AGENDA - Greenville Utilities Commission · AGENDA Regular Meeting – June 8, 2017 ... • the current balance scorecard model will be utilized ... Anthony Miller Jesse Chadwick

AGENDA Regular Meeting – June 8, 2017

Board Room – 12:00 noon

Call to Order - Ascertain Quorum 12:00

[Chair Don Mills] Acceptance of the Agenda

[Chair Don Mills]

Recognition of Safety Award – Electric Department [Tony Cannon] Recognition of NCAMES Rodeo Team: [Roger Jones] Brantley Lawrence, Brian Baker, David Guy, Travis Ransom, Jordan Hill, Steven Leggett, Remington Gaskins Recognition of APPA Lineworkers Rodeo Team: [Roger Jones] Brantley Lawrence, Brian Baker, David Guy, Dustin Sauls, Steven Leggett, Brandon Butler Recognition of Chamber Leadership Institute Graduates: Colleen Sicley and Chris Hill [Tony Cannon]

1. Approval of Minutes [Chair Don Mills] Workshop Meeting: May 10, 2017

Regular Meeting: May 18, 2017 2. Review of Monthly Financial Statement – May 31, 2017 [Jeff McCauley] [Action to be taken in July] 3. Consideration of Adoption of FY 2017-18 Budget [Tony Cannon] Information Items 4. General Manager’s Report [Tony Cannon] 5. Board Chair’s Remarks/Report

[Chair Don Mills] 6. Board Members’ Remarks

[Board]

Agenda – June 8, 2017 Page 2 Notice of Upcoming Meetings/Functions:

[Chair Don Mills]

Adoption of GUC Budget by City Council, June 8, 2017, 6:00 p.m., City Council Chambers GUC Regular Meeting, Thursday, July 20, 2017, 12:00 noon, Board Room APGA Annual Conference, July 24-27, 2017, San Francisco, CA

• Deadline for registration: June 16, 2017 ElectriCities Annual Conference, August 10-12, 2017, Myrtle Beach, SC

• Deadline for registration: July 14, 2017

Adjournment 1:00 [Chair Don Mills]

Item: Approval of Minutes

Contact:

Amy Quinn

Explanation: Workshop Session: May 10, 2017 Regular Meeting: May 18, 2017

Previous Board Actions:

N/A

Fiscal Note: N/A

Recommended Action(s):

Approval of minutes as presented or amended

Agenda Item # 1 Meeting Date: June 8, 2017

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GREENVILLE UTILITIES COMMISSION WORKSHOP SESSION

GREENVILLE, NORTH CAROLINA Wednesday, May 10, 2017 The Board of Commissioners of the Greenville Utilities Commission met in a Workshop Session at the Hilton Greenville on May 10, 2017 at 10:30 a.m. with the following members and others present, and Chair Mills presiding. Commission Board Members Present: Don Mills, Chair Tommy Stoughton Barbara Lipscomb Parker Overton Rebecca Blount Minnie J. Anderson Toya Jacobs Commission Staff Present:

Others Present: Warren Miller, Fountainworks Commissioner Joel Butler was absent. INTRODUCTION: General Manager/CEO Tony Cannon opened the session with a reminder that the Board met some months ago to discuss the company’s vision and mission statements. Today’s session is an opportunity for the Board to review the process that will be used to update GUC’s strategic plan and for the Board to provide input on the areas of focus GUC should consider for our future. GUC’s current strategic plan was adopted in 2004; this process seeks to update that plan to enable GUC to continue meeting the mission and vision of the organization in the ever changing regulatory, customer growth and technology environments. Mr. Cannon introduced Mr. Warren Miller with Fountainworks. Mr. Miller provided an overview of the meeting objectives:

• Review the GUC history map to better understand what GUC has accomplished over the last 40 years and how that applies to our future.

• Review the strategic plan update process and the stakeholder groups to be engaged during the process to allow the Board to provide guidance.

• Solicit Board input on the areas of focus they envision for GUC’s future. HISTORY MAP REVIEW: Mr. Miller indicated the history map of GUC’s accomplishments over the last 40 years is a tool to help us think about where GUC has been and where we want to go. After highlighting the various items on the map Mr. Miller asked the Board to comment on the common themes demonstrated in these accomplishments. Comments included a focus on constant improvement; GUC serving as an industry leader; investments in capital improvements; and improvements in technology. Mr. Miller shared that the accomplishments GUC has achieved over the past 40 years strongly correlate with the three strategic themes in the plan – exceptional customer

Tony Cannon, General Manager/CEO Randy Emory Chris Padgett Sandy Barnes Jeff McCauley John Worrell Phil Dixon Scott Mullis George Reel Steve Hawley Keith Jones Amy Wade Anthony Miller Lisa Johnson Richie Shreves Roger Jones

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service; reliability, safety and value; and capitalizing on opportunities. The goal, as we move forward with an update to our strategic plan, is to make sure GUC is positioned to continue meeting these strategic themes in the future. Mr. Miller asked the Board to comment on themes not represented in the accomplishments highlighted on the history map. The comments are as follows:

− GUC took action to develop a mission statement, vision statement and core values. − GUC thinks about and seizes opportunities that arise. − GUC operates as a municipal entity; many of the accomplishments achieved may not

have been possible without our autonomy. − GUC strives to keep rates down and remain competitive. − Contact with customers is important and occurs in a variety of ways from personal

contact with field employees to phone, email, web, etc. − Commitment to maximizing the skills and abilities of GUC employees is important. − The reliability of GUC’s services is impressive.

Mr. Miller asked the Board to keep these thoughts in mind as we move forward in this process and to consider how we can continue to accomplish these kinds of things in our future. STRATEGIC PLAN UPDATE PROCESS ‘GAME PLAN’: Mr. Miller shared that this strategic plan update process will build upon our already strong existing strategic plan and will include the following components:

• the current balance scorecard model will be utilized • work will be guided throughout the year • employees will understand how they fit into the strategic plan and the decisions that are

being made • the plan is forward-looking/multi-year • community stakeholders will be engaged in the process

Mr. Miller reminded the Board that the GUC Management Team met in March to review the current plan and to discuss community stakeholder engagement. Today’s meeting allows the Board to provide input on the direction of the plan. In June, the GUC Management Team will meet again to fine tune the community engagement sessions. The community stakeholder and employee engagement sessions will be held June – July. In August, the GUC Management Team will meet to discuss the information gathered, and the goal is to provide an updated strategic plan to the Board for review and refinement in September. Mr. Cannon reiterated that community stakeholder engagement is an important part of the process. Mr. Miller shared a list of community stakeholder groups that will be asked to participate in the process, and the Board was asked for feedback. The community stakeholder groups include:

• Key Accounts (industrial/commercial base) • Property Managers/Developers/Builders • CEO Roundtable Group • Elected/Legislative Officials (City Council, County Commissioners, Chamber of

Commerce Executive Committee, legislative delegation) • Employees – town hall style meetings

Ms. Lipscomb and Ms. Blount questioned whether residential and small commercial customers will be given the opportunity to participate in the process. Mr. Padgett reminded the Board that GUC is currently conducting a customer telephone survey and the results from this survey will be considered. Ms. Lipscomb asked if the survey is targeting all customer demographic and economic groups; Mr. Padgett confirmed that the survey is a statistically valid sample of GUC customers. Mr. Miller next reviewed the factors that will ensure this strategic plan update process is successful. These factors include managing the Board’s time well, ensuring diversity in our

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community engagement focus groups, keeping the process moving and communication ongoing, maintaining a high level approach, holding structured employee meetings, and scheduling stakeholder meetings early. It was suggested that due to the difficulty of scheduling community engagement sessions, it may be beneficial to allow stakeholders to provide feedback electronically. There were no other Board member suggestions or comments regarding the community stakeholder engagement sessions. GUC FUTURE FOCUS AREAS: Mr. Miller next asked the Board to think about the future of GUC and submit questions that need to be answered and/or considered about GUC’s future. BREAK 11:20 a.m. - 12:00 p.m. Mr. Miller next began a review of the questions submitted by the Board via the polling website. He indicated that the goal of this exercise is to make sure we understand the Board’s thoughts on what GUC should be focused on in the future. After the questions were reviewed, Mr. Miller shared a ‘word cloud’ generated from the most common words in the questions. He pointed out common themes related to concerns about handling growth; keeping up to speed on technology and leveraging it for customer service improvements; keeping abreast of legislative developments; and maintaining employee training. Mr. Cannon agreed that GUC is faced with some very changing environments, and it is our intention that our revised strategic plan will help GUC continue to move forward in the direction the Board intends for the next 5-10 years. Mr. Miller reminded the Board that the GUC Management Team will next convene in June to discuss the feedback provided by the Board today and to develop the talking points for the community stakeholder engagement sessions. It was the consensus of the Board to move forward with the planned approach to community stakeholder engagement sessions. Mr. Cannon reminded the Board that it is important to measure our success at meeting the objectives of our plan through key performance indicators (KPIs). With no further business, the meeting adjourned at 12:37 p.m.

Respectfully submitted,

_________________________________ Amy Carson Wade, Executive Secretary

APPROVED:

___________________________ Joel Butler, Secretary

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GREENVILLE UTILITIES COMMISSION

GREENVILLE, NORTH CAROLINA

Thursday, May 18, 2017

The Board of Commissioners of the Greenville Utilities Commission met in the Greenville Utilities Board Room in regular session at 12:00 noon with the following members, and others present, and Chair Mills presiding. Commission Board Members Present: Don Mills, Chair Parker Overton Rebecca Blount Minnie J. Anderson Joel Butler Barbara Lipscomb Tommy Stoughton Toya Jacobs Commission Staff Present:

Others Present: Ginger Livingston, The Daily Reflector and Brad Hufford, Pitt County Development Commission. Chair Mills called the meeting to order and Mr. Butler ascertained that a quorum was present. ACCEPTANCE OF THE AGENDA A motion was made by Mr. Overton, seconded by Ms. Jacobs, to accept the agenda as presented. The motion carried unanimously. RECOGNITION OF AREA WIDE OPTIMIZATION (AWOP) AWARD Mr. Randy Emory, Director of Water Resources, introduced Mr. Julius Patrick, Superintendent of the Water Treatment Plant (WTP). Mr. Patrick shared that GUC’s Water Treatment Plant staff were recently awarded the 2016 Area Wide Optimization Program (AWOP) Award by the North Carolina Department of Environment Quality. He stated that GUC was among 49 water systems in North Carolina who received this award for meeting stringent turbidity removal goals. GUC’s staff did an excellent job in meeting the AWOP goals and providing a public health benefit to the community. Mr. Patrick recognized the following employees: Dail Booth, Water Treatment Plant Operations Coordinator; Toby Corey, Water Treatment Plant Chief of Maintenance; and Jesse Chadwick, Chemist. RECOGNITION OF NC DEPARTMENT OF LABOR SAFETY AWARDS Mr. Tony Cannon, General Manager/CEO, introduced Mr. Kevin Keyzer, Risk and Facilities Manager. Mr. Keyzer provided an overview of the recent safety awards that GUC received during the Greenville-Pitt County Chamber of Commerce and the North Carolina Department of

Tony Cannon, General Manager/CEO Lou Norris Chris Padgett Jonathan Britt Jeff McCauley Tony Godwin Phil Dixon Kevin Keyzer George Reel Julius Patrick Keith Jones Dail Booth Anthony Miller Jesse Chadwick Randy Emory Toby Corey Richie Shreves Anthony Whitehead Sandy Barnes Steve Porter John Worrell Scott Mullis Amy Wade

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Labor Safety Awards Banquet that was held on April 20, 2017. Greenville Utilities was recognized with sixteen (16) Gold and Silver awards at the banquet. Six of those were awarded for the tenth consecutive year. To be eligible for these awards, an entity must maintain an incident injury rate below the Occupational Safety and Health Administration (OSHA) industry average. Mr. Keyzer reported that employees are going home safe at the end of the day as a result of the teamwork throughout the Commission. APPROVAL OF MINUTES (Agenda Item 1) A motion was made by Ms. Blount, seconded by Mr. Butler, to approve the April 20, 2017 Regular Meeting minutes as presented. The motion carried unanimously. REVIEW OF MONTHLY FINANCIAL STATEMENT – April 30, 2017 (Agenda Item 2) April 30, 2017 Financial Statement: Key financial metrics for the combined funds for the period ending April 2017:

Operating Cash: $77,561,845 Days of Cash on Hand: 137 Less Current Liabilities: ($18,921,213

Fund Balance: $58,640,632 Days of Cash on Hand After Liabilities: 104

Fund Balance Available for Appropriation: 22.8% Average Investment Yield: 0.61%

Fund Equity/Deficit Before Transfers

Current Month Year to Date

Actual Budget Last Year Actual Budget Last Year

Electric

($564,406)

($580,417)

$1,559,120

$6,144,504

$7,043,280

$17,753,459

Water

$61,648

($105,936)

$148,694

$2,881,362

$1,242,157

$2,569,322

Sewer

$231,710

($18,688)

$357,379

$3,621,375

$1,394,537

$2,258,075

Gas

$234,372

($95,291)

($227,210)

($257,695)

$835,821

$967,460

Combined

($36,676)

($800,332)

$1,837,983

$12,389,546

$10,515,795

$23,548,316 Fund Equity/Deficit After Transfers

Current Month Year to Date

Actual Budget Last Year Actual Budget Last Year

Electric

($1,108,712)

($1,124,723)

$479,783

$175,805

$1,074,581

$5,320,894

Water

($55,019)

($222,603)

$11,194

$1,714,696

$75,491

$1,194,322

Sewer

$90,043

($160,355)

$26,129

$2,204,710

($22,128)

($1,054,425)

Gas

$226,039

($103,624)

($664,710)

($341,025)

$752,491

($3,407,540)

Combined

($847,649)

($1,611,305)

($147,604)

$3,754,186

$1,880,435

$2,053,251 Mr. Jeff McCauley, Chief Financial Officer, provided a presentation on the Financial Statement for April 2017. The weather impact for the month of April reported that the heating degree days were much lower than last April and the cooling degree days were significantly higher than last April. The April rainfall was approximately 6 inches which was more than last April. The portfolio earned 0.61% for the month of April.

