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HomeMy WebLinkAbout2024-05-08 MinutesCAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES MAY 8, 2024 Room 139 Regular Meeting 9:00 AM 230 GOVERNMENT CENTER DRIVE WILMINGTON, NC 28403 ,IfIZ61ORG II. DETERMINATION OF A QUORUM Mr. Hackney called the meeting to order at 9:00 AM with a quorum present. Mr. Norris moved to excuse Ms. Adams, Messrs. Barfield and Zapple, and Mr. Rivenbark until his arrival. Mr. Rivenbark arrived at 9:05 AM. Attendee Name Organization Title Status Arrived Jennifer Adams Cape Fear Public Utility Chair Excused 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 Present 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 Commissioner Excused Authority Charlie Rivenbark Cape Fear Public Utility Councilman Present Authority Luke Waddell Cape Fear Public Utility Councilman Present Authority Rob Zapple Cape Fear Public Utility Commissioner Excused Authority Kenneth Waldroup Cape Fear Public Utility Executive Director Present Authority Nicolette Fulton Cape Fear Public Utility Authority Attorney Present Authority Cal.,)e Fear Public Utility Authority Page I Minutes Authority Board May 8, 2024 Caret Cape Fear Public Utility Vandermeyden Authority Beth Eckert Cape Fear Public Utility Authority John McLean Cape Fear Public Utility Authority Lori McKoy Cape Fear Public Utility Authority Cord Ellison Cape Fear Public Utility Authority Kristine Irick Cape Fear Public Utility Authority Shannon Clayboss Cape Fear Public Utility Authority Craig Wilson Cape Fear Public Utility Authority Matthew Tribett Cape Fear Public Utility Authority Julia Vosnock Cape Fear Public Utility Faircloth Authority Ben Guerrieri Cape Fear Public Utility Authority Cammie Bellamy Cape Fear Public Utility Authority Makeba Robinson Cape Fear Public Utility Authority Judy Lawton Cape Fear Public Utility Authority Sherry Brooks Cape Fear Public Utility Authority Ashley Rogers Cape Fear Public Utility Authority Deborah Leonard Cape Fear Public Utility Authority Donna S. Pope Cape Fear Public Utility Authority Deputy Executive Director - Engin. & Present Treatment Deputy Executive Dir. Enviro Mgt & Present Sustainability Chief Financial Officer Present Human Resources Director Present Chief Information Officer Present Customer Service Director Present Workforce Development Manager Present Assistant Operations Director Present Assistant Operations Director Present Deputy Chief Financial Officer Present Procurement / Budget Manager Present Public Information Officer Present Compliance Coordinator & Deputy Present Clerk Executive Assistant & Deputy Clerk Present HR Department Present HR Department Present HR Department Present Clerk/Executive Secretary to the Present Board III. ADOPTION OF AGENDA Mr. Hackney presented the day's agenda, with two amendments. First was a walk-in sole source contract to be placed under the Executive Director's report. Second was to move the Board budget discussion and adoption to the Finance Committee report, as the budget would be presented as a Finance Committee recommendation. Mr. Norris moved to adopt the amended agenda. Mr. Briggs seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES Caj.')e Fear Public Utility Authority Page Minutes Authority Board May 8, 2024 1. Authority Board -Regular Meeting -Apr 10, 2024 9:00 AM RESULT: ACCEPTED [UNANIMOUS] MOVER: Jessica Cannon, Secretary SECONDER: William Smith, Board Member AYES: Hackney, Cannon, Corder, Norris, Briggs, Smith, Rivenbark, Waddell EXCUSED: Adams, Barfield, Zapple 2. Authority Board -Special -Apr 16, 2024 1:30 PM RESULT: ACCEPTED [UNANIMOUS] MOVER: Jessica Cannon, Secretary SECONDER: William Smith, Board Member AYES: Hackney, Cannon, Corder, Norris, Briggs, Smith, Rivenbark, Waddell EXCUSED: Adams, Barfield, Zapple V. PRESENTATION Mr. Hackney presented Mr. Norris with a resolution expressing Board and staff's appreciation for his service as an Authority member. Mr. Corder moved to adopt the resolution. Mr. Rivenbark seconded the motion, and it passed unanmously. The group honored Mr. Norris with a standing ovation. VI. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER There were no public speakers. VII. ADOPTION OF FY25 BUDGET A. Public Hearing of FY25 Budget Mr. McLean presented an overview of the recommended budget for the fiscal year beginning July 1, 2024. The FY25 Operating Budget is $119,997,130. The FY2025 Capital Improvements Budget is $290,450,067. The recommended budget includes two new positions, a 3 percent market or cost of living raise for all employees, and a 3 percent merit pool. The combined water and wastewater System Development Charge is $5,735, which is $175 greater than last year. The budget is supported by a 4.6 percent rate increase, as directed by the Board at its budget workshop. That is a $3.37/month increase on the average bill. Caj.')e Fear Public Utility Authority Page Minutes Authority Board May 8, 2024 Mr. Rivenbark moved to open the budget hearing. Mr. Waddell seconded the motion, and it passed unanimously. There were no speakers regarding the budget, and Mr. Waddell moved to close the hearing. Mr. Corder seconded the motion, and it passed unanimously. Mr. Waddell stated that he wanted to discuss items that might change the budget and the strategic plan. Mr. Hackney recommended that the discussion take place during the Finance Committee report when the Board could vote on the Committee recommendation. VIII. CONSENT AGENDA 1. Hosted Call Center Software Renewal RESULT: APPROVED [UNANIMOUS] MOVER: William Smith, Board Member SECONDER: William Norris, Board Member AYES: Hackney, Cannon, Corder, Norris, Briggs, Smith, Rivenbark, Waddell EXCUSED: Adams, Barfield, Zapple 2. $40,374 sole source purchase with Swan Analytical USA, Inc. for water quality analyzer panels for the Monterey Heights production wells RESULT: APPROVED [UNANIMOUS] MOVER: William Smith, Board Member SECONDER: William Norris, Board Member AYES: Hackney, Cannon, Corder, Norris, Briggs, Smith, Rivenbark, Waddell EXCUSED: Adams, Barfield, Zapple 3. $618,700 contract amendment for McKim & Creed on the Motts Creek Pump Station Sewer Force Main Project RESULT: APPROVED [UNANIMOUS] MOVER: William Smith, Board Member SECONDER: William Norris, Board Member AYES: Hackney, Cannon, Corder, Norris, Briggs, Smith, Rivenbark, Waddell EXCUSED: Adams, Barfield, Zapple 4. $91,500 Contract Amendment for Sweeney Clearwells Rehab Caj.')e Fear Public Utility Authority Page 4 Minutes Authority Board May 8, 2024 RESULT: APPROVED [UNANIMOUS] MOVER: William Smith, Board Member SECONDER: William Norris, Board Member AYES: Hackney, Cannon, Corder, Norris, Briggs, Smith, Rivenbark, Waddell EXCUSED: Adams, Barfield, Zapple IX. NEW BUSINESS A. Administrative Reports i. Attorney's Report Ms. Fulton reported that she required a closed session to discuss Davis v. CFPUA and CFPUA v. Chemours and DuPont. She further reported that she had researched a question from the April Board meeting. CFPUA cannot regulate the cost of backflow preventer testing by private companies. ii. Executive Director's Report 1. Key Indicators Report RESULT: REVIEWED 2. Safety Report .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: REVIEWED 3. Environmental Report RESULT: REVIEWED 4. Strategic Plan Update Mr. Waddell discussed the recent IEB training for the Board He believed the training to be a waste of Board member time and stated that, while he was able to leave early, staff was required to attend. He asked why the name of the initiative had been changed from "diversity, equity, and inclusion" to "inclusion, equity, and belonging." He stated that, while not a huge impact on the budget, the training could have an effect on employee morale. He stated that larger organizations were moving away from DEI. He wanted to discuss removing DEI from the Strategic Plan but wished to do so when the full Board was present. Mr. Waldroup reported that most of the consultant's contract for IEB training had been paid from the FY24 budget. Approximately $67,000 is budgeted for Caj.')e Fear Public Utility Authority Page Minutes Authority Board May 8, 2024 FY25 for the second phase of training. Mr. Waldroup reported that staff could remove the $67,000 from the FY25 budget and provide the Board the opportunity to continue with training using in-house resources. The budget could be approved without the FY25 funding, and the Strategic Plan and the IEB initiative could be discussed at the August Board meeting. Mr. Waddell stated that he did not want to litigate the issue at this meeting out of respect for Board members who were absent. He asked why the name was changed from DEI to IEB. Mr. Waldroup reported that was his decision. Mr. Waldroup offered options to the Board, as follows: Delay the budget vote until May 23; Decouple the FY25 IEB expenditure from the budget and move forward with approving the budget; Continue to discuss the policy decisions at the Committee level. Mr. Corder stated that CFPUA has good staff and decisions should be made with sensitivity to employees. He did not wish training or policy to have a negative effect or be a burden on staff. Mr. Rivenbark stated that he had a personnel issue to discuss in closed session. There were no further questions or comments on the Executive Director reports. .