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Home My WebLink About2022-07-13 MinutesCAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES JULY 13, 2022 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 a quorum present. Mr. Rivenbark moved to excuse Dr. Cannon and Messrs. Corder, Waddell, and Zapple. Mr. Hackney 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 Excused 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 Authority Member Excused Authority Hollis Briggs Cape Fear Public Utility Authority Member Present Authority Larry Sneeden Cape Fear Public Utility Authority Member Present Authority Jonathan Barfield Cape Fear Public Utility Authority Member Present Authority Charlie Rivenbark Cape Fear Public Utility Authority Member Present Authority Luke Waddell Cape Fear Public Utility Authority Member Excused Authority Rob Zapple Cape Fear Public Utility Authority Member Excused Authority 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 Cal.,)e Fear Public Utility Authority Page I Minutes Authority Board July 13, 2022 Carel Vandermeyden John McLean Kristine Irick Lori McKoy Beth Eckert Nicolette Fulton Cord Ellison Matt Tribbett Cammie Bellamy Judy Lawton Donna S. Pope Authority Cape Fear Public Utility Authority Cape Fear Public Utility Authority Cape Fear Public Utility Authority Cape Fear Public Utility Authority Cape Fear Public Utility Authority Cape Fear Public Utility Authority Cape Fear Public Utility Authority Cape Fear Public Utility Authority Cape Fear Public Utility Authority Cape Fear Public Utility Authority Cape Fear Public Utility Authority Deputy Executive Director Chief Financial Officer Customer Service Director Human Resources Director Director of EMD Deputy Attorney Chief Information Officer Present Present Present Present Present Present Present Present Assistant PIO Present Executive Assistant Present Clerk/Executive Secretary to the Present Board III. ADOPTION OF AGENDA The Board adopted the Agenda by consensus. IV. APPROVAL OF MINUTES 1. Authority Board -Regular Meeting -Jun 8, 2022 9:00 AM 2ESULT: ACCEPTED [UNANIMOUS] %YES: Norris, Hackney, Adams, Briggs, Sneeden, Barfield, Rivenbark XCUSED: Corder, Cannon, Waddell, Zapple V. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER There were no speakers. VI. CONSENT AGENDA 1. $206,644.40 Purchase Authorization for Combination Vacuum/Jet Truck from Rodders and Jets Supply Company Caj.')e Fear Public Utility Authority Pape 2 Minutes Authority Board July 13, 2022 RESULT: APPROVED [UNANIMOUS] MOVER: Larry Sneeden, Authority Member SECONDER: Jennifer Adams, Treasurer AYES: Norris, Hackney, Adams, Briggs, Sneeden, Barfield, Rivenbark EXCUSED: Corder, Cannon, Waddell, Zapple 2. Sole Source ICS licensing purchase RESULT: APPROVED [UNANIMOUS] MOVER: Larry Sneeden, Authority Member SECONDER: Jennifer Adams, Treasurer AYES: Norris, Hackney, Adams, Briggs, Sneeden, Barfield, Rivenbark EXCUSED: Corder, Cannon, Waddell, Zapple 3. $468,000 Change Order with Carolina Civil Works, Inc. for the Find -It Fix -It 2022 Water and Sewer Repairs Project RESULT: APPROVED [UNANIMOUS] MOVER: Larry Sneeden, Authority Member SECONDER: Jennifer Adams, Treasurer AYES: Norris, Hackney, Adams, Briggs, Sneeden, Barfield, Rivenbark EXCUSED: Corder, Cannon, Waddell, Zapple 4. Northside Step Screen Gearbox Sole Source Purchase RESULT: APPROVED [UNANIMOUS] MOVER: Larry Sneeden, Authority Member SECONDER: Jennifer Adams, Treasurer AYES: Norris, Hackney, Adams, Briggs, Sneeden, Barfield, Rivenbark EXCUSED: Corder, Cannon, Waddell, Zapple 5. Ordinance Appropriating Insurance Proceeds for the Sweeney Ozone Generator RESULT: APPROVED [UNANIMOUS] MOVER: Larry Sneeden, Authority Member SECONDER: Jennifer Adams, Treasurer AYES: Norris, Hackney, Adams, Briggs, Sneeden, Barfield, Rivenbark EXCUSED: Corder, Cannon, Waddell, Zapple 6. Resolution Raising the Micro -Purchase Threshold FY 23 Caj.')e Fear Public Utility Authority Page Minutes Authority Board July 13, 2022 RESULT: APPROVED [UNANIMOUS] MOVER: Larry Sneeden, Authority Member SECONDER: Jennifer Adams, Treasurer AYES: Norris, Hackney, Adams, Briggs, Sneeden, Barfield, Rivenbark EXCUSED: Corder, Cannon, Waddell, Zapple VII. 