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Overall year-to-date results through the end of April remain stable. The Electric Rate Stabilization Reserves are approximately $18.3 million and the Gas Rate Stabilization Reserves are $1.0 million. The Operating Reserves are 137 Days Cash on Hand, and Renewals and Replacements Reserves are approximately $2.7 million. A motion was made by Ms. Lipscomb, seconded by Mr. Overton, to accept the April 30, 2017 Financial Statement. The motion carried unanimously. CONSIDERATION OF FY 2016-17 BUDGET AMENDMENT FOR OPERATIONS AND CAPITAL PROJECTS (Agenda Item 3) Mr. Cannon stated that the actual operating results for ten months of the fiscal year have been evaluated to derive year end projections. Staff is proposing the fiscal year 2016-2017 budget be amended to reflect year end projections and to amend certain capital projects budgets. The budget ordinance for the City Council’s consideration also provided below. Mr. McCauley gave a brief presentation on the budget amendments. Major budgetary adjustments are listed below: Operations:

Revenues Rates and Charges ($6,402,117) Fees and Charges 461,494 Miscellaneous 80,969 Interest on Investments 24,292 FEMA/Insurance Reimbursement 721,338 Bond Proceeds (1,418,727) Transfer from Capital Projects 618,727 Transfer from Rate Stabilization 400,000 Appropriated Fund Balance 1,000,000 Total ($4,514,024)

Expenditures Operations ($1,461,621) Purchased Power 1,325,762 Purchased Gas (4,140,200) Capital Outlay 1,284,188 Debt Service (259,889) City Turnover 176,988 Transfer to Rate Stabilization 250,000 Transfer to Capital Projects (850,000) Transfer to Designated Reserves (300,000) Operating Contingencies (539,252) Total ($4,514,024)

Capital Projects:

Revenues Proceeds from long-term debt $42,301,858 Capital projects fund balance 100,000 Total $42,401,858 Expenditures FCP10072 New Operations Center Phase 2 $36,941,858 WCP-117 Water Treatment Plant Upgrade Phase 1 5,000,000 SCP-121 Sewer Harris Mill Interceptor 360,000 SCP10219 Candlewick Area Sanitary Sewer System Project 100,000 Total $42,401,858

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GREENVILLE UTILITIES COMMISSION REVENUE AND EXPENDITURES

ALL FUNDS

2016-17

2016-17

2016-17

Budget

Change

Revised

REVENUE: Rates & Charges $ 250,022,370

$ (6,402,117)

$ 243,620,253

Fees & Charges 2,170,451

195,028

2,365,479 U. G. & Temporary Service Charges 139,951

266,466

406,417

Miscellaneous 2,626,130

80,969

2,707,099 Interest on Investments 322,000

24,292

346,292

FEMA/Insurance Reimbursement

721,338

721,338 Bond Proceeds 1,418,727

(1,418,727)

-

Transfer from Capital Projects 800,000

618,727

1,418,727 Transfer from Rate Stabilization -

400,000

400,000

Appropriated Fund Balance -

1,000,000

1,000,000

$ 257,499,629

$ (4,514,024)

$ 252,985,605

EXPENDITURES: Operations $ 64,389,120 $ (1,461,621)

$ 62,927,499

Purchased Power 128,765,671 1,325,762

130,091,433 Purchased Gas 21,383,200 (4,140,200)

17,243,000

Capital Outlay 9,686,918 1,284,188

10,971,106 Debt Service 14,683,867

(259,889)

14,423,978

City Turnover - General 5,723,000 176,988

5,899,988 Street Light Reimbursement 775,420 -

775,420

Transfer to OPEB Trust 500,000 -

500,000 Transfer to Rate Stabilization 4,500,000

250,000

4,750,000

Transfer to Capital Projects 4,850,000 (850,000)

4,000,000 Transfer to Designated Reserves 1,050,000 (300,000)

750,000

Operating Contingencies 1,192,433 (539,252)

653,181

$ 257,499,629 $ (4,514,024)

$ 252,985,605

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ELECTRIC FUND

2016-17

2016-17

2016-17

Budget

Change

Revised


$ (988,238)

$ 172,937,733 Fees & Charges 1,339,253

161,230 1,500,483

U. G. & Temp. Service Chgs. 135,871

258,246

394,117 Miscellaneous 2,111,369

(288,228)

1,823,141

Interest on Investments 165,000

42,479

207,479 FEMA/Insurance Reimbursement -

667,636

667,636

Bond Proceeds 806,619

(806,619)

- Transfer from Capital Projects

806,619

806,619

Transfer from Rate Stabilization -

-

- Appropriated Fund Balance -

-

-

$ 178,484,083 $ (146,875) $ 178,337,208

EXPENDITURES:

Operations $ 28,442,836

$ (576,104)

$ 27,866,732 Purchased Power 128,765,671

1,325,762

130,091,433

Capital Outlay 5,011,008

1,883,090

6,894,098 Debt Service 3,276,228

(84,647)

3,191,581

City Turnover - General 3,863,000

562,647

4,425,647 Street Light Reimbursement 775,420

-

775,420

Transfer to OPEB Trust 275,000

25,000

300,000 Transfer to Rate Stabilization 4,500,000

-

4,500,000

Transfer to Capital Projects 2,400,000

(2,400,000)

- Transfer to Designated Reserves 300,000

(300,000)

-

Operating Contingencies 874,920

(582,623)

292,297

$ 178,484,083 $ (146,875) $ 178,337,208

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WATER FUND

2016-17

2016-17

2016-17

Budget

Change

Revised


$ 170,384

$ 18,885,705 Fees & Charges 347,527

(1,621)

345,906

U. G. & Temp. Service Chgs. 4,080

8,220

12,300 Miscellaneous 240,370

128,030

368,400


2,384

47,384 FEMA/Insurance Reimbursement

17,363

17,363


(79,633)


79,633

79,633

$ 19,431,931 $ 324,760 $ 19,756,691

EXPENDITURES:


$ (165,047)

$ 13,037,745 Capital Outlay 981,270

73,258

1,054,528

Debt Service 3,595,217

(35,359)

3,559,858 Transfer to OPEB Trust 75,000

25,000

100,000


450,000

1,550,000 Transfer to Designated Reserves 300,000

-

300,000


(23,092)

154,560

$ 19,431,931 $ 324,760 $ 19,756,691

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SEWER FUND

2016-17

2016-17

2016-17

Budget

Change

Revised


$ 253,447

$ 21,981,525 Fees & Charges 341,518

22,216

363,734

Miscellaneous 129,041

57,693

186,734 Interest on Investments 32,000

(471)

31,529


16,613

16,613 Bond Proceeds 167,880

(167,880)

-

Transfer from Capital Projects 800,000

(632,120)

167,880

$ 23,198,517 $ (450,502) $ 22,748,015

EXPENDITURES:


$ (400,602)

$ 12,740,621 Capital Outlay 1,943,810

(461,869)

1,481,941


(108,686)

6,124,638 Transfer to OPEB Trust 75,000

25,000

100,000


450,000

1,700,000 Transfer to Designated Reserves 450,000

-

450,000


45,655

150,815

$ 23,198,517 $ (450,502) $ 22,748,015

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GAS FUND

2016-17

2016-17

2016-17

Budget

Change

Revised


$ (5,837,710)

$ 29,815,290

Fees & Charges 142,153

13,203

155,356 Miscellaneous 145,350

183,474

328,824


(20,100)

59,900 FEMA/Insurance Reimbursement

19,726

19,726


(364,595)


364,595

364,595

Transfer from Rate Stabilization

400,000

400,000

Appropriated Fund Balance

1,000,000

1,000,000

$ 36,385,098

$ (4,241,407)

$ 32,143,691

EXPENDITURES: Operations $ 9,602,269

$ (319,868)

$ 9,282,401

Purchased Gas 21,383,200

(4,140,200)

17,243,000 Capital Outlay 1,750,830

(210,291)

1,540,539


(31,197)

1,547,901 City Turnover 1,860,000

(385,659)

1,474,341

Transfer to OPEB Trust 75,000

(75,000)

- Transfer to Rate Stabilization -

250,000

250,000

Transfer to Capital Projects 100,000

650,000

750,000 Transfer to Designated Reserves -

-

-


20,808

55,509

$ 36,385,098 $ (4,241,407) $ 32,143,691

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Greenville Utilities Commission Capital Project Budget

As of May 18, 2017

Current

Revised Project Name Budget Change Budget

FCP10072 New Operations Center Phase 2

Revenues:

Long Term Debt $4,000,000

$36,941,858

$40,941,858

Total Revenue $4,000,000

$36,941,858

$40,941,858

Expenditures:

Project Costs $4,000,000

$36,941,858

$40,941,858

Total Expenditures $4,000,000 $36,941,858 $40,941,858

Greenville Utilities Commission

Capital Project Budget As of May 18, 2017

Current


WCP-117 Water Treatment Plant Upgrade Phase 1

Revenues:

Long-term Debt $ 1,900,000

$ 5,000,000

$ 6,900,000

Total Revenue $ 1,900,000

$ 5,000,000

$ 6,900,000

Expenditures: Project Costs $ 1,900,000

$ 5,000,000

$ 6,900,000

Total Expenditures $ 1,900,000 $ 5,000,000 $ 6,900,000

Greenville Utilities Commission

Capital Project Budget As of May 18, 2017

Current


SCP-121 Sewer Harris Mill Interceptor

Revenues:

Long-term Debt $ 635,000

$ 360,000

$ 995,000

Total Revenue $ 635,000

$ 360,000

$ 995,000

Expenditures:

Project Costs $ 635,000

$ 360,000

$ 995,000

Total Expenditures $ 635,000 $ 360,000 $ 995,000

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Greenville Utilities Commission Capital Project Budget

As of May 18, 2017

Current


SCP-10219 Candlewick Area Sanitary Sewer System Project

Revenues:

Capital Project Fund Balance $ 700,000

$ 100,000

$ 800,000

Total Revenue $ 700,000

$ 100,000

$ 800,000

Expenditures:

Project Costs $ 700,000

$ 100,000

$ 800,000

Total Expenditures $ 700,000 $ 100,000 $ 800,000

ORDINANCE NO. 17- CITY OF GREENVILLE, NORTH CAROLINA

TO AMEND THE GREENVILLE UTILITIES COMMISSION 2016-17 BUDGET, AND TO AMEND VARIOUS CAPITAL PROJECTS BUDGETS

THE CITY COUNCIL OF THE CITY OF GREENVILLE, NORTH CAROLINA, DOES ORDAIN:

Section l. Estimated Net Revenues and Fund Balances. It is estimated that the following non-tax revenues and fund balances will be available during the fiscal year beginning July 1, 2016 and ending June 30, 2017 to meet the subsequent expenditures according to the following schedules:

Revenues

Budget

Change

Revised

A. Electric Fund

Rates & Charges

$173,925,971

($988,238)

$172,937,733

Fees & Charges

1,475,124

419,476

1,894,600

Miscellaneous

2,111,369

(288,228)

1,823,141

Interest on Investments

165,000

42,479

207,479


0

667,636

667,636

Bond Proceeds

806,619

(806,619)

0

Transfer from Capital Projects

0

806,619

806,619

Total Electric Fund Revenue

$178,484,083 ($146,875)

$178,337,208

B. Water Fund

Rates & Charges

$18,715,321

$170,384

$18,885,705

Fees & Charges

351,607

6,599

358,206

Miscellaneous

240,370

128,030

368,400


45,000

2,384

47,384


17,363

17,363

Bond Proceeds

79,633

(79,633)

0


79,633

79,633

Total Water Fund Revenue

$19,431,931

$324,760

$19,756,691

C. Sewer Fund

Rates & Charges

$21,728,078

$253,447

$21,981,525

Fees & Charges

341,518

22,216

363,734

11

Miscellaneous

129,041

57,693

186,734


32,000

(471)

31,529


16,613

16,613

Bond Proceeds

167,880

(167,880)

0


800,000

(632,120)

167,880

Total Sewer Fund Revenue

$23,198,517

($450,502)

$22,748,015

D. Gas Fund

Rates & Charges

$35,653,000

($5,837,710)

$29,815,290

Fees & Charges

142,153

13,203

155,356

Miscellaneous

145,350

183,474

328,824


80,000

(20,100)

59,900


19,726

19,726

Bond Proceeds

364,595

(364,595)

0


364,595

364,595

Transfer from Rate Stabilization

400,000

400,000

Appropriated Fund Balance

1,000,000

1,000,000

Total Gas Fund Revenue

$36,385,098

($4,241,407)

$32,143,691

Total Revenues

$257,499,629

($4,514,024)

$252,985,605

Section II. Expenditures. The following amounts are hereby estimated for the Greenville Utilities Commission to be expended for managing, operating, improving, maintaining, and extending electric, water, sewer and gas utilities during the fiscal year beginning July 1, 2015 and ending on June 30, 2016, according to the following schedules:

Expenditures

Budget

Change

Revised

Electric Fund

$178,484,083

($146,875)

$178,337,208

Water Fund

19,431,931

324,760

19,756,691

Sewer Fund

23,198,517

(450,502)

22,748,015

Gas Fund

36,385,098

(4,241,407)

32,143,691

Total Expenditures

$257,499,629

($4,514,024)

$252,985,605

Section III. Capital Projects. The following Capital Project Budgets previously established are hereby amended.

(a) The revenues anticipated to be available to complete the projects are amended as follows.

Proceeds from long-term debt

$6,535,000

$42,301,858

$48,836,858

Capital projects fund balance

700,000

100,000

800,000

$7,235,000

$42,401,858

$49,636,858

(b) The amounts appropriated for the projects are amended as follows:

FCP10072 New Operations Center Phase 2

$4,000,000

$36,941,858

$40,941,858

WCP117 Water Treatment Plant Upgrade Phase 1 1,900,000

5,000,000

6,900,000

SCP121 Sewer Harris Mill Interceptor

635,000

360,000

995,000

SCP10219 Candlewick Area Sanitary Sewer System Project 700,000

100,000

800,000

$7,235,000

$42,401,858

$49,636,858

(c) The capital project revenues and expenditures authorizations shall extend from year to year until each project is completed.

Section IV. Amendments.

(a) Pursuant to General Statutes 159-15, these budgets may be amended by submission of proposed changes to the City Council.

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(b) Notwithstanding Subsection (a) above, the General Manager/CEO of Greenville Utilities Commission is authorized to transfer funds from one appropriation to another in an amount not to exceed $100,000. Any such transfers shall be reported to the Greenville Utilities Commission and the City Council at their next regular meeting and shall be entered in the minutes.

(c) In case of emergency which threatens the lives, health, or safety of the public, the General Manager/CEO may authorize expenditures in an amount necessary to meet the emergency so long as the expenditure(s) is/are reported to the Greenville Utilities Commission as soon as possible, and appropriate budget amendments are submitted to the City Council, if necessary, at its next meeting.

Section V: Distribution. Copies of this ordinance shall be furnished to the General Manager/CEO and the Chief Financial Officer of the Greenville Utilities Commission, and the Director of Financial Services of the City of Greenville to be kept on file by them for their direction in the disbursement of funds.

Adopted this the _______ day of ____________, 2017.

