CFPUA 12 11 2013
CAPE FEAR PUBLIC UTILITY AUTHORITY
DECEMBER 11, 2013
REGULAR MEETING
Authority Members Present:
Jim Quinn, Chairman
Pat Kusek, Vice-Chair
Jim Brumit, Secretary
Mike Brown, Treasurer
Bill Norris
Cindee Wolf
Neil Anderson, Councilman
Woody White, Commissioner
Tom Wolfe, Commissioner
Charlie Rivenbark, Councilman
Authority Member Absent:
Larry Sneeden
Staff Present:
Jim Flechtner, Executive Director
Mike Richardson, Interim Chief Operations Officer
Cheryl Spivey, Chief Financial Officer
Frank Styers, Engineering Director
Beth Eckert, Environmental Management Director
Tom Morgan, Human Resources Director
Nancy Johnson, Customer Service Director
John Payne, Internal Auditor
Karen Durso, Assistant to the Executive Director
Mike McGill, Chief Communications Officer
Ken Vogt, Wastewater Treatment Superintendent
Donna S. Pope, Clerk to the Board
Attorney Present:
Linda A. Miles, the Miles Firm, PLLC
The Cape Fear Public Utility Authority held its regular meeting on Wednesday, December 11,
2013. The Board met in the Lucie Harrell Conference Room, 230 Government Center Drive,
Wilmington, North Carolina. Mr. Quinn called the meeting to order at 9:02 a.m. and welcomed
those in attendance.
Ms. Kusek announced that the Board had chosen Mr. Flechtner to serve as the Executive
Director at a called meeting on Tuesday, December 10, 2013. Mr. Flechtner was selected out of
a field of 53 candidates from a national search. The final terms of the Executive Director
contract are to be negotiated by the Human Resources Committee. Ms. Kusek thanked the
Committee members for their dedication to the recruitment process and Ms. Wolf in particular
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for taking a full day to conduct facility tours with the position candidates. The Board and staff
congratulated Mr. Flechtner.
Determination of a Quorum and Adoption of the Agenda:
Mr. Quinn declared a quorum present. Ms. Pope reported that Mr. Sneeden was unable to attend
the meeting and that Mr. Rivenbark would be detained. Mr. Rivenbark arrived at 9:40 a.m.
Ms. Kusek moved to adopt the Agenda. Mr. Wolfe seconded the motion, and the Agenda was
adopted unanimously.
Ms. Wolf moved to excuse Mr. Sneeden. Ms. Kusek seconded the motion, and it passed
unanimously.
Approval of Minutes:
Mr. Brumit moved to approve the Minutes of the Annual Meeting held on November 13, 2013.
Mr. Wolfe seconded the motion, and it passed unanimously.
Public Comment:
There were no speakers.
Speaker Update from November 13, 2013, Meeting:
Mr. Flechtner reported that two citizens had spoken regarding difficulties in access to their
property due to the Chair Road Force Main construction. Authority staff resolved those issues
with the Developer building the force main. The same citizens also expressed interest in
becoming sewer customers and discontinuing their use of septic systems. A gravity system
would need to be built to connect the neighborhoods to the force main. Staff has contacted the
New Hanover County Health Department about the septic systems in the area and will add the
request to items that will be evaluated and prioritized for future Capital Improvements by the
Authority.
Consent Agenda:
Mr. Quinn presented the Consent Agenda, as follows:
1. Policy Change for Tampering and Non-metered Consumption and associated Ordinance
Revisions in Ordinance Section 4.2, Specific Fees and Charges.
2. Ordinance Revision to Section 5.2(e), Billing and Payments, Change of Ownership.
3. Advertisement and sale of items on GovDeals with donation to local non-profits of unsold
items.
4. Three-year contract with Unifirst Corporation for Uniform Rental Services, at a cost of
$56,207.84 per year ($168,623.52 total for three years).
5. One-year contracts with various vendors for treatment chemicals.
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6. Sole souce contract with Mechanical and Environmental Incorporated for Mec Floc
Coagulant Air Emulsion Polymer for Calendar Year 2014, at an estimated cost of
$75,000.00.
7. Resolution accepting wastewater from the P&W Waste Oil Superfund site located outside
of the existing service area and a Resolution establishing an outside service area per
gallon rate for a short-term period for hauled waste.
8. Authorization to permit and accept hauled wastewater residuals and the adoption of
stabilized and unstabilized rates.
9. Resolution modifying the Environmental Policy.
10. Resolution clarifying and codifying all title changes to the Executive Director position to
maintain consistency in the Ordinances and Policies.
