CFPUA 6 12 2013 Regular Meeting CAPE FEAR PUBLIC UTILITY AUTHORITY
JUNE 12, 2013
REGULAR MEETING
Members Present:
Pat Kusek, Vice-Chair
Jim Brumit, Secretary
Mike Brown, Treasurer
Cindee Wolf
Keith Betts
Larry Sneeden
Tom Wolfe, Commissioner
Woody White, Commissioner
Charlie Rivenbark, Councilman
Neil Anderson, Councilman
Member Absent:
Jim Quinn, Chairman
Staff Present:
Matt Jordan, CEO
Jim Flechtner, COO
Cheryl Spivey, CFO
John Payne, Internal Auditor
Karen Durso, Assistant to CEO
Frank Styers, Engineering Director
Beth Eckert, ESMD Director
Mike McGill, CCO
Tom Morgan, HR Director
Nancy Johnson, Customer Service Director
Christene Mitchell, Engineering Manager
Gary McSmith, Engineering Manager
Kent Harrell, Engineering Manager
Julie McLawhon, Budget & Finance Manager
Melinda Hoggard, Financial Systems Analyst
Julia Vosnock, Procurement Manager
Cord Ellison, IT Manager
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Mike Richardson, Water Resources Manager
Jim Craig, Utility Services Superintendent
Donna S. Pope, Clerk
Guests:
Mary Outlaw
Karen Casteel
James Poole
Jonathan Spiers
Ryan McAlister
Richard Wynche
Carter Hubard
Eric Williams
Call to Order, Determination of a Quorum, and Opening Comments:
Ms. Kusek called the Authority to order at 9:00 a.m. and welcomed
those in attendance. She declared a quorum present.
Adoption of the Agenda:
Mr. Brown moved to adopt the Agenda. Mr. Betts seconded the motion,
and it passed unanimously.
Approval of Minutes:
Mr. Brumit moved to approve three sets of Authority meeting minutes,
as follows:
May 8, 2013, Regular Meeting;
May 15, 2013, Budget Hearing and Workshop; and
May 23, 2013, Special Meeting.
Mr. Brown seconded the motion, and it passed unanimously.
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Public Comment:
Mr. James Poole spoke regarding billing dates and retroactive billing at
the rates that went into effect on May 1, 2013.
Ms. Outlaw spoke regarding problems with her well since 2011. Mr.
Jordan asked Mr. Flechtner to assist Ms. Outlaw.
Ms. Casteel spoke regarding sewer charges for water used to fill pools.
Mr. Jordan asked Ms. Johnson to assist Ms. Casteel.
Consent Agenda:
The Board considered the Consent Agenda, as follows:
1. Resolution identifying the CEO or his successor as an authorized
official to execute documents pertaining to NC State Revolving
Loan;
2. Resolution adding Jim Flechtner, Chief Operations Officer, as an
authorized signer on the CF'PUA Bank of America account, and to
allow one of the authorized signers to remove another authorized
signer upon the signer's termination of employment or incapacity,
as allowed by law and CF'PUA policy,
3. Resolution designating an Interim CEO in the event of absence or
incapacity,
4. Audit contract with Thompson, Price, Scott, Adams& Company, at
a cost of$31,720.00,
5. Construction contract with T.A. Loving Company for 300 Street
sewer rehabilitation, at a cost of$1,289,656.75,
6. In terlocal Agreemen t with th e City of Wilmington for reco very of
costs of road work associated with 30" Street project, in the
amount of$245,085.00 to be received from City,
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7 Construction contract with T.A. Loving for Smith Creek
"Alan dale"pump station removal, at a cost of$2,161,145.00,
8. Construction contract with Layne Inliner, LLC, for McCumber's
Ditch sewer rehabilitation, in the amount of$1,053,835.00,
9. Interlocal Agreement with the City of Wilmington for recovery of
costs of stormwater and road work associated with McCumber's
Ditch project, in the amount of$81,455.00 to be received from
City,
10. Authorization for the CEO to reject all bids for the Greenfield
Lake Outfall rehabilitation project and rebid the project,
11 . Contract amendment with Cavenaugh &Associates, P.A. for
design services for the Comprehensive Meter Replacement
Program, at a budget impact of$206,500.00,
12. Acceptance of Capital Contributions from NNP-IV Cape Fear
River, LLC, as part of an existing developer agreement, in the
amour t of$2,589,819.00,
13. Resolution writing off uncollectible accounts, in the amount of
$331,803.23, and
14. Adoption of System Development Charge calculations and
assumptions for purposes of Authority Growth Policy and its
aim ual SDC calculation, effective July 1, 2013.
Mr. Rivenbark asked for clarification on Items 5, 7, and 10 or to pull the
items for further discussion. Mr. Styers answered questions about
Items 5 and 7. Mr. Jordan reported that the Finance Committee had
discussed Item 10, and a report on the Authority bidding process would
be given during the Finance Committee report.
Mr. Rivenbark moved to adopt and approve the Consent Agenda, as
presented.
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Fiscal Year 2014 Budget:
Ms. Spivey presented the Budget for the Fiscal Year beginning July 1,
2013. The FY2014 Budget includes an Operating Fund of $72,775,200,
System Development Funds of $3,000,000, and Capital Projects Funds
of $24,338,007. The Capital Project budget includes a $5.9 million
transfer from the 2013 Operating Fund and will require $18.4 million in
future bond sales.
The FY2014 Budget includes 294.5 employee positions, including two
new jobs in the Engineering Department and one in Customer Service.
The Budget includes a market adjustment of one percent and merit
adjustments of up to two percent, along with some employee
reclassifications.
