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HomeMy WebLinkAbout2021-11-10 Regular Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES NOVEMBER 10, 2021 Lucie Harrell Conference Room Annual Meeting 9:00 AM 230 GOVERNMENT CENTER DRIVE WILMINGTON, NC 28403 I. CALL TO ORDER 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 Present 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 Excused 10:05 Authority AM Kenneth Waldroup 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 Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Lori McKoy Cape Fear Public Utility Human Resources Director Present Cape Fear Public Utility Authority Page 1 MinutesAuthority BoardNovember 10, 2021 Authority John McLean Cape Fear Public Utility Chief Financial Officer Present Authority Vaughn Hagerty Cape Fear Public Utility Public Information Officer Present Authority Cammie Bellamy Cape Fear Public Utility Assistant PIO Present Authority Erin Tremblay Cape Fear Public Utility Policy Specialist Present Authority Elizabeth Severt Cape Fear Public Utility Environmental Program Present Authority Manager Sara Eskew Cape Fear Public Utility Present Authority Judy Lawton Cape Fear Public Utility Executive Assistant Present Authority Tim Holleman Lower Cape Fear Water & Present Sewer Authoirty April Adams Cherry, Bekaert Accountants Present Heidi Cox NC Division of Water Quality Present Ray Cox HIghfill Engineers Present Im Ianucci New Hanover County Present Donna S. Pope Cape Fear Public Utility Clerk/Executive Secretary to Present Authority the Board II. DETERMINATION OF A QUORUM Mr. Corder called the meeting to order at 9:00 AM with a quorum present. Mr.Hackney moved to excuse Messrs. Zapple and Briggs. Mr. Sneeden seconded the motion, and it passed unanimously. Mr. Zapple joined the meeting at 10:05 AM. III. ADOPTION OF AGENDA Mr. Sneeden moved to adopt the day's Agenda. Mr. Rivenbark seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Oct 13, 2021 9:00 AM RESULT: ACCEPTED \[UNANIMOUS\] MOVER: William Norris, Vice-Chair SECONDER: Jennifer Adams, Treasurer AYES: Corder, Norris, Hackney, Adams, Cannon, Sneeden, Barfield, O'Grady, Rivenbark EXCUSED: Briggs, Zapple V. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER Cape Fear Public Utility Authority Page 2 MinutesAuthority BoardNovember 10, 2021 There were no public speakers. VI. PRESENTATIONS 1. Kevin O'Grady Resolution Mr. Corder presented a Resolution honoring Mr. O'Grady and thanking him for his service to CFPUA. Mr. O'Grady was appointed in 2014 and served as Chairman of the Human Resources and Communications Committees. Mr. O'Grady thanked CFPUA staff and his fellow Board members for their dedication and hard work. He stated that the believed CFPUA is a leader in the national response addressing PFAS and GenX, both through Board-approved policy and in actions and water treatment plant enhancements designed to remove PFAS from water. Mr. Barfield moved to approve the Resolution. Mr. Norris seconded the motion, and it passed unanimously. RESULT: REVIEWED 2. 2021 Annual Report Mr. Waldroup presented the Annual Report for Fiscal Year 2021. The report is available on the CFPUA website. Mr. Waldroup was pleased to report that the Authority adopted a $91.9 million budget without increasing rates for the third year in a row. CFPUA successfully inaugurated its new enterprise resource planning software, streamlining financial and customer services. Mr. Waldroup complimented Customer Service staff for making the transition to monthly billing. Infrastructure projects include continued progress towards completing the Sweeney Water Treatment Plant granular activated charcoal filter system, which is expected to produce finished water with less than one part per trillion of GenX. The project should be complete in June 2022. CFPUA continued its find-it, fix-it repair and rehabilitation projects throughout the water distribution and wastewater collection systems. RESULT: REVIEWED 3. 2021 Annual Comprehensive Financial Report Mr. McLean introduced Ms. Adams and the Fiscal Year 2021 comprehensive financial report. He reported that CFPUA's financial position increased by $25 million over FY2020. Ms. Adams reviewed the independent auditor's role in a local government audit and the federal and state auditing rules that are applied in addition to traditional auditing standards. She reviewed the required communications between the auditor and the Cape Fear Public Utility Authority Page 3 MinutesAuthority BoardNovember 10, 2021 Board. CFPUA has received an unmodified and clean audit, the highest level of assurance for a governmental audit. The audit revealed no significant deficiencies and no material misstatements or weaknesses. The Board thanked Ms. Adams for presenting the audit opinion and Finance staff for their work. RESULT: REVIEWED VII. CONSENT AGENDA 1. $25,440 Contract Amendment #6 with McKim & Creed Inc. for Monterey Heights Well Site 46 and 47 Project. RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: William Norris, Vice-Chair AYES: Corder, Norris, Hackney, Adams, Cannon, Sneeden, Barfield, O'Grady, Rivenbark