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HomeMy WebLinkAbout2023-06-14 MinutesCAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES JUNE 14, 2023 Room 139 Regular Meeting 9:00 AM 230 GOVERNMENT CENTER DRIVE WILMINGTON, NC 28403 I. CALL TO ORDER II. DETERMINATION OF A QUORUM Ms. Adams called the meeting to order at 9:00 AM with a quorum present. Mr. Zapple moved to excuse Dr. Cannon and Mr. Rivenbark. Mr. Norris seconded the motion, and it passed unanimously. Attendee Name Organization Title Status Arrived Jennifer Adams Cape Fear Public Utility Chair Present Authority Wesley Corder Cape Fear Public Utility Vice -Chair Present Authority Jessica Cannon Cape Fear Public Utility Secretary Excused Authority William Norris Cape Fear Public Utility Treasurer Present Authority Deans Hackney Cape Fear Public Utility Present Authority Hollis Briggs Cape Fear Public Utility Present Authority Larry Sneeden Cape Fear Public Utility Present Authority Jonathan Barfield Cape Fear Public Utility Present Authority Charlie Rivenbark Cape Fear Public Utility Excused Authority Luke Waddell Cape Fear Public Utility Present Authority Rob Zapple Cape Fear Public Utility Present Authority Kenneth Waldroup Cape Fear Public Utility Executive Director Present Authority Linda Miles Wiles 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 June 14, 2023 Authority Carel Cape Fear Public Utility Deputy Executive Director Present Vandermeyden Authority Beth Eckert Cape Fear Public Utility Director of EMD Present Authority Vaughn Hagerty Cape Fear Public Utility Public Information Officer Present Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Lori McKoy Cape Fear Public Utility Human Resources Director Present Authority Julia Faircloth Cape Fear Public Utility Deputy Chief Financial Officer Present Authority Cammie Bellamy Cape Fear Public Utility Assistant PIO Present Authority Debie Leonard Cape Fear Public Utility HR Analyst Present Authoirty Sherry Brooks Cape Fear Public Utility HR Analyst Present Authoirity Sara Eskew Cape Fear Public Utility Deputy Clerk Present Authority Ben Guerrieri Cape Fear Public Utility Present Authority Elizabeth Severt Cape Fear Public Utility Strategy & Performance Present Authority Manager Tammy Styers Present Matthew Tribbett Cape Fear Public Utility Present Authority John Jernigan Cape Fear Public Utility Sr. Project Manager Present Authority Robert Daughtry Cape Fear Public Utilty Present Authority Tim Lowe New Hanover County Present III. ADOPTION OF AGENDA Mr. Barfield 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 - May 10, 2023 9:00 AM Cal.,)e Fear Public Utility Authority Page 2 Minutes Authority Board June 14, 2023 RESULT: ACCEPTED [UNANIMOUS] MOVER: William Norris, Treasurer SECONDER: Wesley Corder, Vice -Chair AYES: Adams, Corder, Norris, Hackney, Briggs, Sneeden, Barfield, Waddell, Zapple EXCUSED: Cannon, Rivenbark 2. Authority Board -Special -May 10, 2023 10:30 AM RESULT: ACCEPTED [UNANIMOUS] MOVER: William Norris, Treasurer SECONDER: Wesley Corder, Vice -Chair AYES: Adams, Corder, Norris, Hackney, Briggs, Sneeden, Barfield, Waddell, Zapple EXCUSED: Cannon, Rivenbark V. RESOLUTIONS Ms. Adams read a Resolution honoring Mr. Sneeden for his service and dedication to CFPUA, its staff, and his environmental stewardship. Mr. Sneeden was appointed by New Hanover County in 2012 and has served continuously since that time. Mr. Sneeden has served as a CFPUA Corporate Officer and Executive Committee member. He is the Chairman of the Long Range Planning Committee, a member of the Sustainability Committee, and a CFPUA liaison for the study for consolidation of services with Wrightsville Beach. Mr. Norris moved to adopt the Resolution recognizing Mr. Sneeden. Mr. Zapple seconded the motion, and it passed unanimously. Mr. Sneeden thanked the Board and staff, saying it had been an honor and pleasure to serve on the Board. He thanked them for friendships made and for doing good work that benefits the community. Ms. Adams asked