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HomeMy WebLinkAbout2022-03-09 Regular Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES MARCH 9, 2022 Lucie Harrell Conference Room Regular Meeting 9:00 AM 230 GOVERNMENT CENTER DRIVE WILMINGTON, NC 28403 I. CALL TO ORDER Mr. Corder called the meeting to order at 9:00 AM with a quorum present. Mr. Rivenbark moved to excuse Mr. Norris from the day's meeting and Mr. Barfield until his arrival. Mr. Briggs seconded the motion, and it passed unanimously. Mr. Barfield arrived at 9:13 AM. II. DETERMINATION OF A QUORUM Attendee Name Organization Title Status Arrived Wesley Corder Cape Fear Public Utility Chair Present Authority William Norris Cape Fear Public Utility Vice-Chair Excused 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 Present 9:13 Authority AM Charlie Rivenbark Cape Fear Public Utility Councilmember Present Authority Luke Waddell Cape Fear Public Utility Councilmember Present Authority Rob Zapple Cape Fear Public Utility Commissioner Present Authority Kenneth Cape Fear Public Utility Executive Director Present Waldroup Authority Linda Miles Miles Firm, PLLC CFPUA Consulting Attorney Present Frank Styers Cape Fear Public Utility Deputy Executive Director Present Cape Fear Public Utility Authority Page 1 MinutesAuthority BoardMarch 9, 2022 Authority Carel Cape Fear Public Utility Deputy Executive Director Present Vandermeyden Authority Beth Eckert Cape Fear Public Utility Director of EMD and Present Authority Sustainability John McLean Cape Fear Public Utility Chief Financial Officer Present Authority Lori McKoy Cape Fear Public Utility Human Resources Director Present Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Vaughn Hagerty Cape Fear Public Utility Public Information Officer Present Authority Kathryn Polhman Cape Fear Public Utility Assistant Director EMD and Present Authority Sustainability Elizabeth Severt Cape Fear Public Utility Strategy & Performance Present Authority Manager Judy Lawton Cape Fear Public Utility Executive Assistant Present Authority Sara Eskew Cape Fear Public Utility Present Authority Heidi Cox State of North Carolina Present Ray Cox Highfill Infrastructure Present Tim Holleman Lower Cape Fear Water & Present Sewer Authoirty III. OATH OF OFFICE Ms. Eskew administered the Oath of Office for Mr. Waddell. Mr. Waddell joined the Authority as a City Councilmember. The Board welcomed Mr. Waddell, and he expressed his pleasure at joining CFPUA. IV. ADOPTION OF AGENDA Mr. Zapple moved to adopt the day's agenda. Mr. Sneeden seconded the motion, and it passed unanimously. V. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Feb 9, 2022 9:00 AM Cape Fear Public Utility Authority Page 2 MinutesAuthority BoardMarch 9, 2022 RESULT: ACCEPTED \[UNANIMOUS\] MOVER: Rob Zapple, Commissioner SECONDER: Larry Sneeden, Board Member AYES: Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Norris VI. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER There were no public speakers. VII. CONSENT AGENDA 1. Southside Screw Pump Gearbox Sole Source Purchase RESULT: APPROVED \[UNANIMOUS\] MOVER: Charlie Rivenbark, Councilmember SECONDER: Rob Zapple, Commissioner AYES: Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Norris 2. $74,215.58 Linde Inc. Liquid Oxygen Contract Amendment No. 3 for Sweeney Water Treatment Ozone Generation RESULT: APPROVED \[UNANIMOUS\] MOVER: Charlie Rivenbark, Councilmember SECONDER: Rob Zapple, Commissioner AYES: Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Norris 3. HRIS & Payroll Software Contract RESULT: APPROVED \[UNANIMOUS\] MOVER: Charlie Rivenbark, Councilmember SECONDER: Rob Zapple, Commissioner AYES: Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Norris 4. Tiered Non-residential Flat Sewer Rate Based on Meter Size Cape Fear Public Utility Authority Page 3 MinutesAuthority BoardMarch 9, 2022 RESULT: APPROVED \[UNANIMOUS\] MOVER: Charlie Rivenbark, Councilmember SECONDER: Rob Zapple, Commissioner