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Home My WebLink About2018-05-09 Regular Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES MAY 9, 2018 Lucie Harrell Conference Room Regular Meeting 9:00 AM 230 GOVERNMENT CENTER DRIVE WILMINGTON, NC 28403 I. CALL TO ORDER II. DETERMINATION OF A QUORUM Mr. Brown called the meeting to order at 9:00 AM and declared a quorum present. Mr. Rivenbark moved to excuse Ms. Adams and Mr. Corder. Ms. Kusek seconded the motion, and it passed unanimously. Attendee Name Organization Title Status Arrived Mike Brown Cape Fear Public Utility Chair Present Authority Wesley Corder Cape Fear Public Utility Vice-Chair Excused Authority Jennifer Adams Cape Fear Public Utility Secretary Excused Authority William Norris Cape Fear Public Utility Treasurer Present Authority Larry Sneeden Cape Fear Public Utility Present Authority Cindee Wolf Cape Fear Public Utility Present Authority Patricia Kusek Cape Fear Public Utility Present Authority Charlie Rivenbark Cape Fear Public Utility Present Authority Kevin O'Grady Cape Fear Public Utility Present Authority Skip Watkins Cape Fear Public Utility Present Authority Deans Hackney Cape Fear Public Utility Present Authority Jim Flechtner Cape Fear Public Utility Executive Director Present Authority Linda Miles Miles Firm, PLLC CFPUA Consulting Attorney Present Frank Styers Cape Fear Public Utility Chief Operations Officer Present Authority John McLean Cape Fear Public Utility Chief Financial Officer Present Authority Carel Cape Fear Public Utility Director of Engineering Present Vandermeyden Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Cape Fear Public Utility Authority Page 1 MinutesAuthority BoardMay 9, 2018 Beth Eckert Cape Fear Public Utility Director of EMD Present Authority Denise Matroni Cape Fear Public Utility HR Director Present Authority Lindsey Hallock Cape Fear Public Utility Director of Public and Present Authority Environmental Policy BillyJo Winslett Cape Fear Public Utility Human Resources Assistant Present Authority Gary McSmith Cape Fear Public Utility Asst. Director of Engineering Present Authority Donna Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board John Malone Cape Fear Public Utility Water Resource Manager Present Authority Eric Hatcher Cape Fear Public Utility Emergency Management Present Authority Coordinator Beth Markesino Present Katie Gallagher Present Harper Peterson Present Heidi Cox State of NC Present Tyler Newman Business Alliance for a Sound Present Economy Kemp Burdette Cape Fear River Watch Present Brett Russell City of Wilmington Present III. ADOPTION OF AGENDA Ms. Kusek moved to adopt the agenda. Mr. Norris seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Apr 11, 2018 9:00 AM RESULT: ACCEPTED \[UNANIMOUS\] MOVER: Skip Watkins, Board Member SECONDER: Patricia Kusek AYES: Brown, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Corder, Adams V. PRESENTATION: EMERGING CONTAMINATION AND THE SWEENEY WATER TREATMENT PLANT 1. Emerging Contaminants Presentation Mr. Flechtner reported on emerging contaminants in the Cape Fear River. He reminded those present that the ideal goal would be to control discharges at their source points. He reported that regulatory agencies and health science experts cannot keep up with the development of industrial compounds that may be released into the environment. 85,000 chemicals are registered under the Federal Toxic Substances Control Act (TSCA). Fewer than 10,000 of those chemicals have toxicological studies available. Cape Fear Public Utility Authority Page 2 MinutesAuthority BoardMay 9, 2018 The Federal Environmental Protection Agency (EPA) sets national drinking water standards, researches health effects, and establishes rules for drinking water. Every five years, the EPA identifies up to 30 emerging contaminants in drinking water using the Unregulated Contaminant Monitoring Rule (UCMR). During the 2013-2015 UCMR process, water providers were required to test for six previously identified per- fluorinated compounds. GenX was not one of those six compounds, and none of the six compounds yet have regulations governing their use or discharge. The next UCMR test period will begin in September 2018, and per-fluorinated compounds are not included in that test period. The North Carolina Department of Environmental Quality (DEQ) enforces the EPA's drinking water standards for the state. DEQ permits users that discharge into the state's surface waters and enforces the permit requirements. Discharges into the state's rivers should not impact downstream users. DEQ has issued notices of violation to Chemours and required the establishment of control measures at the Fayetteville