Mr. Styers to stand with her. Mr. Styers introduced his wife, Tammy Styers, and staff members Matt Tribbett, John Jernigan, and Robert Daughtry. Ms. Adams read a Resolution honoring Mr. Styers for his service to the community. Mr. Styers began work with the City in 1997 in the Public Works and Utilities Department. He was one of the original CFPUA employees, joining in 2008 as the Director of Engineering. Mr. Styers has worn many hats at CFPUA, and is retiring as Deputy Executive Director in charge of Linear Assets. In that role, he is responsible for 103 employees in critical positions who ensure the continuation of quality water and sewer services to customers. Mr. Barfield moved to adopt the Resolution recognizing Mr. Styers. Mr. Zapple seconded the motion, and it passed unanimously. Caj.')e Fear Public Utility Authority Page Minutes Authority Board June 14, 2023 Mr. Styers thanked the Board and his co-workers. He stated that the work has been rewarding and that he has been happy to be part of the team providing water and sewer and solving problems in the community. VI. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER There were no public speakers. VII. PUBLIC HEARING OF FY24 SDCS Ms. Adams opened the hearing at 9:10 AM. Mr. McLean explained the purpose of the System Development Charges and the statutory requirements for determining the charges. An SDC is a mechanism used so that new customers or development pay a proportionate share of capacity costs provided by existing customers. The SDCs are a component of CFPUA's growth policy. Mr. McLean reviewed CFPUA's method of calculating SDCs. The Wrightsville Beach consolidation study included a rate analysis by the Raftelis Group. The analysis provided a maximum water SDC of $2,270 and a maximum of $5,540 for sewer. CFPUA's allowable SDCs are lower than it regional peers. There were no speakers for the SDC hearing. Messrs McLean and Waldroup answered questions from Board members regarding the SDC calculation and the rate study. Board members discussed the impacts of raising the SDCs to the maximum this year or phasing them in over a longer period of time. Mr. Norris moved to close the hearing. Mr. Zapple seconded the motion, and it passed unanimously. The Board closed the hearing at 9:20 AM. VIII. PUBLIC HEARING OF FY24 BUDGET Ms. Adams opened the hearing at 9:21 AM. Mr. McLean presented the recommended budget for the fiscal year beginning July 1, 2023. The operating budget is $112.9 million, a 13.9 percent increase over last year. Operations and maintenance costs are 5.43 percent over the current yea r. The budget includes a 3 percent market (COLA) pay increase for all employees and a 3 percent merit pool. The pay -go capital transfer is $9.9 million, reflecting the Board's commitment to building capital project reserves. The pay -go transfers can be used to offset bond issuance for the Southside project. Caj.')e Fear Public Utility Authority Page 4 Minutes Authority Board June 14, 2023 The recommended rate increase for FY2024 is 4.6 percent, with the increase solely on the sewer charges. The average monthly bill would increase by $3.19. The rates support a gradual increase in the years leading up to the Southside project to prevent a large increase after issuing bonds for the project. There were no speakers for the budget hearing. Mr. McLean answered questions from Board members regarding the recommended budget and rates. Mr. Barfield moved to close the public hearing. Mr. Norris seconded the motion and it passed unanimously. The Board closed the hearing at 9:35 AM. IX. CONSENT AGENDA 1. $594,675 Contract with McKim and Creed to Conduct Field Work for Water Service Line Inventory RESULT: APPROVED [UNANIMOUS] MOVER: William Norris, Treasurer SECONDER: Wesley Corder, Vice -Chair AYES: Adams, Corder, Norris, Hackney, Briggs, Sneeden, Barfield, Waddell, Zapple EXCUSED: Cannon, Rivenbark 2. $300,000 Contract with ESP Associates, Inc. for On -Call Surveying, and Subsurface Utility Investigations to