AYES: Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Norris VIII. NEW BUSINESS A. Administrative Reports i. Attorney's Report Ms. Miles had no report and did not require a closed session. ii. Executive Director's Report 1. Key Indicators Report Mr. McLean answered Board questions regarding the unrestricted fund balance. RESULT: REVIEWED 2. Safety Report RESULT: REVIEWED 3. Environmental Report RESULT: REVIEWED 4. Regionalization a NC Perspective Mr. Waldroup presented the item. He reported that utility consolidations can support resiliency and lower ratepayer costs over time. CFPUA is a example of successful regionalization by the City of Wilmington and New Hanover County. He presented examples of other types of mergers, acquisitions, and joint regionalizations within the state. Mr. Waldroup reported that there is grant funding available that may be used to study regionalization that would add the Town of Wrightsville Beach system to CFPUA's service area. Staff will bring a resolution to the Board in April supporting a consolidation study. Cape Fear Public Utility Authority Page 4 MinutesAuthority BoardMarch 9, 2022 Any consolidation agreement would need to be approved by CFPUA's Board, Wilmington City Council, New Hanover County Commissioners, and the Town Aldermen. Mr. Waldroup outlined the distinctive issues that would need to be addressed in the consolidation study. They include governance and representation, permitting, transfer of existing contracts and interlocal agreements, transfers of employees from the Town to CFPUA, and compatability of meters, SCADA, and other operational equipment. One of the most crucial issues to fully understand is the condition of the Town's infrastructure. Should upgrades be required to the Town's infrastructure, a develop a rate methodology could be developed using a rate differential that could be applied to debt associated with infrastructure upgrades. That funding mechanism could insulate CFPUA's other customers from rate increases associated with the acquisition of the Town's system. Mr. Waldroup answered questions from Board members regarding what staff currently knows regarding the Town's water system and enterprise fund. Ms. Miles answered questions regarding the rational basis for different classes of customers and rates. Mr. Barfield observed that there are areas of the County that are poised for growth, and that growth and system expansion has largely been funded by development in the past. He stated that he would like to see CFPUA expand service into unincorporated areas of New Hanover County. Ms. Adams encouraged staff to include CFPUA's current and projected capacity needs throughout its service area as part of the consolidation study. After discussion, Mr. Zapple moved to direct staff to bring a resolution supporting a consolidation study to the Board in April. Mr. Rivenbark seconded the motion, and it passed unanimously. RESULT: REVIEWED Next: 4/13/2022 12:00 AM B. Committee Reports i. Executive Committee 1. Executive Committee - Regular - Mar 2, 2022 10:00 AM Cape Fear Public Utility Authority Page 5 MinutesAuthority BoardMarch 9, 2022 RESULT: NO ACTION REQUIRED ii. Long Range Planning Committee 1. Long Range Planning Committee - Regular - Feb 24, 2022 3:00 PM RESULT: NO ACTION REQUIRED 2. Review of Proposed FY-2023 and 10-year Capital Improvements Plan RESULT: REVIEWED iii. Finance Committee 1. Finance Committee - Regular Meeting - Mar 2, 2022 9:00 AM RESULT: NO ACTION REQUIRED 2. Monthly Financials RESULT: REVIEWED 3. Customer Service Update RESULT: REVIEWED 4. Ordinance Appropriating Funds for the Northern Regional Pump Stations and Force Mains Project RESULT: APPROVED \[UNANIMOUS\] MOVER: Larry Sneeden, Board Member SECONDER: Jennifer Adams, Treasurer AYES: Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Norris 5. Proposed FY23 System Development Charges Mr. McLean reported that the FY23 SDC calculation is posted on the website for public comment. The public hearing on the SDCs will be