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HomeMy WebLinkAbout2024-06-19 MinutesCAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES JUNE 19, 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. Barfield moved to excuse Messrs. Corder and Norris. Mr. Smith seconded the motion, and it passed unanimously. Mr. Corder arrived at 9:05 AM. 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 Utility Waldroup Authority Nicolette Fulton Cape Fear Public Utility Authority Cal.,)e Fear Public Utility Authority Title Chair Vice Chair Secretary Treasurer Board Member Board Member Board Member Board Member Board Member Board Member Board Member Executive Director Deputy Attorney Status Arrived Present Present Present Present Excused Present Present Present Present Present Present Present Present Pape I Minutes Authority Board June 19, 2024 Beth Eckert Cape Fear Public Utility Authority John McLean Cape Fear Public Utility Authority Lori McKoy Cape Fear Public Utility Authority Julia Vosnock Cape Fear Public Utility Faircloth Authority Jeff Adkins HDR Brian Murray Town of Wrightsville Beach, NC Sherry Brooks Cape Fear Public Utility Authority Elizabeth Severt Cape Fear Public Utility Authority Makeba Robinson Cape Fear Public Utility Authority Ethan Walters Cape Fear Public Utility Authority Jill Deaney Cape Fear Public Utility Authority Matt Hypes Cape Fear Public Utility Authority Matthew Tribett Cape Fear Public Utility Authority Kelsey Ellis Cape Fear Public Utility Authority Deborah Leonard Cape Fear Public Utility Authority Ben Guerrieri Cape Fear Public Utility Authority George House Brooks, Pierce law firm Alexander Elkan Brooks, Pierce law firm Judy Lawton Cape Fear Public Utility Authority Donna S. Pope Cape Fear Public Utility Authority Deputy Executive Dir. Enviro Mgt & Present Sustainability Chief Financial Officer Present Human Resources Director Present Deputy Chief Financial Officer Present Engineer Present CFO Present Human Resources Present Strategy & Performance Manager Present Compliance Coordinator & Deputy Present Clerk Strategy & Performance Present Environmental Management & Present Sustainability Engineering Manager Present Assistant Operations Director Present Strategy & Perfomance Fellow Present Human Resources Present Procurement / Budget Manager Present Present Present Executive Assistant & Deputy Clerk Present Clerk/Executive Secretary to the Present Board III. ADOPTION OF AGENDA IV. APPROVAL OF MINUTES 1. Authority Board -Regular Meeting -May 8, 2024 9:00 AM Cal.,)e Fear Public Utility Authority Page 2 Minutes Authority Board June 19, 2024 RESULT: ACCEPTED [UNANIMOUS] MOVER: Rob Zapple, Board Member SECONDER: Luke Waddell, Board Member AYES: Adams, Hackney, Cannon, Corder, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Norris 2. Authority Board -Special -May 23, 2024, 9:00 AM RESULT: ACCEPTED [UNANIMOUS] MOVER: Rob Zapple, Board Member SECONDER: Luke Waddell, Board Member AYES: Adams, Hackney, Cannon, Corder, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Norris V. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER There were no speakers. VI. CONSENT AGENDA Mr. Zapple requested that Items 5 and 9 be withdrawn from Consent for questions, and Mr. Smith requested the same for Item 7. Mr. Zapple moved to approve Items 1, 2, 3, 4, 6, 8, and 10. Mr. Rivenbark seconded the motion, and it passed unanimously. 1. Authorization for Design -Build Procurement -Water Mains to PFAS Contaminated Private Wells Project RESULT: APPROVED [UNANIMOUS] MOVER: Rob Zapple, Board Member SECONDER: Charlie Rivenbark, Board Member AYES: Adams, Hackney, Cannon, Corder, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Norris 2. Authorization for the Executive Director to Execute a $300,000 Contract Amendment with Hazen Engineering for the Water System Master Plan to Prioritized Extension of Water Mains to Areas with Private Wells Contaminated by PFAS Caj.')e Fear Public Utility Authority Page Minutes Authority Board June 19, 2024 RESULT: APPROVED [UNANIMOUS] MOVER: Rob Zapple, Board Member SECONDER: Charlie Rivenbark, Board Member AYES: Adams, Hackney, Cannon, Corder, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Norris 3. Authorization for the Executive Director to Execute a $150,000 Contract Amendment with Carollo Engineering for the Wastewater Master Plan to Prioritized Extension of Sewer Mains to Areas with Septic Tanks RESULT: APPROVED [UNANIMOUS] MOVER: Rob Zapple, Board Member SECONDER: Charlie Rivenbark, Board Member AYES: Adams, Hackney, Cannon, Corder, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Norris 4. $2,621,000 contract amendment with Calgon Carbon Corporation for carbon media reactivation and replacement service. RESULT: APPROVED [UNANIMOUS] MOVER: Rob Zapple, Board Member SECONDER: Charlie Rivenbark, Board Member AYES: