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Home My WebLink About2021-02-10 Regular Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES FEBRUARY 10, 2021 Wilmington Convention Center Regular Meeting 9:00 AM 10 CONVENTION CENTER DR. WILMINGTON, NC 28401 I. CALL TO ORDER Mr. Corder called the meeting to order at 9:05 AM with a quorum present. Mr. O'Grady moved to excuse Dr. Cannon and Mr. Briggs. Mr. Zapple seconded the motion, and it passed unanimously. 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 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 Excused Authority Hollis Briggs Cape Fear Public Utility Excused Authority Larry Sneeden Cape Fear Public Utility Present Authority Jonathan Barfield Cape Fear Public Utility Present Authority 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 Carel Cape Fear Public Utility Deputy Executive Director Present Vandermeyden Authority Frank Styers Cape Fear Public Utility Deputy Executive Director Present Authority Linda Miles Miles Firm, PLLC CFPUA Consulting Attorney Present Cape Fear Public Utility Authority Page 1 MinutesAuthority BoardFebruary 10, 2021 Lindsey Hallock Cape Fear Public Utility Director of Public and Present Authority Environmental Policy John McLean Cape Fear Public Utility Chief Financial Officer 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 Makeba Robinson Cape Fear Public Utility Present Authority Cammie Bellamy Cape Fear Public Utility Assistant PIO Present Authority Cord Ellison Cape Fear Public Utility Chief Information Officer Present Authority III. ADOPTION OF AGENDA Mr. Zapple moved to adopt the day's Agenda. Mr. O'Grady seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Jan 13, 2021 9:00 AM RESULT: ACCEPTED \[UNANIMOUS\] MOVER: Deans Hackney, Secretary SECONDER: Rob Zapple AYES: Corder, Norris, Hackney, Adams, Sneeden, Barfield, O'Grady, Rivenbark, Zapple EXCUSED: Cannon, Briggs V. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER There were no public speakers. VI. CONSENT AGENDA 1. Authorize the Executive Director to Execute Contract Amendment #2 with Cape Fear Engineering for Phase II Waterline Interconnect Design in the Amount of $46,750 Cape Fear Public Utility Authority Page 2 MinutesAuthority BoardFebruary 10, 2021 RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Rob Zapple AYES: Corder, Norris, Hackney, Adams, Sneeden, Barfield, O'Grady, Rivenbark, Zapple EXCUSED: Cannon, Briggs 2. Authorize the Executive Director to Award Well 46 and Well 47 Improvements Construction Contract to A.C. Schultes in the amount of $1,289,119.00 RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Rob Zapple AYES: Corder, Norris, Hackney, Adams, Sneeden, Barfield, O'Grady, Rivenbark, Zapple EXCUSED: Cannon, Briggs 3. Authorize the Executive Director to Approve an Amendment in the Amount of $81,700 to McKim and Creed for Construction Administration and Observation of Well 46 and Well 47 Improvements RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Rob Zapple AYES: Corder, Norris, Hackney, Adams, Sneeden, Barfield, O'Grady, Rivenbark, Zapple EXCUSED: Cannon, Briggs 4. $1,867,160.25 Construction Contract Award to T.A. Loving, Company for Ogden Water Interconnect Project RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Rob Zapple AYES: Corder, Norris, Hackney, Adams, Sneeden, Barfield, O'Grady, Rivenbark, Zapple EXCUSED: Cannon, Briggs 5. $204,200 Contract Amendment #7 with HDR Engineering Incorporated for Ogden Water System Interconnect Project Cape Fear Public Utility Authority Page 3 MinutesAuthority BoardFebruary 10, 2021 RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Rob Zapple AYES: Corder, Norris, Hackney, Adams, Sneeden, Barfield, O'Grady, Rivenbark, Zapple EXCUSED: Cannon, Briggs 6. $1,008,230 Construction Contract Award to Carolina Civil Works, Inc. for Pump Station Prioritization and Rehabilitation Project RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Rob Zapple AYES: Corder, Norris, Hackney, Adams, Sneeden, Barfield, O'Grady, Rivenbark, Zapple EXCUSED: Cannon, Briggs 7. $122,250 Kimley- Horn and Associates, Inc. Contract Amendment # 2 for Pump Station Prioritization and Rehabilitation Project RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Rob Zapple AYES: Corder, Norris, Hackney, Adams, Sneeden, Barfield, O'Grady, Rivenbark, Zapple EXCUSED: Cannon, Briggs 8. Approval to Pursue Electric Vehicle Charing Station Grant Mr. Zapple asked for clarification on the item and the location of the electric vehicle charging station. Ms. Hallock provided updated information on the project and the grant application to the North Carolina Division of Air Quality. If CFPUA receives the grant, the charging station will be located at the Sweeney Water Treatment Plant for use with fleet vehicles, employee cars, and potential visitors. Mr. Zapple moved to approve. Mr. Hackney seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Deans Hackney, Secretary AYES: Corder, Norris, Hackney, Adams, Sneeden, Barfield, O'Grady, Rivenbark, Zapple EXCUSED: Cannon, Briggs VII. NEW BUSINESS A. Administrative Reports i. Attorney's Report Cape Fear Public Utility Authority Page 4 MinutesAuthority BoardFebruary 10, 2021 Ms. Miles had no report and did not require a closed session. ii. Executive Director's Report 1. Key Indicators Report Staff answered questions regarding the report. RESULT: REVIEWED 2. Environmental Report RESULT: REVIEWED 3. Safety Report RESULT: REVIEWED 4. Customer Service Update - February RESULT: REVIEWED B. Committee Reports i. Executive Committee 1. Executive Committee - Regular - Feb 3, 2021 10:30 AM Mr. Corder reported that the Executive Committee had reviewed a staff recommendation to address delinquencies and concerns regarding the use of flow restrictors on water meters. The Sustainability Committee will review the recommended policy changes at its February 25 meeting. Mr. Zapple asked for clarification on another discussion item referenced in the Executive Committee minutes. RESULT: NO ACTION REQUIRED ii. Long Range Planning Committee 1. Long Range Planning Committee - Regular - Jan 28, 2021 3:00 PM Mr. Sneeden reported that the Committee conducted a preliminary review of the FY22 capital improvement project budget (CIP) on January 28. Staff will send the proposed CIP to all Board members, and the Board will review the CIP during Cape Fear Public Utility Authority Page 5 MinutesAuthority BoardFebruary 10, 2021 the March 10 meeting. Staff and Committee members will be available to discuss Board questions or concerns before the March meeting if needed. RESULT: NO ACTION REQUIRED iii. Finance Committee 1. Finance Committee - Regular Meeting - Feb 3, 2021 9:00 AM RESULT: NO ACTION REQUIRED 2. Monthly Financial Report Mr. McLean reviewed December and January financial data. Through the end of December, expenditures exceeded revenues by $13.1 million. Expenditures to date for the fiscal year included a $1.3 million debt service payment. The number if equivalent resident units (ERUs) is slightly below budget, but use per ERU is above budget for both water and sewer. RESULT: REVIEWED 3. Budget Ordinance Appropriating Liquid Alum Settlement Proceeds Mr. McLean presented the item and summarized CFPUA's policy on the uses of one-time funds. The recommended use of the settlement proceeds to reduce debt will save $177,000 annually in interest. Ms. Miles answered questions about the class action lawsuit. Ms. Adams moved to approve the item. Mr. O'Grady seconded the motion, and it passed unanimously. RESULT: ADOPTED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Kevin O'Grady AYES: Corder, Norris, Hackney, Adams, Sneeden, Barfield, O'Grady, Rivenbark, Zapple EXCUSED: Cannon, Briggs 4. Proposed FY22 System Development Charges Mr. McLean presented the item. He reviewed the statutory requirements and methodology for setting each year's System Development Charges (SDCs). The SDC is a fee charged per connection for new buildings, and it is structured for the new customer to pay for his/her/their portion of the infrastructure already in place and funded by ratepayers. Cape Fear Public Utility Authority Page 6 MinutesAuthority BoardFebruary 10, 2021 The recommended FY22 SDC for water is $2,120, which is $200 more than FY21. The recommended FY22 SDC for sewer is $2,180, which is $110 more than FY21. CFPUA is legally required to publish the calculation and SDC on its website for public comment for at least 45 days. This year, the data will be published on the website from