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CFPUA 08 11 10 MEETING CAPE FEAR PUBLIC UTILITY AUTHORITY AUGUST 11, 2010 Members Present: Jim Hunter, Vice-Chairman Mike Brown, Secretary Burrows Smith, Treasurer Bobby Greer, Commissioner Bill Caster, Commissioner Ron Sparks, Councilman Charlie Rivenbark, Councilman John Tunstall J.C. Hearne, II Jim Quinn Member Absent: Gene Renzaglia, Chairman Staff Present: Matt Jordan, Chief Executive Officer Nancy Gallinaro, Chief Operating Officer Cheryl Spivey, Chief Financial Officer Beth Eckert, Environment & Safety Director Martha Zeigler, Customer Service Director Tom Morgan, Human Resources Director Frank Styers, Engineering Director Jim Flechtner, Engineering Manager Mike Richardson, Water Treatment Superintendent Ken Vogt, Wastewater Treatment Superintendent Karen Durso, Assistant to Mr. Jordan Carey Disney Ricks, Public Information Officer Jim Craig, Utility Services Superintendent Donna S. Pope, Clerk to the Board Attorney: Linda A. Miles, the Miles Firm, PLLC, Consulting Attorneys CFPUA MEETING AUGUST 11, 2010 M I N U T E S Page 1 Guests: Julia Farmer Bill Hart Chad Eric Williams Tyler Newman Heidi Cox Diane Williams Steven Skavroneck Kathleen Rielly Opening Comments and Determination of a Quorum: Mr. Hunter called the meeting to order at 9:00 a.m. and declared a quorum present. Adoption of the Agenda: Mr. Smith moved to adopt the Agenda. Mr. Caster seconded the motion, and the Agenda was adopted unanimously. Approval of Minutes: Mr. Brown presented the minutes of the July 14, 2010, Authority meeting. There were no corrections. Mr. Smith moved to approve the minutes. Mr. Caster seconded the motion, and it passed unanimously. Public Comment: Ms. Farmer spoke regarding a billing issue. She believed her family had less usage and should have had a lower bill for a time period while they were on vacation. Mr. Jordan and other staff members had been working with Ms. Farmer to review her billing, consumption, and to check for leaks. After clarification questions from Board members, Mr. Hunter recommended that staff monitor the usage and follow up with Ms. Farmer in a few months. He asked her to keep in touch with Mr. Jordan. Mr. Hart spoke on behalf of the New Hanover Soil and Water Conservation District. He apologized for not introducing Ms. Harrison of this staff at the July meeting, when he spoke regarding easement clearing at South College Road and Holly Tree. He formally requested Board action on the requests he made in July. In particular, he requested two items: CFPUA MEETING AUGUST 11, 2010 M I N U T E S Page 2 (1)Advance written notice to property owners of the intent to perform major right-of-way and easement work; and (2)That the Authority prepare and implement a land management plan for the property in question, in collaboration with the Soil and Water Conservation District. omplete transparency. He presented a powerpoint and provided the Clerk with a copy to be included with the official minutes. He requested three items: (1)That audio recordings of all past Board meetings be made available online; (2)That the Authority film meetings and broadcast them on television in cooperation with the City of Wilmington and New Hanover County; and (3)That meeting videos and all associated meeting documents be made available online. Ms. Pope reported that, per Board directive, she had obtained quotes from New Hanover County for filming in the Harrell Conference Room. Mr. Greer and Mr. Rivenbark stated that the Board needed to vote on whether or not to film. Mr. Jordan confirmed that this item could be brought to the Board in September for consideration and further direction. New Business: Operations Report: Mr. Jordan reported on the July 23 water main break at the Sweeney Water Treatment Plant. The broken line was 70-90 years old and weeks away from being taken out of service at the time it ruptured, but it was not under construction when it broke. Because of tie-ins and a leak in another line under construction, the Authority had asked for voluntary conservation on July 22. Staff worked closely with N.C. Public Water Supply staff members, and County Emergency Management staff throughout the situation. Ms. Ricks presented the following sequence of events: Friday, July 23: 10:15 a.m. Water line break reported to staff; staff mobilized to assess and isolate break 11:45 a.m. Notified hospital, NCH health department, 911 call center, and critical users CFPUA MEETING AUGUST 11, 2010 M I N U T E S Page 3 12:00 noon NHC Emergency Operations Center activated, with CFPUA staff members working at the center 12:30 p.m. Stage 3 Conservation enacted; boil water advisory issued 12:31 p.m. Press release 1 issued 3:00 p.m. Break isolated; Stage 4 Conservation enacted 3:30 p.m. Exact location of break was found; repairs began 3:30 p.m. Four wells activated to supplement water supply 3:55 p.m. Press release 2 issued 5:30-6:00 p.m. Press conference 7:20 p.m. Repairs complete and full water capacity restored; chlorine level increased to ensure adequate disinfection 7:28 p.m. Press release 3 issued 8:12 p.m. Crawler updated request to television stations 8:30 p.m. First interconnection with groundwater system in Ogden Park 9:26 p.m. Press release 4 issued 10:00 p.m. Second interconnection with groundwater system in Bayshore area Saturday, July 24: 1:00 a.m. Storage tanks at 80 percent capacity 6:00 a.m. Reduction to Stage 3 Conservation 6:37 a.m. Press release 5 issued 7:00 a.m. System flushing began 11:39 a.m. Press release 6 1:15 p.m. System flushing completed; water quality sampling began 5:51 p.m. Press release 7 issued Sunday, July 25: 2:14 p.m. Press release 8 issued 2:15 p.m. Water quality testing results negative; restrictions lifted Monday, July 26: 12:55 p.m. Press release and press conference The week after the water line break, staff met with other agencies to analyze the event and discuss the effectiveness of coordinated efforts. The Authority strives for continual CFPUA MEETING AUGUST 11, 2010 M I N U T E S Page 4 improvement. Ms. Ricks has talked to media representatives as well regarding communications and notifications. Mr. Jordan thanked all staff members for their work during the emergency. Ms. Ricks and Messrs. Jordan and Richardson answered clarification questions from Authority members regarding the storage tanks, interconnections, and emergency water restrictions, which were in accordance with the Authority ordinance. The exact cause of the break has not been assessed. Mr. Sparks reminded those present that the system is old and must be fixed. Staff confirmed that there are other old water lines within the system. Mr. Rivenbark asked why old lines were not replaced during the Sweeney work done in the early 1990s. Mr. Richardson reported that project was already funded when he went to work for the City in 1994, and all of the monies for the project were committed to the plant itself. Jordan reported that staff is working with the City of Wilmington, New Hanover County, the County Health Department, the State Public Water Supply Division, and the hospital to clarify and streamline notifications and communications. The Authority website has been updated to include a listserv whereby customers may be notified by email or text to receive information about breaks and emergencies. Future bills will provide information for listserv registration. Board members discussed the need for good communications and emergency plans for all agencies and governing bodies, as well as local industries that could have emergency situations and need similar notification and communication plans. Engineering Report: Recommendation for Authorization for the CEO to execute Change Order #5 to Archer Western for work associated with the Sweeney Water Treatment Upgrade project, at a budgeted cost of $97,850. Mr. Styers reported that the Authority is 23 months into the 44-month Sweeney upgrade. He summarized the change order, which included the following: ; Installation of a 6-inch stainless steel gas oxygen line to replace one that was in conflict with a waterline; Installation of an additional HVAC for I.T. room; Moving electrical loads for portion of ozone system; Relocation of a 3-inch sewer force main in conflict with the new finished water main; and Credits for piping changes and stairway column material changes. CFPUA MEETING AUGUST 11, 2010 M I N U T E S Page 5 Staff answered questions regarding engineering costs and the contingency budget. Mr. Smith moved to approve the recommended change order. Mr. Caster seconded the motion, and it passed unanimously. Ogden Interceptor Update. Mr. Styers reported that T. A. Loving is on schedule to complete the repairs by the middle of November 2010. The Authority recessed at 10:20 a.m. and reconvened at 10:30 a.m. Ms. Miles advised that she did not have a report but would require a closed session to discuss two claims and a personnel issue. CEO Report: Environmental and Safety Update: Mr. Jordan reported that there were two employee accidents in the month of July. There were no sanitary sewer overflows and no violations in the system. A copy of the Environment and Safety report was distributed to the Board and is attached hereto and incorporated by reference. Committee Reports. Long Range Planning: Mr. Styers reported that the Committee met on August 4 and reviewed the following items: 1.Integrated Water Resource Master Plan (IWRMP) update. CH2M-Hill presented a draft of its findings to the Committee, and the Committee recommended that the presentation be given to the full Board in the CIP workshop scheduled after the Board meeting. 