Works in Bladen County. Chemours' discharge permit is under review. Sampling near the Chemours site has identified contaminated groundwater and well contamination near the plant. The NC Department of Health and Human Services issued a health advisory of 140 parts per trillion (ppt) for GenX. The Sweeney plant's current sampling shows levels below that advisory. A water utility like CFPUA is obligated to meet the drinking water standards and report results. CFPUA helps EPA in the development and strengthening of regulations through periodic testing and participates in the UCMR program. The EPA will hold a summit on per-fluorinated compounds this month. Mr. Vandermeyden will participate as one of four representatives allocated to the American Water Works Association. Mr. Flechtner reported on the pilot program for treatment enhancements at the Sweeney plant. While recognizing that the elimination of discharges at the source point is the ultimate answer, staff understands that CFPUA has a responsibility to its customers to address concerns about drinking water safety. Staff believes that CFPUA cannot wait for regulations to address emerging contaminants such as GenX. CFPUA considered reverse osmosis, ion exchange, and granular activated charcoal as potential technologies for treatment enhancements. Reverse osmosis was eliminated because it requires more raw water than CFPUA can remove from the Cape Fear River. Ion exchange technology has a narrow range of removal. Granular activated charcoal (GAC) is the best option for enhanced treatment at the Sweeney plant, and it can be used with ozone and other existing technologies used by CFPUA. GAC is very effective at reducing levels of per-fluorinated compounds. Upgrading the Sweeney plant would cost $46 million, with an additional $2.7 million annual in additional operating expenses. The construction would be funded by bonds, Cape Fear Public Utility Authority Page 3 MinutesAuthority BoardMay 9, 2018 paid over 25 years through rates. The cost to the average residential customer would be $5.00 per month. Mr. Flecthner repeated that source control of unregulated compounds is needed but that the environment of the Cape Fear upstream from the region has been contaminated and must be addressed. Staff recommended that the Board authorize a design contract for the treatment enhancements at the Sweeney plant. Through June, staff will solicit additional public opinion through CFPUA's website. The Board will discuss the proposed project in depth at a workshop in August. A copy of Mr. Flechtner's presentation is attached hereto and incorporated herein by reference. Following clarification questions, Mr. Watkins moved to authorize staff to negotiate a design contract for Sweeney enhancements to reduce per-fluorinated compounds in CFPUA's finished water. Mr. O'Grady seconded the motion. After additional Board discussion, Mr. Brown called the question, and the motion passed unanimously. RESULT: REVIEWED Next: 6/13/2018 9:00 AM VI. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER Ms. Markesino spoke regarding water quality. She thanked CFPUA for its actions following the release of fluoride at the Richardson plant. She urged CFPUA to hold Chemours responsible for the cost of enhanced treatment at the Sweeney plant. Ms. Gallagher spoke regarding water quality and the regional effect of water issues. Mr. Peterson thanked Mr. Flechtner for his report. He encouraged transparency and requested that CFPUA continue to hold public meetings regarding the issues. He requested more information on legal action against Chemours. VII. SPEAKER UPDATE FROM THE APRIL 11, 2018 BOARD MEETING Mr. Flechtner reported that Ms. Markesino spoke at the April meeting. He thanked her for her input. VIII. CONSENT AGENDA 1. Authorization for the Executive Director to Execute a $160,495 Contract with Carollo Engineers Inc. for the Innovyze InfoMaster Implementation Project RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Cindee Wolf AYES: Brown, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Corder, Adams 2. Kings Bluff Pump Station Upgrades - Equipment Purchase Cape Fear Public Utility Authority Page 4 MinutesAuthority BoardMay 9, 2018 RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Cindee Wolf AYES: Brown, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Corder, Adams 3. Easement Termination - Lots 58 and 59 - Anchor's Bend Way RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Cindee Wolf AYES: Brown, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Corder, Adams 4. Sale of Real Property - 105 Berry Street, Castle Hayne RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Cindee Wolf AYES: Brown, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Corder, Adams 5. Conveyance of 109 Little Creek Road to New Hanover County RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Cindee Wolf AYES: Brown, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Corder, Adams 6. Return Three Parcels to New Hanover County Per Deed Book 5330 Page 1728 RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Cindee Wolf AYES: Brown, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Corder, Adams 7. Authorization for the Executive Director to Enter into a $269,982 Inter-Local Agreement (ILA) with the City of Wilmington for the Pump Station 12 Force Main Replacement Project. Cape Fear Public Utility Authority Page 5 MinutesAuthority BoardMay 9, 2018 RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Cindee Wolf AYES: Brown, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Corder, Adams 8. Budget Amendment 18-007 RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Cindee Wolf AYES: Brown, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Corder, Adams 9. Authorization for the Executive Director to Execute a $257,600 Contract Amendment with McKim and Creed for Construction Administration and Construction Observation for the Pump Station 12 Force Main. RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Cindee Wolf AYES: Brown, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Corder, Adams 10. Authorization for the Executive Director to Execute a $2,034,015.00 Construction Contract with Carolina Civilworks for the Pump Station 12 Force Main. RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Cindee Wolf AYES: Brown, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Corder, Adams 11. Authorize the Executive Director to execute a $9,500 contract amendment with Arcadis for the CFPUA Standards Update Project RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Cindee Wolf AYES: Brown, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Corder, Adams 12. Sole Source Authorization - Calgon Carbon Staff and Ms. Miles answered clarification questions regarding Calgon's purchase by Japanese Kuraray Company, Ltd. Cape Fear Public Utility Authority Page 6 MinutesAuthority BoardMay 9, 2018 RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Cindee Wolf AYES: Brown, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Corder, Adams 13. Emergency Bypass Pumping Services RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Cindee Wolf AYES: Brown, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Corder, Adams 14. Emergency Construction Contract Change Order RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Cindee Wolf AYES: Brown, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Corder, Adams 15. Resolution Authorizing Electronic Payments RESULT: APPROVED \[UNANIMOUS\] MOVER: Cindee Wolf SECONDER: Kevin O'Grady AYES: Brown, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Corder, Adams 16. Adoption of System Development Charges for Fiscal Year 2018-2019 RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Cindee Wolf AYES: Brown, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Corder, Adams 17. Revisions to Meter Obstruction Ordinance and Calculated Charges Cape Fear Public Utility Authority Page 7 MinutesAuthority BoardMay 9, 2018 RESULT: APPROVED \[UNANIMOUS\] SECONDER: Cindee Wolf AYES: Brown, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Corder, Adams IX. NEW BUSINESS A. Administrative Reports i. Attorney's Report Ms. Miles had no report for open session but requested a closed session to discuss CFPUA v. Chemours and DuPont. ii. Executive Director's Report The key indicator, safety, and environmental reports were in the agenda packet. There were no questions. 1. Key Indicators Report 2. Environmental Report RESULT: REVIEWED 3. Safety Report RESULT: REVIEWED iii. Operation's Report 1. Richardson Plant Fluoride Incident Mr. Styers reported on the April 25 fluoride incident at the Richardson water treatment plant. Fluoride is a naturally-occurring mineral, and CFPUA's target dose is .07 mg/liter of water. The EPA advisory is no more than 2 mg/liter. The mineral has been used since 1955 at the Sweeney plant and since 2010 at the Richardson plant. A mechanical failure in a component in the fluoride feed system caused an overfeed of fluoride in the Richardson finished water during the evening hours of April 24. The plant was not pumping water at the time the failure occurred. Staff discovered the malfunction in the early morning hours of April 25 and took quick action to address it. The high service pump was turned off and measures activated to contain the overfeed. CFPUA's emergency operations center was opened at the Sweeney