The URL can be used to link to this page

Home My WebLink About2023-04-12 MinutesCAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES APRIL 12, 2023 Room 139 Regular Meeting 9:00 AM 230 GOVERNMENT CENTER DRIVE WILMINGTON, NC 28403 I. CALL TO ORDER Ms. Adams called the meeting to order at 9:00 AM with a quorum present. Mr. Rivenbark moved to excuse Messrs. Barfield and Corder from the meeting and Mr. Briggs until he arrived. Mr. Waddell seconded the motion, and it passed unanimously. Ms. Adams expressed CFPUA's condolences to New Hanover County for the loss of Commissioner Deb Hays and Deputy County Manager Tim Burgess. II. DETERMINATION OF A QUORUM Attendee Name Organization Jennifer Adams Cape Fear Public Utility Authority Wesley Corder Cape Fear Public Utility Authority Jessica Cannon Cape Fear Public Utility Authority William Norris Cape Fear Public Utility Authority Deans Hackney 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 Cape Fear Public Utility Title Status Arrived Departed Chair Present Vice -Chair Excused Secretary Present Treasurer Present Board Member Present Board Member Present 9:02 AM Board Member Present Commissioner Excused Commissioner Present Councilman Present Councilman Present 9:30 AM Executive Director Present Caj.')e Fear Public Utility Authority Page I Minutes Authority Board April 12, 2023 Waldroup Authority Linda Miles Miles Firm, PLLC CFPUA Consulting Present Attorney John McLean Cape Fear Public Utility Chief Financial Officer Present Authority Frank Styers Cape Fear Public Utility Deputy Executive Present Authority Director Carel Cape Fear Public Utility Deputy Executive Present Vandermeyden Authority Director Nicolette Fulton Cape Fear Public Utility Deputy Attorney Present Authority Kristine Irick Cape Fear Public Utility Customer Service Present Authority Director Lori McKoy Cape Fear Public Utility Human Resources Present Authority Director Vaughn Hagerty Cape Fear Public Utility Public Information Officer Present Authority Julia Faircloth Cape Fear Public Utility Deputy Chief Financial Present Authority Officer Ben Guerrieri Cape Fear Public Utility Procurement & Budget Present Authority Cammie Bellamy Cape Fear Public Utility Assistant PIO Present Authority Debbie Leonard Cape Fear Public Utility HR Department Present Authority Sherry Brooks Cape Fear Public Utility HR Department Present Authoirty Elizabeth Severt Cape Fear Public Utility Strategy & Performance Present Authority Manager Cord Ellison Cape Fear Public Utility Chief Information Officer Present Authority Judy Lawton Cape Fear Public Utility Executive Assistant Present Authority Tim Holleman Lower Cape Fear Water & Present Sewer Authority Jim Iannucci New Hanover County Present Tim Buchman New Hanover County Present Steve Worrell Country Haven Present Donna S. Pope Cape Fear Public Utility Clerk/Executive Secretary Present Authority to the Board III. ADOPTION OF AGENDA Mr. Norris moved to adopt the day's agenda. Mr. Rivenbark seconded the motion, and it passed unanimously. Caj.')e Fear Public Utility Authority Page Minutes Authority Board April 12, 2023 IV. APPROVAL OF MINUTES 1. Authority Board -Regular Meeting -Mar 8, 2023 9:00 AM RESULT: ACCEPTED [UNANIMOUS] MOVER: Larry Sneeden, Board Member SECONDER: William Norris, Treasurer AYES: Adams, Cannon, Norris, Hackney, Briggs, Sneeden, Rivenbark, Waddell, Zapple EXCUSED: Corder, Barfield 2. Authority Board - CIP Worksession -Mar 8, 2023 10:30 AM RESULT: ACCEPTED [UNANIMOUS] MOVER: William Norris, Treasurer SECONDER: Larry Sneeden, Board Member AYES: Adams, Cannon, Norris, Hackney, Briggs, Sneeden, Rivenbark, Waddell, Zapple EXCUSED: Corder, Barfield V. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER There were no speakers. VI. CONSENT AGENDA Mr. Waddell requested that items 1 and 2 be pulled for discussion. Mr. Norris moved to approve items 3 - 6. Mr. Waddell seconded the motion, and it passed unanimously. 1. Employee Drug and Alcohol Policy Ms. McKoy and Mr. Waldroup answered questions regarding the genesis of the policy change, costs of drug and alcohol screening, and CFPUA's second chance program for employees. Board members provided input regarding drug screening parameters. Mr. Waddell moved the item. Mr. Rivenbark seconded the motion, and it passed unanimously. RESULT: APPROVED [UNANIMOUS] MOVER: Luke Waddell, Councilman SECONDER: Charlie Rivenbark, Commissioner AYES: Adams, Cannon, Norris, Hackney, Briggs, Sneeden, Rivenbark, Waddell, Zapple EXCUSED: Corder, Barfield 2. Tuition Reimbursement Mr. Waldroup answered questions regarding the change to program parameters. Staff and the HR Committee recommended reimbursement at the beginning of a program to address financial difficulties employees may encounter when enrolling. The Committee Caj.')e Fear Public Utility Authority Page Minutes Authority Board April 12, 2023 also endorsed an increase from $1500 to $5000 annually. Following discussion, Mr. Sneeden moved to table the item until the next