FY2011 to be 90 percent of budget with encumbrances. There were no questions from the Board. Long Range Planning Committee Report: Mr. Styers presented an overview of the June 23 Long Range Planning Committee meeting. Bruce Shell, New Hanover County Manager, and Mr. Catlin attended the meeting and joined Authority representatives in a discussion of funding options. The discussion focused on CFPUA July 13, 2011 Regular Meeting Page 8 economic growth, environmental, health and public safety issues associated with failing septic and saltwater intrusion. Representatives of the City of Wilmington have been invited to attend th the June 28 Committee meeting to continue the growth discussion. The Committee received reports from staff on capacity management, monthly billing the raw water booster pump station, and water interconnections. Detailed information was provided in the written Committee report and minutes provided in the Agenda. Old Business: There was no old business. Closed Session: Mr. Smith moved to enter closed session to discuss an EPA enforcement action and a claim on a contract. Mr. Berger seconded the motion, and it passed unanimously. The Authority entered closed session at 11:15 a.m. and received a report and recommendation from legal counsel. Open Session: Mr. Catlin moved to return to open session. Mr. Sparks seconded the motion, and it passed unanimously. The Authority entered open session at 11:40 a.m. Ms. Miles, Ms. Pope, and Messrs. Jordan, Styers, and Flechtner remained in the meeting. Mr. Smith moved to authorize Ms. Miles to settle a claim with East Coast Construction for the amount of $122,000, subject to the final deductive change order being included in the settlement agreement. Mr. Brown seconded the motion, and it passed unanimously. Mr. Smith moved to adjourn. Ms. Wolf seconded the motion, and it passed unanimously. The Authority adjourned at 11:45 a.m. The next regular meeting of the Cape Fear Public Utility Authority will be held on Wednesday, August 10, at 9:00 a.m., in the Lucie Harrell Conference Room, New Hanover County Administration Building, 230 Government Center Drive. Respectfully submitted, Donna S. Pope Clerk to the Board CFPUA July 13, 2011 Regular Meeting Page 9