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Home My WebLink About2023-10-11 MinutesCAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES OCTOBER 11, 2023 Room 139 Regular Meeting 9:00 AM 230 GOVERNMENT CENTER DRIVE WILMINGTON, NC 28403 ,IfIZ61ORG II. DETERMINATION OF A QUORUM Ms. Adams called the meeting to order at 9:00 AM with a quorum present. Mr. Corder moved to excuse Mr. Briggs from the meeting and to excuse Messrs. Barfield and Norris until their arrival. Mr. Zapple seconded the motion, and it passed unanimously. Mr. Norris joined the meeting at 9:01 AM, and Mr. Barfield at 9:02 AM. Ms. Adams noted that the GAC filters have been in use at the Sweeney Water Treatment Plant for one year. Attendee Name Organization Title Status Arrived Jennifer Adams Cape Fear Public Utility Chair Present Authority Deans Hackney Cape Fear Public Utility Vice Chair Present Authority Jessica Cannon Cape Fear Public Utility Secretary Present Authority Wesley Corder Cape Fear Public Utility Treasurer Present Authority William Norris Cape Fear Public Utility Board Member Present Authority Hollis Briggs Cape Fear Public Utility Board Member Excused Authority William Smith Cape Fear Public Utility Board Member Present Authority Jonathan Barfield Cape Fear Public Utility Commissioner Present Authority Charlie Rivenbark Cape Fear Public Utility Councilman Present Authority Luke Waddell Cape Fear Public Utility Councilman Present Authority Rob Zapple Cape Fear Public Utility Commissioner Present Authority Caj.')e Fear Public Utility Authority Page I Minutes Authority Board October 11, 2023 Kenneth Waldroup Cape Fear Public Utility Authority Nicolette Fulton Cape Fear Public Utility Authority Beth Eckert Cape Fear Public Utility Authority Carel Cape Fear Public Utility Vandermeyden Authority John McLean Cape Fear Public Utility Authority Kristine Irick Cape Fear Public Utility Authority Lori McKoy Cape Fear Public Utility Authority Vaughn Hagerty Cape Fear Public Utility Authority Cord Ellison Cape Fear Public Utility Authority Gary McSmith Cape Fear Public Utility Authority Julia Faircloth Cape Fear Public Utility Authority Cammie Bellamy Cape Fear Public Utility Authority Judy Lawton Cape Fear Public Utility Authority Janice Gaines Vance Williams Barnard Williams LeeAnn Bagasala Maudlin & Jenkins, Accountants Jessica Loeper New Hanover County Tyler Newman BASE Donna S. Pope Cape Fear Public Utility Authority Executive Director Present Deputy Attorney Present Deputy Executive Dir. Enviro, Present Sustainability, and Deputy Executive Director - Engin. & Present Treatment Chief Financial Officer Present Customer Service Director Present Human Resources Director Present Communications Director Present Chief Information Officer Present Assistant Engineering Director Present Deputy Chief Financial Officer Present Public Information Officer Present Executive Assistant & Deputy Clerk Present Present Present Present Present Present Present Clerk/Executive Secretary to the Present Board III. ADOPTION OF AGENDA Mr. Waddell moved to adopt the day's agenda. Mr. Zapple seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board -Regular Meeting -Sep 13, 2023 9:00 AM Caj.')e Fear Public Utility Authority Page 2 Minutes Authority Board October 11, 2023 RESULT: ACCEPTED [UNANIMOUS] MOVER: William Norris, Board Member SECONDER: Rob Zapple, Commissioner AYES: Adams, Hackney, Cannon, Corder, Norris, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Briggs V. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER There were no public speakers. VI. PRESENTATION 1. 2023 Annual Comprehensive Financial Report Ms. Bagasala presented the Audit for Fiscal Year 2023, which ended June 30, 2023. CFPUA received a clean audit and unmodified opinion, the highest level of audit that a governmental agency can obtain. She answered questions regarding upcoming requirements for the audit covering grant -funded projects. Following the audit presentation, Ms. Adams thanked Ms. Bagasala for her report and thanked Finance staff for their work on the 2023 Annual Comprehensive Financial Report. RESULT: NO ACTION REQUIRED VII. CONSENT AGENDA 1. $339,500 contract with Highfill Infrastructure Engineering for the Elevated Water Tank Condition Assessment program. RESULT: APPROVED [UNANIMOUS] MOVER: Jonathan Barfield, Commissioner SECONDER: William Smith, Board Member AYES: Adams, Hackney, Cannon, Corder, Norris, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Briggs 2. $663,625 Construction Contract Award to Carolina Civilworks Inc. for the Julia Drive Waterline Interconnection project. Caj.')e Fear Public Utility Authority Page Minutes Authority Board October 11, 2023 RESULT: APPROVED [UNANIMOUS] MOVER: Jonathan Barfield, Commissioner SECONDER: William Smith, Board Member AYES: Adams, Hackney, Cannon, Corder, Norris, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Briggs 3. $45,056.27 Amendment to the Inter -Local Agreement with New Hanover County for CFPUA to Manage Construction of Water Main Relocations as part of the New Hanover County Storm Drain Improvements. RESULT: APPROVED [UNANIMOUS] MOVER: Jonathan Barfield, Commissioner SECONDER: William Smith, Board Member AYES: Adams, Hackney, Cannon, Corder, Norris, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Briggs 4. Ordinance Appropriating Funding for the Water Main Relocation Project RESULT: APPROVED [UNANIMOUS] MOVER: Jonathan Barfield, Commissioner SECONDER: William Smith, Board Member AYES: Adams, Hackney, Cannon, Corder, Norris, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Briggs VIII. NEW BUSINESS A. Administrative Reports L Attorney's Report 1. Residential Connection Pilot Program Ms. Fulton presented the item. Mr. Zapple moved to approve the ILA and pilot program. Mr. Barfield seconded the motion, and it passed unanimously. Mr. Barfield thanked County and Authority staff for their work in creating the program and addressing community needs. Mr. Waldroup thanked Ms. Fulton and Ms. Loeper in particular. Ms. Adams thanked Rockhill community members for their presence at CFPUA meetings to support community concerns. Caj.')e Fear Public Utility Authority Page 4 Minutes Authority Board October 11, 2023 RESULT: APPROVED [UNANIMOUS] MOVER: Rob Zapple, Commissioner SECONDER: Jonathan Barfield, Commissioner AYES: Adams, Hackney, Cannon, Corder, Norris, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Briggs ii. Executive Director's Report 1. Key Indicators Ms. Eckert answered questions regarding regulatory compliance statistics. She reported that staff changes and promotions impacted compliance workflow, and inspections are back to their normal schedule. Ms. McKoy answered questions from Board members regarding turnover rates and avenues used for employee recruitment. Mr. Waldroup added that employee retention and recruitment would be one focus for the Workforce Development Manager. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... tESULT: REVIEWED 2. Safety Report tESULT: REVIEWED 3. Environmental Report ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... tESULT: REVIEWED 4. Strategic Plan Update tESULT: REVIEWED B. Committee Reports i. Executive Committee 1. Executive Committee - Regular- Oct 4, 2023, 9:15 AM tESULT: NO ACTION REQUIRED ii. Long Range Planning Committee Caj.')e Fear Public Utility Authority Page Minutes Authority Board October 11, 2023 The Committee did not meet in September. iii. Finance Committee 1. Finance Committee - Regular- Oct 4, 2023, 8:30 AM RESULT: NO ACTION REQUIRED 2. Monthly Financials Mr. McLean presented the September financial report. With 25 percent of the fiscal year complete, revenues are at 24.4 percent of budget and expenditures at 25.73 percent. Mr. McLean reported that CFPUA obtains an actuarial study annually regarding the retiree health insurance required for employees who transferred from the City and County (OPEB). There is a balance of $755,000 from the funds received at closing for OPEB, and the estimated total liability is just under $7 million. Mr. McLean reviewed CFPUA's debt coverage radio and bond rating. CFPUA has a AA+ bond rating, a very good rating for an agency of its size. AAA ratings are usually attained only by agencies with the ability to tax, such as counties and cities. Staff recommends that debt ratio not exceed 45 percent, and CFPUA maintains 1.6 - 1.8 debt coverage to maintain the AA+ rating. Mr. Zapple requested a section in the monthly financial report to reflect state grants, expenditures, and budgeting. Mr. Waldroup reported that he is designating an open position to work in engineering with grant funds and that some management of those projects may be outsourced to provide additional support to Engineering and Finance staff. .