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CFPUA 1 14 2015 Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES JANUARY 14, 2015 Lucie Harrell Conference Room Regular Meeting 9:00 AM 230 GOVERNMENT CENTER DRIVE WILMINGTON, NC 28403 I. CALL TO ORDER II. DETERMINATION OF A QUORUM Ms. Kusek reported that Commissioner White could not attend the meeting. Mr. Rivenbark moved to excuse Mr. White. Mr. Brumit seconded the motion, and Mr. White was excused unanimously. Ms. Kusek declared a quorum present. Attendee Name Organization Title Status Arrived Patricia Kusek Cape Fear Public Utility Chair Present Authority Jim Quinn Cape Fear Public Utility Vice Chair Present Authority James Brumit Cape Fear Public Utility Secretary Present Authority Mike Brown Cape Fear Public Utility Treasurer Present Authority Cindee Wolf Cape Fear Public Utility Present Authority William Norris Cape Fear Public Utility Present Authority Larry Sneeden Cape Fear Public Utility Present Authority Kevin O'Grady Cape Fear Public Utility Present Authority Charlie Rivenbark Cape Fear Public Utility Present Authority Woody White Cape Fear Public Utility Excused Authority Rob Zapple Cape Fear Public Utility Present Authority Jim Flechtner Cape Fear Public Utility Executive Director Present Authority Linda Miles Cape Fear Public Utility Attorney Present Authority Karen Durso Cape Fear Public Utility Property Acquisition Specialist Present Authority Donna Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board Leslie Ogilvie Cape Fear Public Utility Assistant to the Executive Present Authority Director Frank Styers Cape Fear Public Utility Chief Operations Officer Present Cape Fear Public Utility Authority Page 1 Minutes Authority Board January 14, 2015 Authority Carel Cape Fear Public Utility Director of Engineering Present Vandermeyden Authority Tom Morgan Cape Fear Public Utility HR Director Present Authority Cheryl Spivey Cape Fear Public Utility Chief Financial Officer Present Authority Beth Eckert Cape Fear Public Utility Director of EMD Present Authority John Payne Cape Fear Public Utility Internal Auditor Present Authority Mike McGill Cape Fear Public Utility Chief Communications Officer Present Authority Julie McLawhon Cape Fear Public Utility Budget/Finance Manager Present Authority Julia Vosnock Cape Fear Public Utility Procurement Manager Present Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Lawrence Caddell Cape Fear Public Utility IT Helpdesk Technician Present Authority Carter Hubbard W.K. Dickson Present Heidi Cox N.C. Public Water Supply Present Jim Iannucci New Hanover County Present Richard King City of Wilmington Present Steve Coggins Rountree & Losee Present III. OATH OF OFFICE - ROBERT A. ZAPPLE Ms. Durso administered the oath of office as an Authority member to Mr. Zapple, and the Board and staff welcomed him. IV. ADOPTION OF AGENDA Mr. Norris moved to adopt the day's Agenda. Mr. Rivenbark seconded the motion. Mr. Flechtner recommend that Item 4 be removed from the Consent Agenda for a presentation and discussion. Messrs. Norris and Rivenbark amended the motion to include the revision, and the Agenda was unanimously adopted. V. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Dec 10, 2014 9:00 AM RESULT: ACCEPTED [UNANIMOUS] MOVER: James Brumit, Secretary SECONDER: Cindee Wolf AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, Zapple EXCUSED: White VI. PRESENTATION Cape Fear Public Utility Authority Page 2 Minutes Authority Board January 14, 2015 A. FY 15 GFOA Budget Award The award presentation was moved to the Finance Committee portion of the meeting. 1. GFOA Distinguished Budget Presentation Award VII. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER There were no public speakers. VIII. CONSENT AGENDA Mr. Rivenbark moved to approve the Consent Agenda, Items 1, 2, 3, 5, and 6. Mr. Norris seconded the motion, and the revised Consent Agenda was unanimously approved. 1. 2015 Regular Meeting Dates RESULT: ADOPTED [UNANIMOUS] MOVER: Charlie Rivenbark SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, Zapple EXCUSED: White 2. Authorization for the Executive Director to Execute an Amendment to the Interlocal Agreement with New Hanover County for the Heritage Park and Marquis Hills Sewer Extension Projects RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, Zapple EXCUSED: White 3. Authorization for the Executive Director to Execute a $33,400 Amendment with McKim and Creed Inc. for the Marquis Hills Area Sewer Extension Project RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, Zapple EXCUSED: White 4. Utility Infrastructure Agreement for Proposed School Mr. Vandermeyden presented the item and answered clarification questions from Board members. The recommended project will build a regional pump station to serve a new county school, an adjacent new development, and some existing homes that currently have septic sytems with dry sewer installed. The basin will serve approximately 430 Cape Fear Public Utility Authority Page 3 Minutes Authority Board January 14, 2015 homes in total. The Authority's portion of the cost is estimated at $689,577, representing two-thirds of the capacity of the pump station. RESULT: APPROVED [UNANIMOUS] MOVER: Mike Brown, Treasurer SECONDER: Cindee Wolf AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, Zapple EXCUSED: White 5. Easement Termination Agreement RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, Zapple EXCUSED: White 6. Sale of Out-Of-Service Fire Hydrant to the City of Wilmington Fire Department for $0.00 RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark SECONDER: William Norris AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, Zapple EXCUSED: White IX. NEW BUSINESS A. Administrative Reports i. Attorney's Report Ms. Miles had no report for Open Session. She requested a Closed Session at the end of the meeting to discuss an easement acquisition and a personnel matter. ii. Executive Director's Report 1. Environmental Report The Environmental Report was provided in the Agenda packet for review. 