Adams, Hackney, Cannon, Corder, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Norris 5. Resolution Accepting Loan Funding Offer for the Walnut Street Pump Station (PS-9) Replacement Ms. Vosnock Faircloth and Mr. Hypes answered funding questions regarding the item. Mr. Zapple moved to approve. Mr. Rivenbark seconded the motion, and it passed unanimously. RESULT: APPROVED [UNANIMOUS] MOVER: Rob Zapple, Board Member SECONDER: Charlie Rivenbark, Board Member AYES: Adams, Hackney, Cannon, Corder, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Norris 6. Lab Testing Contracts Caj.')e Fear Public Utility Authority Page 4 Minutes Authority Board June 19, 2024 RESULT: APPROVED [UNANIMOUS] MOVER: Rob Zapple, Board Member SECONDER: Charlie Rivenbark, Board Member AYES: Adams, Hackney, Cannon, Corder, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Norris 7. $875,000 Contract with RDL Private Utility Locating, LLC for Underground Utility Locating Services Mr. Tribbett answered questions regarding the bids and using contract workers for locates. Mr. Waldroup added that the winning company specializes in utility locates. Mr. Smith moved to approve the item. 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, Cannon, Corder, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Norris 8. Write- Offs RESULT: APPROVED [UNANIMOUS] MOVER: Rob Zapple, Board Member SECONDER: Charlie Rivenbark, Board Member AYES: Adams, Hackney, Cannon, Corder, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Norris 9. Resolution Appointing Deputy Finance Officer Mr. Zapple recognized Ms. Vosnock Faircloth and commended her work. He moved to approve the appointment. Mr. Waddell seconded the motion, and it passed unanimously. RESULT: APPROVED [UNANIMOUS] MOVER: Rob Zapple, Board Member SECONDER: Luke Waddell, Board Member AYES: Adams, Hackney, Cannon, Corder, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Norris 10. Resolution Raising the Micro -Purchase Threshold FY 25 Caj.')e Fear Public Utility Authority Page Minutes Authority Board June 19, 2024 RESULT: APPROVED [UNANIMOUS] MOVER: Rob Zapple, Board Member SECONDER: Charlie Rivenbark, Board Member AYES: Adams, Hackney, Cannon, Corder, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Norris VII. NEW BUSINESS A. Administrative Reports i. Attorney's Report ii. Executive Director's Report 1. Key Indicators Report Mr. Waldroup answered questions regarding a decrease in permits and requests for information. Mr. Zapple noted that low employee vacancy rates indicate good staffing levels. RSULT: REVIEWED 2. Safety Report ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .............. RSULT: REVIEWED 3. Environmental Report RSULT: REVIEWED 4. Strategic Plan Update ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .............. RSULT: REVIEWED 5. FY24 CIP Quarterly Status Report 3rd Quarter ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .............. RSULT: REVIEWED 6. Utility Consolidation Agreement with the Town of Wrightsville Beach Cal.,)e Fear Public Utility Authority Page Minutes Authority Board June 19, 2024 Mr. Waldroup introduced Mr. Adkins to report on the interlocal agreement with the Town of Wrightsville Beach. He recognized Mr. Murray, the Town's Chief Financial Officer, and he thanked Ms. Fulton for her work on the agreement. Mr. Adkins provided an overview of the process used for the consolidation study. The study began in October 2022 and was completed in January 2024. Considerations focused on capital improvements for the Town water and sewer system, organizational and operational items that included Town employees transferring to CFPUA, and development of a financial pro forma model. The preliminary capital improvement budget is $24 million, with implementation of the improvements over five to ten years. The financial pro forma model considered capital and equipment costs, the Town's payment of System Development Charges to CFPUA in the amount of $13.048 million, and the costs for CFPUA to serve the Town's customers. Town customers will be billed CFPUA's rates and fees. CFPUA will receive cash transfers in the amount of $35.6 million from the Town, and the Town will assign any settlement proceeds from its Chemours lawsuit to CFPUA. The agreement includes a pro -rated credit so that CFPUA will recover the costs future capital projects from Town customers and CFPUA's existing customers do not subsidize the consolidation. During the cost -recovery period, CFPUA will have one water and sewer system with two service areas. The Town will transfer real property, easements, encroachments, and fixed assets for water and sewer to CFPUA. Transferred property that is not used for water or sewer purposes will revert to the Town. CFPUA will operate the Town's wells until key projects and interconnections are completed and may retain the wells as a long-term tool for future water supply