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HomeMy WebLinkAbout2020-06-10 Regular Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES JUNE 10, 2020 Wilmington Convention Center Regular Meeting 9:00 AM 10 CONVENTION CENTER DR. WILMINGTON, NC 28401 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 Present Authority Jessica Cannon Cape Fear Public Utility Present Authority Hollis Briggs Cape Fear Public Utility Present Authority Larry Sneeden Cape Fear Public Utility Excused Authority Jonathan Barfield Cape Fear Public Utility Present Authority Kevin O'Grady Cape Fear Public Utility Excused 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 John McLean Cape Fear Public Utility Chief Financial Officer Present Authority Carel Cape Fear Public Utility Deputy Executive Director Present Vandermeyden Authority Frank Styers Cape Fear Public Utility Deputy Executive Director Present Authority Cape Fear Public Utility Authority Page 1 MinutesAuthority BoardJune 10, 2020 Lindsey Hallock Cape Fear Public Utility Director of Public and Present Authority Environmental Policy Beth Eckert Cape Fear Public Utility Director of EMD Present Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Lori McKoy Cape Fear Public Utility Human Resources Director Present Authority Vaughn Hagerty Cape Fear Public Utility Public Information Officer Present Authority Cammie Bellamy Cape Fear Public Utility Assistant PIO Present Authority Makeba Robinson Cape Fear Public Utility Present Authority Sara Eskew Cape Fear Public Utility Present Authority Cord Ellison Cape Fear Public Utility Chief Information Officer Present Authority Donna S. Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board Leslie Cohen Present III. ADOPTION OF AGENDA Ms. Adams moved to adopt the day's Agenda. Mr. Corder seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - May 13, 2020 9:00 AM RESULT: ACCEPTED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Hollis Briggs, Board Member AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Barfield, Rivenbark, Zapple EXCUSED: Sneeden, O'Grady V. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER Ms. Cohen spoke regarding rate affordability and the impact of rates on the community's most vulnerable citizens. VI. PRESENTATION 1. FY-2021 Capital Improvements Plan Approval Mr. Flechtner introduced the Capital projects budget for FY2021. He commended staff for continuing to provide essential services to the community during the Covid-19 Cape Fear Public Utility Authority Page 2 MinutesAuthority BoardJune 10, 2020 pandemic. The FY2021 capital plant includes two major projects. The first is treatment enhancements at the Sweeney Water Treatment Plant to address PFAS. The second is a raw water line project in partnership with Brunswick County and the Lower Cape Fear Water & Sewer Authority. Mr. Vandermeyden reviewed the recommended Capital Improvements Plan, which totals $25.5 million. Since CFPUA's creation, projects have addressed rehabilitation and replacement of aging infrastructure, and $16.9 million of the FY2021 budget falls into that category. Other key areas addressed by the plan are capacity expansion, system enhancements, and addressing sustainability and climate change. The projected ten-year capital plan is $229 million. The ten-year plan includes capacity and well field expansion of the Richardson Water Treatment Plant and the design of the Southside Wastewater Plant expansion. Mr. Zapple moved to adopt the FY2021 Capital Improvements Plan and incorporate it into the budget. Mr. Rivenbark seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Barfield, Rivenbark, Zapple EXCUSED: Sneeden, O'Grady 2. Public Hearing and Adoption of FY21 System Development Charges Mr. Norris opened the public hearing for the FY2021 System Development Charges (SDCs), and Mr. McLean presented the item. The recommended charges and the calculation supporting the recommendation had been posted on the CFPUA website in accordance with North Carolina law. Comments submitted through the website were included in the agenda item. The water SDC is $1,920, which is $40 higher than FY2020, and the sewer SDC is $2,070, $140 higher than FY2020. There were no speakers for the System Development Charges public hearing. Mr. Hackney moved to close the hearing. Ms. Adams seconded the motion, and it passed unanimously. Mr. Corder moved to adopt the FY2021 System Development Charges. Mr. Barfield seconded the motion, and it passed unanimously. Cape Fear Public Utility Authority Page 3 MinutesAuthority BoardJune 10, 2020 RESULT: APPROVED \[UNANIMOUS\] AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Barfield, Rivenbark, Zapple EXCUSED: Sneeden, O'Grady 3. Public Hearing and Adoption of FY21 Budget Mr. Norris opened the public hearing for the budget year beginning July 1, 2020. Mr. McLean presented the recommended budget. The operating budget for FY2021 is $89,979,681, an increase of $5.2 percent over FY2020. It supports $25,746,559 in debt service and provides an $18 million transfer to capital projects for pay-go funding. Salaries and benefits are $25,755,773. There are no increases to customer water and sewer rates. The recommended budget does not anticipate decreased revenues or use caused by Covid-19. If there are adverse financial impacts from the pandemic, CFPUA has a sufficient fund balance set aside to address emergency situations. Mr. McLean answered questions from Board members regarding capital funding and pay-go projects. The budget provides for 3 percent customer growth. Mr. McLean explained the metrics used to evaluate and predict growth in the system. Following discussion, Ms. Adams moved to close the public hearing for the budget. Mr. Zapple seconded the motion, and it passed unanimously. Mr. Barfield moved to adopt the FY2021 budget. Mr. Zapple seconded the motion, and it passed unanimously. Mr. Norris thanked staff for their work in preparing the budget. RESULT: APPROVED \[UNANIMOUS\] AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Barfield, Rivenbark, Zapple EXCUSED: Sneeden, O'Grady VII. CONSENT AGENDA Mr. Corder moved to approve the Consent Agenda. Ms. Adams seconded the motion, and it passed unanimously. 