Mr. Ellison presented two technology items that had been added as a
result of Board feedback, and those were digital devices and software
for use in agenda preparation and Board meetings and GPS devices on
Authority vehicles.
Mr. Rivenbark moved to approve the Fiscal Year 2014 Budget and adopt
the Budget Ordinance. Mr. Brumit seconded the motion, and the
FY2014 Budget was approved and adopted unanimously.
Administrative Reports:
Attorney's Report. Ms. Miles reported that Authority, City, and County
representatives had all signed the EPA Consent Decree and were
awaiting its execution by the EPA and Department of Justice. She
further requested a closed session at the end of the meeting to discuss a
claim and a personnel matter.
CEO's Report. Mr. Jordan presented the Environmental Performance
Report for April 2013. There were no sanitary sewer overflows, and all
systems operated without violations. The report included new graphs
for biological oxygen demand and suspended solids.
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There was one employee accident in April. Mr. House, the Safety
Program Manager, is in the process of conducting safety audits in each
department.
Committee Reports:
Executive Committee. Ms. Eckert presented the Sponsorship Policy
developed by staff. The policy closely followed one developed by the
N.C. School of Government and had been reviewed by legal counsel. An
example of a sponsorship program would be the recycling of cooking
oils with a local grocery store and a biodiesel fuel company.
Ms. Wolf commended staff members for their initiative in developing
the sponsorship idea and moved to adopt the policy. Mr. Brumit
seconded the motion, and it passed unanimously.
Long Range Planning Committee. Ms. Wolf and Mr. Styers reported on
the May 23 Committee meeting. The Committee reviewed a draft of the
growth policy and provided feedback to staff. The Committee received
reports on the Newland agreement, Mayfaire area sewer capacity, flow
tracking and allocation, the possibility of sewer expansion into the
Hampstead area of Pender County, and Authority staff collaboration
with the State and County to develop an aquifer sustainability database.
A full Committee report and minutes were provided in the Agenda
packet.
Mr. Styers presented a revision to the Authority's Connection Deferral
Policy. Staff recommended the revision so that the operation of the
Authority's system would not be impeded by close proximity to a well or
septic tank. Ms. Wolf moved to approve the revision to the Connection
Deferral Policy. Mr. Sneeden seconded the motion, and it passed
unanimously.
Ms. Kusek recessed the meeting at 9:55 a.m., and the Authority
reconvened at 10:05 a.m.
Finance Committee, ERP Needs Assessment. Mr. Ellison provided the
results of the ERP Needs Assessment conducted by Plante Moran.
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Christine Cunliffe and Mark Warner of Plante Moran were available via
internet conference. Plante Moran analyzed the Authority's software
needs and capabilities, reviewed documentation, and interviewed staff in
several departments. The study concluded that the current H T E
system was not viable in the long run and lacks integration with other
software systems used by staff, such as Maximo Asset Management.
Staff has relied on "shadow systems," duplication of tracking, and paper
documentation in addition to H T E. Plante Moran and the staff team
working on the needs assessment recommended going to market for
new financial software. The Finance Committee endorsed the
recommendation. Messrs. Ellison and Jordan answered questions from
Board members.
Construction Bid Process. Ms. Vosnock reviewed the Authority's bid
process and reported that staff is revising and streamlining the process
while remaining in compliance with North Carolina law. As part of the
analysis the bidding process, staff will survey contractors and other
governmental bodies. Through the revised process, Engineering staff
will specify which subcontractors must be listed and what additional
qualifications are needed for the General Contractor. Staff will abide by
the Minority Business Enterprise Policy adopted by the Board in 2008
for construction, building, and repair project bids over $300,000.
Mr. Jordan reported that he had asked Mr. Payne, the Internal Auditor,
to serve as the hearing officer for bid appeals or protests and that Mr.
Payne had heard his first appeal. Ms. Vosnock and Mr. Jordan answered
clarification questions.
Customer Service Update. Ms. Johnson reported that staff has
developed an optional pre-bill option to assist customers in splitting
payments into two months. Customers who request the service will
receive a letter notifying them that they can pay one-half of their
previous month's bill as prepayment for the next bill. The balance
should be paid by the due date to avoid late fees. Staff can
accommodate up to 250 customers with the service internally.
May Financial Data. Ms. Spivey referred Board members to the
complete May financial information in the Agenda. She reported that
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revenues continue to be slightly lower than budgeted and stated that
she anticipated Fiscal Year 2013 water revenues to be slightly below
budget. Fiscal Year 2013 expenditures are significantly below budget
and will offset any revenue shortfall.
Closed Session. Mr. Rivenbark moved to enter closed session to discuss
a legal claim and a personnel issue. Mr. Betts seconded the motion, and
it passed unanimously. The Authority entered closed session at 10:35
a.m., with Ms. Miles, Ms. Pope, and Messrs. Jordan, Morgan, and
McGill in attendance.
The Board received a report from Ms. Miles and provided direction.
The Board discussed a personnel item and provided direction to the
Human Resources Committee.
Open Session and Adjournment. Mr. Rivenbark moved to return to
open session. Mr. Betts seconded the motion, and it passed
unanimously. The Authority entered open session at 10:39 a.m.
Mr. Betts moved to adjourn. Mr. Rivenbark seconded the motion, and it
passed unanimously. The meeting adjourned at 10:40 a.m.
The next regular meeting of the Cape Fear Public Utility Authority will
be held on Wednesday, July 10, 2013. The meeting will begin at 9:00
a.m. and will be held in the Lucie Harrell Conference Room, New
Hanover County Bruce Shell Administrative Building, 230 Government
Center Drive, Wilmington, North Carolina.
Respectfully submitted,
Donna S. Pope
Clerk to the Authority
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