2. Safety Performance Report The Safety Performance Report was in the Agenda packet for review. Mr. Sneeden and Ms. Kusek commended staff on the excellent safety record. B. Committee Reports i. HR Committee Cape Fear Public Utility Authority Page 4 Minutes Authority Board January 14, 2015 Mr. Morgan reported on the January 7 Human Resources Committee meeting. The Committee reviewed benefits, the process for obtaining quotes for employee health coverage, and the process for evaluations for positions reporting to the Board. The Committee minutes were in the Agenda packet for informational purposes. 1. HR Committee Minutes ii. Executive Committee 1. Executive Committee Minutes 2. December Monthly Finance Report The December 2014 financial data was provided in the Agenda. 3. Back Billing Ms. Irick reported on the back billing policy in relation to the completion of the data scrub in 2012. Ms. Irick then presented a recommended revision to the policy and supporting ordinances regarding changes in ownership of real estate and the associated accounts. Staff recommended two revisions to mitigate Authority risk when property is transferred, as follows: (1) When the current customer notifies the Authority that they have sold property, staff will determine if the new owner has requested service. If not, the service will be shut off effective the date of the sale or upon notification by the seller. An account for the base charges will be established, but water service will not be re-connected until the new owner requests service and completes the Property Owner Application. Ms. Miles had advised that the base charges could be collected without the application being completed, but a valid contract was needed to bill for water and sewer usage. (2) If the Authority is not notified of an ownership change by seller or buyer and staff discovers the ownership change through Register of Deeds research or another way, the new owner will be notified in writing and given 30 days to complete the application for service or be subject to disconnection. At present, Authority staff researches deed transfers on a monthly basis through the County Registry website. Several board members expressed concern about Revision (1) and the hardships it could place on a new owner who was unaware of the need to establish service. They recommended that a door hanger or letter be delivered advising the owner of the application requirement before turning off service. Board members suggested working closely with the Board of Realtors and the local Real Estate Bar group to ensure that the need for water service is communicated to buyers before or at a real estate closing. Cape Fear Public Utility Authority Page 5 Minutes Authority Board January 14, 2015 In connection to Revision (2), Ms. Wolf suggested that staff research deed transfers on a weekly basis rather than monthly. Following discussion, Ms. Wolf moved that staff review deed transfers weekly and send letters to new owners advising them of the need to apply for service, to be subject to disconnection if the owner did not respond within a week. Mr. O'Grady seconded the motion, and it passed unanimously. Mr. Brown moved the amend the Ordinance related to the application for service to include disconnection for failure to complete and submit a Property Owner Application. Mr. Sneeden seconded the motion, and it passed unanimously. RESULT: APPROVED AS AMENDED [UNANIMOUS] MOVER: Cindee Wolf SECONDER: Kevin O'Grady AYES: Kusek, Quinn, Brumit, Brown, Wolf, Norris, Sneeden, O'Grady, Rivenbark, Zapple EXCUSED: White iii. Finance Committee Mr. Brown presented the Government Finance Officers' Association award and commended Authority employees for their diligence and dedication. Ms. Spivey thanked all staff, in particular Ms. McLawhon and Ms. Durso. Ms. McLawhon heads the Authority Budget team, and Ms. Durso has been instrumental in preparation of the Budget document. This is the fifth consecutive year the Authority has received the award. Ms. Spivey referred the Board to the December financial data in the Agenda. Revenues continue to be strong. X. OLD BUSINESS There was no old business. XI. AUTHORITY Q&A / CLOSING COMMENTS There were no questions or comments from Authority members. XII. CLOSED SESSION Mr. Rivenbark moved to enter into closed session to discuss a property negotiation and personnel matters. Mr. Norris seconded the motion, and it passed unanimously. The Authority moved into closed session at 9:45 AM, with Ms. Miles, Messrs. Flechtner and Styers, and Ms. Pope present. Cape Fear Public Utility Authority Page 6 Minutes Authority Board January 14, 2015 Ms. Miles reported on a property negotiation and recommended settlement and received Board member feedback. Mr. Rivenbark moved to return to open session. Mr. Brumit seconded the motion, and it passed unanimously. The Authority moved into open session at 10:10 AM. Ms. Wolf moved to authorize the Executive Director to move forward with an agreement with Terminal Road Property, LLC, with the Board recommendation to remove the word "potable" from the agreement language. Mr. O'Grady seconded the motion, and it passed unanimously. Mr. Brown moved to return to closed session to discuss personnel matters. Mr. Norris seconded the motion, and it passed unanimously. The Board moved into closed session at 10:12 AM, and Ms. Pope and Mr. Flechtner left the meeting. The Board received a report from Mr. Brumit. XIII. ADJOURNMENT The Authority returned to open session and Ms. Kusek adjourned the meeting at 10:30 AM. The next regular meeting of the Cape Fear Public Utility Authority will be Wednesday, February 11, 2015. The Authority will meet in the Lucie Harrell Conference Room, New Hanover County Administration Building, 230 Government Center Drive, Wilmington, North Carolina. The meeting will commence at 9:00 AM. Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 7