meeting. Mr. Briggs seconded the motion, and it passed unanimously. RESULT: TABLED [UNANIMOUS] Next: 5/10/2023 9:00 AM SECONDER: Hollis Briggs, Larry Sneeden AYES: Adams, Cannon, Norris, Hackney, Briggs, Sneeden, Rivenbark, Waddell, Zapple EXCUSED: Corder, Barfield 3. $298,500 Contract with HDR Engineering, Inc. of the Carolinas for Richardson Miscellaneous Improvements Project RESULT: APPROVED [UNANIMOUS] MOVER: William Norris, Treasurer SECONDER: Luke Waddell, Councilman AYES: Adams, Cannon, Norris, Hackney, Briggs, Sneeden, Rivenbark, Waddell, Zapple EXCUSED: Corder, Barfield 4. $400,000 Change Order with Carolina Civil Works, Inc. for the Find -It Fix -It 2022 Water and Sewer Repairs (Renewed Contract) Change Order No. 1 RESULT: APPROVED [UNANIMOUS] MOVER: William Norris, Treasurer SECONDER: Luke Waddell, Councilman AYES: Adams, Cannon, Norris, Hackney, Briggs, Sneeden, Rivenbark, Waddell, Zapple EXCUSED: Corder, Barfield 5. Resolutions Authorizing State Revolving Funds Low Interest Loan Applications for Various Projects RESULT: APPROVED [UNANIMOUS] MOVER: William Norris, Treasurer SECONDER: Luke Waddell, Councilman AYES: Adams, Cannon, Norris, Hackney, Briggs, Sneeden, Rivenbark, Waddell, Zapple EXCUSED: Corder, Barfield 6. 2023 Customer Satisfaction Survey Mr. Zapple requested further discussion on the item. He expressed concern that the language used and references to CFPUA treatment processes might not be understandable to the average reader. Mr. Hagerty reported that the survey had been based on similar surveys from other agencies but that it may be possible to tweak it further. The surveys will be mailed with an online option and a Spanish -language Caj.')e Fear Public Utility Authority Page 4 Minutes Authority Board April 12, 2023 option. Dr. Cannon added that the company conducting the survey is providing a $500 gift card raffle as an incentive for those who complete the survey. Messrs. Hagerty and Waldroup answered questions from Board members regarding the survey. Mr. Waldroup reported that the survey is trying to collect data that will be useful in analyzing CFPUA policies and outreach. He stated that data resolution may be lost if the survey questions are simplified. He added that the survey could be supplemented by door to door or phone surveys. Mr. Briggs stated that he initially shared some of Mr. Zapple's concerns but that staff and the Communications Committee had fine-tuned the survey. He believed that the survey needed to start somewhere for data collection and should continue in the recommended format. Following discussion on ways in which the survey could be refined, Mr. Rivenbark moved to bring the item back for re -consideration at a future date. Mr. Waddell seconded the motion, and it passed unanimously. RESULT: TABLED [UNANIMOUS] Next: 5/10/2023 9:00 AM MOVER: Charlie Rivenbark, Commissioner SECONDER: Luke Waddell, Councilman AYES: Adams, Cannon, Norris, Hackney, Briggs, Sneeden, Rivenbark, Waddell, Zapple EXCUSED: Corder, Barfield 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 invited Board members to join staff in walking in the Azalea Festival parade on April 15. 1. Key Indicators .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: REVIEWED 2. Safety Report Caj.')e Fear Public Utility Authority Page Minutes Authority Board April 12, 2023 3. E 4. JLT: REVIEWED nmental Report I............................................................................................................................................................................................................................................ JLT: REVIEWED ;ic Plan Update JLT: REVIEWED B. Committee Reports i. Executive Committee 1. Executive Committee - Regular - Apr 5. 2023 10:00 AM iii. Finance Committee 1. Finance Committee -Regular Meeting -Apr 5, 2023 9:00 AM RESULT: NO ACTION REQUIRED 2. Monthly Financials Mr. McLean presented the March and April financial data. The fund balance in $91.4 million, with $54.3 million unassigned. Caj.')e Fear Public Utility Authority Page Minutes Authority Board April 12, 2023 Mr. Norris moved to excuse Mr. Zapple. Mr. Rivenbark seconded the motion, and it passed unanimously. Mr. Zapple left the meeting at 9:30 AM. .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: REVIEWED 3. Preliminary FY 24 Budget Mr. McLean provided an overview of drivers for the FY2024 budget, for the fiscal year beginning on July 1, 2023. He reported that the Southside Wastewater Treatment Plant rehabilitation project will have the greatest impact on rates for the next several years, with a currently -estimated cost of $250,000,000. Mr. McLean compared using a "just -in -time" approach to rate -making to funding the project with a "rate -smoothing" approach. Just in time would produce a 24 percent rate increase in FY2026 and could exceed CFPUA's policy for debt limits. A rate -smoothing method of 6 percent increases over the next five years would not exceed CFPUA's rate limit and would