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 Mr. Waldroup reported that the Governor has signed the North Carolina budget. The budget includes $23.5 million for the Lower Cape Fear Water & Sewer Authority to build a parallel line for the 11-mile line serving Pender and New Hanover Counties. He thanked Mr. Rivenbark, members of the local legislative delegation, including Representative Davis and Senator Lee, and CFPUA's lobbying firm. Mr. Rivenbark credited CFPUA staff and representatives of Brunswick County for their work. 1. Key Indicators Report RESULT: REVIEWED 2. Environmental Report ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ................. RESULT: REVIEWED 3. Safety Report RESULT: REVIEWED 4. Quarterly CIP Report ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ................. RESULT: REVIEWED B. Committee Reports i. Long Range Planning Committee Caj.')e Fear Public Utility Authority Page 4 Minutes Authority Board July 13, 2022 Mr. Sneeden referred Board members to the minutes of the June 23 Committee meeting. He reported that there was an interesting update on the northern regional pump station and expansion in the Committee material. 1. Long Range Planning Committee -Regular -Jun 23, 2022, 3:00 PM RESULT: NO ACTION REQUIRED 2. Northern Regional Pump Stations and Force Mains Progress Update .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: NO ACTION REQUIRED ii. Finance Committee Ms. Adams referred the Board to the minutes of the July 6 Committee meeting. She reported that two presentations from the meeting were in the Agenda packet, and there were two items recommended by the Committee requiring a vote. 1. Monthly Financials Mr. McLean presented financial data for the fiscal year ending June 30, 2022. Total revenues were 105.44 percent of budget, with revenues outpacing expenditures. The unrestricted fund balance is $70,783,726. In 2017, the Board decided to use any excess over $50 million in operating reserves have been used for pay -go capital. Mr. McLean reported that, in addition to using the reserves over $50 million for pay -go capital funding, the Board's one-time revenue policy includes the following options: paying down debt, augmenting funds allocated to post -retirement health benefit for employees who transferred from the City and County, or leaving surplus in the unrestricted fund balance to provide an additional cushion for expenses or rate volatility. The goal for pay -go capital funding has been $18 million. FY2022 was the first year when fund balance over $50 million has not been spent down. In FY2021, the unrestricted funds were at $62 million at year's end. The current economic environment and supply chain issues from the pandemic have slowed capital projects, and this is reflected in the fund balance. For future accounting and reporting, staff recommends separating the $50 million operating reserve from the excess, which is currently just under $21 million for FY2022. The Finance Committee endorsed that change to the reserve reporting. Staff further recommends memorializing fund balance use into the Board policy decisions, and Mr. McLean will bring recommendations to the Board through the Committee. Caj.')e Fear Public Utility Authority Page Minutes Authority Board July 13, 2022 The Finance Committee discussed the possibility of using the surplus for rate stabilization, as a cushion against future rate increases. While this is possible, doing so could result in higher rate increases in future years. Staff analysis shows that using the surplus for rate stabilization now could result in 20 percent increases in FY2027 or FY2028. Mr. Barfield shared his perspective as a County Commissioner and from his experience on the hospital board. He supported reducing rates. Mr. Waldroup reported that CFPUA has received grant funding to review its rate model and develop a new model as needed. A financial review and new rate model may result in a broader portfolio of options for surplus from which the Board can choose. Mr. Waldrop reported that the Southside