plant, and staff from several departments coordinated efforts to inform customers and other governmental agencies. The fluoride overfeed was confined to an area near the Richardson plant, but a "do not drink" Cape Fear Public Utility Authority Page 8 MinutesAuthority BoardMay 9, 2018 alert was issued for customers in that service area. The system was methodically flushed in targeted areas. The "do not drink" advisory was lifted by early afteroon on the 25th, and a "boil water" advisory was in effect for a limited area until early on the 26th. Mr. Styers explained short and long term administrative, maintenance, and engineering controls being instituted to greatly reduce the possiblity of a recurrence. He answered clarification questions from Board members regarding the incident. Mr. Styers' presentation is attached hereto and incorporated herein by reference. Mr. Flechtner presented a Resolution and a Budget Ordinance to provide a one- time $5.00 credit to residential customers in the Richardson service area in recognition of inconveniences they may have faced during the incident. Ms. Wolf moved to adopt the Resolution. Mr. O'Grady seconded the motion, and it passed unanimously. Mr. Rivenbark moved to adopt the Budget Ordinance. Mr. Watkins seconded the motion, and it passed unanimously. RESULT: REVIEWED 2. Resolution to Credit Customers served by the Michael E. Richardson Nanofiltration Plant RESULT: APPROVED \[UNANIMOUS\] MOVER: Cindee Wolf SECONDER: Kevin O'Grady AYES: Brown, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney EXCUSED: Corder, Adams B. Committee Reports i. Executive Committee 1. Minutes of the May 2. 2018 Executive Committee Meeting RESULT: NO ACTION REQUIRED ii. Long Range Planning Committee 1. Long Range Planning Committee - Regular - Apr 24, 2018 3:00 PM RESULT: NO ACTION REQUIRED iii. Finance Committee Cape Fear Public Utility Authority Page 9 MinutesAuthority BoardMay 9, 2018 1.Finance Committee -Regular Meeting -May 2, 2018 9:00 AM RESULT: NO ACTION REQUIRED 2. May 2018 Customer Service Report Ms. Irick reported on the department's role in the April fluoride incident. RESULT: REVIEWED 3. May Finance Report Mr. McLean presented the April financial data. Revenues exceed expenditures by $4.69 million. Water use per equivalent residential unit (ERU) is lower than expected, but there are more ERUs than budgeted for. SDCs are at 118.56 percent of budget. Since June 2017, CFPUA has spent $1.8 million on GenX-related items. The state of North Carolina provided a $185,000 grant to offset GenX costs. RESULT: NO ACTION REQUIRED 4. FY18-19 Recommended Budget Presentation Mr. McLean summarized the revenue portion of the recommended FY2019 budget. The budget is 2.8 percent higher than the FY2018 budget. It includes $16.7 million in transfers to the capital budget for pay-go funding, $1.8 million more than FY2018. Revenue sources are broken down as follows: Water....................................... 43 percent Wastewater..............................45 percent SDCs.......................................... 5 percent Investment earnings................. 1 percent Appropriated fund balance..... 1 percent Other sources/fees.................. 5 percent To support the Board's policy of pay-go capital funding, the recommended budget includes a 2.16 percent rate increase. For the average customer using 4,200 gallons each month, bimonthly bill will increase $2.74, equalling $16.44 annually. CFPUA's rates compare favorably with its peers in North Carolina. RESULT: REVIEWED Next: 6/6/2018 9:00 AM X. OLD BUSINESS There was no old business. Cape Fear Public Utility Authority Page 10 MinutesAuthority BoardMay 9, 2018 XI.AUTHORITY Q&A / CLOSING COMMENTS There were no questions or closing comments from Board members. XII. CLOSED SESSION Mr. Rivenbark moved to enter closed session to receive a report from legal counsel and provide direction to her. Mr. Watkins seconded the motion, and it passed unanimously. The Board entered closed session at 10:45 AM. Following a report from Ms. Miles and discussion and direction from the Board, Ms. Wolf moved to return to open session. Mr. O'Grady seconded the motion, and it passed unanimously. The Board returned to open session at 11:07 AM. XIII. ADJOURNMENT Mr. Hackney moved to adjourn. Mr. Sneeden seconded the motion, and it passed unanimously. The meeting adjourned at 11:07 AM. The next regular meeting of the Cape Fear Public Utility Authority will be Wednesday, June 13, 2018. The Board will meet at 9:00 AM in the Lucie Harrell Conference Room, New Hanover County Administration Building, 230 Government Center Drive, Wilmington, North Carolina. Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 11