provide capital reserves for the Southside project. This would, in turn, reduce the amount of debt needed for the project. A smoothing period of more than five years would result in insufficient pay -go funding and debt service coverage. A rate increase of 6 percent would raise the average bill by $4.20 in FY24. Staff answered questions regarding the timing of the Southside project and factors that could potentially lower its cost. Mr. Waldroup reported that sewer flows that have been diverted to the Northside plant for some years will need to return to Southside because growth in the northern part of the County will need capacity at Northside. Southside will also need capacity for growth in its part of the County. Mr. McLean reported that increasing system development charges and/or wholesale rates could offset rate increases. The rate analysis done as a part of the CFPUA-Wrightsville consolidation study provided amounts by which CFPUA could increase SDCs and wholesale rates. Reducing operating costs could reduce rate increases. Each $1 million increase in non -retail rates (SDCs or wholesale) or $1 million reduction in the operating budget would realize a .2 percent reduction to the 6 percent rate increase, equaling a 5.8 percent rate increase. Reducing capital investments by $1 million would result in a .05 percent to the 6 percent increase. Reducing capital expenditures for rehabilitation and replacement would increase system risk in the short term and increase investment needed for rehabilitation and replacement in future years. Caj.')e Fear Public Utility Authority Page 7 Minutes Authority Board April 12, 2023 Staff recommends total operating appropriations of $108,813,207 for FY2024. This is a 9.7 percent increase over FY2023. Increases in electricity, fuel, and treatment chemicals range from 11 to 34 percent. Property insurance will incase by an estimated 29 percent. The HR Committee recommends a 3 percent market (cost of living) adjustment and a 3 percent merit adjustment in employee compensation. Pay adjustments are intended to address CFPUA employee retention and increased living expenses for employees. Health insurance costs and overtime will decrease for FY24. Board members discussed the impacts of increased SDCs, both in the short term for builders and commercial properties and for purchasers who would amortize the SDC over the life of their mortgages. Messrs. Sneeden and Rivenbark supported rate smoothing and small incremental increases. Mr. Waddell requested that staff analyze financial austerity measures and provide data for a budget that eliminated expenditures not directly related to CFPUA's core mission of providing water and sewer. Messrs. Waldroup and McLean thanked Board members for their feedback. A budget workshop will be held after the May 10 Board meeting. The public hearings for SDCs and the budget will be held at the June 14 Board meeting. .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: NO ACTION REQUIRED Next: 5/10/2023 9:00 AM iv. Communications Committee 1. Communications Committee -Regular -Mar 28, 2023 10:00 AM RESULT: NO ACTION REQUIRED v. Human Resources Committee 1. Human Resources Committee -Regular -Mar 28, 2023 9:00 AM .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: NO ACTION REQUIRED 2. Workforce Development Manager Mr. Sneeden moved to table the item until the May meeting. Mr. Briggs seconded the motion, and it passed unanimously. Caj.')e Fear Public Utility Authority Page Minutes Authority Board April 12, 2023 RESULT: TABLED [UNANIMOUS] Next: 5/10/2023 9:00 AM MOVER: Larry Sneeden, Board Member SECONDER: Hollis Briggs, Board Member AYES: Adams, Cannon, Norris, Hackney, Briggs, Sneeden, Rivenbark, Waddell, Zapple EXCUSED: Corder, Barfield 3. Overtime Compensation and Holiday Pay RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark, Commissioner SECONDER: William Norris, Treasurer AYES: Adams, Cannon, Norris, Hackney, Briggs, Sneeden, Rivenbark, Waddell, Zapple EXCUSED: Corder, Barfield C. Consolidation Study Update 1. Consolidation Study Update Mr. Sneeden reported that the study group has temporarily paused its meetings so that the rate study can be completed. The group will resume meeting in late April. RESULT: REVIEWED VIII.OLD BUSINESS There was no old business. IX. AUTHORITY Q & A/CLOSING COMMENTS There were no further questions or closing comments. X. CLOSED SESSION There was no closed session. Caj.')e Fear Public Utility Authority Page Minutes Authority Board April 12, 2023 XI. ADJOURNMENT Mr. Rivenbark moved to adjourn. Mr. Briggs seconded the motion, and it passed unanimously. The meeting adjourned at 10:05 AM. The next CFPUA meeting will be Wednesday, May 10, 2023. A budget workshop will follow the regular meeting. The Board will meet in Rooms 138- 139, New Hanover County Administration, 230 Government Center Drive, Wilmington, North Carolina. Respectfully submitted, Donna S. Pope Clerk to the Board Caj.')e Fear Public Utility Authority Page 10