/s/ Allen M. Thomas, Mayor

Attest:

/s/ Carol L. Barwick, City Clerk

RESOLUTION RECOMMENDING TO THE CITY COUNCIL ADOPTION OF A RESOLUTION PROVIDING FOR THE

REIMBURSEMENT TO THE GREENVILLE UTILITIES COMMISSION, OF THE CITY OF GREENVILLE, NORTH CAROLINA, A BODY POLITIC DULY CHARTERED BY THE STATE OF NORTH CAROLINA FROM THE

PROCEEDS OF ONE OR MORE TAX EXEMPT FINANCING FOR THE EXPENDITURE OF FUNDS FOR CERTAIN CAPITAL IMPROVEMENTS TO THE

GREENVILLE UTILITIES SYSTEM

WHEREAS, the Greenville Utilities Commission, of the City of Greenville, North Carolina, a body politic duly chartered by the State of North Carolina, (the "Commission") has identified certain capital improvements to its electric, gas, sanitary sewer and water systems (collectively, the "System", all as more fully described in Exhibit A attached to the form of the resolution to be presented to the City Council of the City of Greenville, North Carolina) that have been and must be funded from available funds pending reimbursement from the proceeds of debt to be issued for such purposes (the "Debt"); now, therefore, BE IT RESOLVED BY THE GREENVILLE UTILITIES COMMISSION as follows; 1. The City Council is hereby requested to give favorable consideration to and pass the proposed resolution, which resolution (the "Reimbursement Resolution") effectively would provide for the reimbursement to the Commission from the proceeds of Tax Exempt Financing (estimated to be $49,636,858) for certain expenditures made not more than 60 days prior to the adoption of the Reimbursement Resolution, the Commission having determined that such adoption will be in the best interests of the System. 2. This resolution shall take effect immediately upon its passage, and a certified copy thereof shall be provided to the City Clerk for presentation to the City Council at its next regularly scheduled meeting. Adopted this the 18th day of May, 2017.

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_____________________________

/s/ Don Mills, Chair ATTEST: _____________________________ /s/ Joel Butler Secretary APPROVED AS TO FORM: /s/ Phillip R. Dixon General Counsel

RESOLUTION NO. 17-__ RESOLUTION DECLARING THE INTENTION OF THE

CITY COUNCIL OF THE CITY OF GREENVILLE TO REIMBURSE THE GREENVILLE UTILITIES COMMISSION, OF THE CITY OF GREENVILLE, NORTH

CAROLINA, A BODY POLITIC DULY CHARTERED BY THE STATE OF NORTH CAROLINA, FROM THE PROCEEDS OF ONE OR MORE TAX EXEMPT

FINANCING FOR CERTAIN EXPENDITURES MADE AND TO BE MADE IN CONNECTION WITH THE ACQUISITION AND CONSTRUCTION OF CERTAIN

CAPITAL IMPROVEMENTS

WHEREAS, the Greenville Utilities Commission of the City of Greenville, North Carolina, a body politic duly chartered by the State of North Carolina, (the Commission) has determined to pay certain expenditures (the “Expenditures”) incurred no more than 60 days prior to the date hereof and thereafter relating to the acquisition and construction of certain improvements (collectively, the “Project”) more fully described in Exhibit A attached hereto, consisting of improvements to its electric, gas, sanitary sewer and water systems (collectively, the “System”); and

WHEREAS, the City Council of the City of Greenville, North Carolina (the “City Council”) has determined that those moneys previously advanced by the Commission no more than 60 days prior to the date hereof to pay such Expenditures are available only on a temporary period and that it is necessary to reimburse the Commission for the Expenditures from the proceeds of one or more issues of tax-exempt obligations (the “Debt”);

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL as follows:

Section 1. The City Council hereby declares concurrence with the Commission’s intent to reimburse the Commission from the proceeds of the Debt for the Expenditures made with respect to the Project no more than 60 days prior to the date hereof and thereafter. The City Council reasonably expects on the date hereof that it will reimburse the Commission for the Expenditures from the proceeds of a like amount of the Debt.

Section 2. Each Expenditure was or will be either (a) of a type chargeable to capital account under general federal income tax principles (determined as of the date of the Expenditures), (b) the cost of issuance with respect to the Debt, (c) a non-recurring item that is not customarily payable from current revenues of the System, or (d) a grant to a party that is not related to or an agent of the Commission or City of Greenville, North Carolina (the “City”) so long as such grant does not impose any obligation or condition (directly or indirectly) to repay any amount to or for the benefit of the Commission or City.

Section 3. The principal amount of the Tax Exempt Financing estimated to be issued to reimburse the Commission for Expenditures for the Improvements is estimated to be not more than $49,636,858.

Section 4. The Commission and the City will make a reimbursement allocation, which is a written allocation by the Commission and the City that evidences the Commission’s

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use of proceeds of the Debt to reimburse an Expenditure no later than 18 months after the later of the date on which such Expenditure is paid or the Project is placed in service or abandoned, but in no event more than three years after the date on which the Expenditure is paid. The City Council recognizes that exceptions are available for certain "preliminary expenditures," costs of issuance, certain de minimis amounts, (expenditures by "small issuers" based on the year of issuance and not the year of expenditure), and expenditures for construction projects of at least 5 years.

Section 5. The resolution shall take effect immediately upon its passage.

Adopted this the ____ day of ______________, 2017.

____________________________________ /s/ Allen M. Thomas, Mayor ATTEST:

_____________________________________ /s/ Carol L. Barwick, City Clerk

EXHIBIT A

THE IMPROVEMENTS

The Improvements referenced in the resolution include, but are not limited to, all operating and capital expenditures associated with the purchase, design and construction of:

FCP10072 New Operations Center Phase 2 40,941,858 WCP-117 Water Treatment Plant Upgrade Phase 1 6,900,000 SCP-121 Sewer Harris Mill Interceptor 995,000 SCP10219 Candlewick Area Sanitary Sewer System Project 800,000 $49,636,858

A motion was made by Mr. Butler, seconded by Mr. Stoughton, to adopt the fiscal year 2016-2017 budget amendment which includes certain capital projects budget amendments as shown and the reimbursement resolution and recommend similar action by City Council. The motion carried unanimously. RECOMMENDED AWARD OF CONSTRUCTION CONTRACT FOR THE HARRIS MILL RUN SANITARY SEWER INTERCEPTOR REPLACEMENT PROJECT (Agenda Item 4) Mr. Randy Emory introduced Steve Porter, Water Resources Systems Engineer, to provide information on this project. Mr. Porter reminded the Board that the Harris Mill Run Interceptor is a section of 15-inch gravity sewer main located on the north side of W. 5th Street between Treybrooke Apartments and The Heritage Apartments. This sewer main provides service to Greenville’s Medical District Area including ECU’s West Campus and Vidant Medical Center. The existing 15-inch pipe is near capacity and will be replaced with a 21-inch diameter pipe in accordance with GUC’s Wastewater System Master Plan completed by Black & Veatch in 2009. The larger pipe should ensure adequate capacity is available to provide service for the anticipated future build-out population expected within the service area. The project was originally bid last fall; however, after two attempts only two bids were received and since both were significantly over the established project budget they were subsequently rejected by the Board. Following a reexamination by the engineer of the design plans and revisions to the bidding documents, formal bids were again received on April 13, 2017. Three bids were received ranging from a high bid of $1,069,578.30 to a low bid of $678,060.00. The low bid was submitted by Hendrix-Barnhill Co., Inc., Greenville, NC. Although the low bid still exceeds the originally estimated construction cost, it is more than $175,000 less than the lowest bid received last fall. It is staff’s opinion that the bids received at this time are competitive and represent the best pricing available in a strong construction market. The engineer’s recommendation for award and certified bid tabulation were provided.

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A motion was made by Mr. Overton, seconded by Ms. Lipscomb, to authorize the General Manager/CEO to execute a construction contract with Hendrix-Barnhill Co., Inc. in the amount of $678,060.00, subject to approval of capital project budget amendment. The motion carried unanimously. RECOMMENDATION TO ENTER INTO MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN GREENVILLE UTILITIES COMMISSION AND THE CITY OF GREENVILLE REGARDING THE ANNUAL TRANSFER CALCULATION (Agenda Item 5) Mr. Chris Padgett, Chief Administrative Officer, reminded the Board that GUC transfers funds to the City of Greenville annually as a return on investment to the owners of GUC assets; the citizens of the City of Greenville. The terms of the annual transfer are provided in Section 7 of the GUC Charter, which stipulates;

"…the Greenville Utilities Commission shall annually transfer to the City, unless reduced by the City Council, an amount equal to six percent (6%) of the difference between the electric and natural gas system's net fixed assets and total bonded indebtedness plus annually transfer an amount equal to fifty percent (50%) of the Greenville Utilities Commission's retail cost of service for the City of Greenville's public lighting."

Application of the formula, as currently administered, requires that annual transfer projections be used by GUC and the City for budget development purposes. These projections can vary significantly from the actual transfer based on year-end audit results due to the timing and value of debt issuance by GUC and the timing and value of GUC asset improvements. The GUC budget is generally developed in February – April, well before the end of the fiscal year. The transfer projection used in the budget is based on:

• Projected GUC year-end net assets and capital debt; and • Projections as to when projects will be started, completed, and/or in progress prior to the

beginning of the new fiscal year. The actual transfer to the City is based on the prior fiscal year’s audit results (i.e. the FY 2016-17 actual transfer is based on FY 2015-16 audit calculations) which are not known until the audit is completed in October, six - eight months after the transfer projection was originally developed. This difference in timing between when the transfer projection is developed for the budget and when a verifiable transfer amount is available via the completed audit can create significant uncertainty for both entities from a budgeting perspective. The timing and value of debt issuances by GUC and the timing and value of asset improvements can also create significant fluctuations in the actual transfer amount from year to year. To minimize these transfer fluctuations, and to allow for a verifiable transfer amount to be used for budgeting purposes, it is recommend that GUC enter into an MOU with the City regarding the annual transfer calculation. The proposed transfer calculation methodology, which would be used for fiscal year 2016-17 and for subsequent years, would be based on a three (3) year rolling average of the audited numbers that are two (2) years in arrears. (Slides were provided that showed the 10-year transfer history, current process, and the proposed solution using the 3-year average of audit results). Using this proposed methodology to calculate the transfer annually will:

• Adhere to the GUC Charter; • Provide both organizations with a known and verifiable number that can be used for

budgeting; and • Minimize fluctuations in the transfer that would otherwise result when GUC uses debt to

finance projects and when engineering estimates with regard to the timing of completing projects extends beyond the targeted dates.

Under the proposed MOU the method of providing the City a fifty percent (50%) public lighting reimbursement during each current fiscal year will not change. The Greenville City Council approved the proposed MOU at their April 10, 2017, meeting.

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NORTH CAROLINA MEMORANDUM PITT COUNTY OF UNDERSTANDING

THIS MEMORANDUM OF UNDERSTANDING made and entered into this the 18th day

of May, 2017, effective at 12:01 a.m. on the 1st day of July, 2016, by and between the CITY OF

GREENVILLE, a municipal corporation organized and existing pursuant to the laws of the State

of North Carolina, Party of the First Part, and hereinafter referred to as the CITY, and

GREENVILLE UTILITIES COMMISSION, a body politic and Party of the Second Part and

hereinafter referred to as GUC;

WITNESSETH:

WHEREAS, Section 7 of the Charter of GUC establishes the formula for the annual

transfer amount to be paid by GUC to the CITY; and

WHEREAS, application of the formula as currently administered requires that projections

of annual transfer be used by GUC and the CITY for budget development purposes; and

WHEREAS, the projection of annual transfer used by GUC and the CITY for budget

development purposes can vary significantly from the actual transfer based on year-end audit

results due to the timing and value of debt issuance by the CITY for GUC and the timing and

value of asset improvements; and

WHEREAS, the amount of annual transfer to be paid by GUC to the CITY can fluctuate

significantly from year to year due to the timing and value of debt issuance by the CITY for GUC

and the timing and value of asset improvements; and

WHEREAS, the CITY and GUC desire to provide for a more stable and predictable

transfer amount to assist each entity in budgetary preparation and implementation.

NOW, THEREFORE, for and in consideration of the mutual promises and covenants set

forth herein, the CITY and GUC do hereby agree as follows:

1. Transfer Formula. The Transfer Formula is the portion of the formula contained

in Section 7 of the Charter of GUC stated as follows:

“…that the Greenville Utilities Commission shall annually transfer to the City, unless reduced by the City Council, an amount equal to six percent (6%) of the difference between the electric and natural gas system’s net fixed assets and total bonded indebtedness plus annually transfer an amount equal to fifty percent (50%) of the Greenville Utilities Commission’s retail cost of service for the City of Greenville’s public lighting. Public lighting is defined herein to mean City of Greenville street lights and City of Greenville Parks and Recreation Department recreation and outdoor lighting...” 2. Fiscal Year 2016-17 Transfer Amount and Transfer Amounts for Subsequent

Years. In an effort to minimize the fluctuations in the annual GUC transfer to the CITY for fiscal

year 2016-17 and for subsequent years through and including fiscal year 2020-21, the CITY and

GUC agree to use a three (3) year rolling average of the audited numbers with the most recent

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fiscal year to be included in the three (3) year rolling average being two (2) fiscal years in

arrears. As an example, for fiscal year 2016-17, the average of the audited numbers for fiscal

year 2012-2013, fiscal year 2013-14, and fiscal year 2014-15 will be used. The parties agree

that by adding this additional feature into the compilation each fiscal year, the parties will be

provided with a known and verifiable number for the net fixed assets and total bonded

indebtedness calculation that can be used for budgeting. The three (3) year average will also

serve to minimize and reduce any transfer fluctuations that result when GUC uses debt to

finance projects and when engineering estimates with regard to the timing of completing

projects goes beyond the targeted dates. Under this Memorandum of Understanding, the

method of providing the CITY a fifty percent (50%) public lighting reimbursement during each

current fiscal year will not change.

3. Amendment. The provisions of this Memorandum of Understanding may be

amended upon the approval of GUC and the CITY.

4. Automatic Annual Renewal Until Notice of Termination. After the annual transfer

is determined for fiscal year 2020-21, this Memorandum of Understanding will continue until

either the City or GUC provides written notice to the other party no later than December 31 of

any year that the Memorandum of Understanding is terminated effective for the fiscal year

immediately following the date of notice of termination. As an example, if notice is given by one

party to the other party on December 31, 2020, this Memorandum of Understanding is

terminated effective for fiscal year 2021-22. Unless otherwise agreed by the City and GUC

pursuant to a new Memorandum of Understanding, the method of calculation of the annual

transfer amount related to the difference between net fixed assets and bonded indebtedness for

fiscal years following the date of notice of termination will be based upon the net fixed assets

and bonded indebtedness as stated in the year-end audit on June 30 of the previous fiscal year.