Mr. Anderson asked to remove Items 5, 7, and 8 from the Consent Agenda for discussion. Ms.
Kusek moved to approve the remaining Consent Agenda Items, Numbers 1 4, 6, 9, and 10. Mr.
Wolfe seconded the motion, and it passed unanimously.
Mr. Richardson answered questions regarding the increased need for treatment chemicals. He
reported that the quality of surface water is affected by rainfall and the associated washing of
nutrients and waste into the Cape Fear River.
Mr. Anderson commended staff on exploring and developing additional revenue streams. Ms.
Eckert and Mr. Vogt answered questions regarding the methodology used to establish the outside
service area rate.
Mr. Anderson moved to approve Items 5, 7, and 8. Mr. Brown seconded the motion, and it
passed unanimously. All Consent Agenda items were approved.
New Business, Administrative Reports:
Attorney.
Ms. Miles had no report and did not require a closed session.
Executive Director.
Mr. Flechtner referred the Board to the Environmental and Safety Reports
in the Agenda and advised that staff was available to answer questions. There were no questions
regarding the reports.
Executive Committee.
Mr. Quinn reported that the January regular Committee meeting day
January 2, 2014, at 9:00 a.m. and the Finance Committee will meet on January 8 immediately
preceding the Board meeting.
Human Resources Committee.
Ms. Kusek advised that the Committee would need a closed
session at the end of the meeting to discuss the Executive Director contract.
Long Range Planning Committee.
Board CIP workshop on January 29, 2014, from 9 a.m. to 12 noon in the Authority offices and
moved for approval. Ms. Kusek seconded the motion, and it passed unanimously.
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Mr. Styers reviewed the other items discussed at the November 21 Committee meeting. Staff
has scrubbed the budgets for existing capital projects and reprioritized projects as needed,
recognizing $12,000,000 that can go towards the FY2015 CIP.
The Committee received a report from Mr. Vogt regarding revenue opportunities from digester
gas. The Long Range Planning Committee will meet again on Thursday, December 19, at 3:00
p.m. in the Authority offices.
Finance Committee.
Ms. Spivey and Mr. Brown reported that metered water consumption has
continued to decline. Water and wastewater revenues are based on metered consumption. The
budget adopted for FY2014 assumed neither growth nor decrease in metered consumption.
Metered consumption is now eight percent below the amount budgeted, approximately $1.2
million. Earlier in the fiscal year, $1.4 million was removed from department budgets and
placed in reserve. In January, the Committee will recommend a Budget Amendment formally
recognizing a budget reduction to offset the decreased metered consumption.
Ms. Spivey announced that Ms. Johnson is resigning from her position to work with her husband
in a family business. She praised Ms. Johnson for her dedication and her role as a strong
Customer Service Director. The Board thanked Ms. Johnson for her work, and Mr. White
reported that he had received glowing comments from citizens about her and Customer Service
staff. Ms. Johnson thanked the Board and staff for their support.
Mr. Brown added that the decrease in water use was a national trend, with the use of more
efficient appliances and conservation practices. He recognized staff for understanding the trends
The next Finance Committee meeting will be
Wednesday, January 8, at 8:00 a.m. in the Harrell Conference Room, immediately preceding the
regular Authority meeting.
Closing Comments:
Board members congratulated Mr. Flechtner and stated that they looked forward to working with
him.
Mr. Anderson will be leaving the Authority Board so that he can devote more time to work and
will be his replacement. Mr. Anderson stated that he had enjoyed
his time with the Authority and had learned a great deal.
Mr. Brown thanked all employees who must work during the Holidays to keep the plants in
operation.
Mr. Flechtner thanked the Board for its confidence in Authority staff and in him.
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Closed Session:
Mr. Anderson moved to enter closed session to discuss a personnel item. Ms. Kusek seconded
the motion, and it passed unanimously. The Authority entered closed session at 9:40 a.m. Ms.
Miles, Ms. Pope, and Mr. Morgan remained in the closed session.
Open Session and Adjournment:
Mr. Anderson moved to return to open session. Mr. White seconded the motion, and it passed
unanimously. The Authority returned to open session at 9:49 a.m.
Ms. Wolf moved to adjourn. Mr. Anderson seconded the motion, and it passed unanimously.
The meeting adjourned at 9:50 a.m.
The next regular meeting of the Authority will be Wednesday, January 8, 2014. The meeting
will be held in the Lucie Harrell Conference Room, New Hanover County Building, 230
Government Center Drive, Wilmington, North Carolina, and shall commence at 9:00 a.m.
Respectfully submitted,
Donna S. Pope
Clerk to the Board
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