EXCUSED: Briggs, Zapple 2. $64,725 Amendment with HDR Engineering, Inc. for Pump Station Replacements and Force Main Rehabilitation Project RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: William Norris, Vice-Chair AYES: Corder, Norris, Hackney, Adams, Cannon, Sneeden, Barfield, O'Grady, Rivenbark EXCUSED: Briggs, Zapple 3. $417,480 Contract Award to Carolina Civilworks Inc. for Large Meter Vault Replacement Phase 2 RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: William Norris, Vice-Chair AYES: Corder, Norris, Hackney, Adams, Cannon, Sneeden, Barfield, O'Grady, Rivenbark EXCUSED: Briggs, Zapple 4. $577,144 Construction Contract Award to Lancaster Electric Co, LLC for PS34 Generator Replacement Cape Fear Public Utility Authority Page 4 MinutesAuthority BoardNovember 10, 2021 RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: William Norris, Vice-Chair AYES: Corder, Norris, Hackney, Adams, Cannon, Sneeden, Barfield, O'Grady, Rivenbark EXCUSED: Briggs, Zapple 5. Authorization for the Executive Director to make sole source purchases for certain treatment chemicals RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: William Norris, Vice-Chair AYES: Corder, Norris, Hackney, Adams, Cannon, Sneeden, Barfield, O'Grady, Rivenbark EXCUSED: Briggs, Zapple 6. Water and Wastewater Treatment Chemical Contracts RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: William Norris, Vice-Chair AYES: Corder, Norris, Hackney, Adams, Cannon, Sneeden, Barfield, O'Grady, Rivenbark EXCUSED: Briggs, Zapple 7. Authorization for the Executive Director to Execute a $507,972 Construction Contract with Carolina Civil Works, Inc. for the Find-It Fix-It 2022 Water and Sewer Repairs Project RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: William Norris, Vice-Chair AYES: Corder, Norris, Hackney, Adams, Cannon, Sneeden, Barfield, O'Grady, Rivenbark EXCUSED: Briggs, Zapple 8. Authorization to Fund and Begin the Northern New Hanover County Regional Pump Station Project in the Amount of $100,000 Ms. Adams moved approval. Mr. Norris seconded the motion, and it passed unanimously. RESULT: REVIEWED VIII. NEW BUSINESS Cape Fear Public Utility Authority Page 5 MinutesAuthority BoardNovember 10, 2021 A. Administrative Reports i. Attorney's Report Ms. Miles did not have a report for open session. She requested a closed session to discuss CFPUA's Motion to Intervene in NC DEQ's action against Chemours and to discuss Faulconer Construction v. CFPUA and McKim & Creed. ii. Executive Director's Report Mr. Waldroup and Ms. Miles reported on the State's recent action to hold Chemours accountable for PFAS groundwater contamination found in some New Hanover County public wells. DEQ will require Chemours to treat groundwater users in New Hanover County the same as users in Bladen County. Chemours will have 90 days to respond and submit a remediation plan to the State. Mr. Waldroup recognized Messrs. Barfield, O'Grady, Rivenbark, and Zapple, as well as Mayor Saffo, for their advocacy with the State on CFPUA'S and the entire community's behalf. Mr. Waldroup reported that CFPUA has retained J. D. Solomon to facilitate an update CFPUA's strategic plan. Mr. Solomon will work with staff and the Board, and the plan is anticipated to be brought to the Board for approval in February, ahead of the FY23 budget process. Mr., Waldroup introduced Tim Holleman, the Executive Director of Lower Cape Fear Water & Sewer Authority. They reported on the break of LCFWASA's raw water line, conservation actions, and the construction of a by-pass for the water line before beginning repair. Mr. Holleman answered questions from the Board about LCFWASA's creation of a Board Long Range Planning Committee and a long-term capital program. Mr. Holleman expressed his appreciation in working with Mr. Waldroup the mutual benefit of each Authority. 1. Key Indicators Report RESULT: REVIEWED 2. Environmental Report RESULT: REVIEWED 3. Safety Report Cape Fear Public Utility Authority Page 6 MinutesAuthority BoardNovember 10, 2021 RESULT: REVIEWED 4. Additional Temporary Water Supply to the Town of Wrightsville Beach Mr. Waldroup presented the action item. The Town of Wrightsville Beach requested additional water from CFPUA and a time extension on the agreement wherein CFPUA probvided water to the Town. The Town will pay CFPUA's current, published bulk water rate. Following clarification questions from Board members, Mr. Norris moved to approve the Interlocal Agreement Mr. Rivenbark seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: William Norris, Vice-Chair SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Corder, Norris, Hackney, Adams, Cannon, Sneeden, Barfield, O'Grady, Rivenbark EXCUSED: Briggs, Zapple B. Committee Reports i. Executive Committee 1. Executive Committee - Regular - Nov 3, 2021 10:00 AM The Committee met on November 3, and the minutes of the meeting were in the agenda packet. RESULT: NO ACTION REQUIRED ii. Long Range Planning Committee 1. Long Range Planning Committee - Regular - Oct 28, 2021 3:00 PM The Committee met on October 28, and the minutes were in the agenda packet. The Committee had