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: REVIEWED 3. $15,465,075 Construction Contract Award to Carolina Civilworks Inc. for the Northern Regional Pump Station & Force Main Phase A Project Mr. Vandermeyden presented the item and provided project highlights. Mr. Smith moved to approve the contract. Mr. Norris seconded the motion, and it passed unanimously. Caj.')e Fear Public Utility Authority Page Minutes Authority Board October 11, 2023 RESULT: APPROVED [UNANIMOUS] AYES: Adams, Hackney, Cannon, Corder, Norris, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Briggs 4. $520,200 Engineering Contract Amendment to McKim & Creed Engineering for the Northern Regional Pump Station and Force Mains Project Phase A Mr. Vandermeyden presented the item, a companion to the previous agenda item. Mr. Zapple moved to approve the contract. Mr. Rivenbark seconded the motion, and it passed unanimously. RESULT: APPROVED [UNANIMOUS] AYES: Adams, Hackney, Cannon, Corder, Norris, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Briggs 5. Designation of Fiscal Year 2023 Operating Surplus Mr. McLean presented the item. Following the year-end audit, CFPUA has an operating surplus of $9,368.581. Staff recommended designation of the FY23 operating surplus as follows: $1,000,000 to supplement internally designated amounts to pay retiree healthcare benefits. This allocation will supplement the funds provided by the City and County in 2008 to fund retiree health insurance for transferring employees. $8,368,581 to supplement the Capital Reserve for SSWWTP Replacement Project. This allocation will set aside funds to be used for the future replacement of the Southside Wastewater Treatment Plant. Establishing capital reserves will decrease the amount of money CFPUA will need to fund through the issuance of bonds. Both of the recommended designations will serve to reduce future rate increases. Mr. McLean answered questions from Board members regarding the retiree health insurance and the amount of capital reserves CFPUA can anticipate building for the Southside project. Following discussion, Mr. Rivenbark moved to approve the designation of operating surplus as recommended by staff. Mr. Zapple seconded the motion, and it passed unanimously. Caj.')e Fear Public Utility Authority Page 7 Minutes Authority Board October 11, 2023 RESULT: APPROVED [UNANIMOUS] AYES: Adams, Hackney, Cannon, Corder, Norris, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Briggs iv. Sustainability Committee The Committee did not meet in September. C. Consolidation Study Update 1. Consolidation Study Update Mr. Hackney reported that meetings with Town of Wrightsville Beach representatives are scheduled for October and November. The participants will continue review the feasibility study and the terms and conditions of the potential consolidation. The State Legislature designed $17 million to CFPUA and $8 million to the Town to support the consolidation. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: REVIEWED IX. OLD BUSINESS There was no old business. X. AUTHORITY Q & A/CLOSING COMMENTS Ms. Adams reminded Board members that the employee appreciation picnic will be held on Thursday, October 26, from 11 am to 2 pm at Long Leaf Park. Board members directed staff to draft letters of appreciation to the local state delegation thanking them for their support in the State budget. Mr. Waldroup reported that Mr. Hackney was instrumental in the State adding $18 million to the budget to pay for extensions for unserved communities within CFPUA's service area. Mr. Hackney recognized Tyler Newman for his support of that funding. Messrs. Barfield, Rivenbark, and Waddell added their thanks to Messrs. Hackney and Newman. Mr. Waddell observed that it is a monumental asset for the community that will serve future generations. Mr. Barfield again thanked County staff for their partnership with CFPUA in addressing community needs. XI. CLOSED SESSION There was no closed session. XII. ADJOURNMENT Caj.')e Fear Public Utility Authority Page Minutes Authority Board October 11, 2023 There was no further business to come before the Committee, and Mr. Norris moved to adjourn. Mr. Barfield seconded the motion, and it passed unanimously. The meeting adjourned at 10:02 AM. The next regular CFPUA meeting will be Wednesday, November 8. The Board will meet at 9:00 AM in Rooms 138 and 139 in the 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