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HomeMy WebLinkAbout2024-01-10 MinutesCAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES JANUARY 10, 2024 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. Waddell moved to excuse Dr. Cannon and Mr. Corder. Mr. Norris seconded the motion, and it passed unanimously. Ms. Pope updated the Board on County plans to upgrade the sound system in the meeting room and thanked Mr. Zapple for his assistance. 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 Excused Authority Wesley Corder Cape Fear Public Utility Treasurer Excused Authority William Norris Cape Fear Public Utility Board Member Present Authority Hollis Briggs Cape Fear Public Utility Board Member Present Authority William Smith Cape Fear Public Utility Board Member Present Authority Jonathan Barfield Cape Fear Public Utility Board Member Present Authority Charlie Rivenbark Cape Fear Public Utility Board Member Present Authority Luke Waddell Cape Fear Public Utility Board Member Present Authority Rob Zapple Cape Fear Public Utility Board Member Present Authority Kenneth Waldroup Cape Fear Public Utility Executive Director Present Cal.,)e Fear Public Utility Authority Page I Minutes Authority Board January 10, 2024 Authority Linda Miles Miles Firm, PLLC CFPUA Consulting Attorney Present Nicolette Fulton Cape Fear Public Utility Deputy Attorney Present Authority Beth Eckert Cape Fear Public Utility Deputy Executive Dir. Enviro Mgt Present Authority & Sustainability Carel Cape Fear Public Utility Deputy Executive Director - Engin. Present Vandermeyden Authority & Treatment John McLean Cape Fear Public Utility Chief Financial Officer Present Authority Lori McKoy Cape Fear Public Utility Human Resources Director Present Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Cord Ellison Cape Fear Public Utility Chief Information Officer Present Authority Cammie Bellamy Cape Fear Public Utility Public Information Officer Present Authority Gary McSmith Cape Fear Public Utility Assistant Engineering Director Present Authority Julia Vosnock Cape Fear Public Utility Deputy Chief Financial Officer Present Faircloth Authority Tim Holleman Lower Cape Fear Water & Present Sewer Authority Judy Lawton Cape Fear Public Utility Executive Assistant & Deputy Present Authority Clerk Makeba Robinson Cape Fear Public Utility Compliance Coordinator & Present Authority Deputy Clerk Bernard Williams Rock Hill Community Present Donna S. Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board III. ADOPTION OF AGENDA Mr. Hackney 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 - Dec 13, 2023 9:00 AM Cal.,)e Fear Public Utility Authority Page 2 Minutes Authority Board January 10, 2024 RESULT: ACCEPTED [UNANIMOUS] MOVER: William Norris, Board Member SECONDER: William Smith, Board Member AYES: Adams, Hackney, Norris, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Cannon, Corder V. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER Mr. Fenton, a property owner in the Futch's Creek area, requested water service and re- consideration of CFPUA's customer system development charges. VI. CONSENT AGENDA 1. Additional Low -Interest Loan Funding from NCDEQ DWI for the Rehabilitation and Replacement of Gravity Sewer in the Downtown Wilmington Area Project RESULT: APPROVED [UNANIMOUS] MOVER: Rob Zapple, Board Member SECONDER: William Norris, Board Member AYES: Adams, Hackney, Norris, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Cannon, Corder 2. Ordinance Appropriating Funds to the Rehabilitation and Replacement of Gravity Sewer in the Downtown Wilmington RESULT: APPROVED [UNANIMOUS] MOVER: Rob Zapple, Board Member SECONDER: William Norris, Board Member AYES: Adams, Hackney, Norris, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Cannon, Corder 3. $300,000 Contract with Cape Fear Engineering, Inc. for On -Call Water Distribution and Sanitary Sewer Engineering Professional Services RESULT: APPROVED [UNANIMOUS] MOVER: Rob Zapple, Board Member SECONDER: William Norris, Board Member AYES: Adams, Hackney, Norris, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Cannon, Corder 4. $163,381.94 Cost Sharing Agreement for Water Main Installation Associated with the Barclay West Development. Caj.')e Fear Public Utility Authority Page Minutes Authority Board January 10, 2024 RESULT: APPROVED [UNANIMOUS] MOVER: Rob Zapple, Board Member SECONDER: William Norris, Board Member AYES: Adams, Hackney, Norris, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Cannon, Corder 5. Ordinance Appropriating Rent Abatement Funds to the 235 Government Center Drive Rehab Project Ms. Vosnock Faircloth answered clarification questions regarding the rental abatement and landlord proceeds to the building repairs. Mr. Smith moved to approve Items 5 and 6. Mr. Rivenbark seconded the motion, and it passed unanimously. RESULT: APPROVED [UNANIMOUS] MOVER: William Smith, Board Member SECONDER: Charlie Rivenbark, Board Member AYES: Adams, Hackney, Norris, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Cannon, Corder 6. Ordinance Appropriating Landlord Proceeds to the 235 Government Center Drive Rehab Project RESULT: APPROVED [UNANIMOUS] MOVER: William Smith, Board Member SECONDER: Charlie Rivenbark, Board Member AYES: Adams, Hackney, Norris, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Cannon, Corder VII. NEW BUSINESS A. Administrative Reports