one item to report to the Board. RESULT: NO ACTION REQUIRED 2. Strategies for Supplying Future Water Needs in the Monterey Heights Service Area Mr. Vandermeyden presented the item. Growth in the southern part of the County has increased demand on the Monterey Heights system. Staff explored the purchase of land for additional production wells but did not find enough suitable property in the area. After receiving staff's report on options for water Cape Fear Public Utility Authority Page 7 MinutesAuthority BoardNovember 10, 2021 provision to the Monterey Heights, the Long Range Planning Committee recommended integration of the system with the Sweeney surface water treatment system. The Committee further recommended exploring potable reuse of treated effluent from the Southside Wastewater Treatment Plant. Board members endorsed the concept of integrating the two water systems and developing potable water reuse from Southside. RESULT: REVIEWED iii. Finance Committee 1. Finance Committee - Regular Meeting - Nov 3, 2021 9:00 AM The Committee met on November 3, and the minutes were in the agenda packet. RESULT: NO ACTION REQUIRED 2. Monthly Financials Mr. McLean presented the September - October financial report Expenditures exceeded revenues due to a large debt service payment in August. CFPUA has $68 million in its total unrestricted fund balance. With 25 percent of the fiscal year complete, revenues are at 38.83 percent of budget and expenditures at 32.59 percent. The Finance Committee recommended that the FY22 operating surplus of $906,450 be left as undesignated fund balance. RESULT: REVIEWED 3. Customer Service Update Ms. Irick presented the customer service report for October. No disconnects will be done during the Thanksgiving or Christmas holidays. Late fees have been suspended until the end of January 2022. Mr. Waldroup reported that staff recommends that tiered rates be delayed until additional data is gathered from monthly billing. Ms. Irick reported on the use of ARPA funds provided by the County and City and administered by the Good Shepherd Center. The start date for qualification for use of the funds was set by federal guidelines as January 27, 2020, and the City and County finance officers set October 15, 2021, as the cutoff date for bills, with an application deadline of December 31, 2021. Approximately $180,000 of the $1,000,000 provided by the County and City has been used. 246 customers Cape Fear Public Utility Authority Page 8 MinutesAuthority BoardNovember 10, 2021 have received payments to date, and the median amount of bills paid was $401. Customers with past-due amounts that fall outside of the program eligibility are offered payment plans for their balances. The Board discussed the eligibility requirements and application deadline for the ARPA funds. Staff answered questions regarding the timing of bills and disconnection notices and reported that some customers might not realize they were eligible for assistance until after the deadline had passed. Board members directed Mr. Waldroup to contact County and City management and request an expansion of the program. RESULT: REVIEWED iv. Sustainability Committee 1. Sustainability Committee - Regular - Oct 28, 2021 2:00 PM RESULT: NO ACTION REQUIRED 2. 2021 CFPUA Resiliency Report Ms. Tremblay presented the first resiliency report. She reported that CFPUA realized a 19 percent reduction of emissions in 2020 compared to its 2019 emissions data. Wastewater treatment is one of the highest contributors to greenhouse gases, followed closely by water treatment. Mr. Corder thanked Ms. Tremblay for the report and stated that it was well- formatted and easy to understand. RESULT: REVIEWED 3. Energy Team Update RESULT: REVIEWED 4. Customer Assistance Program Updates Dr. Cannon reported that the Committee had received a report from staff and that updated information had been provided during the Finance Committee report. Cape Fear Public Utility Authority Page 9 MinutesAuthority BoardNovember 10, 2021 RESULT: REVIEWED IX. OLD BUSINESS There was no old business. X. AUTHORITY Q&A / CLOSING COMMENTS Board members and staff thanked Mr. O'Grady for his service to the Authority. XI. CLOSED SESSION Mr. Zapple moved to enter closed session to discuss CFPUA's Motion to Intervene in NC DEQ v. Chemours and Faulconer v. CFPUA and McKim and Creed. Ms. Adams seconded the motion, and it passed uanimously. The Board entered closed session at 10:25 AM, with Ms. Miles, Messrs. Waldroup and Styers, and Ms. Pope present. The Board received a report from legal counsel and staff. Mr. Norris moved to return to open session. Mr. Rivenbark seconded the motion, and it passed unanimously. The Board returned to open session at 1:04 AM. XII. ADJOURNMENT Mr. Rivenbark moved to adjourn. Mr. Hackney seconded the motion, and it passed unanimously. The meeting adjourned at 11:05 AM. The next regular CFPUA meeting will be Wednesday, December 8, 2021. The Board will meet in the Lucie Harrell Conference Room, New Hanover County Administration Center, 230 Government Center Drive, at 9:00 AM. Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 10