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HomeMy WebLinkAbout2024-03-13 MinutesCAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES MARCH 13, 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. Rivenbark moved to excuse Messrs. Corder and Norris. Mr. Waddell seconded the motion, and it passed unanimously. Attendee Name Organization Jennifer Adams Cape Fear Public Utility Authority Deans Hackney Cape Fear Public Utility Authority Jessica Cannon Cape Fear Public Utility Authority Wesley Corder Cape Fear Public Utility Authority William Norris Cape Fear Public Utility Authority Hollis Briggs Cape Fear Public Utility Authority William Smith 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 Waldroup Utility Authority Linda Miles Miles Firm, PLLC Title Status Arrived Departed Chair Present Vice Chair Present Secretary Present Treasurer Excused Board Member Excused Board Member Present Board Member Present Commissioner Present Councilman Present Councilman Present Commissioner Present Executive Director Present CFPUA Consulting Attorney Present 10:18 AM Cal.,)e Fear Public Utility Authority Page I Minutes Authority Board March 13, 2024 Beth Eckert Cape Fear Public Utility Authority John McLean Cape Fear Public Utility Authority Carel Cape Fear Public Vandermeyden 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 Cammie Bellamy Cape Fear Public Utility Authority Gary McSmith Cape Fear Public Utility Authority Julia Faircloth Cape Fear Public Utility Authority James Miles Ann Whitehurst Abigail Mann Becky Shuford Pam Holding Mike Brown Tom Morgan Janice Gaines Rock Hill citizens Donna S. Pope Cape Fear Public Utility Authority Deputy Executive Dir. Enviro Present Mgt & Sustainability Chief Financial Officer Present Deputy Executive Director - Present Engin. & Treatment Customer Service Director Present Human Resources Director Present Communications Director Present Chief Information Officer Present Public Information Officer Present Assistant Engineering Director Present Deputy Chief Financial Officer Present Present Present Present Present Present Present Present Present Present Clerk/Executive Secretary to Present the Board III. ADOPTION OF AGENDA Mr. Waddell moved to adopt the day's Agenda. Mr. Briggs seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board -Regular Meeting -Feb 14, 2024 9:00 AM Caj.')e Fear Public Utility Authority Page 2 Minutes Authority Board March 13, 2024 RESULT: ACCEPTED [UNANIMOUS] MOVER: Jessica Cannon, Secretary SECONDER: William Smith, Board Member AYES: Adams, Hackney, Cannon, Corder, Norris, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple V. RESOLUTION FOR LINDA MILES Ms. Adams presented a Resolution honoring Ms. Miles on the occasion of her retirement. The Miles Firm contracted with CFPUA as Authority counsel in 2009, and she has worked with the Board and staff since then. Ms. Miles was instrumental in drafting and overseeing the fulfillment of a Consent Order with the Environmental Protection Agency for issues that pre- dated CFPUA's formation. Her knowledge of environmental regulations, North Carolina and Federal law, and her extensive contacts within the legal and environmental community have been a vital part of CFPUA's response to PFAS contamination in the raw water supply from the Cape Fear River. Mr. Rivenbark moved to adopt the Resolution. Mr. Waddell seconded the motion, and it passed unanimously. Board members thanked Ms. Miles for her guidance and her sound legal counsel. Ms. Miles thanked Board members for their integrity and commitment to fairness and equity for customers. She stated that it had been an honor to work with Board members and staff of such high caliber. She thanked her husband and friends for their support and recognized former Board Chairman Mike Brown, and CFPUA's first Human Resources Director, Tom Morgan, for attending the meeting to honor her. VI. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER There were no public speakers. VII. CONSENT AGENDA 1. $243,900 Amendment to Highfill Infrastructure Engineering, P.C.'s On -Call Contract for Additional Professional Services for Completion of Ongoing Projects Caj.')e Fear Public Utility Authority Page Minutes Authority Board March 13, 2024 RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark, Councilman SECONDER: William Smith, Board Member AYES: Adams, Hackney, Cannon, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Corder, Norris 2. $400,000 Engineering Contract with WithersRavenel, Inc. for Water Service Connections Pursuant to the Water Connection Reimbursement Agreement with The Chemours Company FC, LLC RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark, Councilman SECONDER: William Smith, Board Member AYES: Adams, Hackney, Cannon, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Corder, Norris 3. Authorization to Sell 1998 Gradall 524D-3S Telehandler through GovDeals RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark, Councilman SECONDER: William Smith, Board Member AYES: Adams, Hackney, Cannon, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Corder, Norris 4. $1,221,092.29 Design -Build Guaranteed Maximum Price contract for Pine Valley Construction Company, LLC. for the repairs and renovation of CFPUA's administration 107 n 11141 a RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark, Councilman SECONDER: William Smith, Board Member AYES: Adams, Hackney, Cannon, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Corder, Norris 5. Ordinance Appropriating Transfers to the 235 Government Center Dr. Rehab Project RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark, Councilman SECONDER: William Smith, Board Member AYES: Adams, Hackney, Cannon, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Corder, Norris 6. $264,399.29 contract to purchase furniture for CFPUA's administration building. Caj.')e Fear Public Utility Authority Page 4 Minutes Authority Board March 13, 2024 Staff answered questions regarding the furniture contract and the upgrades to offices. RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark, Councilman SECONDER: William Smith, Board Member AYES: Adams, Hackney, Cannon, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Corder, Norris VIII. NEW BUSINESS A. Administrative Reports i. Attorney's Report ii. Executive Director's Report Mr. Waldroup invited Board members to the Annual Employee Years of Service Awards Breakfast. The breakfast will be held Friday, April 5, from 7-10 AM at UNC-W. 1. Key Indicators Mr. McLean answered questions regarding customer service and financial data in the report. Dr. Cannon requested a brief update on affordability measures. Mr. McLean reported that affordability is defined as what percentage of income a customer pays for water and sewer services. The comparison data is specific for New Hanover County, with the most recent self-sufficiency income being $60,000 and the median income being $62,000. He answered questions regarding the affordability metric and the sources of data. Mr. Waldroup reported that water and sewer utilities support continued funding of the Federal Low Income Household Water Assistance Program (LIHWAP). North Carolina was one of the states that made best use of the funding during the pandemic. He has an upcoming trip to Washington to discuss LIHWAP with our delegation staff. Mr. Waldroup reported that CFPUA is cooperating with WaterWay NC to develop a pilot program that can help to address chronic need for water -sewer bill assistance. The program would provide recurring assistance instead of waiting until a customer was facing their water being shut off. Caj.')e Fear Public Utility Authority Page Minutes Authority Board March 13, 2024 Mr. Waldroup thanked City and County Board members for the support of their governing bodies in providing funding for customer assistance through DHHS. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ............... RESULT: REVIEWED 2. Safety Report RESULT: REVIEWED 3. Environmental Report ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ............... RESULT: REVIEWED 4. Strategic Plan Update Mr. Waldroup reported that CFPUA has engaged a consultant to support the DEI directive from the Board's Strategic Plan. The consultant will work with Ms. Claypool and an internal team. Workshops are being scheduled for April 25-26, and Board members will be invited to attend a session. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ............... RESULT: REVIEWED B. Committee Reports i. Executive Committee 1. Executive Committee - Regular- Mar 6, 2024 10:00 AM ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ............... RESULT: NO ACTION REQUIRED ii. Long Range Planning Committee 1. Long Range Planning Committee - Regular- Feb 26, 2024 10:30 PM RESULT: NO ACTION REQUIRED 2. FY-2025 and 10-year DRAFT Capital Improvements Plan The FY25 capital improvements plan was reviewed in a separate workshop following the Board meeting. Caj.,)e Fear Public Utility Authority Page Minutes Authority Board March 13, 2024 RESULT: REVIEWED Next: 3/13/202410:30 AM 3. Prioritization of Water Main Extensions to Private Wells Funded by $18 million Special Appropriation Mr. McSmith presented the item. In 2023, the General Assembly appropriated $18 million for drinking water extensions for unserved communities in New Hanover County with wells impacted by PFAS. Impacted wells are located in several areas of the County, with varying degrees of PFAS and/or GenX. The $18 million appropriation is not