Support Water Service Line Inventory RESULT: APPROVED [UNANIMOUS] MOVER: William Norris, Treasurer SECONDER: Wesley Corder, Vice -Chair AYES: Adams, Corder, Norris, Hackney, Briggs, Sneeden, Barfield, Waddell, Zapple EXCUSED: Cannon, Rivenbark 3. $300,000 Contract with Bateman Civil Survey Company for On -Call Surveying, and Subsurface Utility Investigations to Support Water Service Line Inventory RESULT: APPROVED [UNANIMOUS] MOVER: William Norris, Treasurer SECONDER: Wesley Corder, Vice -Chair AYES: Adams, Corder, Norris, Hackney, Briggs, Sneeden, Barfield, Waddell, Zapple EXCUSED: Cannon, Rivenbark 4. Authorization for the Executive Director to Execute a $389,600 Contract with Hazen and Sawyer for Engineering Services for a Water System Master Plan. Caj.')e Fear Public Utility Authority Page Minutes Authority Board June 14, 2023 RESULT: APPROVED [UNANIMOUS] MOVER: William Norris, Treasurer SECONDER: Wesley Corder, Vice -Chair AYES: Adams, Corder, Norris, Hackney, Briggs, Sneeden, Barfield, Waddell, Zapple EXCUSED: Cannon, Rivenbark 5. Approval for Write Offs for Uncollectible Charges RESULT: APPROVED [UNANIMOUS] MOVER: William Norris, Treasurer SECONDER: Wesley Corder, Vice -Chair AYES: Adams, Corder, Norris, Hackney, Briggs, Sneeden, Barfield, Waddell, Zapple EXCUSED: Cannon, Rivenbark 6. Amendment to Lower Cape Fear Interlocal Agreement RESULT: APPROVED [UNANIMOUS] MOVER: William Norris, Treasurer SECONDER: Wesley Corder, Vice -Chair AYES: Adams, Corder, Norris, Hackney, Briggs, Sneeden, Barfield, Waddell, Zapple EXCUSED: Cannon, Rivenbark 7. Resolution Raising the Micro -Purchase Threshold FY 24 RESULT: APPROVED [UNANIMOUS] MOVER: William Norris, Treasurer SECONDER: Wesley Corder, Vice -Chair AYES: Adams, Corder, Norris, Hackney, Briggs, Sneeden, Barfield, Waddell, Zapple EXCUSED: Cannon, Rivenbark X. NEW BUSINESS A. Administrative Reports i. Attorney's Report Ms. Miles had no report for open session. She requested a closed session to discuss CFPUA v. Chemours, DuPont, and Corteva. ii. Executive Director's Report Mr. Waldroup answered questions from Board members regarding days' cash on hand and efforts to address affordability. He reported that the County has committed $250,000 from its FY24 budget and the City has committed $50,000 from its FY24 budget to the customer assistance fund. Under the LIHWAP program, $780,000 was Caj.')e Fear Public Utility Authority Page Minutes Authority Board June 14, 2023 expended over 16 months, serving 1,400 households. Using that data as a guideline, the City and County contributions should provide six to seven months of assistance. Mrr. McLean answered questions regarding CIP expenditures and debt coverage. Messrs. McSmith and Waldroup answered questions regarding the Monterey Heights groundwater system. 1. Kev Indicators :ESULT: REVIEWED 2. Safety Resort ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ............. ;ESULT: REVIEWED 3. Environmental Report ;ESULT: REVIEWED 4. Strateeic Plan Update ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ............. ;ESULT: REVIEWED 5. Executive Committee Supporting Documents ;ESULT: REVIEWED B. Committee Reports i. Executive Committee 1. Executive Committee - Regular -Jun 7. 2023 10:00 AM ;ESULT: NO ACTION REQUIRED 2. Appointment of Special Advisor, Wrightsville Beach Consolidation Caj.')e Fear Public Utility Authority Page 7 Minutes Authority Board June 14, 2023 RESULT: APPROVED [8 TO 11 MOVER: William Norris, Treasurer SECONDER: Luke Waddell AYES: Adams, Corder, Norris, Hackney, Briggs, Barfield, Waddell, Zapple NAYS: Sneeden EXCUSED: Cannon, Rivenbark 3. Cancellation of July Board Meeting RESULT: APPROVED [UNANIMOUS] MOVER: Jonathan Barfield, Board Member SECONDER: Hollis Briggs, Board Member AYES: Adams, Corder, Norris, Hackney, Briggs, Sneeden, Barfield, Waddell, Zapple EXCUSED: Cannon, Rivenbark ii. Long Range Planning Committee 1. Long Range Planning Committee -Regular -May 25, 2023 3:00 PM ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ................. RESULT: NO ACTION REQUIRED 2. FY-2024 and 10-year Capital Improvements Plan for Recommendation and Board Approval Mr. Sneeden moved the FYT24 and 10-year CIP as a Committee recommendation. Mr. Hackney seconded the motion, and it passed unanimously. RESULT: APPROVED [UNANIMOUS] MOVER: Larry Sneeden SECONDER: Deans Hackney, CFPUA Board Member AYES: Adams, Corder, Norris, Hackney, Briggs, Sneeden, Barfield, Waddell, Zapple EXCUSED: Cannon, Rivenbark iii. Finance Committee 1. Finance Committee -Regular Meeting -Jun 7, 2023 9:00 AM RESULT: NO ACTION REQUIRED 2. Monthly Financials Cal.,)e Fear Public Utility Authority Page Minutes Authority Board June 14, 2023 RESULT: REVIEWED 3. Data Management Master Plan .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: REVIEWED 4. Water Service Line Inventory Procurement Strategy Mr. Zapple highlighted the importance of the water service line inventory as a proactive response to the EPA's revisions to the lead and copper rules. .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: NO ACTION REQUIRED 5. Adoption of System Development Charge Analysis Mr. Norris moved to adopt the System Development Charge methodology and calculation as developed by staff and the Raftelis rate study, with a combined water and sewer SDC for the fiscal year beginning July 1, 2023, of $5,540. The motion further recommended that future Boards increase the SDC over Fiscal Years 2025 and 2026 to reach $7,810, as supported by the Raftelis rate study. Mr. Barfield seconded the motion, and it passed unanimously. RESULT: APPROVED [UNANIMOUS] MOVER: William Norris, Treasurer SECONDER: Jonathan Barfield, Board Member AYES: Adams, Corder, Norris, Hackney, Briggs, Sneeden, Barfield, Waddell, Zapple EXCUSED: Cannon, Rivenbark 6. Adoption of FY24 Budget Ordinances Mr. Norris moved to adopt the FY24 Budget as a Finance Committee recommendation. Mr. Briggs seconded the motion, and it passed unanimously. Mr. Norris thanked Mr. McLean and staff for an outstanding job in preparing and explaining the budget to the Board. RESULT: APPROVED [UNANIMOUS] MOVER: William Norris, Treasurer SECONDER: Hollis Briggs, Board Member AYES: Adams, Corder, Norris, Hackney, Briggs, Sneeden, Barfield, Waddell, Zapple EXCUSED: Cannon, Rivenbark iv. Sustainability Committee The Committee did not meet in May. Cal.,)e Fear Public Utility Authority Page Minutes Authority Board June 14, 2023 C. Consolidation Study Update 1. Consolidation Study Update Mr. Hackney reported that the consolidation study group is working through the financial pro forma. The group will hold its final workshop in late July. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ................... RESULT: REVIEWED XI. OLD BUSINESS There was no old business. XII. AUTHORITY Q & A/CLOSING COMMENTS Mr. Briggs thanked Mr. Styers for his work and for being responsive to community issues and customer concerns. Mr. Waldroup reported that Ms. Eckert would take over Mr. Styers' work with linear assets. Mr. Vandermeyden will take over his project management work. XIII. CLOSED SESSION Mr. Norris moved to enter closed session to discuss CFPUA v. Chemours, DuPont, and Corteva. Mr. Briggs seconded the motion, and it passed unanimously. The Board entered closed session at 10:05 AM with Mr. Waldroup, Ms. Miles, Ms. Fulton, Ms. Eskew, and Ms. Pope remaining. The Board received a report from Ms. Miles. Following discussion, Mr. Sneeden moved to return to open session. Mr. Norris seconded the motion, and it passed unanimously. The Board returned to open session at 10:23 AM. XIV. ADJOURNMENT Mr. Sneeden moved to adjourn. Mr. Briggs seconded the motion, and it passed unanimously. The Board adjourned at 10:24 AM. The next regular CFPUA meeting will be Wednesday, August 9, 2023. The Authority will meet at 9:00 AM in the New Hanover County Administration Building, 230 Government Center Drive, Wilmington, North Carolina. Respect9fully submitted, Donna S. Pope Clerk to the Board Caj.')e Fear Public Utility Authority Page 10