held at the April Board meeting. The SDC represents a new customer's "buy-in" for infrastructure already funded by ratepayers. The recommended FY23 water SDC is $2,230, which is $110 more than the FY22 charge. The recommended FY23 sewer SDC is $2,160, which is $20 less than the current charge. Cape Fear Public Utility Authority Page 6 MinutesAuthority BoardMarch 9, 2022 Mr. Barfield stated that he would like for CFPUA to become part of the housing affordability initiatives in the County. He observed that SDCs could be part of those discussions. Mr. Hackney stated that he believed CFPUA addresses SDCs in the appropriate manner, reviewing the calculation annually as required by statute and changing the charges as needed. RESULT: REVIEWED Next: 4/13/2022 12:00 AM 6. Bulk Water Resale Agreement- Town of Wrightsville Beach Mr. Zapple requested that he be excused for the remainder of the meeting. Mr. Rivenbark moved to excuse him. Dr. Cannon seconded the motion, and it passed unanimously. Mr. Waldroup presented the recommended bulk water interlocal agreement with Wrightsville Beach. He reviewed the 2019 contract providing for short-term bulk water sales. The new contract provides for a maximum water rate of 800 gallons per minute, for a daily total of 1,152,000 gallons. The Town may buy a maximum of 150 million gallons per calendar year at CFPUA's published bulk water rate, which is $3.48 per 1,000 gallons for FY22. The contract includes a multiplier factor of 1.5 for water purchases above the maximums stated in the agreement. The initial agreement is effective for five years, and it may be extended by two additional five-year terms. Mr. Sneeden suggested adding language to the contract that would allow CFPUA's Executive Director to waive the multiplier factor if the Town went above the maximum amounts due to extenuating circumstances such as fire fighting. Board members discussed the Town Aldermen's recent requests to continue purchasing water at the 2019 short-term rate. No Board members supported using the 2019 discounted bulk rate. Ms. Adams moved to approve the interlocal agreement, to include a potential waiver of the multiplier factor of 1.5 for water use due to extenuating circumstances. Mr. Rivenbark seconded the motion, and it passed unanimously. Cape Fear Public Utility Authority Page 7 MinutesAuthority BoardMarch 9, 2022 RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Charlie Rivenbark, Councilmember AYES: Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Waddell EXCUSED: Norris, Zapple iv. Sustainability Committee The Sustainability Committee did not meet in February. v. Communications Committee 1. Communications Committee - Regular - Feb 23, 2022 10:30 AM RESULT: NO ACTION REQUIRED 2. Mr. Barfield reported that the Committee approved staff initiatives for a communications plan highlighting CFPUA's PFAS treatment response and the opening of the Sweeney plant's enhanced GAC system. There is sufficient budget for FY22, and staff will incorporate communications plans into the recommended FY23 budget. Dr. Cannon thanked Mr. Waldroup and staff for a quick response to media questions regarding Chemours' television advertisements. RESULT: NO ACTION REQUIRED 3. Communication, Stakeholder Engagement, and the Strategic Business Plan RESULT: NO ACTION REQUIRED IX. OLD BUSINESS There was no old business. X. AUTHORITY Q & A/CLOSING COMMENTS Mr. Waddell stated that he looked forward to serving on the Board and working with staff and fellow Board members. XI. ADJOURNMENT Cape Fear Public Utility Authority Page 8 MinutesAuthority BoardMarch 9, 2022 There was no further business, and Mr. Sneeden moved to adjourn. Ms. Adams seconded the motion, and it passed unanimously. The meeting adjourned at 10:30 AM. The next regular Authority meeting will be Wednesday, April 13, 2022. The Board will meet in the Lucie Harrell Conference Room, 230 Government Center Drive, Wilmington, North Carolina. Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 9