Wastewater Plant rebuild will begin in FY2025. It will be a costly project, and surplus could be set aside for the Southside project to offset bond issuance and the resulting rate impacts. Mr. Rivenbark shared his perspective as a City Councilman. He reported that maintaining a healthy fund balance is crucial because of the work needed for cleanup following hurricanes. He acknowledged that customers will not remember years of steady rates, but they will remember increases. He stated that growth will bring CFPUA more customers but will also increase operating expenses due to a greater need for services. Mr. Sneeden reminded the Board that, in 2017, the fund balance was $116 million. It has been reduced by approximately 25 percent since the Board adopted its one-time revenue policy, and he believed the methodology is sound and has been successful. Mr. Waldroup reported that fund balance is a factor in a governmental agency receiving a favorable bond rating such as CFPUA's rating. He stated that Mr. McLean's staff will continue its analysis and bring further recommendations through the Finance Committee. .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: REVIEWED 2. $6,905,475 Construction Contract Award to Carolina Civilworks for Southern Regional Pump Station Caj.')e Fear Public Utility Authority Page Minutes Authority Board July 13, 2022 Mr. Styers presented the item and answered questions regarding the bid process and the location. Mr. Norris presented the item as a Finance Committee recommendation and motion. Mr. Sneeden seconded the motion, and it passed unanimously. RESULT: APPROVED [UNANIMOUS] MOVER: William Norris, Vice -Chair SECONDER: Larry Sneeden, Authority Member AYES: Norris, Hackney, Adams, Briggs, Sneeden, Barfield, Rivenbark EXCUSED: Corder, Cannon, Waddell, Zapple 3. $463,000 Contract Amendment # 2 with Black & Veatch for Southern Regional Pump Station Project Mr. Styers presented the contract amendment, a companion to the previous item. Mr. Norris presented the item as a Finance Committee recommendation and motion. Mr. Hackney seconded the motion, and it passed unanimously. RESULT: APPROVED [UNANIMOUS] MOVER: William Norris, Vice -Chair SECONDER: Deans Hackney, Secretary AYES: Norris, Hackney, Adams, Briggs, Sneeden, Barfield, Rivenbark EXCUSED: Corder, Cannon, Waddell, Zapple 4. Wastewater Biosolids Management Program Update RESULT: REVIEWED 5. Fund Balance Discussion .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: REVIEWED iii. Sustainability Committee Ms. Adams referred Board members to the minutes of the June 23 Committee meeting. Presentations received by the Committee regarding greenhouse gases and affordability metrics were in the agenda packet. 1. Sustainability Committee -Regular -Jun 23, 2022, 2:00 PM .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: NO ACTION REQUIRED 2. Greenhouse Gas Inventory Caj.')e Fear Public Utility Authority Page 7 Minutes Authority Board July 13, 2022 RESULT: REVIEWED 3. Defining Affordability Outcomes and Metrics ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: REVIEWED iv. Communications Committee Mr. Barfield reported that the Committee met on June 23 and directed staff to move forward with public relations initiatives and development of a survey. 1. Communications Committee -Regular -Jun 23, 2022, 1:00 PM ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: NO ACTION REQUIRED 2. Overview of Potential Outreach Initiatives for Strategic Plan RESULT: REVIEWED VIII.OLD BUSINESS There was no old business. IX. AUTHORITY Q & A/CLOSING COMMENTS There was no additional discussion. X. CLOSED SESSION There was no closed session. XI. ADJOURNMENT Mr. Rivenbark moved to adjourn. Mr. Briggs seconded the motion, and it passed unanimously. The meeting adjourned at 9:35 AM. The next regular Authority meeting will be Wednesday, August 10, 2022. The Board will meet at 9:00 AM in the Lucie Harrell Conference Room, New Hanover County Administration Building, 230 Government Center Drive, Wilmington, North Carolina. Respectfully submitted, Donna S. Pope Clerk to the Board Caj.')e Fear Public Utility Authority Page