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HomeMy WebLinkAbout2020-02-12 Regular Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES FEBRUARY 12, 2020 Lucie Harrell Conference Room Regular Meeting 9:00 AM 230 GOVERNMENT CENTER DRIVE WILMINGTON, NC 28403 I. CALL TO ORDER Mr. Norris called the meeting to order at 9:00 AM with all members present. He announced that Mr. Barfield would be joining the meeting in progress, and he would take his oath of office at that time. 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 Board Member Present Authority Hollis Briggs Cape Fear Public Utility Board Member Present Authority Larry Sneeden Cape Fear Public Utility Board Member Present Authority Jonathan Barfield Cape Fear Public Utility Commissioner Excused 9:50 Authority AM Kevin O'Grady Cape Fear Public Utility Councilmember Present Authority Charlie Rivenbark Cape Fear Public Utility Councilmember Present Authority Rob Zapple Cape Fear Public Utility Commissioner 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 Kristine Irick Cape Fear Public Utility Customer Service Director Present Cape Fear Public Utility Authority Page 1 MinutesAuthority BoardFebruary 12, 2020 Authority 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 Denise Matroni Cape Fear Public Utility HR Director Present Authority Cammie Bellamy Cape Fear Public Utility Assistant PIO Present Authority Karen Durso Cape Fear Public Utility Real Estate Manager Present Authority Andrea Jordan Cape Fear Public Utility Executive Office Administrator Present Authority Sarah Eure Cape Fear Public Utility Environmental Data Analyst Present Authority Erin Tremblay Cape Fear Public Utility Policy Specialist Present Authority Makeba Robinson Cape Fear Public Utility Present Authority Sara Eskew Cape Fear Public Utility Present Authority Scott Solari Cape Fear Public Utility Present Authority Michael Rich Cape Fear Public Utility IT Specialist Present Authority Donna Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board Jim Iannucci New Hanover County Present Sam Kenyon McKim & Creed Present Lindsay Lake 350 Wilmington Present Suni Chapman Village 5 HOA Present Nina Walker Present Cyril Oberle Present John Munn Present Steve Walker Present III. ADOPTION OF AGENDA Mr. O'Grady moved to adopt the day's agenda. Mr. Zapple seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Jan 8, 2020 9:00 AM Cape Fear Public Utility Authority Page 2 MinutesAuthority BoardFebruary 12, 2020 RESULT: ACCEPTED \[UNANIMOUS\] MOVER: Larry Sneeden, Board Member SECONDER: Hollis Briggs, Board Member AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Sneeden, O'Grady, Rivenbark, Zapple EXCUSED: Barfield V. BOARD OATH FOR JONATHAN BARFIELD, JR. Mr. Barfield joined the meeting at 9:50 AM. Ms. Jordan administered his oath, and the Board welcomed him to the Authority. Mr. Norris reported that the Executive Committee has assigned Mr. Barfield to the Communications and Human Resources Committee for the remainder of fiscal year 2020. VI. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER Ms. Lake introduced the group she represented, 350 Wilmington, and explained the significance of its name. She thanked the Board for establishing the Sustainability Committee and for efforts to reduce greenhouse gases. She presented a model resolution for the Board to consider a goal of 100 percent clean energy. Mr. Munn spoke regarding his property at 831 Futch Creek Road and the access easement shown on the conveyance of CFPUA's pump station site. His property is landlocked, and he believed the access easement was intended to serve his property. Ms. Walker, Mr. Oberle, and Ms. Chapman spoke in opposition to CFPUA granting an access easement across its pump station site. They cited stormwater issues and elevation and flooding concerns for the neighborhood and the pump station site. VII. CONSENT AGENDA 1. $57,600 Amendment #2 with McKim & Creed for Motts Creek PS 69 RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady, Councilmember SECONDER: Larry Sneeden, Board Member AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Sneeden, O'Grady, Rivenbark, Zapple EXCUSED: Barfield 2. Authorization for the Executive Director to execute a $38,705 contract