February 10 through March 31. Online comments will be provided to the Board. The public hearing will be held on April 14, and the Board can adopt the SDC after the public hearing. Should the SDC amount be revised after April 14, the Board can adopt it on June 9 with the FY22 budget. Mr. McLean answered Board member questions regarding the methodology and drivers behind the calculation. Mr. Zapple stated that it is important to note that the SDCs are separate from water and sewer rates and do not create an increase in customer usage charges. RESULT: NO ACTION REQUIRED Next: 3/10/2021 9:00 AM iv. Sustainability Committee 1. Sustainability Committee - Regular - Jan 28, 2021 4:00 PM RESULT: NO ACTION REQUIRED 2. Increasing Block Rate Structure Recommendation Both the Sustainability and Finance Committees reviewed and recommended an increasing block rate structure for residential water use and irrigation meters for the fiscal year beginning July 1, 2021. The recommended rate structure will make bills more affordable for 85 percent of CFPUA's residential customers and will improve rate equity for 70 percent of residential customers. The increasing tiers support water conservation, which in turn will decrease capacity demands on infrastructure and associated capital costs. The recommended blocks and preliminary pricing for residential use are: 0-3,000 gallons $2.16/1,000 gallons 3,000-6,000 gallons $3.09/1,000 gallons 6,000-15,000 gallons $5.15/1,000 gallons 15,000-25,000 gallons $7.73/1,000 gallons 25,001 and more $10.30/1,000 gallons The recommended blocks and preliminary pricing for irrigation meters are: Cape Fear Public Utility Authority Page 7 MinutesAuthority BoardFebruary 10, 2021 0-5,000 gallons$5.15/1,000 gallons 5,000-20,000 gallons $7.73/1,000 gallons 20,001 and more $10.30/1,000 gallons The final FY22 pricing per 1,000 gallons may differ slightly as the budget is developed. Each residential or irrigation customer will pay for use in each block. An example would be a person using 6,000 gallons will be billed for the first 3,000 at the lowest rate, and the second tier for the next 3,000 gallons. Residential customers with separate irrigation meters will pay the price for the use through the separate meters. Mr. McLean explained the data and methodology used to analyze affordability and equity and to develop the block rates or tiers. He answered questions from Board members about the pricing structure, the impacts on apartment or condominium residents with master meters, and CFPUA's use of increasing block rates in its earlier years of operations. Ms. Miles reported that no public hearing is required for water and sewer rates but that the rates will be a part of the budget and subject to the budget hearing. Mr. McLean reported that staff recommends the implementation of the increasing block rates on September 1, 2021, allowing several months of messaging and public outreach to customers. Following discussion, Ms. Adams moved the Sustainability and Finance Committee recommendation to adopt an increasing block rate structure and to develop tier pricing for FY2022. Mr. O'Grady seconded the motion, and it passed unanimously. RESULT: ADOPTED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Kevin O'Grady AYES: Corder, Norris, Hackney, Adams, Sneeden, Barfield, O'Grady, Rivenbark, Zapple EXCUSED: Cannon, Briggs VIII. OLD BUSINESS IX. AUTHORITY Q & A/ CLOSING COMMENTS Mr. Corder thanked staff and the Sustainability and Finance Committees for their work in researching and developing the new rate structure. He thanked the Board for listening to public concerns regarding water shutoffs and flow restrictors and staff for finding ways to address those concerns. X. CLOSED SESSION Cape Fear Public Utility Authority Page 8 MinutesAuthority BoardFebruary 10, 2021 There was no closed session. XI. ADJOURNMENT There was no further business, and Mr. Hackney moved to adjourn. Ms. Adams seconded the motion, and it passed unanimously. The meeting adjourned at 10:30 AM. The next regular CFPUA meeting will be Wednesday, March 10, 2021. The meeting will begin at 9:00 AM and will be held in the Wilmington Convention Center. Respectfully submitted, Donna S. Pope, Clerk to the Board Cape Fear Public Utility Authority Page 9