As an example, under this calculation method, the transfer amount for fiscal year 2021-22 will

be based upon the amount of the net fixed assets and bonded indebtedness stated as of June

30, 2021, in the audit for fiscal year 2020-21. Should this Memorandum of Understanding be

terminated by either party in accordance with the provisions of this section, the transfer

calculated and paid in accordance with the terms of this Memorandum of Understanding shall

be final for the years in which it was applicable.

IN WITNESS WHEREOF, the parties hereto have each caused this Memorandum of

Understanding to be executed by its duly authorized officials pursuant to authority duly given

effective on the date hereinabove set forth.

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CITY OF GREENVILLE

By: _______________________________________ /s/ ALLEN M. THOMAS, MAYOR ATTEST: ____________________________________ /s/ CAROL W. BARWICK, CITY CLERK [SEAL]


By: _______________________________________ /s/ DON MILLS, CHAIRMAN ATTEST: ____________________________________ /s/ JOEL BUTLER, SECRETARY [SEAL] STATE OF NORTH CAROLINA PITT COUNTY

I, ____________________________________, a Notary Public of the County and State aforesaid, certify that CAROL W. BARWICK personally came before me this day and acknowledged that she is the City Clerk of the City of Greenville, and that by authority duly given and as the act of the City of Greenville, the foregoing instrument was signed in its name by its Mayor, ALLEN M. THOMAS, sealed with its corporate seal, and attested by her as its City Clerk.

WITNESS my hand and official stamp or seal, this the ____ day of __________, 20___.

___________________________________ NOTARY PUBLIC

My Commission Expires: _______________ STATE OF NORTH CAROLINA PITT COUNTY

I, ____________________________________, a Notary Public of the County and State

aforesaid, certify that JOEL BUTLER personally came before me this day and acknowledged that he is the Secretary of the Board of Commissioners of Greenville Utilities Commission, and that by authority duly given and as the act of the Board of Commissioners, the foregoing instrument was signed in its name by its CHAIRMAN, DON MILLS, sealed with its corporate seal, and attested by him as its Secretary.

WITNESS my hand and official stamp or seal, this the ____ day of __________, 20___.

___________________________________ NOTARY PUBLIC

My Commission Expires: _______________

19

A motion was made by Ms. Jacobs, seconded by Ms. Anderson, to approve the MOU between the City of Greenville and GUC regarding the annual transfer calculation. The motion carried unanimously. GENERAL MANAGER’S REPORT (Agenda Item 6) 1. Informational Reading Bids, Statistical Data Report, Sewer Spill Tracking Report, and Load Management Report were provided. The following Bids awarded by the General Manager/CEO during the past month were reported for information:


RANKING OF QUALIFICATIONS RECEIVED ARCHITECTURAL AND ENGINEERING SERVICES FOR THE NEW OPERATIONS

CENTER MARCH 15, 2017@ 2:00 PM

VENDOR QUALIFICATION RATING

CT Consultants* IBI Group of North Carolina, PC MCA Architecture

*Indicates recommended negotiations based on the vendor’s submitted qualifications.

RANKING

GAS LEAK DETECTION AND ATMOSPHERIC CORROSION SURVEY SERVICES MARCH 23, 2017@ 4:00 PM

VENDOR RANKING

Southern Cross Corp* Heath Consultants, Inc. BGL Asset Services, LLC Leak Detection Services, Inc.

*Indicates recommended award based on the vendor’s submitted proposal and qualifications.

TABULATION OF BIDS RECEIVED ONE (1) TRACTOR

APRIL 12, 2017 @ 2:00 PM

Vendors Delivery Time Total Unit Price Mitchell Tractor and Equipment Co.

30 Days

$52,690.00*

The Tractor Center

-

62,980.00

*Indicates recommended award based on the lowest responsible, responsive bid. Load Management Report The Duke Energy Progress (DEP) monthly peak occurred on April 29, 2017 for the hour ending at 4:00 p.m. GUC’s load management system was in full operation during this period. As a result, the estimated avoided demand costs amount to $986,124. 2. Key Performance Indicators (KPIs) The following KPIs highlighted for this month were provided in the dashboard format along with the corresponding scorecard: • Capital Spending Ratio

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• Response Time to Water Leaks/Breaks • Debt Service Coverage • System Losses – Electric 3. Commendations The following are compliment records from customers: Colleen Sicley, Call Center Supervisor, received a call from customer Henry McLeod. Mr. McLeod called and said that he spoke with Sean Smith, Customer Contact Representative I, with an issue that he was having when trying to pay online. He said that Sean was very professional and very helpful. Durk Tyson, Gas Systems Engineer, and Dillon Wade, Gas Engineer I, were recognized by Emalee Zingher with C.M. Eppes Middle School Student Services. She sent a letter to Lena Previll, Human Resources Manager, to thank them for their volunteering at the C.M. Eppes Middle School’s 2017 Career Day. Ms. Zingher received great feedback from the students, teachers and staff about their contributions and said that it certainly inspired the students. Freddie Martin, Natural Gas Supply Officer and Robby Manning, Natural Gas Supply Analyst I, were recognized by Pamella Ferris, STEM Coordinator for Wellcome Middle School. She sent an email to Lena Previll, Human Resources Manager, and wrote “Your exhibit at the STEM Fair was a big hit! The students really enjoyed it! Thank you for everything that GUC is doing to help the students of Pitt County.” Jonathan Sergeant, Energy Services Officer, received an email from Angela McLawhorn, Master Scheduler for Domtar Personal Care. She thanked him for speaking to their group and stated that she received lots of positive comments. Sara Lilley and Ashleigh Minton, Co-Chairs for the 2017 Touch a Truck with the Junior Women’s Association of Greenville, wrote to thank GUC for being a part of the Touch A Truck held on April 1. The following employees were recognized for assisting with this event: Brantley Lawrence, Overhead Lineworker Third Class; Stephen Briley, Overhead Lineworker Third Class; William Morning, Gas Systems Crew Leader I; Justin Oakes, Gas Systems Technician I; Gregg Lyons, Inspectors Crew Leader; and Derek Averill, Pipe Layer I. Ann McClung, Science Coordinator at the Center for STEM Education at East Carolina University, sent a thank you for the generous donation and support of the Pitt County Robotics as they are on the road headed to Houston, Texas for the World Championship. Nancy O’Campo, Art teacher for Sugg/Bundy Elementary School, sent a hand written note to thank GUC for sending such great folks to their science day. She said they were all amazing and the students loved each part including electricity, waste water, gas and the truck. The following employees were recognized for assisting with this event: Chris Rouse, Gas Systems Crew Leader I; Paul Edwards, Gas Systems Technician II; William Morning, Gas Systems Crew Leader I; Crystal Respass, WWTP Laboratory Technician II; Tyler Nichols, Electric Engineer Assistant I; and Ryan Van Scoy, Electric Engineer Assistant I. 4. Other

• Mr. Cannon updated the Board that last Thursday he presented the budget to the City Council and added that Chair Mills was in attendance as well.

• Mr. Cannon announced that he along with Jeff McCauley, Keith Jones, and Chris Padgett will be going to New York City for their annual meeting with the rating agencies in an effort to create more cost savings.

BOARD CHAIR’S REPORT (Agenda Item 8) Chair Mills reminded the group of the upcoming meetings:

• GUC Regular Meeting, Thursday, June 8, 2017, 12:00 noon, Board Room

21

Chair Mills announced the schedule of the upcoming conferences along with the registration deadlines.

• APPA National Conference, June 16-21, 2017, Orlando, FL Deadline for registration: May 19, 2017

• APGA Annual Conference, July 24-27, 2017, San Francisco, CA Deadline for registration: June 16, 2017

• ElectriCities Annual Conference, August 10-12, 2017, Myrtle Beach, SC Deadline for registration: July 14, 2017

BOARD MEMBERS’ REPORT (Agenda Item 9) There were several Board Members remarks on the award recognitions, budget process, and the successful Commissioner’s Strategic Planning kick-off session. Upon motion by Mr. Butler, seconded by Ms. Anderson, the Board unanimously agreed to adjourn at 12:54 p.m.

Respectfully submitted,

_________________________________ Amy Carson Wade, Executive Secretary

APPROVED: ___________________________ Joel Butler, Secretary

Item: Consideration of Adoption of FY 2017-2018 Budget

Contact:

Tony Cannon

Explanation: Over the past few months, the Board has reviewed GUC’s proposed budget for FY 2017-2018. The budget message, ordinance, and other supplemental documentation for the proposed budget are attached for your review. As a reminder, key provisions in GUC’s FY 2017-2018 proposed budget include the following:

• Expenditures budgeted for FY 2017-18 have decreased by 2.7% or $6.95M when compared to the FY 2016-17 budget. Key drivers are:

o $5.7M decrease in purchased commodities costs (electricity and gas)

o $3M decrease in transfer to rate stabilization o $1M decrease in transfer to designated reserve o $1.5M increase in transfers to Capital Projects o $1.2M increase in operations

• No rate adjustment for the Electric Fund. However, the budget does reflect the (3.5)% decrease that went into effect on April 1, 2017 through the purchased power adjustment due to a wholesale decrease of (4.5)%. The (3.5)% rate decrease provides a $4.00 per month decrease to the typical residential bill. This rate reduction marks the third time the rates have been reduced since the sale of NCEMPA assets providing residential customers a cumulative rate reduction of 14.5% over the last three years. The cumulative savings for the typical residential customer using 1,000 kWh over a three year period will be approximately $500.

• No rate adjustment for the Water Fund, 7.4% projected rate adjustment deferred

• No rate adjustment for the Sewer Fund, 8.4% projected rate adjustment deferred

• No rate adjustment for the Gas Fund, 1.6% projected rate adjustment deferred (other than purchased gas adjustments as needed)

• Funding for the employee market adjustment at 1.7% or $438K effective July 1, 2017

• Funding for the employee merit program at 1.5% or $394K • Continuation of a self-insured health insurance plan which includes

a high deductible Health Savings Account option • Continuation of self-insured dental insurance plan


• Funding to bring replacements on board prior to the retirement of key personnel in order to facilitate succession planning, leverage the knowledge and experience of long-term employees for training on critical issues and ensure smooth transitions

• Existing positions have been reallocated and seven permanent positions have been added to appropriately respond to needs within the combined enterprise operation

• Prefunding for Other Post-Employment Benefits (OPEB) $500K • Investment of $9.67M for capital outlay in order to maintain system

reliability and comply with regulatory requirements in the combined enterprise operation

Annual turnover or transfer of $6.6M to the City of Greenville in accordance with the Charter issued by the North Carolina General Assembly

Highlights of the FY 2017-18 capital budget are listed below:

• GUC continues to make investments in capital projects to maintain reliability, meet ongoing regulatory requirements, and remain strategically positioned to facilitate growth. To that end, GUC will be establishing capital projects totaling $21.58M.

Previous Board

Actions: April 20, 2017 - Board approved the preliminary FY 2017-18 Budget

Fiscal Note: N/A


The staff recommends the Board adopt the following: GUC’s proposed FY 2017-2018 Operating and Capital Projects Budgets Reimbursement Resolution - Capital Projects Reimbursement Resolution - Heavy Equipment and Vehicle Purchases Recommend the Board request the City Council to take similar action and adopt GUC’s budget and include it in the City’s overall budget as well as the adoption of the City Ordinance and associated Reimbursement Resolutions

i

Greenville Utilities Commission Greenville City Council Customers of Greenville Utilities Ladies and Gentlemen: The FY 2017-18 Budget reflects the combined efforts of the Management Team, employees, and the guidance of the Board of Commissioners. Budgetary requests have been reviewed with a focus on sound business practices, customer expectations, and system reliability. In balancing the budget, key areas such as infrastructure needs, rising operational costs, staffing requirements and long-term sustainability with fiscal responsibility were also taken into consideration. Using GUC’s strategic plan as a guide, this budget has been prepared to ensure the long-term success of our mission to provide safe and reliable utility services at the lowest reasonable costs, with exceptional customer service. GUC’s financial budget goals focus on several key metrics including end-of-year performance, debt service coverages, and fund balances. The long-term sustainability of each fund is also taken into consideration to ensure that GUC is poised to continue to meet its mission and future financial challenges. Guiding all budgetary decisions is GUC’s commitment to provide exceptional service while maintaining a viable financial position. In monitoring our strategic plan, GUC utilizes Key Performance Indicators at the corporate level on a consistent and routine basis. To that end, GUC’s budget goals are designed to achieve the following:

• Meet customer needs • Provide reliable utility services at the lowest reasonable cost • Position GUC to achieve greater efficiencies • Continue to meet and/or exceed regulatory requirements • Preserve and/or improve bond ratings • Minimize rate increases • Avoid future rate shock • Ensure financial viability of each fund • Prepare for emergency situations • Prepare for growth and expansion opportunities

PO Box 1847

Greenville, NC

27835-1847

252 752-7166

www.guc.com

Your Local

Advantage

http://www.guc.com/

ii

The balancing process for the budget addressed several areas, including the review and analysis of the following:

• All four funds will be self-supporting in order to meet future financial challenges as individual funds on a sustained basis

• Continued investment in infrastructure • Additional debt service requirements • Appropriate timing of expenditures for capital projects • Revenues • Personnel and staffing • Cost saving opportunities • Updating financial models while being cognizant of any rate adjustments

that were proposed last year for the upcoming fiscal year Highlights of the FY 2017-18 operating budget are listed below:

• Expenditures budgeted for FY 2017-18 have decreased by 2.7% or $6.95M when compared to the FY 2016-17 budget. Key drivers are:

o $5.7M decrease in purchased commodities costs (electricity and gas)

o $3M decrease in transfer to rate stabilization o $1M decrease in transfer to designated reserve o $1.5M increase in transfer to capital projects o $1.2M increase in operations

• No rate adjustment for the Electric Fund. However, the budget does reflect the (3.5)% decrease that went into effect on April 1, 2017 through the purchased power adjustment due to a wholesale decrease of (4.5)%. The (3.5)% rate decrease provides a $4.00 per month decrease to the typical residential bill. This rate reduction marks the third time the rates have been reduced since the sale of NCEMPA assets providing residential customers a cumulative rate reduction of 14.5% over the last three years. The cumulative savings for the typical residential customer using 1,000 kWh over a three year period will be approximately $500.