amendment with Carollo Engineers for an assessment report to redirect flow from Pump Station 34, to the Northside WWTP via NEI Northern Route Cape Fear Public Utility Authority Page 3 MinutesAuthority BoardFebruary 12, 2020 RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady, Councilmember SECONDER: Larry Sneeden, Board Member AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Sneeden, O'Grady, Rivenbark, Zapple EXCUSED: Barfield 3. $799,000 HDR Engineering, Inc. of the Carolinas Contract Amendment #1 for Richardson Water Treatment Plant Expansion Project RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady, Councilmember SECONDER: Larry Sneeden, Board Member AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Sneeden, O'Grady, Rivenbark, Zapple EXCUSED: Barfield 4. $418,100 Construction Contract Richardson Water Treatment Plant Membrane Replacement and Pressure Vessel Addition with MB Kahn Construction Company, Inc. RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady, Councilmember SECONDER: Larry Sneeden, Board Member AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Sneeden, O'Grady, Rivenbark, Zapple EXCUSED: Barfield 5. Authorize the Executive Director to Execute a $75,600 Amendment to HDR of the Carolinas, Inc. for Construction Services, Phase 1 Richardson Interim Capacity RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady, Councilmember SECONDER: Larry Sneeden, Board Member AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Sneeden, O'Grady, Rivenbark, Zapple EXCUSED: Barfield VIII. 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 Cape Fear Public Utility Authority Page 4 MinutesAuthority BoardFebruary 12, 2020 Mr. Flechtner reported that Ms. Matroni is retiring at the end of February. He thanked her for her contributions to CFPUA, and the Board joined staff in wishing Ms. Matroni well. 1. Key Indicators Report RESULT: REVIEWED 2. Environmental Report RESULT: REVIEWED 3. Safety Report RESULT: REVIEWED 4. Customer Service Report RESULT: REVIEWED B. Committee Reports i. Executive Committee 1. Executive Committee Meeting Minutes RESULT: REVIEWED ii. Long Range Committee 1. Long Range Planning Committee - Regular - Jan 30, 2020 3:00 PM RESULT: NO ACTION REQUIRED 2. Futch Creek Road Access Easement Mr. Styers presented the item and answered questions from Board members. In 1999, the Porters Neck Company deeded the pump station site to the New Hanover County Water & Sewer District. CFPUA received the property in 2008. A drawing attached to the deed and recorded with it shows an access easement on the property. The access easement has never been granted to any of the adjacent properties. A neighboring property owner with a landlocked lot has asked for the access easement. Staff reviewed the request and recommended granting the access easement to all adjacent properties. Mr. Styers clarified that granting the access easement would not authorize any improvements to it. Any work done within the access easement by a neighboring property owner would Cape Fear Public Utility Authority Page 5 MinutesAuthority BoardFebruary 12, 2020 be addressed through an encroachment request from the person wishing to use the access easement. CFPUA staff would review any encroachment request, and Messrs. Flechtner or Styers would approve or disapprove it. Storm water improvements, land use questions, and building permits for any structure on an adjacent property fall under New Hanover County's authority. Following discussion, Mr. Sneeden moved the item as a Long Range Planning Committee recommendation. Mr. Hackney seconded the motion. Ms. Adams and Messrs. Norris, Corder, Hackney, Sneeden, O'Grady, Briggs, and Zapple voted in favor of the motion. Dr. Cannon and Mr. O'Grady were opposed. Motion carried, eight to two. RESULT: APPROVED \[8 TO 2\] AYES: Norris, Corder, Hackney, Adams, Briggs, Sneeden, Rivenbark, Zapple NAYS: Cannon, O'Grady EXCUSED: Barfield iii. Finance Committee 1. Finance Committee - Regular Meeting - Feb 5, 2020 9:00 AM RESULT: NO ACTION REQUIRED 2. Monthly Financial Report Mr. McLean presented the financial data, complete through December 2019. Six months into the fiscal year, the unrestricted fund balance is $74.6 million. The optimal