1. Mandatory Connection Deferral Policy in Response to Covid-19 Cape Fear Public Utility Authority Page 4 MinutesAuthority BoardJune 10, 2020 RESULT: APPROVED \[UNANIMOUS\] AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Barfield, Rivenbark, Zapple EXCUSED: Sneeden, O'Grady 2. Authorization for the Board Chair to Enter into a $103,948 Interlocal Agreement with the New Hanover County Airport Authority for the Backflow Preventer Installation. RESULT: APPROVED \[UNANIMOUS\] AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Barfield, Rivenbark, Zapple EXCUSED: Sneeden, O'Grady 3. Authorization for the Executive Director to Enter into a $129,232 Sole Source Contract with Water Guard Inc for Corrosion Inhibitor Treatment Chemicals RESULT: APPROVED \[UNANIMOUS\] AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Barfield, Rivenbark, Zapple EXCUSED: Sneeden, O'Grady 4. $57,900 McKim & Creed, Inc. Amendment for Kings Bluff Pump Station Project RESULT: APPROVED \[UNANIMOUS\] AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Barfield, Rivenbark, Zapple EXCUSED: Sneeden, O'Grady 5. Enterprise Resource Planning (ERP) Project Change Order RESULT: APPROVED \[UNANIMOUS\] AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Barfield, Rivenbark, Zapple EXCUSED: Sneeden, O'Grady 6. Approval for Write Offs for Uncollectible Accounts RESULT: APPROVED \[UNANIMOUS\] AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Barfield, Rivenbark, Zapple EXCUSED: Sneeden, O'Grady VIII. NEW BUSINESS A. Administrative Reports i. Attorney's Report Ms. Miles had no report for open session. She requested a closed session to discuss CFPUA v. Chemours and DuPont and a claim. Cape Fear Public Utility Authority Page 5 MinutesAuthority BoardJune 10, 2020 ii. Executive Director's Report 1. Environmental Report RESULT: REVIEWED 2. Key Indicators Report RESULT: REVIEWED 3. Safety Report RESULT: REVIEWED 4. Customer Service Update RESULT: REVIEWED B. Committee Reports i. Executive Committee 1. Executive Committee - Regular - Jun 3, 2020 10:00 AM RESULT: NO ACTION REQUIRED ii. Long Range Planning Committee 1. Long Range Planning Committee - Regular - May 28, 2020 3:00 PM RESULT: NO ACTION REQUIRED iii. Finance Committee 1. Finance Committee - Regular Meeting - Jun 3, 2020 9:00 AM RESULT: NO ACTION REQUIRED 2. Low Pressure Sewer Fees Mr. Vandermeyden presented the item and answered questions from Board members regarding the metrics used to determine the fees. Developers or builders will pay a one-time fee of $300 per lot. The bimonthly residential fee for maintenance of the grinder pump will be $30 in addition to the base charge and any volumetric use. The fees are designed to pay for a small vactor truck Cape Fear Public Utility Authority Page 6 MinutesAuthority BoardJune 10, 2020 with a generator and for CFPUA's costs to maintain the pumps. All CFPUA fees can be evaluated annually as part of the budget process. The item was reviewed and recommended by the Finance Committee. Mr. Corder moved to approve the fees. Ms. Adams seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Wesley Corder, Vice-Chair SECONDER: Jennifer Adams, Treasurer AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Barfield, Rivenbark, Zapple EXCUSED: Sneeden, O'Grady 3. Monthly Financial Report Mr. McLean reviewed the monthly financial data. Through May 31, revenues were at 97.06 percent of FY2020 budget with 91.66 percent of the year complete. Through April 30, expenditures were at 82.36 percent of budget, with 83.33 percent of the fiscal year complete. The May data reflects a surplus of $5.8 million. CFPUA has not seen a big decline in revenues due to suspension of cutoffs and collection efforts related to Covid-19. Mr. McLean answered questions from Board members regarding the financial report and the May contract change orders. RESULT: REVIEWED IX. OLD BUSINESS There was no old business. X. AUTHORITY Q & A/CLOSING COMMENTS Messrs. Norris and Flechtner thanked the Board and staff for accommodating a new meeting venue. XI. CLOSED SESSION Ms. Adams moved to enter closed session to discuss CFPUA v. Chemours and DuPont and a claim. Mr. Corder seconded the motion, and it passed unanimously. The Board entered closed session at 10:10 AM with Ms. Miles, Mr. Flechtner, and Ms. Pope present. The Board received a report from Ms. Miles. Cape Fear Public Utility Authority Page 7 MinutesAuthority BoardJune 10, 2020 Mr. Rivenbark moved to return to open session. Mr. Briggs seconded the motion, and it passed unanimously. The Board returned to open session at 10:34 AM. XII. ADJOURNMENT Mr. Zapple moved to adjourn. Mr. Briggs seconded the motion, and it passed unanimously. The Board adjourned at 10:35 AM. The next regular Cape Fear Public Authority meeting will be Wednesday, July 8, 2020. The Authority will meet in the Wilmington Convention Center, 10 Convention Center Drive, at 9:00 AM. Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 8