• No rate adjustment for the Water Fund, 7.4% projected rate adjustment deferred

• No rate adjustment for the Sewer Fund, 8.4% projected rate adjustment deferred

• No rate adjustment for the Gas Fund, 1.6% projected rate adjustment deferred (other than purchased gas adjustments as needed)

• Funding for the employee market adjustment at 1.7% or $438K effective July 1, 2017

• Funding for the employee merit program at 1.5% or $394K • Continuation of a self-insured health insurance plan which includes a high

deductible Health Savings Account option • Continuation of self-insured dental insurance plan

iii

• Funding to bring replacements on board prior to the retirement of key personnel in order to facilitate succession planning, leverage the knowledge and experience of long-term employees for training on critical issues and ensure smooth transitions

• Existing positions have been reallocated and seven permanent positions have been added to appropriately respond to needs within the combined enterprise operation

• Prefunding for Other Post-Employment Benefits (OPEB) $500K • Investment of $9.67M for capital outlay in order to maintain system

reliability and comply with regulatory requirements in the combined enterprise operation

• Annual turnover or transfer of $6.6M to the City of Greenville in accordance with the Charter issued by the North Carolina General Assembly

Highlights of the FY 2017-18 capital budget are listed below:

• GUC continues to make investments in capital projects to maintain reliability, meet ongoing regulatory requirements, and remain strategically positioned to facilitate growth. To that end, GUC will be establishing capital projects totaling $21.58M.

SUMMARY

The FY 2017-18 balanced budget controls costs while continuing to provide the high level of service our customers expect. The budget is balanced and it includes key components to position GUC for long-term sustainability and growth. By focusing on business fundamentals, this budget helps establish the foundation for providing safe and reliable service at the lowest reasonable costs to GUC’s customers for the future.

Anthony C. Cannon General Manager/CEO

THE CITY COUNCIL OF THE CITY OF GREENVILLE, NORTH CAROLINA, DOES ORDAIN:

Revenues Budget A. Electric Fund

Rates & Charges $169,026,175 Fees & Charges 1,777,452

Miscellaneous 2,295,301Interest on Investments 204,000

Total Electric Fund Revenue $173,302,928

B. Water Fund Rates & Charges $19,010,430Fees & Charges 359,787Miscellaneous 246,053Interest on Investments 45,000

Total Water Fund Revenue $19,661,270

C. Sewer Fund Rates & Charges $22,065,490Fees & Charges 304,686Miscellaneous 145,866Interest on Investments 27,000

Total Sewer Fund Revenue $22,543,042

D. Gas Fund Rates & Charges $33,683,200Fees & Charges 135,176Miscellaneous 156,157Interest on Investments 60,000Appropriated Fund Balance 1,000,000

Total Gas Fund Revenue $35,034,533

Total Revenues $250,541,773

Expenditures Budget

Electric Fund $173,302,928 Water Fund 19,661,270 Sewer Fund 22,543,042 Gas Fund 35,034,533

Total Expenditures $250,541,773

ORDINANCE NO. _________CITY OF GREENVILLE, NORTH CAROLINA

2017-18 GREENVILLE UTILITIES COMMISSION BUDGET ORDINANCE

Section l. Estimated Net Revenues and Fund Balances. It is estimated that the following non-tax revenues and fund balances will be available during the fiscal year beginning July 1, 2017 and ending June 30, 2018 to meet the subsequent expenditures, according to the following schedules:

Section II. Expenditures. The following amounts are hereby estimated for the Greenville Utilities Commission to be expended for managing, operating, improving, maintaining, and extending electric, water, sewer and gas utilities during the fiscal year beginning July 1, 2017 and ending on June 30, 2018, according to the following schedules:

Capital Projects Revenues Budget

Electric Fund - Long Term Debt Proceeds $2,500,000Sewer Fund - Long Term Debt Proceeds 6,780,000Gas Fund - Long Term Debt Proceeds 12,300,000

Total Revenues $21,580,000

(b) The following amounts are hereby appropriated for capital projects that will begin during the fiscal year beginning July 1, 2017.

Capital Projects Expenditures Budget

Electric System Expansion Project $2,500,000Southeast Area Sewer Extensions Project 2,500,000Sewer Outfall Rehabilitation Phase 4 Project 2,480,000Regional Pump Station Upgrades Project 1,800,000High-Pressure Multiple Gas Facilities Relocation Project 9,500,000NCDOT Southwest Bypass Relocations Project 1,500,000Firetower Road Widening Project 1,300,000

Total Capital Projects Expenditures $21,580,000

Adopted this the 8th day of June, 2017.

Attest:

Carol L. Barwick, City Clerk

(a) Pursuant to General Statutes 159-15, this budget may be amended by submission of proposed changes to the City Council.

Section III. Capital Improvements. The following Capital Improvements anticipated revenues and project appropriations as listed below in this section are hereby adopted in the fiscal year beginning July 1, 2017.

(a) It is estimated that the following non-tax revenues and long term debt proceeds will be available to fund capital project expenditures that will begin in the fiscal year beginning July 1, 2017.

Allen M. Thomas, Mayor

Section IV: Amendments.

Section VI: Distribution. Copies of this ordinance shall be furnished to the General Manager/CEO and the Chief Financial Officer of the Greenville Utilities Commission, and the Director of Financial Services of the City of Greenville to be kept on file by them for their direction in the disbursement of funds.

(b) Notwithstanding Subsection (a) above, the General Manager/CEO of Greenville Utilities Commission is authorized to transfer funds from one appropriation to another in an amount not to exceed $100,000. Any such transfers shall be reported to the Greenville Utilities Commission and the City Council at their next regular meeting and shall be entered in the minutes.

(c) In case of emergency which threatens the lives, health, or safety of the public, the General Manager/CEO may authorize expenditures in an amount necessary to meet the emergency so long as such amount does not exceed the amount in contingency accounts and the expenditure is reported to the Greenville Utilities Commission as soon as possible, and appropriate budget amendments are submitted to the City Council, if necessary, at its next regular meeting.

(d) Capital Projects listed in section III may be amended on an individual project basis.

Section V: Appropriation. The capital project revenue and expenditure authorizations shall extend from year to year until each project is completed.

2015-2016 2016-2017 2016-2017 2017-2018 2017-2018Actual Budget Projected Plan Budget

REVENUE:

Rates & Charges 243,633,916$ 250,022,370$ 243,620,253$ 254,420,307$ 243,785,295$ Fees & Charges 2,303,829 2,170,451 2,365,479 2,213,861 2,369,093 U. G. & Temp. Ser. Chgs. 174,595 139,951 406,417 142,751 208,008 Miscellaneous 3,257,057 2,626,130 2,707,099 2,856,818 2,843,377 Interest on Investments 326,222 322,000 346,292 322,000 336,000 FEMA/Insurance Reimbursement - - 721,338 - - Bond Proceeds 813,404 1,418,727 - 608,873 - Installment Purchases - - - - - Transfer from Cap Projects - 800,000 1,418,727 - - Transfer from Rate Stabilization - - 400,000 - - Appropriated Fund Balance - - 1,000,000 - 1,000,000

250,509,023$ 257,499,629$ 252,985,605$ 260,564,610$ 250,541,773$

EXPENDITURES:

Operations 54,557,568$ 64,389,120$ 62,927,499$ 65,135,235$ 65,558,607$ Purchased Power 124,801,949 128,765,671 130,091,433 129,105,795 125,005,049 Purchased Gas 15,335,516 21,383,200 17,243,000 21,524,100 19,423,500 Capital Outlay 7,111,244 9,686,918 10,971,106 7,798,738 9,673,307 Debt Service 15,055,055 14,683,867 14,423,978 15,829,985 14,313,444 City Turnover - General 6,592,442 5,723,000 5,899,988 6,557,000 5,853,236 Street Light Reimbursement 765,823 775,420 775,420 798,683 798,693 Transfer to OPEB Trust 450,000 500,000 500,000 500,000 500,000 Transfer to Rate Stabilization 14,000,000 4,500,000 4,750,000 1,200,000 1,450,000 Transfer to Capital Projects 16,450,000 4,850,000 4,000,000 8,700,000 6,350,000 Transfer to Designated Reserve 1,000,000 1,050,000 750,000 1,750,000 - Operating Contingencies - 1,192,433 653,181 1,665,074 1,615,937

256,119,596$ 257,499,629$ 252,985,605$ 260,564,610$ 250,541,773$

ALL FUNDS

2015-2016 2016-2017 2016-2017 2017-2018 2017-2018

Actual Budget Projected Plan BudgetREVENUE:

Rates & Charges 177,785,263$ 173,925,971$ 172,937,733$ 174,521,779$ 169,026,175$ Fees & Charges 1,499,960 1,339,253 1,500,483 1,366,039 1,573,044 U. G. & Temp. Ser. Chgs. 170,695 135,871 394,117 138,589 204,408 Miscellaneous 2,476,169 2,111,369 1,823,141 2,332,440 2,295,301 Interest on Investments 170,725 165,000 207,479 165,000 204,000 FEMA/Insurance Reimbursement - - 667,636 - - Bond Proceeds 329,114 806,619 - 52,750 - Installment Purchases - - - - - Transfer from Cap Projects - - 806,619 - - Transfer from Rate Stabilization - - - - - Appropriated Fund Balance - - - - -

182,431,926$ 178,484,083$ 178,337,208$ 178,576,597$ 173,302,928$

EXPENDITURES:

Operations 23,894,397$ 28,442,836$ 27,866,732$ 29,089,354$ 28,858,575$ Purchased Power 124,801,949 128,765,671 130,091,433 129,105,795 125,005,049 Capital Outlay 4,482,944 5,011,008 6,894,098 4,725,298 5,846,686 Debt Service 3,352,378 3,276,228 3,191,581 3,577,039 3,089,614 City Turnover - General 4,777,152 3,863,000 4,425,647 4,446,000 4,254,580 Street Light Reimbursement 765,823 775,420 775,420 798,683 798,693 Transfer to OPEB Trust 315,000 275,000 300,000 275,000 275,000 Transfer to Rate Stabilization 13,000,000 4,500,000 4,500,000 1,200,000 1,200,000 Transfer to Capital Projects 4,600,000 2,400,000 - 3,300,000 3,000,000 Transfer to Designated Reserve 300,000 300,000 - 600,000 - Operating Contingencies - 874,920 292,297 1,459,428 974,731

180,289,642$ 178,484,083$ 178,337,208$ 178,576,597$ 173,302,928$

ELECTRIC FUND

2015-2016 2016-2017 2016-2017 2017-2018 2017-2018


Rates & Charges 17,792,061$ 18,715,321$ 18,885,705$ 20,122,505$ 19,010,430$ Fees & Charges 336,621 347,527 345,906 354,478 356,187 U. G. & Temp. Ser. Chgs. 3,900 4,080 12,300 4,162 3,600 Miscellaneous 259,746 240,370 368,400 245,232 246,053 Interest on Investments 51,616 45,000 47,384 45,000 45,000 FEMA/Insurance Reimbursement - - 17,363 - - Bond Proceeds 158,228 79,633 - 278,328 - Installment Purchases - - - - - Transfer from Cap Projects - - 79,633 - - Transfer from Rate Stabilization - - - - - Appropriated Fund Balance - - - - -

18,602,171$ 19,431,931$ 19,756,691$ 21,049,705$ 19,661,270$

EXPENDITURES:

Operations 11,203,936$ 13,202,792$ 13,037,745$ 13,345,000$ 13,273,137$ Capital Outlay 761,075 981,270 1,054,528 718,210 1,100,540 Debt Service 3,779,719 3,595,217 3,559,858 3,777,344 3,454,686 Transfer to OPEB Trust 67,500 75,000 100,000 75,000 75,000 Transfer to Rate Stabilization - - - - - Transfer to Capital Projects 1,900,000 1,100,000 1,550,000 2,600,000 1,600,000 Transfer to Designated Reserve 100,000 300,000 300,000 450,000 - Operating Contingencies - 177,652 154,560 84,151 157,907

17,812,230$ 19,431,931$ 19,756,691$ 21,049,705$ 19,661,270$

WATER FUND

2015-2016 2016-2017 2016-2017 2017-2018 2017-2018


Rates & Charges 20,835,158$ 21,728,078$ 21,981,525$ 23,600,423$ 22,065,490$ Fees & Charges 337,938 341,518 363,734 348,348 304,686 U. G. & Temp. Ser. Chgs. - - - - - Miscellaneous 188,174 129,041 186,734 131,286 145,866 Interest on Investments 34,585 32,000 31,529 32,000 27,000 FEMA/Insurance Reimbursement - - 16,613 - - Bond Proceeds 206,761 167,880 - 227,045 - Installment Purchases - - - - - Transfer from Cap Projects - 800,000 167,880 - - Transfer from Rate Stabilization - - - - - Appropriated Fund Balance - - - - -

21,602,615$ 23,198,517$ 22,748,015$ 24,339,102$ 22,543,042$

EXPENDITURES:

Operations 11,290,909$ 13,141,223$ 12,740,621$ 13,340,712$ 13,657,020$ Capital Outlay 774,018 1,943,810 1,481,941 670,560 1,331,941 Debt Service 6,473,115 6,233,324 6,124,638 6,855,204 6,394,613 Transfer to OPEB Trust 67,500 75,000 100,000 75,000 75,000 Transfer to Rate Stabilization - - - - - Transfer to Capital Projects 4,700,000 1,250,000 1,700,000 2,600,000 1,000,000 Transfer to Designated Reserve 600,000 450,000 450,000 700,000 - Operating Contingencies - 105,160 150,815 97,626 84,468

23,905,542$ 23,198,517$ 22,748,015$ 24,339,102$ 22,543,042$

SEWER FUND

2015-2016 2016-2017 2016-2017 2017-2018 2017-2018


Rates & Charges 27,221,435$ 35,653,000$ 29,815,290$ 36,175,600$ 33,683,200$ Fees & Charges 129,310 142,153 155,356 144,996 135,176 U. G. & Temp. Ser. Chgs. - - - - - Miscellaneous 332,969 145,350 328,824 147,860 156,157 Interest on Investments 69,295 80,000 59,900 80,000 60,000 FEMA/Insurance Reimbursement - - 19,726 - - Bond Proceeds 119,302 364,595 - 50,750 - Installment Purchases - - - - - Transfer from Cap Projects - - 364,595 - - Transfer from Rate Stabilization - - 400,000 - - Appropriated Fund Balance - - 1,000,000 - 1,000,000

27,872,311$ 36,385,098$ 32,143,691$ 36,599,206$ 35,034,533$

EXPENDITURES:

Operations 8,168,326$ 9,602,269$ 9,282,401$ 9,360,169$ 9,769,875$ Purchased Gas 15,335,516 21,383,200 17,243,000 21,524,100 19,423,500 Capital Outlay 1,093,207 1,750,830 1,540,539 1,684,670 1,394,140 Debt Service 1,449,843 1,579,098 1,547,901 1,620,398 1,374,531 City Turnover - General 1,815,290 1,860,000 1,474,341 2,111,000 1,598,656 Transfer to OPEB Trust - 75,000 - 75,000 75,000 Transfer to Rate Stabilization 1,000,000 - 250,000 - 250,000 Transfer to Capital Projects 5,250,000 100,000 750,000 200,000 750,000 Transfer to Designated Reserve - - - - - Operating Contingencies - 34,701 55,509 23,869 398,831

34,112,182$ 36,385,098$ 32,143,691$ 36,599,206$ 35,034,533$

GAS FUND

Department Electric Water Sewer Gas Total

Governing Body and Administration 848,091 844,122 846,822 859,122 3,398,157 Finance 5,084,706 1,664,641 1,632,237 1,563,725 9,945,309 Human Resources 1,233,443 661,852 631,766 481,346 3,008,407 Information Technology 4,036,964 982,156 986,483 1,172,246 7,177,849 Customer Relations 3,491,583 218,230 218,230 436,456 4,364,499 Electric Department 18,224,170 - - - 18,224,170 Shared Resources 41,000 26,300 26,300 28,400 122,000 Meter 1,567,459 427,491 427,491 427,491 2,849,932 Water Department - 9,371,036 - - 9,371,036 Sewer Department - - 10,041,783 - 10,041,783 Gas Department - - - 6,017,380 6,017,380 Utility Locating Service 177,845 177,849 177,849 177,849 711,392 Ancillary 138,597,667 5,287,593 7,554,081 23,870,518 175,309,859

Grand Total 173,302,928 19,661,270 22,543,042 35,034,533 250,541,773

Department Electric Water Sewer Gas Total

Governing Body and Administration 889,627 885,660 888,160 900,660 3,564,107 Finance 5,151,226 1,651,520 1,617,307 1,602,545 10,022,598 Human Resources 1,130,051 606,365 578,803 440,993 2,756,212 Information Technology 4,044,519 1,006,327 1,010,568 1,084,051 7,145,465 Customer Relations 3,578,690 223,671 223,671 332,339 4,358,371 Electric Department 16,891,643 - - - 16,891,643 Shared Resources 27,500 22,250 22,250 23,000 95,000 Meter 1,558,399 425,027 425,027 425,027 2,833,480 Water Department - 9,181,050 - - 9,181,050 Sewer Department - - 10,137,055 - 10,137,055 Gas Department - - - 6,362,292 6,362,292 Utility Locating Service 182,189 182,192 182,192 182,192 728,765 Ancillary 145,030,239 5,247,869 8,113,484 25,031,999 183,423,591

Grand Total 178,484,083 19,431,931 23,198,517 36,385,098 257,499,629

GREENVILLE UTILITIES COMMISSIONBUDGET BY DEPARTMENT

2017-2018

2016-2017

2015-2016 2016-2017 2016-2017 2017-2018 2017-2018Department Actual Budget Projected Plan Budget

Governing Body and Administration 2,884,395 3,564,107 3,300,355 3,502,142 3,398,157 Finance 9,254,282 10,022,598 9,106,677 10,084,108 9,945,309 Human Resources 2,359,681 2,756,212 2,955,016 2,834,030 3,008,407 Information Technology 5,440,136 7,145,465 6,900,464 6,857,155 7,177,849 Customer Relations 3,619,269 4,358,371 4,149,923 4,305,157 4,364,499 Electric Department 14,333,218 16,891,643 18,782,724 17,440,557 18,224,170 Shared Resources 97,024 95,000 95,587 95,000 122,000 Meter 2,535,224 2,833,480 2,843,275 2,787,401 2,849,932 Water Department 8,067,292 9,181,050 9,348,659 9,115,678 9,371,036 Sewer Department 8,361,121 10,137,055 9,537,113 9,119,876 10,041,783 Gas Department 5,143,408 6,362,292 6,127,949 6,125,132 6,017,380 Utility Locating Service 528,963 728,765 750,863 667,737 711,392 Ancillary 193,495,583 183,423,591 179,087,000 187,630,637 175,309,859

Total 256,119,596 257,499,629 252,985,605 260,564,610 250,541,773

GREENVILLE UTILITIES COMMISSIONEXPENDITURES BY DEPARTMENT

ProposedProject Name Budget

ECP10174 Electric System Expansion

Revenues:

Long Term Debt $2,500,000 Total Revenue $2,500,000

Expenditures:

Project Costs $2,500,000 Total Expenditures $2,500,000

Greenville Utilities CommissionCapital Project Budget

As of June 8, 2017


SCP10223 Regional Pumpstation Upgrades

Revenues:


Expenditures:



As of June 8, 2017


SCP10222 Sewer Outfall Rehabilitation Phase 4

Revenues:


Expenditures:



As of June 8, 2017


GCP10099 High-Pressure Multiple Gas Facilities Relocation Project

Revenues:


Expenditures:



As of June 8, 2017


GCP10101 Firetower Road Widening

Revenues:


Expenditures:



As of June 8, 2017


GCP10100 NCDOT Southwest Bypass Relocations

Revenues:


Expenditures:



As of June 8, 2017





WHEREAS, the Greenville Utilities Commission, of the City of Greenville, North Carolina, a body politic duly chartered by the State of North Carolina, (the "Commission") has identified certain capital improvements to its electric, gas, sanitary sewer and water systems (collectively, the "System", all as more fully described in Exhibit A attached to the form of the resolution to be presented to the City Council of the City of Greenville, North Carolina) that have been and must be funded from available funds pending reimbursement from the proceeds of debt to be issued for such purposes (the "Debt"); now, therefore, BE IT RESOLVED BY THE GREENVILLE UTILITIES COMMISSION as follows; 1. The City Council is hereby requested to give favorable consideration to and pass the proposed resolution, which resolution (the "Reimbursement Resolution") effectively would provide for the reimbursement to the Commission from the proceeds of Tax Exempt Financing (estimated to be $21,580,000) for certain expenditures made not more than 60 days prior to the adoption of the Reimbursement Resolution, the Commission having determined that such adoption will be in the best interests of the System. 2. This resolution shall take effect immediately upon its passage, and a certified copy thereof shall be provided to the City Clerk for presentation to the City Council at its next regularly scheduled meeting. Adopted this the 8th day of June, 2017.

_____________________________ Don Mills, Chair ATTEST: _____________________________ Joel Butler Secretary APPROVED AS TO FORM: Phillip R. Dixon General Counsel
















____________________________________ Allen M. Thomas, Mayor

ATTEST:

_____________________________________ Carol L. Barwick, City Clerk

EXHIBIT A THE IMPROVEMENTS

The Improvements referenced in the resolution include, but are not limited to, all operating and capital expenditures associated with the purchase, design and construction of:

Electric System Expansion $2,500,000 Sewer Outfall Rehabilitation Phase 4 2,480,000 Regional Pump Station Upgrades 1,800,000 Southeast Area Sewer Extensions 2,500,000 NCDOT Southwest Bypass Relocations 1,500,000 Firetower Road Widening 1,300,000 High-Pressure Multiple Gas Facilities Relocation 9,500,000 $21,580,000





WHEREAS, the Greenville Utilities Commission, of the City of Greenville, North Carolina, a body politic duly chartered by the State of North Carolina, (the "Commission") has identified certain capital improvements to its electric, gas, sanitary sewer and water systems (collectively, the "System", all as more fully described in Exhibit A attached to the form of the resolution to be presented to the City Council of the City of Greenville, North Carolina) that have been and must be funded from available funds pending reimbursement from the proceeds of debt to be issued for such purposes (the "Debt"); now, therefore, BE IT RESOLVED BY THE GREENVILLE UTILITIES COMMISSION as follows; 1. The City Council is hereby requested to give favorable consideration to and pass the proposed resolution, which resolution (the "Reimbursement Resolution") effectively would provide for the reimbursement to the Commission from the proceeds of Tax Exempt Financing (estimated to be $1,854,000) for certain expenditures made not more than 60 days prior to the adoption of the Reimbursement Resolution, the Commission having determined that such adoption will be in the best interests of the System. 2. This resolution shall take effect immediately upon its passage, and a certified copy thereof shall be provided to the City Clerk for presentation to the City Council at its next regularly scheduled meeting. Adopted this the 8th day of June, 2017.

_____________________________ Don Mills, Chair ATTEST: _____________________________ Joel Butler Secretary APPROVED AS TO FORM: Phillip R. Dixon General Counsel
















____________________________________ Allen M. Thomas, Mayor

ATTEST:

_____________________________________ Carol L. Barwick, City Clerk

EXHIBIT A THE IMPROVEMENTS

The Improvements referenced in the resolution include, but are not limited to, all operating and capital expenditures associated with the purchase of:

2 – ½ ton 4 wheel drive extended cab truck $70,000 1 – mini van 32,000 1 – utility terrain vehicle 11,000 1 – ¾ ton 4 wheel drive truck 40,000 7 – compact extended cab 210,000 1 – ½ ton extended cab truck 40,000 2 – ½ ton extended cab CNG truck 94,000 1 – 1 ton dual wheel valve truck 70,000 1 – ½ ton extended cab truck 55,000 2 – electric bucket truck 470,000 1 – digger derick 240,000 1 – forklift 125,000 1 – puller tensioner 175,000 1 – backhoe 120,000 1 – compact excavator 55,000 1 – tractor 47,000 Total $1,854,000

Item: General Manager’s Report

Contact:

Tony Cannon

Explanation: 1. Informational Reading Bids, Statistical Data Report, Sewer Spill Tracking Report, and Load Management Report are attached. The Management Team will be available at the meeting to answer any questions regarding work activities. 2. Key Performance Indicators (KPIs) Attached is a list of GUC’s Tier 1 corporate Key Performance Indicators (KPIs). We have the following KPIs in the dashboard format for your review as well as the corresponding scorecard:

• Fund Balance • Duration of Electric Interruptions - CAIDI • Typical Monthly Bill Comparison - Sewer • System Losses - Gas

3. Commendations 4. Other

N/A

Fiscal Note: N/A


No Action Required


No. Date of Report Location Volume Surface Reportable Cause of Spill CorrectiveSpill Date Upstream Downstream Gallons Water Name Volume Yes/No Req'd. Issued Req'd. Issued Action

Gallons1 07/03/16 07/07/16 Behind Fork Swamp Regional PS M24-013 M24-013 24000 Yes Fork Swamp 4000 Yes Yes Yes No Other (Pump Station

Equipment Failure)1f

2 10/08/16 10/14/16 112 Ridge Place 7H-047 7H-047 3600 Yes Green Mill Run 3600 Yes Yes Yes No Other (Hurricane Matthew)

1f

3 10/09/16 10/14/16 601 & 519 Greenfield Blvd. 7R-001 & 8R-008

7R-001 & 8R-008

1800 Yes Parkers Creek 1800 Yes Yes Yes No Other (Hurricane Matthew)

1f

4 10/10/16 10/14/16 Across from 2606 E 5th St. in Green Springs Park

10L-047 10L-047 5400 Yes Green Mill Run 5400 Yes Yes Yes No Other (Hurricane Matthew)

1f

5 10/12/16 10/13/16 Behind 2203 Reedy Branch Apts. off of E. 10th St. (from cleanout)

N/A N/A 4500 Yes Green Mill Run 4500 Yes Yes Yes No Other (Hurricane Matthew)

1f

6 10/14/16 10/20/16 1055 Elm Street near Elm Street Park 9K-123 9K-123 9825 Yes Green Mill Run 9825 Yes Yes Yes No Other (Hurricane Matthew)

1f

7 10/14/16 10/20/16 Several MH's on Greenfield Blvd 8R-021,8R-014, 8R-011,8R-010, 8R-019,8R-009, 8R-008

8R-021,8R-014, 8R-011,8R-010, 8R-019,8R-009, 8R-008

6600 Yes Parkers Creek 6600 Yes Yes Yes No Other (Hurricane Matthew)

1f

8 10/15/16 10/20/16 1010 E. 10th Street 9K-104 9K-104 3712 Yes Green Mill Run 3712 Yes Yes Yes No Other (Hurricane Matthew)

1f

9 10/17/16 10/20/16 144 W. Gum Road 8P-017 8P-017 1335 Yes Parkers Creek 1335 Yes Yes Yes No Other (Hurricane Matthew)

1f

10 12/08/16 12/13/16 518 Greenfield Blvd 8R-008 8R-008 60 Yes Parkers Creek 60 Yes No No No Debris 1c11 03/06/17 03/09/17 427 W. 3rd. Street in Back Yard 7M-100 7M-100 3900 Yes Tar River 900 Yes No No No Debris 1c12 04/19/17 04/24/17 1218 Allen Road. (Holly Glen Apts.) N/A N/A 20 No No No No No Roots 1d

Note: No spills in June, August, September, November, January, February and May

Summary Total Number of Spills = 12(11 Reportable;1 Non-Reportable)Total Spill Volume = 64,752 gals or 0.0017% of Total Wastewater Flow

Cause Number of Each Volume (gals.)

a. Grease 0 0 b. Contractor Damage/Error 0 0c. Debris 2 3,960 d. Roots 1 20 e. Pipe Failure 0 0 f. Other 9 60,772

Corrective Action Code1. Permanent Repair2. Cleared Blockage & Priority Cleaning Scheduled

Water Resources Department Sewer Spill Tracking Report

June 2016-May 2017

News Release Notice of Discharge If yes, where?Manholes

Spill Analysis

• Hours Worked Without a Lost Workday Injury

• Restricted Workday Injuries Per 200,000 Hours Worked

• Capital Spending Ratio

• Degree of Asset Depreciation

Tier 1: Corporate Key Performance Indicators (KPI)

• Customer Satisfaction

• Billing Process Accuracy

• Installation of New Services

• Duration of Electric Interruptions (CAIDI)

• Duration of Electric Interruptions (SAIDI)

• Frequency of Interruptions in Service – Electric (SAIFI)

• Response Time to Unplanned Electric Outages

• Response Time to Cut Gas Lines/Leaks

• Response Time to Water Leaks/Breaks

• Typical Monthly Bill Comparisons

• Overtime Costs

• Bond Rating

• Days Operating Cash On Hand

• Debt Service Coverage

• Fund Balance (available for appropriation)

• Net Margin

• Return on Assets

• Return on Equity

• Connections Per Employee

• Operating Cost Per Customer

• System Losses – Electric

• System Losses – Gas

• System Losses – Water

• Disruption of Service – Water

• Preventable Vehicle Accident Rate

CUSTOM

ERFI

NANC

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INTE

RNAL

BU

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GUC PERFORMANCE MEASURES

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Revised: 1/25/12

Performance Management Scorecard Financial

Corporate Objective 15 Improve Financial Performance

Measure Fund Balance Available for Appropriation

Tier 1 Rationale: Cash and Short term investment. Used to measure GUC’s ability to meet short term obligations

Accountability: Finance Frequency: Monthly

DESCRIPTION:

The Fund Balance is a percentage of the money available for appropriation and is measured and reported on a monthly basis to monitor the financial health of the Utilities. The lower and upper ranges are set by the Reserve Policy and are 13% and 30% respectively. The LGC currently recommends a minimum of 8% for cities and higher levels for enterprise funds.

NUMERATOR: Operating Cash and Investments minus Current Liabilities

DENOMINATOR: Total Expenditures

TARGET: 16% DATA SOURCE(S): Monthly/Annual Financial Report


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Revised: 1/25/12

Performance Management Scorecard Internal Business Processes

Corporate Objective 10 Ensure Efficiency, Safety and Reliability of Services

Measure Duration of Interruption in Service – Electric (CAIDI)

Tier 1 Rationale: Measures GUC electric customer’s average restoration time

Accountability: Electric Frequency: Annual

DESCRIPTION: Duration of Interruptions in Service - Electric (CAIDI) is tracked as the customer’s average duration index (CAIDI) which include the comparison of the total of all customer interruption durations and the total number of customers interrupted.

NUMERATOR: Sum of all GUC customers interruption duration

DENOMINATOR: Total number of GUC customer interruptions

TARGET: 50 minutes DATA SOURCE(S): Outage Database


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Revised: 1/25/12

Performance Management Scorecard Financial

Corporate Objective 14 Lowest Reasonable Rates

Measure Typical Bill Comparison – Residential Sewer

Tier 1 Rationale: Used to measure the competitiveness of GUC’s typical residential sewer bills against similar utilities

Accountability: Finance Frequency: Quarterly

DESCRIPTION: The typical monthly sewer bill for residential users based on 6,000 gallons of water is compared against similar sewer utilities. This is monitored on a quarterly basis to determine if GUC residential sewer rates are competitive with other sewer utility providers. The target is to be at or below the median of the benchmarked utilities.

NUMERATOR: Typical monthly residential sewer bill for 6,000 gallons of water

DENOMINATOR: N/A

TARGET: At or below the median DATA SOURCE(S): Utility benchmark data


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Revised: 1/25/12

Performance Management Scorecard Internal Business Processes

Corporate Objective 10 Ensure Efficiency, Safety and Reliability of Services

Measure System Losses – Gas

Tier 1 Rationale: Measures the annual system losses.

Accountability: Gas Frequency: Annual

DESCRIPTION: System Losses – Gas measures the annual system losses which are reported monthly utilizing a Rolling 12 Month Average as performance measurement.

NUMERATOR: Total volume of gas bill

DENOMINATOR: Total volume of gas delivered

TARGET: 1.5 percent DATA SOURCE(S): Excel Spreadsheet

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Brad Burroughs, Electric Engineer Assistant I

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Employee:

COMPLIMENT RECORD

Date: May 12, 2017

Received By: LouAnne Baker, Water Resources Administrative Assistant

Customer’s Name: Donna Hardison

Remarks: Ms. Hardison called to extend her gratitude for the outstanding customer service

Keith Fisher and Dean Roberson provided. She said “they were caring, courteous and

professional. I was overwhelmed how helpful they were! If we wanted a face for Greenville

Utilities, these two men are definitely the perfect ones!”

Employee Name: Keith Fisher, Water Resources Pipe Crew Leader II Dean Roberson, Water Resources Equipment Operator V

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Employees: Julius Patrick, WTP Superintendent Chad Flannagan, WTP Lead Operator

Email from: Kate Teel To: Tony Cannon; don mills Sent: Thursday, May 11, 2017 Subject: Leadership Institute notes Tony and Don, I mentioned at last week’s C-100 meeting the Leadership Learn Where You Live points where several participants noted their observations from a GUC Board meeting, and wanted to pass along for you to share with your board, if you would like. Great job to you and your board, and thank you for being leaders in the community, and welcoming this group into your meetings. Have a great day, see you soon! Thanks, Kate Teel Director, Member Relations & Programs Greenville-Pitt County Chamber of Commerce

Email from: Chris N. Padgett To: Pamela D. Barnes; Carol Bazemore; Alan Cummings; Monica Dixon; Phillip R. Dixon; Scott Farmer; Emily Garner; Jennifer M. Harrington; Linda Hinton; Tracy Hodges; Blake Horton; Kristen S. Jarman; Cynthia Langley; Jay T. Little; Kendra Nettles; Lena E. Previll; Tony Rogers; Jerry L. Sneed; Kay Spriggs; Brandie P. Whitehurst; Will Hardison; Scott C. Jablonski; Kevin Keyzer; Nikia Best-Manuel; Julius Patrick; Greg Roberson; Brian Shannon; Teresa Wall Cc: Tony Cannon; Amy Quinn; Richie Shreves Sent: Thursday, May 04, 2017 Subject: Thank You! All, On behalf of the General Manager’s Office I just want to thank you for your efforts related to the Family Fun Day event this past Saturday. It was obvious that a great deal of preparation and work went into this event and that resulted in everyone having a great time. All of the feedback we have received since has been very positive – and I believe you succeeded in hosting an event that offered something for everyone. I personally enjoy any opportunity to bring my family and my “work family” together and you provided a terrific opportunity for that on Saturday. Well done and thank you! Chris Padgett Chief Administrative Officer Employees: Pamela Barnes, Cashier I; Alan Cummings, Gas Engineering Assistant I; Monica Dixon, IT Administrative Assistant; Phil Dixon, General Counsel; Scott Farmer, Water Resources Engineer II; Emily Garner, Public Information Specialist; Jennifer Harrington, Billing Specialist I; Linda Hinton, Systems Dispatcher I; Tracy Hodges, Staff Support Specialist II; Blake Horton, Electric Meter Specialist; Kristen Jarman, Staff Support Specialist II; Cynthia Langley, Accounting Supervisor; Jay Little, Database Administrator; Kendra Nettles, WTP Laboratory Technician II; Lena Previll, Human Resources Manager; Tony Rogers, WWTP Maintenance Electrician; Jerry Sneed, Meter Technician I; Kay Spriggs, Human Resources Specialist I, Greg Roberson, Superintendent of Buildings and Grounds; Brian Shannon, WTP Operator III; Teresa Wall, Administrative Assistant; Carol Bazemore, Utility Training Officer

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1991

CHAPTER 861 SENATE BILL 1069

AN ACT TO AMEND AND RESTATE THE CHARTER OF THE GREENVILLE

UTILITIES COMMISSION OF THE CITY OF GREENVILLE. The General Assembly of North Carolina enacts:

Section 1. For the proper management of the public utilities of the City of Greenville, both within the corporate limits of the City and outside the said corporate limits, a commission to be designated and known as the "Greenville Utilities Commission", is hereby created and established.

Sec. 2. The Greenville Utilities Commission shall consist of eight members, six of whom shall be bona fide residents of the City of whom one shall at all times be the City Manager of Greenville, and two of whom shall be bona fide residents of Pitt County but residing outside the city limits of Greenville, and all of whom shall be customers of the Greenville Utilities Commission. Each Greenville Utilities Commissioner shall hold office for an initial term of three years and, except as set forth herein, will be automatically reappointed to a single additional term of three years, with each term of three years expiring June 30 at the end of the designated term or until reappointed or replaced by the City Council. The first appointees shall hold their offices as follows: the Greenville City Council shall appoint an individual to serve until June 30, 1995; John W. Hughes, Sr. is hereby appointed a Greenville Utilities Commissioner to serve until June 30, 1995, and shall not be eligible for a second term; Bernard E. Kane is hereby appointed a Greenville Utilities Commissioner to serve until June 30, 1995; R. Richard Miller is hereby appointed a Greenville Utilities Commissioner to serve until June 30, 1994, and shall not be eligible for a second term; and the Greenville City Council shall appoint an individual to serve until June 30, 1993; all of whom are bona fide residents of the City. William G. Blount is hereby appointed a Greenville Utilities Commissioner to serve until June 30, 1993, and shall not be eligible for a second term; and the Pitt County Board of Commissioners shall nominate an individual under the procedure established in Section 3 of this act, to be appointed by the Greenville City Council to serve until June 30, 1994; both of whom are Greenville Utilities Commission customers and bona fide residents of Pitt County residing outside the Greenville city limits.

Sec. 3. The Greenville Utilities Commissioners otherwise than as herein provided shall be appointed by the City Council at their regularly monthly meeting in June of each year. It is the intention of this charter that the City Council shall appoint Greenville Utilities Commission members who have utilities expertise. Representation should include some members with financial, engineering, environmental, technical, or

Page 2 S.L. 1991-861 Senate Bill 1069

development backgrounds. The two members of the Greenville Utilities Commission residing outside the city limits shall be nominated by the Pitt County Board of Commissioners and appointed by the City Council. The City Council has the right to reject any nominee(s) from the Pitt County Board of Commissioners and to request additional nominees. If the Pitt County Board of Commissioners fails to recommend a nominee to the City Council within 60 days of the original date requested by the City Council, then the City Council may appoint any individual meeting the residency requirement. No person shall be eligible for appointment to the Greenville Utilities Commission who is an officer or employee of the City or Pitt County except that the City Manager of the City of Greenville shall at all times be a full member of the Greenville Utilities Commission. In the event a Greenville Utilities Commissioner resigns, dies, or otherwise becomes incapable of performing his or her duties, the City Council shall appoint, according to the same process described herein for regular appointments, a Greenville Utilities Commissioner to fill the unexpired term at any regular or special meeting of the City Council. Any Greenville Utilities Commissioner filling an unexpired term shall be deemed to have filled said term for the full three-year term. Except as otherwise permitted herein, no Greenville Utilities Commissioner shall serve more than two three-year terms. Greenville Utilities Commissioners filling the first three-year term will automatically fill a second three-year term unless the City Council initiates the replacement process.

Sec. 4. The Greenville Utilities Commissioners shall organize by electing one of their members Chair, whose term of office as Chair shall be for one year unless the Chair's term on the Greenville Utilities Commission shall expire earlier, in which event his or her term as Chair shall expire with the Chair's term on the Greenville Utilities Commission. The Chair shall not be entitled to vote on any proposition before the Greenville Utilities Commission except in case of a tie vote and only for the purpose of breaking the tie. The members of the Greenville Utilities Commission are authorized to fix their own salaries provided, however, that said salaries shall not exceed one hundred fifty dollars ($150.00) per month for the members and two hundred fifty dollars ($250.00) per month for the Chair provided, however, the City Council may, at its own discretion, increase these caps from time to time as is appropriate to reflect inflation, and provided, however, the City Manager shall receive no pay as a member of the Greenville Utilities Commission other than his or her salary as City Manager. The Greenville Utilities Commission shall meet at least once each month at a designated time and place unless the Chair designates some other meeting time and so notifies the other members of the Greenville Utilities Commission. The Greenville Utilities Commission and the Greenville City Council shall meet at least once each year to discuss mutual interests of the City of Greenville and the Greenville Utilities Commission. Minutes shall be kept for all regular meetings of the Greenville Utilities Commission.

Sec. 5. The Greenville Utilities Commission shall have entire supervision and control of the management, operation, maintenance, improvement, and extension of the public utilities of the City, which public utilities shall include electric, natural gas, water, and sewer services, and shall fix uniform rates for all services rendered;

Senate Bill 1069 S.L. 1991-861 Page 3

provided, however, that any person affected by said rates may appeal from the decision of the Greenville Utilities Commission as to rates to the City Council. With approval by the City Council, the Greenville Utilities Commission may undertake any additional public enterprise service which may lawfully be operated by a municipality.

Sec. 6. The Greenville Utilities Commission shall employ a competent and qualified General Manager whose duties shall be to supervise and manage the said public utilities, subject to the approval of the Greenville Utilities Commission. The General Manager, under the direction of and subject to the approval of the Greenville Utilities Commission, shall cause the said utilities to be orderly and properly conducted; the General Manager shall provide for the operation, maintenance, and improvement of utilities; the General Manager shall provide for the extension of all utilities, except sewer extensions made beyond the area regulated by the City of Greenville are subject to the approval of the City Council, and shall furnish, on application, proper connections and service to all citizens and inhabitants who make proper application for the same, and shall in all respects provide adequate service for the said utilities to the customers thereof; the General Manager shall attend to all complaints as to defective service and shall cause the same to be remedied, and otherwise manage and control said utilities for the best interests of the City of Greenville and the customers receiving service, and shall provide for the prompt collection of all rentals and charges for service to customers and shall promptly and faithfully cause said rentals and charges to be collected and received, all under such rules and regulations as the Greenville Utilities Commission shall, from time to time, adopt and in accordance with the ordinances of the City of Greenville in such case made and provided.

Sec. 7. All monies accruing from the charges or rentals of said utilities shall be deposited into the appropriate enterprise fund of the Greenville Utilities Commission and the Greenville Utilities Commission's Director of Finance shall keep an account of the same. The Greenville Utilities Commission shall at the end of each month make a report to the City Council of its receipts and disbursements; the Greenville Utilities Commission shall pay out of its receipts the cost and expense incurred in managing, operating, improving, maintaining, extending, and planning for future improvements and expansions of said utilities; provided, however, that should the funds arising from the charges and rentals of said utilities be insufficient at any time to pay the necessary expenses for managing, operating, improving, and extending said utilities, then and in that event only, the City Council of the City of Greenville shall provide and pay into the appropriate enterprise fund of the Greenville Utilities Commission a sum sufficient, when added to the funds that have accrued from the rents and charges, to pay the costs and expenses of managing, operating, improving, maintaining, extending, and planning for future improvements and expansions of said utilities; the Greenville Utilities Commission shall pay the principal on all such funds provided by the City Council with interest thereon; provided, further, that the Greenville Utilities Commission shall annually transfer to the City, unless reduced by the City Council, an amount equal to six percent (6%) of the difference between the electric and natural gas system's net fixed assets and total bonded indebtedness plus annually transfer an amount equal to fifty percent (50%) of the Greenville Utilities Commission's retail cost of service for the City

Page 4 S.L. 1991-861 Senate Bill 1069

of Greenville's public lighting. Public lighting is defined herein to mean City of Greenville street lights and City of Greenville Parks and Recreation Department recreational outdoor lighting. The preparation of a joint financial audit of the City of Greenville and the Greenville Utilities Commission operations by a single auditing firm is intended under the provisions of this charter and existing North Carolina statutes.