resiliency. The Town has seven budgeted employee positions in its water and sewer section. They will be eligible to transfer to CFPUA with no loss of pay, leave balances, or years in the local government retirement system. In addition, in FY2024, the General Assembly appropriated $17 million to CFPUA and $8 million to the Town of Wrightsville Beach to support the consolidation. That funding will be reimbursement for actual costs associated with the consolidation. Caj.')e Fear Public Utility Authority Page 7 Minutes Authority Board June 19, 2024 By state law, the consolidation agreement must be approved by the Local Government Commission. Under the terms of CFPUA's creation by the City of Wilmington and New Hanover County, the City and County Chief Engineers must provide technical review and approve the consolidation. The target transfer date from the Town to CFPUA is September 30, 2025. Matt Tribett will serve as CFPUA's consolidation project manager. Following Mr. Adkins' report, Mr. Waldroup requested approval of the consolidation agreement as a staff and Board liaison recommendation, contingent upon approval by the Town of Wrightsville Beach, the City and County Engineers, and the Local Government Commission. Mr. Rivenbark thanked Messrs. Hackney and Sneeden for their work and dedication representing CFPUA during the consolidation. Dr. Cannon noted the monetary contribution of the state to the consolidation. Board members asked Messrs. Adkins and Waldroup questions regarding fees and charges to the Town and its customers, transferring employees, and water quality of the Town's wells. Following questions, comments, and discussion, Mr. Rivenbark moved to approve the agreement. Mr. Briggs seconded the motion, and it passed unanimously. RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark, Board Member SECONDER: Hollis Briggs, Board Member AYES: Adams, Hackney, Cannon, Corder, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Norris 7. Datacenter Equipment Enterprise Licensing Agreement Mr. Ellison presented the item and answered questions members. Mr. Rivenbark moved to approve the agreement seconded the motion, and it passed unanimously. from Authority . Mr. Waddell Caj.')e Fear Public Utility Authority Page Minutes Authority Board June 19, 2024 RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark, Board Member SECONDER: Luke Waddell, Board Member AYES: Adams, Hackney, Cannon, Corder, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Norris 8. Ordinance Appropriating Rent Abatement Proceeds to the 235 Government Center Drive Rehab Project Ms. Vosnock Faircloth presented the item. Mr. Rivenbark moved to adopt the budget ordinance. Mr. Zapple seconded the motion, and it passed unanimously. RESULT: APPROVED [UNANIMOUS] MOVER: Charlie Rivenbark, Board Member SECONDER: Rob Zapple, Board Member AYES: Adams, Hackney, Cannon, Corder, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Norris 9. Recommendation to Cancel the July Board Meeting Ms. Pope presented the item. Mr. Briggs moved to cancel the July 3 Finance and Executive Committee meetings and the July 10 Board meeting. Mr. Waddell seconded the motion, and it passed unanimously. Ms. Adams reported that she and Messrs. Waddell and Zapple will serve as the Fiscal Year Nominating Committee. She requested that Board members let one of them know if they wish to serve as an officer or if they wish to join a different Board Committee. RESULT: APPROVED [UNANIMOUS] MOVER: Hollis Briggs, Board Member SECONDER: Luke Waddell, Board Member AYES: Adams, Hackney, Cannon, Corder, Briggs, Smith, Barfield, Rivenbark, Waddell, Zapple EXCUSED: Norris B. Committee Reports i. Executive Committee 1. Executive Committee -Regular -Jun 5, 2024, 10:00 AM Caj.')e Fear Public Utility Authority Page Minutes Authority Board June 19, 2024 RESULT: NO ACTION REQUIRED ii. Long Range Planning Committee The Committee did not meet in May. iii. Finance Committee 1. Finance Committee -Regular -Jun 5, 2024, 9:00 AM .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: NO ACTION REQUIRED 2. Monthly Financials Ms. Vosnock Faircloth presented the April and May financial data. She and Mr. McLean answered questions regarding cash reserves being lower than budgeted. .. ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... .................. RESULT: REVIEWED iv. Sustainability Committee The Committee did not meet in May. VIII.OLD BUSINESS IX. AUTHORITY Q & A/CLOSING COMMENTS There were no further questions or comments. X. CLOSED SESSION Mr. Smith moved to enter closed session to discuss contract negotiations, a potential claim, and CFPUA v. Chemours and DuPont. Mr. Corder seconded the motion, and it passed unanimously. The meeting recessed for ten minutes and entered closed session at 10:10 AM. The Board received a report from Ms. Fulton and Messrs. House, Elkan, and Waldroup. Mr. