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HomeMy WebLinkAbout2022-05-11 MinutesCAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES MAY 11, 2022 Lucie Harrell Conference Room Regular Meeting 9:00 AM 230 GOVERNMENT CENTER DRIVE WILMINGTON, NC 28403 I. CALL TO ORDER II. DETERMINATION OF A QUORUM Attendee Name Organization Wesley Corder Cape Fear Public Utility Authority William Norris Cape Fear Public Utility Authority Deans Hackney Cape Fear Public Utility Authority Jennifer Adams Cape Fear Public Utility Authority Jessica Cannon Cape Fear Public Utility Authority Hollis Briggs Cape Fear Public Utility Authority Larry Sneeden Cape Fear Public Utility Authority Jonathan Barfield Cape Fear Public Utility Authority Charlie Rivenbark Cape Fear Public Utility Authority Luke Waddell Cape Fear Public Utility Authority Rob Zapple Cape Fear Public Utility Authority Kenneth Waldroup Cape Fear Public Utility Authority Linda Miles Miles Firm, PLLC Carel Cape Fear Public Utility Vandermeyden Authority Frank Styers Cape Fear Public Utility Authority Kristine Irick Cape Fear Public Utility Title Status Arrived Chair Present Vice -Chair Present Secretary Present Treasurer Present Present Present Present Present Excused Present Present Executive Director Present CFPUA Consulting Attorney Present Deputy Executive Director Present Deputy Executive Director Present Customer Service Director Present Cal.,)e Fear Public Utility Authority Page I Minutes Authority Board May 11, 2022 Authority Lori McKoy Cape Fear Public Utility Human Resources Director Present Authority Vaughn Hagerty Cape Fear Public Utility Public Information Officer Present Authority Cord Ellison Cape Fear Public Utility Chief Information Officer Present Authority Kathryn Pohlman Cape Fear Public Utility Assistant Director of EMD and Present Authority Sustainability Julia Vosnock Cape Fear Public Utility Procurement Manager Present Faircloth Authority Cammie Bellamy Cape Fear Public Utility Assistant PIO Present Authority Sara Eskew Cape Fear Public Utility Administrative Support Specialist Present Authority Donna S. Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board Jim lanucci New Hanover County Present Deirdre Moench Present Susan Kreamer Present III. ADOPTION OF AGENDA Mr. Zapple moved to adopt the day's agenda. Mr. Norris seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board -Regular Meeting -April 13, 2022, 9:00 AM RESULT: ACCEPTED [UNANIMOUS] MOVER: William Norris, Vice -Chair SECONDER: Jennifer Adams, Treasurer AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Waddell, Zapple EXCUSED: Rivenbark V. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER There were no speakers for the regular meeting public comment. VI. PUBLIC HEARING AND ADOPTION OF FY23 BUDGET 1. Public Hearing and Adoption of FY23 Budget Mr. McLean presented the recommended budget for the fiscal year beginning July 1, 2022. The recommended FY23 operating budget is $99,173,759 and is 7.7 percent Caj.')e Fear Public Utility Authority Page 2 Minutes Authority Board May 11, 2022 more than FY22. The budget includes operation of the Sweeney granular activated charcoal filters at the highest level of PFAS removal. It includes adjustments for inflation and $1,000,000 for strategic planning initiatives. Personnel items include funding for four new positions, the creation of a fifth position (unfunded in the budget), and tiered market (cost of living) raises of 10, 8, and 5 percent for employees, with employees at lower salary levels receiving the highest percentage of adjustment. The budget includes a rate increase of 8-8.5 percent for FY23 and an anticipated 8 percent increase for FY24. The rate increase is for water only and provides for optimal PFAS removal of surface water at the Sweeney plant. An average residential customer using 4,100 gallons monthly will see an increase of just over $5. Ms. Adams moved to open the public hearing. Mr. Briggs seconded the motion, and it passed unanimously. The public hearing on the budget opened at 9:10 AM. Ms. Moench spoke regarding the rate increase. She expressed concern about inflation and the effect of the rate increase on customers. Ms. Kreamer spoke regarding the rate increases. She asked if rates would go down in the future should CFPUA win its case against Chemours. She commented on new job positions requested in the budget, particularly the Diversity, Equity, and Inclusion position authorized in the budget. Mr. Barfield moved to close the public hearing. Ms. Adams seconded the motion, and it passed unanimously. The public hearing closed at 9:15 AM. Mr. Waldroup reported that the recommended budget provides CFPUA with the fund it needs to continue providing essential services to the community. He reported that staff does not know what the outcome of the lawsuit with Chemours will be and that calendar year 2023 would probably be the earliest that it could go to court. He reported that the Board would decide the appropriate use of any award in the action in Federal court. Mr. Waldroup reported that the four new positions with funding requested in the budget are two in Customer Service to support monthly billing and two in the Information Technology department. He reported that staff requested approval of the Diversity, Equity, and Inclusion position (hereinafter DEI) but with no funding for FY23. Staff recommends further study of CFPUA's needs and its ability to reflect its customer base in its employment demographics prior to funding the position. Caj.')e Fear Public Utility Authority Page Minutes Authority Board May 11, 2022 Mr. Waddell stated that he could not support the budget with the DEI position. He observed that the Sustainability Committee is working to address affordability for customers in need and that a $100,000 salary and benefits DEI position would be twice the income of most customers. He believed that there is a sufficient talent pool within the HR department to encourage, develop, and address diversity, equity, and inclusion. Ms. Adams stated that she thought all Board members believe in diversity and equity but may disagree on the best way to develop and support DEI. Messrs. Barfield and Zapple shared the benefits the County has realized in creating and hiring a dedicated DEI officer who is a part of upper management. Mr. Briggs reported that the City hired a DEI officer within the past year and stated that he believed CFPUA would receive great value from such a position, with benefits at all levels of the organization. Dr. Cannon reported that many Fortune 500 companies are addressing DEI in their business models, seeing it as an additional tool for success and profits. Board members discussed the importance of diversity in hiring and equity in training and opportunity for existing employees, and Mr. Sneeden praised staff for developing salary recommendations that address some inequities. The Board discussed the existence of implicit bias among all peoples and shared examples from their own experiences. After discussion, Mr. Zapple asked if there was a way to separate the DEI position from the budget for later discussion, as a compromise to pass the budget. Ms. Miles reported that a motion would be required to pass the budget without the DEI position authorized and to continue the position discussion in the future. She and Ms. Adams confirmed that position funding could be created in FY23 should the board agree to do so. Mr. Waddell moved to pass the FY23 recommended budget without the DEI position authorized. Mr. Zapple seconded the motion. Messrs. Corder, Hackney, Norris, Waddell, and Zapple voted for the amended budget. Ms. Adams, Dr. Cannon, and Messrs. Barfield, Briggs, and Sneeden were opposed. The vote was tied, and the motion failed. Mr. Barfield moved to approve the FY23 budget as recommended by staff. Ms. Adams seconded the motion. Following further discussion, Mr. Corder called for a vote. Dr. Cannon, Ms. Adams, and Messrs. Barfield, Briggs, Corder, Hackney, Norris, Sneeden, and Zapple voted in favor, and Mr. Waddell voted in opposition. Motion carried, nine to one. Caj.')e Fear Public Utility Authority Page 4 Minutes Authority Board May 11, 2022 RESULT: ADOPTED [9 TO 11 MOVER: Jonathan Barfield, Board Member SECONDER: Jennifer Adams, Treasurer AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Zapple NAYS: Waddell EXCUSED: Rivenbark VII. CONSENT AGENDA 1. Sole Source ICS licensing purchase RESULT: APPROVED [UNANIMOUS] MOVER: Rob Zapple SECONDER: Jennifer Adams, Treasurer AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Waddell, Zapple EXCUSED: Rivenbark 2. $122,800 Interlocal Agreement with New Hanover County for the Fire Hydrant Installation Project RESULT: APPROVED [UNANIMOUS] MOVER: Rob Zapple SECONDER: Jennifer Adams, Treasurer AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Waddell, Zapple EXCUSED: Rivenbark 3. Ordinance Appropriating Funds for Fire Hydrant Installations RESULT: APPROVED [UNANIMOUS] MOVER: Rob Zapple SECONDER: Jennifer Adams, Treasurer AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Waddell, Zapple EXCUSED: Rivenbark 4. Resolution Authorizing Account Data Sharing Caj.')e Fear Public Utility Authority Page Minutes Authority Board May 11, 2022 RESULT: APPROVED [UNANIMOUS] MOVER: Rob Zapple SECONDER: Jennifer Adams, Treasurer AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Waddell, Zapple EXCUSED: Rivenbark VIII. NEW BUSINESS A. Administrative Reports i. Attorney's Report ii. Executive Director's Report 1. Kev Indicators Report ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .............. RSULT: REVIEWED 2. Environmental Report RSULT: REVIEWED 3. Safety Report ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .............. RSULT: REVIEWED B. Committee Reports i. Executive Committee 1. Executive Committee - Regular- Mav 4. 2022. 10:00 AM ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .............. RSULT: NO ACTION REQUIRED ii. Long Range Planning Committee 1. Long Range Planning Committee -Regular -April 28, 2022, 3:00 PM RSULT: NO ACTION REQUIRED 2. FY-2023 and 10-year Capital Improvements Plan for Recommendation and Board Approval Cal.,)e Fear Public Utility Authority Page Minutes Authority Board May 11, 2022 RESULT: APPROVED [UNANIMOUS] MOVER: Larry Sneeden SECONDER: Rob Zapple AYES: Corder, Norris, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Waddell, Zapple EXCUSED: Rivenbark iii. Finance Committee 1. Finance Committee -Regular Meeting -May 4, 2022, 9:00 AM RESULT: NO ACTION REQUIRED 2. Monthly Financials ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ................. RESULT: REVIEWED iv. Sustainability Committee 1. Sustainability Committee - Regular- May 5, 2022, 2:00 PM RESULT: NO ACTION REQUIRED 2. Affordability Update Dr. Cannon reported that Mr. McLean had presented an excellent report on affordability issues. She suggested that her fellow Board members read the papers attached to the Sustainability Committee report. RESULT: REVIEWED IX. OLD BUSINESS There was no old business. X. AUTHORITY Q & A/CLOSING COMMENTS There were no additional questions from Board members. XI. CLOSED SESSION There was no closed session. XII. ADJOURNMENT There was no more 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 10:55 Caj.')e Fear Public Utility Authority Page 7 Minutes Authority Board May 11, 2022 AM. The next regular CFPUA meeting will be Wednesday, June 8, 2022. The Board will meet in the Lucie Harrell Conference Room, New Hanover County's Bruce Shell Administration Building, located at 230 Government Center Drive, Wilmington, North Carolina, at 9:00 AM. Respectfully submitted, Donna S. Pope Clerk to the Board Caj.')e Fear Public Utility Authority Page