i. Attorney's Report Ms. Miles reported that CFPUA recently won a motion in Delaware Chancery Court in its case against DuPont and Corteva. Ms. Fulton will send an article to the Board regarding the decision. Ms. Miles reported that the Chemours case in the U.S. Eastern District of North Carolina should be scheduled for mediation by April. ii. Executive Director's Report 1. Key Indicator Report Caj.')e Fear Public Utility Authority Page 4 Minutes Authority Board January 10, 2024 Mr. Smith requested clarification regarding peak flows related to inflow and infiltration following heavy rains. Mr. Vandermeyden confirmed that the Northside Plant is more sensitive to tidal flows and significant rainfall events. Mr. Ellison answered clarification questions regarding cybersecurity. He added that he could provide an in-depth security report in a future closed session. Mr. Waldroup added that staff can develop inflow and infiltration data for the Long Range Planning Committee to review and develop a comprehensive cybersecurity report for the board to receive in closed session. RESULT: REVIEWED 2. Safety Report .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: REVIEWED 3. Environmental Report RESULT: REVIEWED 4. Strategic Plan Update RESULT: REVIEWED 5. Progress Update on Rockhill Residential Connection Pilot Program Ms. Johnson reported on the Rockhill connection program. New Hanover County has provided $500,000 in funding. Property owners are eligible if their property is residential, has a private well, and is adjacent to an existing CFPUA water line. Out of 43 property owners, 23 have been approved. Six owners did not respond and were contacted for followup. Five parcels are owned by a builder who stated that he could fund his connections and preferred that the pilot program funds go to individual residents. Throughout the process, County and CFPUA staff have met with Rockhill citizens. CFPUA staff has worked with owners to complete paperwork. The project will be bid on February 24. Ms. Johnson recognized Ms. Janice Gaines for leadership in the community and guidance and responsiveness working through the development of the program. Caj.')e Fear Public Utility Authority Page Minutes Authority Board January 10, 2024 She expressed her own pleasure at being a part of the project and being able to work with the community. Mr. Waldroup thanked Ms. Johnson and Mr. McSmith for their leadership and advocacy. He further thanked the Commissioners for the County's funding of the project. Mr. Zapple thanked Ms. Johnson for a comprehensive report. He added that builders in New Hanover County know her as the go -to person for permitting and plan review. Mr. Waldroup added that Ms. Johnson teaches a course at Cape Fear Community College. .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: REVIEWED 6. NCGA Acknowledgement Resolution Mr. Waldroup presented the resolution and recounted the steps taken by our region's legislators in support of water and sewer service. Mr. Barfield moved to adopt the Resolution. Mr. Norris seconded the motion, and it passed unanimously. Mr. Barfield commended staff on the Resolution and recognition of the legislators. Mr. Waldroup reported that staff will invite the legislative body to attend the February meeting to receive recognition. RESULT: ADOPTED [UNANIMOUS] MOVER: Jonathan Barfield, Board Member SECONDER: William Norris, Board Member AYES: Adams, Hackney, Norris, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Cannon, Corder 7. Authority Attorney Position Ms. Miles reported that she plans to retire in February after 15 years working as the Authority attorney. She stated that she had worked with many Councils and boards during her tenure at the City of Greensboro and that the CFPUA Board has always done its best for customers and citizens. Ms. Adams thanked Ms. Miles for her work on the Authority's behalf and stated that it is in good standing because of her dedication. Mr. Waldroup recommended that the attorney job position be moved into a staff position, reporting directly to the Board. The proposed job description was in the Agenda packet for Board review and a vote. After discussion, Mr. Smith Caj.')e Fear Public Utility Authority Page Minutes Authority Board January 10, 2024 moved to approve the Authority Attorney job position and authorize staff to advertise the job. Mr. Briggs seconded the motion, and it passed unanimously. Ms. Adams recommended that the Executive Committee conduct initial interviews and encouraged other board members to work with the Executive Committee if interested. Messrs. Barfield and Waddell volunteered to be part of the initial interview panel. The finalist will be interviewed by the full Board. Ms. Miles advised that any discussion of potential candidates by the Board during the current meeting should be conducted in closed session. RESULT: APPROVED [UNANIMOUS] MOVER: William Smith, Board Member SECONDER: Hollis Briggs, Board Member AYES: Adams, Hackney, Norris, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Cannon, Corder B. Committee Reports i. Executive Committee 1. Executive Committee -Regular -Jan 3, 2024, 10:00 AM .