sufficient to connect all unserved communities in the County. DEQ's Division of Water Infrastructure administers the funds. Staff recommends following a scoring method used by DEQ for the bipartisan infrastructure law's emerging contaminants project funding. The established methodology considers health -based scores and disadvantaged communities. Using the DEQ methodology, staff recommends the extension of water service to the Rock Hill, Chair Road, Oakley, and Alandale communities. Project funding will cover engineering and construction costs, all connection fees and system development charges. Customers will be responsible for their monthly water bills. In North Carolina, local governments cannot require connection to water mains unless property is located in an area where the drinking water well is contaminated or likely to become contaminated. Staff will develop a public education program to explain the project, the funding, and to encourage property owners to connect. Staff recommended exploring the possibility of an interlocal agreement with the County requiring mandatory connections for properties with wells contaminated by PFAS. That would require a determination by the County Health Director that wells are contaminated or likely to become contaminated. For some properties with levels of well contamination covered under the State's Consent Order with Chemours that are adjacent to CFPUA water mains, Chemours will pay for connection to CFPUA's system. The County has funded a prioritization study for both water and sewer expansion. Once completed, staff can utilize it for further prioritization of projects. Caj.')e Fear Public Utility Authority Page 7 Minutes Authority Board March 13, 2024 Board members discussed the limitations created by CFPUA's inability to require connection for water. Staff presented options to lessen the risks of spending the funds should the County not pursue a declaration of contamination. As part of an education program in the project communities, staff could request a commitment from owners to connect. The Board could set a threshold number of properties to connect, and if that number is not met, staff can re -prioritize the project and funding. Mr. Barfield moved to proceed with the projects using staff's recommendations. Mr. Smith seconded the motion. Following additional discussion, Ms. Adams called the question, and it passed unanimously. Ms. Adams recognized members of the Rock Hill community who had attended the meeting. She thanked them for their support and advocacy and encouraged them to connect with their neighbors to explain the project and the advantages of connection to the system. .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: REVIEWED iii. Finance Committee 1. Finance Committee - Regular- Mar 6, 2024 9:00 AM RESULT: NO ACTION REQUIRED 2. Monthly Financials Mr. McLean presented the monthly financial data. The unassigned fund balance is $42 million. Mr. McLean presented the budget calendar for the fiscal year beginning July 1, 2024. Staff will report on budget drivers at the April 10 meeting, and the budget workshop will be held April 16. The FY25 Budget hearing will be held at the May 8 Authority meeting. Mr. Waldroup added that staff anticipates bringing the budget to the Board for adoption in May. .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: REVIEWED iv. Sustainability Committee The Committee did not meet in February. IX. OLD BUSINESS There was no old business. Caj.')e Fear Public Utility Authority Page Minutes Authority Board March 13, 2024 X. AUTHORITY Q & A/CLOSING COMMENTS There were no additional comments or questions. XI. CLOSED SESSION Mr. Rivenbark moved to enter closed session to discuss a personnel matter. Mr. Briggs seconded the motion, and it passed unanimously. The Board entered a brief recess at 10:25 AM and returned for closed session at 10:35 AM. Following a report from the Chair, Mr. Rivenbark moved to return to open session. Mr. Briggs seconded the motion, and it passed unanimously. The Board returned to open session at 10:55 AM. Mr. Barfield moved to appoint Ms. Fulton as Interim Attorney for the Board, effective immediately, with a 10 percent increase in salary. Mr. Briggs seconded the motion, and it passed unanimously. XII. ADJOURNMENT Mr. Smith moved to adjourn. Mr. Rivenbark seconded the motion, and passed unanimously. The Board adjourned at 10:56 AM. The next regular Cape Fear Public Utility Authority meeting will be Wednesday, April 10, 2024, beginning at 9:00 AM. The Board will meet in Rooms 138-139 in the New Hanover County Administration Building, 235 Government Center Drive, Wilmington, North Carolina. Respectfully submitted, Donna S. Pope Clerk to the Board Caj.')e Fear Public Utility Authority Page