Sec. 8. In compliance with the time requirements of Chapter 159 of the General Statutes, the Greenville Utilities Commission shall prepare and submit to the City Council, for approval, a budget for the coming year showing its estimated revenue, expenses, capital expenditures, debt service, and turnover to the City of Greenville. In addition, the budget ordinance must identify construction projects of the Greenville Utilities Commission which include individual contracts in excess of one-half of one percent (½%) of the Greenville Utilities Commission's annual budget. City Council approval of the Greenville Utilities Commission's budget will constitute approval of projects so identified and the contracts contained therein. Contracts in excess of one-half of one percent (½%) of the Greenville Utilities Commission's annual budget not so identified and approved in the budget ordinance will require separate City Council approval.

Sec. 9. The Greenville Utilities Commission shall approve the employment and remuneration of all officers, agents, independent contractors, and employees necessary and requisite to manage, operate, maintain, improve, and extend the service of said utilities. It is, however, the intention of this Charter that the Greenville Utilities Commission and the City of Greenville will implement and maintain mutual pay plans, personnel policies, and benefits for their respective employees. The Greenville Utilities Commission may require bond in such sum as it may deem necessary, which shall be approved by the City Council, of all officers, agents, and employees having authority to receive money for the Greenville Utilities Commission. The Greenville Utilities Commission shall have the authority to name and designate a person in its employ as secretary of the Greenville Utilities Commission.

Sec. 10. The Greenville Utilities Commission shall have authority at all times to discharge and remove any officer, agent, independent contractor, or employee of the Greenville Utilities Commission.

Sec. 11. All laws and clauses of laws in conflict with this act are hereby repealed, expressly including Chapter 146 of the Public-Local Laws of 1941, entitled "AN ACT TO PROVIDE A PERMANENT UTILITIES COMMISSION FOR THE CITY OF GREENVILLE, IN PITT COUNTY, AND TO REPEAL CHAPTER TWO HUNDRED AND ELEVEN OF THE PRIVATE LAWS OF ONE THOUSAND NINE HUNDRED AND FIVE, AND AMENDMENTS THERETO, RELATING TO THE WATER AND LIGHT COMMISSION OF THE CITY OF GREENVILLE.", except that this act does not revive any act repealed by that act.

The purpose of this act is to revise the charter of the Greenville Utilities Commission and to consolidate herein certain acts concerning the Greenville Utilities Commission. It is intended to continue without interruption those provisions of prior acts which are consolidated into this act so that all rights and liabilities that have accrued are preserved and may be enforced. This act shall not be deemed to repeal,

Senate Bill 1069 S.L. 1991-861 Page 5

modify, or in any manner affect any act validating, confirming, approving, or legalizing official proceedings, actions, contracts, or obligations of any kind.

No provision of this act is intended nor shall be construed to affect in any way any rights or interest, whether public or private:

(1) Now vested or accrued in whole or in part, the validity of which might be sustained or preserved by reference to law to any provisions of law repealed by this act.

(2) Derived from or which might be sustained or preserved in reliance upon action heretofore taken pursuant to or within the scope of any provisions of law repealed by this act.

All existing ordinances of the City of Greenville and all existing rules and regulations of the Greenville Utilities Commission not inconsistent with provisions of this act shall continue in full force and effect until repealed, modified, or amended.

No action or proceeding of any nature, whether civil or criminal, judicial or administrative, or otherwise pending at the effective date of this act by or against the City of Greenville or the Greenville Utilities Commission shall be abated or otherwise affected by the adoption of this act. If any provisions of this act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this act which can be given effect without the invalid provision or application, and to this end the provisions of this act are declared to be severable.

Sec. 12. This act is effective upon ratification. In the General Assembly read three times and ratified this the 7th day of July,

1992. James C. Gardner President of the Senate Daniel Blue, Jr. Speaker of the House of Representatives

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BYLAWS OF THE GREENVILLE UTILITIES COMMISSION

These Bylaws are adopted by the Greenville Utilities Commission to implement its Charter and to establish basic rules of organization, process and procedure and to provide for the efficient and effective conduct of public business for the benefit of the ratepayers.

To The Extent The Terms & Conditions Of These Bylaws Conflict With the Terms & Conditions of The Charter, The Charter Shall Govern.

I. Name: The name of the Commission shall be: The Greenville Utilities

Commission, hereinafter also referred to as the "Board". II. Individual Responsibility: Commission members have responsibility over utilities’

affairs when acting as a body appropriately called to session. To request additional information concerning the functions of the Greenville Utilities Commission, Board members should contact the General Manager.

III. Board Membership A. Number of Members: The Greenville Utilities Commission shall consist of

eight (8) members, all appointed by the Greenville City Council. Two of these appointees are nominated by Pitt County Board of Commissioners.

B. Commission Seats: Of the eight (8) members, six (6) members shall be

bona fide residents of the City of whom one shall be the City Manager of Greenville, and two of whom shall be bona fide residents of Pitt County but residing outside the city limits of Greenville, who shall be customers of the Greenville Utilities Commission.

C. Vacancies on the Commission: In the event a Greenville Utilities

Commissioner resigns, dies, or otherwise becomes incapable of performing his or her duties, at any regular or special meeting of the City Council, the City Council shall appoint, according to the same process described herein for regular appointments, a Greenville Utilities Commissioner to fill the unexpired term.

D. New members to the Board are required to participate in orientation and

training sessions as scheduled by the General Manager. Orientation shall include such activities as:

1. Workshops for new Board members conducted by the American Public Power Association.

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2. Discussions and visits with the General Manager, Commission

Attorney, and other members of the staff. 3. Provision of printed and audiovisual materials on Greenville Utilities

Commission and copies of administrative policies and procedures. IV. Organization A. The Greenville Utilities Commission each year shall elect its officers on

the first regularly scheduled meeting of the Commission on or after July 1 at which a quorum is present. Meetings are scheduled for the third

Thursday in each month at 12:00 noon. B. The officers of the Commission shall be a Chair, a Chair-elect and a

Secretary, elected in that order for a term of one (1) year. The General Manager shall preside while a new Chair is being elected.

C. Vacancies in the office of Chair, Chair-elect or Secretary occurring during

the year shall be filled by the Commission at its discretion. V. Powers and Duties of the Board The Powers and Duties of the Board shall include but not be limited to the

following: A. The Greenville Utilities Commission shall have entire supervision and

control of the management, operation, maintenance, improvement, and extension of the public utilities of the City, which public utilities shall include electric, natural gas, water, and sewer services, and shall fix uniform rates for all services rendered; provided, however, that any person affected by said rates may appeal from the decision of the Greenville Utilities Commission as to rates to the City Council. With approval by the City Council, the Greenville Utilities Commission may undertake any additional public enterprise service which may lawfully be operated by a municipality (Reference Charter Section 5).

B. The Board shall discharge its duties and responsibilities as required by its

Charter or otherwise imposed by law. C. The Board shall employ a General Manager whose duties shall be to

supervise and manage the operations of the Greenville Utilities Commission, subject to the approval of the Board of Commissioners of the Greenville Utilities Commission, as provided in Section 6 of the Charter.

D. The Board shall annually evaluate the performance of the General

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Manager as its Chief Executive Officer. E. The Board shall employ, in consultation with the General Manager, an

attorney to give counsel on matters of legal concern to the Greenville Utilities Commission. The attorney shall represent the Commission on most matters, except that the Commission may hire other expertise as warranted on a case by case basis. The Board shall annually review the performance and services of the attorney with the General Manager during the General Manager's annual performance review.

F. The Board shall annually review its performance. An annual review may

consist of a written review and/or survey by Board members and/or a review with or by the General Manager.

VI. Duties of Officers A. The Chair shall preside at Board meetings. The Chair, in consultation with

the Secretary and General Manager, shall review the draft agenda of regular and special meetings of the Board.

B. The Chair shall appoint committees and designate the chairs unless

otherwise directed by majority vote of the Board in session. C. The Chair, subject to the approval of the Commission, shall have the

authority to execute any official document for and on behalf of the Commission.

D. The Chair shall not be entitled to vote on any proposition before the

Greenville Utilities Commission except in case of a tie vote and only for the purpose of breaking the tie.

E. The Chair shall be the official spokesperson for the Board and will make,

either in person or through the General Manager, every effort to communicate the Board's decision to the community through the media and any other means available.

F. In the absence of the Chair, it shall be the duty of the Chair-elect to

preside at meetings of the Board and assume authority of the Chair. G. The Secretary shall record minutes of meetings and hearings and

distribute minutes in advance for review and approval. H. It shall be the responsibility of the Secretary to maintain official minutes

and records of Board proceedings and actions. Minutes may be examined by any interested citizen under the supervision of the Secretary or the

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Secretary's designee. Consistent with the purpose of Closed Sessions, minutes of these meetings shall be separately maintained by the Secretary. Minutes of Closed Sessions may not be examined by interested citizens except as provided by law.

I. The Secretary shall be responsible for the proper maintenance of official

documents including but not limited to Board bylaws, Board policies, and Board decisions.

J. The Secretary shall discharge any other duties or responsibilities required

by law or otherwise imposed upon the Secretary by the Board. K. In the absence of the Secretary, it shall be the duty of the Chair-elect to

assume duties of the Secretary. VII. Committees & Appointments

A. An Executive Committee composed of the Board Chair, Chair-elect, Past-Chair (when continuing to serve on the Board) and Secretary will work with the GUC staff on policy issues, represent GUC in joint discussions on potential growth and regionalization and provide for continuity of knowledge for the chair position.

B. On an annual basis, the Chair shall appoint two members to a

Compensation Sub-Committee to meet jointly with a City Council Sub-committee to make recommendations for employee benefits and compensation issues for the upcoming fiscal year. These two members should include at least one member (if available) that served the previous year.

C. On an annual basis, the Chair shall appoint 2 - 3 members to serve in conjunction with the Board Chair, on a Finance/Audit Committee to provide “policymaker” input to staff and auditors on the enhancement or implementation of financial procedures or issues.

D. On an annual basis, the Chair shall appoint 2 – 3 members to serve in conjunction with the Board Chair on an Economic Development

Committtee to provide policymaker input to staff and consultants in the development of criteria, guidelines, and strategies for the economic development of Pitt County and report to the Board of Commissioners as appropriate.

E. Ad hoc committees shall be appointed by the Chair, as needed, and shall function until such time as their purpose has been accomplished. F. The Chair shall appoint an Executive Secretary and Assistant Executive

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Secretary from the staff. These positions are normally held by the Executive Assistant to the General Manager and Director of Financial Services and Accounting, respectively.

VIII. Methods of Operation

A. Board Meetings: The Board shall regularly meet on the third Thursday of each month to consider its business. Notice of the meeting and its agenda shall be made available to the media as provided by law. Other meetings, including special sessions, emergency sessions or workshop sessions may be held as needed and must follow notification provisions as described by law.

B. Agendas: Before actions by the Board are requested or recommended,

the Board should be provided with documentation to assist members in reaching decisions consistent with established goals and policies. To request additional information, Board members shall contact the General Manager. The Agenda for regular monthly meetings shall be as follows:

1. Call to order and ascertain the presence of a quorum 2. Approval of the minutes for the previous month's meetings 3. Any additions or deletions and acceptance of the (revised) agenda 4. Presentations of awards and recognition of outstanding

achievement 5. Acceptance of the financial statement for the previous month 6. Award of Bids 7. Other items requiring action by the Board 8. Informational Items 9. General Manager's Report - This portion of the meeting is set aside

for the General Manager's reports on any item of information which he wishes to present to the Board.

10. Board Chair Remarks 11. Board Members' Remarks 12. Closed Session, if required

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13. Notice of next regular or special meeting 14. Adjournment C. Quorum: The Greenville Utilities Commission may only conduct business in

a regular, emergency or special meeting attended by a quorum of the Board. A quorum shall consist of five (5) Board members, who are either physically present or able to participate by telephone or video-conference or other electronic means.

D. Conduct of Meetings: Meetings shall be conducted in accordance with the

Board's Bylaws and otherwise by the most recent edition of Robert's Rules of Order.

E. Voting: The Chair of the Board shall determine the vote on any motion by

asking each member to respond by voice vote or if necessary, a show of hands may be required.

1. Each member of the Board, except the Chair, shall have one vote

on any recommendation, motion, proposal, or any other action item coming before the Board.

2. Each member, other than the Chair, must vote unless excused by

the remaining members. A member who wishes to be excused from voting shall so inform the Chair who shall take a deciding vote of the remaining members present. No member shall be excused from voting except on matters involving his/her own financial interest or official conduct. In other cases, a failure to vote by a member who is physically present or has withdrawn without being excused by a majority vote of the remaining members present, shall be recorded as an affirmative vote.

F. Closed Sessions: Closed Sessions may be called upon a motion made

and adopted at an open session for any of those permitted purposes described in Section 143-318 of the General Statutes of N.C., commonly known as the "Open Meetings Law", as amended from time to time. The motion shall state the purpose of the Closed Session and must be approved by the vote of a majority of those members present.

G. Board Members' Compensation and Reimbursement: Members of the

Greenville Utilities Commission shall receive compensation for performance of official utility business at the rate of $200 per month. The Chair shall receive $350 per month. The City Council may, at its own discretion, increase these caps from time to time as is appropriate to reflect inflation. The City Manager shall receive no compensation as a member of the Greenville Utilities Commission.

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H. Public Hearings: The Greenville Utilities Commission believes that from

time to time additional public opinion is necessary. This opinion is generally sought through the use of a public hearing. When such hearings are scheduled, the Greenville Utilities Commission will ensure that the date, time, and location are properly advertised well in advance of the hearing date. The Commission will receive comments and information at public hearings but not take any formal action during the public hearing. The Commission will take under advisement comments offered at the public hearing and normally consider these comments for future action.

I. Public Expression: Upon motion of any Commissioner, and approval by a

majority of the Board, any ratepayer may be allowed to address the Board within the time restrictions (and upon such other conditions) as may be set by the Chair.

IX. Change in Bylaws: These Bylaws may be amended from time to time. The

procedure for amendment is by giving notice of the proposed amendments at a regularly scheduled Board meeting. The amendments will be considered at the next regularly scheduled Board meeting and must be approved by the vote of a majority of the members.

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Adopted May 14, 1996 Revised June 11, 1996 Revised November 18, 1997 Revised June 9, 1998 Revised October 11, 1999 Revised July 18, 2000 Revised October 16, 2007 Revised November 18, 2008 Revised September 15, 2011 Revised August 21, 2014 Revised March 19, 2015

Documents

AGENDA - Greenville Utilities Commission · AGENDA Regular Meeting – June 8, 2017 ... • the current balance scorecard model will be utilized ... Anthony Miller Jesse Chadwick