The URL can be used to link to this page

Home My WebLink About2019-09-11 Regular Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES SEPTEMBER 11, 2019 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 Attendee Name Organization Title Status Arrived William Norris Cape Fear Public Utility Chair Present Authority Wesley Corder Cape Fear Public Utility Vice-Chair Present Authority Deans Hackney Cape Fear Public Utility Secretary Present Authority Jennifer Adams Cape Fear Public Utility Treasurer Excused Authority Jessica Cannon Cape Fear Public Utility Present Authority Patricia Kusek Cape Fear Public Utility Present Authority Larry Sneeden Cape Fear Public Utility Present Authority Hollis Briggs Cape Fear Public Utility Present 9:05 Authority AM Kevin O'Grady Cape Fear Public Utility Present Authority Charlie Rivenbark Cape Fear Public Utility Present Authority Rob Zapple 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 Deputy Executive Director Present Authority Carel Cape Fear Public Utility Deputy Executive Director Present Vandermeyden Authority John McLean Cape Fear Public Utility Chief Financial Officer Present Authority Cape Fear Public Utility Authority Page 1 MinutesAuthority BoardSeptember 11, 2019 Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Lindsey Hallock Cape Fear Public Utility Director of Public and Present Authority Environmental Policy Denise Matroni Cape Fear Public Utility HR Director Present Authority Vaughn Hagerty Cape Fear Public Utility Public Information Officer Present Authority BillyJo Winslett Cape Fear Public Utility Human Resources Assistant Present Authority Karen Durso Cape Fear Public Utility Real Estate Manager Present Authority Elizabeth Severt Cape Fear Public Utility EMD Lead Auditor Present Authority Donna Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board Ray Cox HIghfill Infrastructure Present Tom Newcomb Present Beth Markesino Present Heidi Cox State of NC Present Jim Iannucci New Hanover County Present Dave Cowell City of Wilmington Present Adrian McTigne SEPI Present Cox III. ADOPTION OF AGENDA Ms. Kusek moved to adopt the day's agenda. Mr. Zapple seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES Authority Board - Regular Meeting - Aug 14, 2019 9:00 AM RESULT: ACCEPTED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Wesley Corder, Vice-Chair AYES: Norris, Corder, Hackney, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple EXCUSED: Adams V. PRESENTATION Sweeney Water Treatment Plant Update Sweeney Water Treatment Plant Enhancement Project Presentation Cape Fear Public Utility Authority Page 2 MinutesAuthority BoardSeptember 11, 2019 Mr. Flechtner presented the three agenda items supporting the Sweeney Water Treatment upgrades. He provided a brief history of water concerns the community's June 2017 discovery that Chemours and DuPont have discharged PFAS into the Cape Fear River since 1980. In November 2018, the state suspended Chemours' discharge privileges, and in February 2019, the state entered into a consent order with Chemours. Mr. Flechtner reviewed data on PFAS levels and answered questions about the 70 PPT limit set by the state and the levels in finished Sweeney water. Mr. Zapple reminded the group that the state requires Chemours to provide bottled water to groundwater users near the plant because of PFAS levels over 70 PPT. CFPUA is working with its consultant to study mass loading levels, and the state of NC has some data on mass loading. CFPUA's studies of treatment options concluded that granular activated carbon filters as the best PFAS removal method at the Sweeney plant. In April of this year, our Board voted to proceed with an enhanced treatment project for Sweeney, including obtaining project bids and beginning the bond process. RESULT: REVIEWED $35,915,000 Construction Contract Award to Adams-Robinson Enterprises, Inc. for Sweeney Treatment Enhancements Project. Mr. Styers presented the item. Adams-Robinson provided the lowest of three bids, and staff recommended award of the construction contract. Mr. Zapple moved to approve. Ms. Kusek seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Patricia Kusek AYES: Norris, Corder, Hackney, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple EXCUSED: Adams $2,973,300 Black & Veatch International Company Contract Amendment #2 for Sweeney Treatment Enhancements Project. Mr. Styers presented the item. Black & Veatch has worked on the Sweeney plant and was the consultant for the GAC study. The firm will provide engineering services and project management. Mr. Zapple moved to approve the contract amendment. Mr. O'Grady seconded the motion, and it passed unanimously. Cape Fear Public Utility Authority Page 3 MinutesAuthority BoardSeptember 11, 2019 RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Kevin O'Grady AYES: Norris, Corder, Hackney, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple EXCUSED: Adams Series 2019 Bond Order Mr. McLean presented the item. The bond order approves the issuance of$107.3 million in 25-year revenue bonds. $43 million is designated for the Sweeney project and $15.4 million for the raw water line partnership with Brunswick County and Lower Cape Fear Water & Sewer Authority. The bonds include $48 million for re-funding existing bonds at a net savings of $4.1 million, and funds to cover the cost of issuing the bonds. Ms. Kusek moved to approve the bond sale. Mr. Zapple seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Rob Zapple AYES: Norris, Corder, Hackney, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple EXCUSED: Adams VI. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER Ms. Markesino spoke regarding meter readings. She thanked CFPUA for its hurricane preparedness and resiliency and suggested that CFPUA work with other utilities in the state in their storm planning and preparation. She asked what would happen with the NCDEQ- Chemours Consent Order since Chemours' Outfall #2 had levels over 144 ppt in the early summer. Mr. Newcomb spoke in opposition to the Sweeney GAC filter project. He expressed anger that it had been approved. VII. SPEAKER UPDATE FROM THE AUGUST 14, 2019 BOARD MEETING The August speaker concerns did not require an update. VIII. CONSENT AGENDA Mr. Norris recommended that Item 5 of the Consent Agenda be voted upon separately. Mr. Sneeden moved to approve the Consent Agenda with the exception of Item 5. Ms. Kusek seconded the motion, and it passed unanimously. Authorization To Sell Skid Steer Mower Cape Fear Public Utility Authority Page 4 MinutesAuthority BoardSeptember 11, 2019 RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden SECONDER: Patricia Kusek AYES: Norris, Corder, Hackney, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple EXCUSED: Adams $287,846 Pedal Valves. Inc. Change Order #3 for Comprehensive Meter Replacement Program RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden SECONDER: Patricia Kusek AYES: Norris, Corder, Hackney, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple EXCUSED: Adams $234,000 Cape Fear Engineering Contract Amendment #1 for Comprehensive Meter Replacement Program RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden SECONDER: Patricia Kusek AYES: Norris, Corder, Hackney, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple EXCUSED: Adams Bettencourt Alley Interlocal Agreement Mr. Zapple thanked staff for working with the City and downtown stakeholders so that the Bettencourt Alley work did not disrupt Riverfest celebrations. RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden SECONDER: Patricia Kusek AYES: Norris, Corder, Hackney, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple EXCUSED: Adams 0 Head Road Easement Condemnation Approval Mr. Sneeden moved to recuse Mr. Zapple because of a previous financial conflict and the potential for future financial conflict. Mr. O'Grady seconded the motion, and it passed unanimously. Mr. Sneeden moved to approve the condemnation. Mr. Briggs seconded the motion, and it passed unanimously. Cape Fear Public Utility Authority Page 5 MinutesAuthority BoardSeptember 11, 2019 RESULT: APPROVED \[9 TO 0\] MOVER: Larry Sneeden SECONDER: Hollis Briggs, Board Member AYES: Norris, Corder, Hackney, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark EXCUSED: Adams RECUSED: Zapple Authorization for the Executive Director to Sole Source Purchase a $58,250 Main Drive Assembly for the Southside Wastewater Treatment Plant Secondary Clarifier No.2 RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden SECONDER: Patricia Kusek AYES: Norris, Corder, Hackney, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple EXCUSED: Adams Authorization for the Executive Director to Execute $3,000,000 Construction Change Order #2 with TA Loving Company for the Find-It Fix-It Gravity Sewer Rehabilitation Under Major Roads Project. RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden SECONDER: Patricia Kusek AYES: Norris, Corder, Hackney, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple EXCUSED: Adams Resolutions Authorizing Low Interest State Revolving Fund Loan Applications Two Water and Wastewater Capital Projects RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden SECONDER: Patricia Kusek AYES: Norris, Corder, Hackney, Cannon, Kusek, Sneeden, Briggs, O'Grady, Rivenbark, Zapple EXCUSED: Adams IX. NEW BUSINESS A. Administrative Reports Attorney's Report Ms. Miles had no report and did not require a closed session. Cape Fear Public Utility Authority Page 6 MinutesAuthority BoardSeptember 11, 2019 Executive Director's Report Mr. Flechtner answered questions regarding the key indicators report. He reported that staff is developing a dedicated public information program for the Sweeney project. The website will contain videos about the project as well as test results. Staff will work do outreach on social media. 2748 : Key Indicators Report RESULT: REVIEWED Environmental Report RESULT: REVIEWED Safety Report RESULT: REVIEWED Customer Service Update RESULT: REVIEWED B. Committee Reports Executive Committee Executive Committee Minutes Finance Committee Finance Committee - Regular Meeting - Sep 4, 2019 9:00 AM RESULT: NO ACTION REQUIRED Monthly Financials Mr. McLean provided the monthly financial data through July 2019. The unrestricted fund balance is $85.8 million. Water and wastewater usage are over budget. To date, PFAS expenses are $8.4 million, with $7.8 million paid through rates. The Sweeney project costs will be added to the PFAS expense report in the future. Cape Fear Public Utility Authority Page 7 MinutesAuthority BoardSeptember 11, 2019 RESULT: REVIEWED X. OLD BUSINESS There was no old business. XI. AUTHORITY Q&A / CLOSING COMMENTS Mr. Norris thanked everyone for their attendance and work. XII. CLOSED SESSION There was no closed session. XIII. ADJOURNMENT Mr. Sneeden moved to adjourn. Mr. Zapple seconded the motion, and it passed unanimously. The Board adjourned at 9:33 AM. The next regular CFPUA meeting will be Wednesday, October 9, 2019. The Board will meet in the Lucie Harrell Conference Room, New Hanover County administration building, 230 Government Center Drive, in Wilmington, North Carolina. Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 8