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Home My WebLink About2024-02-14 MinutesCAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES FEBRUARY 14, 2024 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. Waddell moved to excuse Messrs. Briggs and Corder. Mr. Zapple seconded the motion, and it passed unanimously. II. DETERMINATION OF A QUORUM 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 Excused 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 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 Authority Linda Miles Miles Firm, PLLC CFPUA Consulting Attorney Present Nicolette Fulton Cape Fear Public Utility Deputy Attorney Present Cal.,)e Fear Public Utility Authority Page I Minutes Authority Board February 14, 2024 Authority Beth Eckert Cape Fear Public Utility Deputy Executive Dir. Enviro Mgt & Present Authority Sustainability John McLean Cape Fear Public Utility Chief Financial Officer Present Authority Carel Cape Fear Public Utility Deputy Executive Director - Engin. & Present Vandermeyden Authority Treatment Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Lori McKoy Cape Fear Public Utility Human Resources Director Present Authority Vaughn Hagerty Cape Fear Public Utility Communications Director Present Authority Cord Ellison Cape Fear Public Utility Chief Information Officer Present Authority Julia Faircloth Cape Fear Public Utility Deputy Chief Financial Officer Present Authority Gary McSmith Cape Fear Public Utility Assistant Engineering Director Present Authority Cammie Bellamy Cape Fear Public Utility Public Information Officer Present Authority Senator Michael North Carolina General Present Lee Assembly Rep. Deb Butler North Carolina General Present Assembly Rep. Ted Davis North Carolina General Present Assembly Makeba Robinson Cape Fear Public Utility Compliance Coordinator & Deputy Present Authority Clerk Judy Lawton Cape Fear Public Utility Executive Assistant & Deputy Clerk Present Authority Donna S. Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board III. ADOPTION OF AGENDA Mr. Waldroup requested that Item VII, 1, the Economic Impact Study Presentation, be moved to the Finance Committee report. Mr. Rivenbark moved to amend the agenda as recommended by staff. Mr. Waddell seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board -Regular Meeting -Jan 10, 2024 9:00 AM V. LEGISLATIVE RECOGNITION Caj.')e Fear Public Utility Authority Page 2 Minutes Authority Board February 14, 2024 Ms. Adams read the Resolution adopted at the January Authority meeting into the record. Mr. Waldroup presented framed copies of the Resolution to Representatives Butler and Davis and to Senator Lee. The Board and staff thanked the legislators for their support of CFPUA, LCFWASA, infrastructure needs, and health and safety of citizens. VI. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER There were no public speakers. VII. CONSENT AGENDA 1. $6,882,255.00 Construction Contract for the Walnut Street Pump Station (PS9) Replacement Project RESULT: APPROVED [UNANIMOUS] MOVER: Jonathan Barfield, Board Member SECONDER: William Norris, Board Member AYES: Adams, Hackney, Cannon, Norris, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Corder, Briggs 2. $660,700 Engineering Contract with McKim & Creed, Inc. for the Walnut Street Pump Station (PS9) Replacement Project RESULT: APPROVED [UNANIMOUS] MOVER: Jonathan Barfield, Board Member SECONDER: William Norris, Board Member AYES: Adams, Hackney, Cannon, Norris, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Corder, Briggs 3. $561,690.00 Construction Contract for the Porters Neck Elevated Water Tank Rehabilitation Project Mr. Vandermeyden answered clarification questions regarding the bid. RESULT: APPROVED [UNANIMOUS] MOVER: Jonathan Barfield, Board Member SECONDER: William Norris, Board Member AYES: Adams, Hackney, Cannon, Norris, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Corder, Briggs 4. Authorization to Sell 2015 Ford F-450 Service Body Crane Truck through GovDeals Caj.')e Fear Public Utility Authority Page Minutes Authority Board February 14, 2024 RESULT: APPROVED [UNANIMOUS] MOVER: Jonathan Barfield, Board Member SECONDER: William Norris, Board Member AYES: Adams, Hackney, Cannon, Norris, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Corder, Briggs 5. Resolution Accepting a State Loan for the Lead Gooseneck and Galvanized Water Service Line Replacement Project RESULT: APPROVED [UNANIMOUS] MOVER: Jonathan Barfield, Board Member SECONDER: William Norris, Board Member AYES: Adams, Hackney, Cannon, Norris, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Corder, Briggs 6. Ordinance Appropriating Funds for the Lead Gooseneck & Galvanized Water Service Line Project Mr. Vandermeyden answered clarification questions regarding the item. RESULT: APPROVED [UNANIMOUS] MOVER: Jonathan Barfield, Board Member SECONDER: William Norris, Board Member AYES: Adams, Hackney, Cannon, Norris, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Corder, Briggs 7. $347,000 Engineering Contract with W.K. Dickson & Co., Inc. to Assist with Implementing State Funding for the Replacement of Galvanized Water Service Lines RESULT: APPROVED [UNANIMOUS] MOVER: Jonathan Barfield, Board Member SECONDER: William Norris, Board Member AYES: Adams, Hackney, Cannon, Norris, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Corder, Briggs 8. Cost Recovery Fee for the Sidbury Road Water and Sewer Extensions Project to the Rate and Fee Schedule. Caj.')e Fear Public Utility Authority Page 4 Minutes Authority Board February 14, 2024 RESULT: APPROVED [UNANIMOUS] MOVER: Jonathan Barfield, Board Member SECONDER: William Norris, Board Member AYES: Adams, Hackney, Cannon, Norris, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Corder, Briggs 9. Audit Services Contract RESULT: APPROVED [UNANIMOUS] MOVER: Jonathan Barfield, Board Member SECONDER: William Norris, Board Member AYES: Adams, Hackney, Cannon, Norris, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Corder, Briggs VIII. NEW BUSINESS A. Administrative Reports i. Attorney's Report Ms. Miles had no report for open session. ii. Executive Director's Report 1. Key Indicators Messrs. Waldroup and McLean answered questions regarding the report. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ............... RESULT: REVIEWED 2. Safety Report ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ............... RESULT: REVIEWED 3. Environmental Report RESULT: REVIEWED 4. Strategic Plan Update ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ............... RESULT: REVIEWED 5. Quarterly CIP for 1st and 2nd Quarter Caj.')e Fear Public Utility Authority Page Minutes Authority Board February 14, 2024 RESULT: REVIEWED B. Committee Reports i. Executive Committee 1. Executive Committee - Regular- Feb 7, 2024, 10:00 AM RESULT: NO ACTION REQUIRED ii. Long Range Planning Committee 1. Long Range Planning Committee -Regular -Jan 25, 2024, 3:00 PM RESULT: NO ACTION REQUIRED iii. Finance Committee 1. Finance Committee -Regular Meeting- Feb 7, 2024, 9:00 AM ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: NO ACTION REQUIRED 2. Monthly Financials Mr. McLean presented the monthly financial data. December 31 represented 50 percent of the fiscal year complete, and expenditures were 47.21 percent of budget. January 31 represented 58.3 percent of the fiscal year complete, and revenues were 56.33 percent of budget. The unassigned fund balance was $39.78 million. Mr. McLean reported that growth assumptions for the current fiscal year were a little high. The state's change in how the maximum daily sewer use is calculated will result in lower system development charges. CFPUA received a $35 million low interest loan from the State Revolving Fund to go towards the Southside project. We may receive an additional $35 million from the State for Southside. Mr. McLean answered questions from Authority members regarding CFPUA's SDC calculation. Caj.')e Fear Public Utility Authority Page Minutes Authority Board February 14, 2024 Mr. Waldroup briefly discussed variables impacting the budget process. A staff budget workshop is scheduled for February 20, and the Board will have a stand- alone budget workshop this year. RESULT: REVIEWED 3. Economic Impact Study 1. Economic Impact Study Presentation Mr. McLean presented the item. The study examined CFPUA's impact on the local regional economy over the past ten years, with local being defined as New Hanover, Pender, and Brunswick Counties. The study revealed that each $1 million created an average of 10.7 jobs each year and that each $1.00 CFPUA spent generated $1.66 in economic output. CFPUA employees 340 people but impacts up to 1,400 jobs locally. CFPUA's economic impacts compare favorably to other regional utilities, including Fayetteville, Raleigh, Greensboro, and Charlotte. The study analyzed the impact that disruption of water service could create on the local economy. 37 percent of local businesses are considered water - dependent industry, and those businesses represent 40 percent of local jobs. Loss of water service could result in $70.4 - 93.2 million daily in revenue losses, depending on the length of an outage. Individual households could experience between $650 - 860 in daily losses. Messrs. McLean and Waldroup answered questions from Board members. The Board encouraged staff to present the report to the City, County, and local civic groups. RESULT: REVIEWED iv. Sustainability Committee The Sustainability Committee did not meet in January. C. Consolidation Study Update 1. Consolidation Study Update Mr. Hackney reported that the final consolidation report is complete and that the Board would discuss negotiations in closed session. Caj.')e Fear Public Utility Authority Page 7 Minutes Authority Board February 14, 2024 RESULT: REVIEWED IX. OLD BUSINESS There was no old business. X. AUTHORITY Q & A/CLOSING COMMENTS There were no additional comments or questions. XI. CLOSED SESSION Mr. Rivenbark moved to enter closed session for the following reasons: To receive a report on negotiations and provide instruction to staff; To receive information on confidential plans to protect public safety; and To receive advice from legal counsel regarding Nix v. Chemours and DuPont and CFPUA v. Chemours and DuPont. Mr. Waddell seconded the motion, and it passed unanimously. The Board entered closed session at 9:42 AM. They received reports from Messrs. Hackney, Waldroup, and Ellison, and a report and recommendation from Ms. Miles. Dr. Cannon moved to return to open session. Mr. Rivenbark seconded the motion, and it passed unanimously. The meeting returned to open session at 11:34 AM. Mr. Smith moved to comply with the Federal Judge's Order in Nix v. Chemours and DuPont and release customer names and addresses to the Plaintiffs' attorneys under the condition that the data be kept confidential. Mr. Norris seconded the motion, and it passed unanimously. XII. ADJOURNMENT Mr. Rivenbark moved to adjourn. Mr. Waddell seconded the motion, and it passed unanimously. The meeting adjourned at 11:30 AM. The next regular Cape Fear Public Utility Authority meeting will be Wednesday, March 13, 2024. The Board will meet in Rooms 138-139 of 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