2.Developer reimbursement agreements for water infrastructure. Staff is developing the structure for reimbursement agreements for water infrastructure and will bring a recommendation to the Committee at a future date. CFPUA MEETING AUGUST 11, 2010 M I N U T E S Page 6 3. update. Engineering staff produces a weekly update for high-priority projects, which are projects requiring intensive management or those of a sensitive nature. 4.River Road force main repair project near the N.C. Ports Authority. Staff reported on this project, which will require coordination with the State Ports and detailed bypass pumping. 5.Chair Road Associates, LLC. The Committee directed staff to prepare a letter for the and its commitment to working with Chair Road Associates. The letter was distributed to the full Board for review. Messrs. Tunstall and Smith expressed concerns about the general principles of the Ordinance and its application. Mr. Tunstall believed the Ordinance in general did not require some items to be done until after an agreement is executed. Mr. Smith agreed and etation did not always fit the Ordinance. He believed some of the requirements could be burdensome to a developer and could put him or her at jeopardy financially. Mr. Jordan reminded Board members that they had given conceptual approval in June need for a clear understanding of what the Authority needs to avoid confusion. He , stating that the Board needs to know what it is doing and look at facts and figures. Mr. Rivenbark agreed with Messrs. Smith and Tunstall. There were clarification questions regarding capacity and what material had been submitted by Chair Road. After clarification questions and further discussion, Mr. approval, state that a contract must be finalized within six months, and that construction should begin within two years, subject to the Authority ordinances and policies. Mr. Brown seconded the motion. It passed unanimously. Messrs. Smith and Tunstall did not vote. Ms. Miles advised the Board that Messrs. Smith and Tunstall had not been recused, and their votes would be considered affirmative. Mr. Caster moved to recuse Messrs. Smith and Tunstall, Mr. Rivenbark seconded the motion. Mr. Greer stated that, if Messrs. CFPUA MEETING AUGUST 11, 2010 M I N U T E S Page 7 Smith and Tunstall were to have been recused, they should not have taken part in the discussion regarding the issue. Ms. Miles suggested a workshop to review conflicts and recusal from voting. She said that neither Messrs. Smith nor Tunstall spoke regarding specifics, but they had discussed the ordinance, policies, and general direction. Ms. Miles further advised that a Board member who was on the prevailing side of the vote could move for reconsideration of the item. Mr. Sparks moved to reconsider the Chair Road letter. Mr. Hearne seconded the motion and stated that there should be a motion to recuse Messrs Smith and Tunstall. Mr. Brown moved to recuse Messrs. Smith and Tunstall from the Chair Road discussion. Mr. Sparks seconded the motion, and it passed unanimously. Mr. Greer stated that the record must show that there was a discussion in which Messrs. Tunstall and Smith participated. Mr. Sparks restated his motion to reconsider, seconded by Mr. Hearne. It was approved unanimously. Mr. Rivenbark moved to write the Chai kaindicating that an agreement must be finalized within six months and construction begun within two years of the agreement, subject to Authority ordinances and policies. Mr. Hearne seconded that motion, and it passed unanimously, eight to zero. Messrs. Tunstall and Smith were recused and did not vote. Mr. Quinn added that, when the City and County created the Authority and appointed Board members, they had agreed that engineers and developers were needed on the Board because their input was necessary as customers who interact with the Authority. Mr. Rivenbark agreed. The Board agreed that the first agreement and its supporting documents would serve as prototypes for future agreements. Finance Committee: Mr. Smith asked Ms. Spivey to summarize the Finance Committee meeting and referred Authority members to the Committee report in their agendas books for additional information. CFPUA MEETING AUGUST 11, 2010 M I N U T E S Page 8 Monthly Financial Statements. Ms. Spivey reported that cash had increased $1.4 million in July. There are customer payment plans for $800,000 in