unrestricted fund balance is $50 million. Some billing cycles were accelerated in anticipation of the switchover to the new customer service software. The customer service portion of the ERP will go live on February 25. RESULT: REVIEWED 3. Proposed FY21 System Development Charges Mr. Flechtner introduced the discussion, which is part of the budget process for Fiscal Year 2021. The interlocal agreement that formed CFPUA's set forth that growth would pay for growth. CFPUA must build some infrastructure in advance of growth and development. The system development charges (SDCs) serve to "reimburse" existing customers for the portion of the system they have paid for that will serve new customers in the future. A new connection to the systems will require the SDC payment. Mr. McLean presented the calculation and recommended SDCs for the fiscal year beginning July 1, 2020. The proposed water SDC is $1,920, which is $40 more Cape Fear Public Utility Authority Page 6 MinutesAuthority BoardFebruary 12, 2020 than the current water SDC. The proposed sewer SDC is $2,070, which is $140 more than the current sewer SDC. Mr. McLean gave a historical overview of SDCs from FY2009 to the present. FY2009 was CFPUA's first year of operations, and the FY09 SDCs were higher than the current SDCs or proposed FY21 SDCs. Mr. McLean reviewed the methodology used to calculate the SDCs. Staff uses the depreciated historical cost of assets, less the values not paid for by ratepayers. Examples are grant-funded infrastructure or conveyances from developers. The net infrastructure value is then divided by the projected number of customer equivalent residential units (ERUs) for the coming fiscal year. Ms. Miles and Mr. McLean explained that the methodology is governed by general statute. By law, the calculation and recommended SDCs must be published on CFPUA's website for a minimum of 45 days, with a mechanism for public comment on the website. Prior to adoption, a public hearing is required. Staff plans the public hearing for the May 13 meeting. The SDCs can be adopted after the public hearing or at the June meeting with the FY21 budget, if revisions are warranted following public comment and the public hearing. Messrs. McLean and Flechtner and Ms. Miles answered questions from Board members regarding the calculation and the data used to project the ERUs for FY21. Following discussion, Ms. Adams moved to approve the SDCs for FY21. Mr. Rivenbark seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Charlie Rivenbark, Councilmember AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple iv. Sustainability Committee Dr. Cannon reported on the January 30 committee meeting. Mr. Norris asked that the Committee review and consider the proposed resolution distributed by Ms. Lake during public comment. 1. Sustainability Committee - Regular - Jan 30, 2020 4:00 PM RESULT: NO ACTION REQUIRED IX. OLD BUSINESS Mr. Zapple asked for clarification on the Key Indicators Report. X. AUTHORITY Q&A/CLOSING COMMENTS There were no further comments or questions. XI. CLOSED SESSION Cape Fear Public Utility Authority Page 7 MinutesAuthority BoardFebruary 12, 2020 Mr. Rivenbark moved to enter closed session to discuss CFPUA v. Chemours and DuPont. Mr. O'Grady seconded the motion, and it passed unanimously. The Board entered closed session at 10:32 AM, with Ms. Miles, Ms. Pope, and Messrs. Flechtner and Vandermeyden present. Following a report from legal counsel, Mr. Rivenbark moved to return to open session. Mr. Barfield seconded the motion, and it passed unanimously. The Board entered open session at 10:55 AM. XII. ADJOURNMENT There was no further business to come before the Board, and Ms. Adams moved to adjourn. Mr. Sneeden seconded the motion, and it passed unanimously. The meeting adjourned at 10:56 AM. The next regular meeting of the Cape Fear Public Utility Authority will be Wednesday, March 11, 2020. The Board will meet at 9:00 AM in the Lucie Harrell Conference Room, New Hanover County building, 230 Government Center Drive, in Wilmington, North Carolina. The regular meeting will be followed by a Capital Improvements Workshop to review projects and capital budget items for FY2021. Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 8