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: NO ACTION REQUIRED ii. Long Range Planning Committee The Committee did not meet in December. iii. Finance Committee 1. Finance Committee -Regular -Jan 3, 2024, 9:00 AM RESULT: NO ACTION REQUIRED 2. Monthly Financials Mr. McLean presented the financial data for November and December. December 31 marked one-half (50 percent) of the fiscal year. Revenues are at 48.49 percent of budget, and expenditures 46.81 percent. At the end of November, the unassigned fund balance was $40.29 million. Mr. McLean anticipates the unassigned fund balance to be $50 million by the end of the fiscal year. Cash on hand is one of the indicators reviewed by rating Caj.')e Fear Public Utility Authority Page 7 Minutes Authority Board January 10, 2024 agencies. CFPUA has an AA+ bond rating, a distinction that very few stand alone water and sewer utilities hold. Staff is developing the FY2025 budget. Messrs. Waldroup and McLean reported on legislative changes that will affect the system development charge calculations going forward and answered questions from Board members regarding the flow calculations now required by law and area growth projections. Mr. McLean is developing revisions to the monthly financial reports and will share information on those changes with the Board as requested. .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: REVIEWED 3. $2,451,121 Construction Contract with A.C. Shultes of Carolina, Inc. for the Grace Street and Chestnut Street Water and Sewer Rehabilitation Project Mr. Vandermeyden presented the item Barfield moved to approve the contract. it passed unanimously. Following clarification questions, Mr. Mr. Waddell seconded the motion, and RESULT: APPROVED [UNANIMOUS] MOVER: Jonathan Barfield, Board Member SECONDER: Luke Waddell, Board Member AYES: Adams, Hackney, Norris, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Cannon, Corder 4. Water Connection Reimbursement Agreement Ms. Fulton presented the item and summarized the contract. The 2019 Consent Order between the State of North Carolina and Chemours allowed for Chemours to connect properties with 10 ppt of GenX to public water systems where available. Chemours was also allowed to install individual granular activated charcoal or reverse osmosis systems to those properties, with Chemours deciding which option to offer the property owners. CFPUA and Chemours have established a framework to connect impacted properties to CFPUA'S water system where they are adjacent to CFPUA's lines. Under the agreement, Chemours will reimburse CFPUA for the actual project costs, including CFPUA's initial customer fees, design, construction, and connection to the water system, and a project management fee to CFPUA for Caj.')e Fear Public Utility Authority Page Minutes Authority Board January 10, 2024 project administration. The first phase will connect 100 properties identified by CFPUA, with cost estimated at $2,000,000. The agreement has an initial term of five years and may be extended with additional time and reimbursements. Staff received feedback from the Board and answered questions regarding the proposed agreement and the parameters of the Consent Order. CFPUA was not a party to the Consent Order. It was between the State Division of Environmental Quality and Chemours. Mr. McSmith answered questions regarding logistical issues with CFPUA managing the project. Following discussion, Mr. Barfield moved to approve the agreement. Mr. Briggs seconded the motion, and it passed unanimously. RESULT: APPROVED [UNANIMOUS] MOVER: Jonathan Barfield, Board Member SECONDER: Hollis Briggs, Board Member AYES: Adams, Hackney, Norris, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Cannon, Corder 5. Ordinance Appropriating Funding for the Chemours Funded Water Connections Project Mr. McLean presented the budget ordinance supporting the Chemours water connection agreement. Mr. Zapple moved to approve the ordinance. Mr. Briggs seconded the motion, and it passed unanimously. RESULT: APPROVED [UNANIMOUS] MOVER: Rob Zapple, Board Member SECONDER: Hollis Briggs, Board Member AYES: Adams, Hackney, Norris, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Cannon, Corder iv. Sustainability Committee The Committee did not meet in December. C. Consolidation Study Update 1. Consolidation Study Update Mr. Hackney reported that the Town is working with its consultant to review the feasibility study and financial pro forma. Caj.')e Fear Public Utility Authority Page Minutes Authority Board January 10, 2024 RESULT: REVIEWED VIII.OLD BUSINESS There was no old business. IX. AUTHORITY Q & A/CLOSING COMMENTS Ms. Adams thanked Ms. Bellamy for staff's work on the 2024 calendar and the illustration contest with students. Each Board member received a calendar. X. CLOSED SESSION Mr. Rivenbark moved to enter closed session to discuss a personnel matter. Mr. Zapple seconded the motion, and it passed unanimously. The Board entered closed session at 10:40 AM with Ms. Miles, Mr. Waldroup, Ms. Lawton, Ms. Robinson, and Ms. Pope present. Following discussion, Mr. Barfield moved to return to open session. Mr. Rivenbark seconded the motion, and it passed unanimously. The Board returned to open session at 10:45 AM. XI. ADJOURNMENT There was no further business to come before the Board, and Mr. Rivenbark moved to adjourn. Mr. Norris seconded the motion, and it passed unanimously. The meeting adjourned at 10:46 AM. The next regular CFPUA meeting will be Tuesday, February 14, 2024. The meeting will commence at 9:00 AM in Rooms 138 and 139, 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 10