receivables, and $100,000 was collected on payment plans in July. The Authority audit will begin in late September, and a full analysis of the FY2010 receivables will be done for the audit. July revenues are at 8 percent, and expenditures at 2.34 percent of budget. Revenue is $700,000 more than July of last year. Consumption billing is close to the amount billed for the same period last year. Irrigation is up. Sungard Contract. Ms. Spivey and Mr. Ellison recommended the renewal of a contract with Sungard for software used by the Authority. Mr. Ellison explained that, with two years of landfile cleanup ahead of staff, he recommended that the Authority renew its contract with Sungard for a period of five years, giving staff time to investigate other software options while maintaining billing and other functions supported by Sungard. Following clarification questions, Mr. Smith moved to authority staff to negotiate a five-year renewal with Sungard. Mr. Hearne seconded the motion, and it passed unanimously. Customer Assistance Agreement with United Way. Ms. Ricks reported that the Authority had developed a customer assistance agreement with the United Way. Contributions would come from customers and from other charitable donations, and the plan will be administered by the Salvation Army. The United Way has allocated $3,000 to the fund. Mr. Sparks moved to approve the Customer Assistance Agreement. Mr. Rivenbark seconded the motion, and it passed unanimously. Request for Financing of System Development Charges. The Committee reviewed a request received by the Board in July to consider financing all or part of System Development Charges. After clarification questions and discussions, it was the Development Charges. As no change was recommended, no motion was needed. CFPUA MEETING AUGUST 11, 2010 M I N U T E S Page 9 Collections Update. The Committee reviewed collections methods and recommended that accounts one year or more past due be reported to a national credit reporting agency and that accounts two years or older be sent to a collection agency. This did not include current accounts; the Committee endorsed the current policies of working with current customers with past-due amounts. After clarification questions, Mr. Smith moved to approve the Committee recommendation. Mr. Sparks seconded the motion, and it passed unanimously. Hours of Operation at Government Center Drive Office. The Committee reviewed reports from staff regarding the costs of staffing the Customer Service Department payment center and phones from 7:30 8:00 a.m. and directed staff to bring their recommendation to the full Board. Ms. Spivey and Mr. Jordan recommended changing the hours from 7:30 a.m. 5:00 p.m. to 8:00 a.m. 5:00 p.m. Eliminating a half-hour of service would save approximately $26,000 annually and would allow staff to more effectively serve customers during peak hours. Following clarificatio hours of operation to 8:00 a.m. 5:00 p.m. No motion was necessary, as Mr. Jordan has the authority to set schedules. Ms. Spivey, Ms. Zeigler, and Mr. Jordan will determine the best date to start the news hours and advise the Board accordingly. Old Business: There was no old business. Additional Business: Mr. Caster advised that he had received a letter from a property owner and did not know if other Board members had received it. He had given the letter to Mr. Jordan to contact the customer and address the concern. Closed Session: Mr. Rivenbark moved to enter closed session to discuss two claims and a personnel matter. Mr. Tunstall seconded the motion, and it passed unanimously. The Authority entered closed session at 12:10 p.m., with Board members, Ms. Miles, Ms. Pope, and Mr. Jordan remaining for the session. CFPUA MEETING AUGUST 11, 2010 M I N U T E S Page 10 Mr. Jordan reported on a personnel action. Ms. Miles reported on two legal claims. Open Session: Mr. Rivenbark moved to return to open session. Mr. Smith seconded the motion, and it passed unanimously. The Authority returned to open session at 12:39 p.m. Adjournment: Mr. Smith moved to adjourn. Mr. Hearne seconded the motion, and it passed unanimously. The Authority adjourned at 12:40 p.m. The next meeting of the Cape Fear Public Utility Authority will be on Wednesday, September 8, 2010, commencing at 9:00 a.m. The meeting will be held in the Harrell Conference Room of the New Hanover County Administration Building, located at 230 Government Center Drive, Wilmington, North Carolina. Following the meeting and a lunch break, the Authority will conduct a Capital Improvement Plan workshop. Respectfully submitted, Donna S. Pope Clerk to the Board CFPUA MEETING AUGUST 11, 2010 M I N U T E S Page 11