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: REVIEWED 5. Walk-in Item - Zylem Sole Source Contract Mr. Tribbett presented the item. One of four pumps has failed at Pump Station 89, the largest wastewater pump station in the system. The pumps are a sole source item from Xylem Water Solutions USA, Inc. Mr. Tribbett answered questions regarding pump life and the differences between rebuilt and new pumps. Following a brief discussion, Mr. Norris moved to approve the item. Mr. Rivenbark seconded the motion, and it passed unanimously. B. Committee Reports i. Executive Committee 1. Executive Committee - Regular- May 1, 2024 10:00 AM Caj.')e Fear Public Utility Authority Page Minutes Authority Board May 8, 2024 RESULT: NO ACTION REQUIRED ii. Long Range Planning Committee 1. Long Range Planning Committee -Regular -Apr 25, 2024 3:00 PM .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: NO ACTION REQUIRED 2. FY2025 and 10-year Capital Improvements Plan for Recommendation to the Boa rd Mr. Vandermeyden presented the item, and he and Mr. McLean answered questions from Board members regarding the capital budget. Mr. Norris moved to adopt the FY25 CIP. Mr. Smith seconded the motion, and it passed unanimously. RESULT: APPROVED [UNANIMOUS] MOVER: William Norris, Board Member SECONDER: William Smith, Board Member AYES: Hackney, Cannon, Corder, Norris, Briggs, Smith, Rivenbark, Waddell EXCUSED: Adams, Barfield, Zapple 3. Southside Wastewater Treatment Plant Upgrade and Expansion's Site Layout. Mr. Wilson presented an overview of the Southside project layout and the design and construction timeline. The preliminary design package will be 30 percent complete in August, and a design estimate and guaranteed maximum price for site clearing and earthwork will be available in November. The design package will be 75 percent complete by July of 2025, and the final guaranteed maximum price proposal will be 75 percent complete by September 2025. Construction is set to begin in January 2026, with completion by 2030. Mr. Wilson answered questions regarding the project timeline, site elevation relative to the floodplain and storm water planning. The site is outside the 500- year flood plain and critical equipment will be elevated within the buildings. Mr. Rivenbark observed that the site has never been breached by the river. The site includes areas that can be used at a future time for expanded treatment options and for potable water reuse. .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: NO ACTION REQUIRED iii. Finance Committee Caj.')e Fear Public Utility Authority Page 7 Minutes Authority Board May 8, 2024 1. Finance Committee - Regular- May 1, 2024 9:00 AM 2. Adoption of FY25 Budget Ordinances Mr. Hackney recommended that the budget discussion be continued at the May 23 Special Meeting with the full Board present. Dr. Cannon moved the recommendation. Mr. Waddell seconded the motion, and it passed unanimously. .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: NO ACTION REQUIRED Next: 5/23/2024 9:00 AM 3. Monthly Financials Ms. Vosnock Faircloth presented the monthly financial reports and answered questions from Board members. iv. Sustainability Committee The Committee did not meet in April. X. OLD BUSINESS XI. AUTHORITY Q & A/CLOSING COMMENTS XII. CLOSED SESSION Mr. Smith moved to enter closed session to discuss Davis v. CFPUA, CFPUA v. Chemours and DuPont, and personnel matters. Mr. Norris seconded the motion, and it passed unanimously. The Board entered closed session at 10:10 AM, with Mr. Waldroup, Ms. Fulton, Ms. Robinson, Ms. Lawton, and Ms. Pope present. They received a report from Ms. Fulton and provided feedback on personnel items. Mr. Norris moved to return to open session. Mr. Waddell seconded the motion, and it passed unanimously. The Board returned to open session at 10:45 AM. Mr. Norris moved to approve Ms. Fulton's contract. Mr. Briggs seconded the motion, and it passed unanimously. XIII. ADJOURNMENT Mr. Waddell moved to adjourn. Mr. Smith seconded the motion, and it passed unanimously. The meeting adjourned at 10:47 AM. The next meeting of the Authority will be Thursday, May 23, 2024. The meeting will be a special meeting to discuss the FY25 budget and policy matters related to the budget's adoption. Caj.')e Fear Public Utility Authority Page Minutes Authority Board May 8, 2024 The Board will meet at 9:00 AM 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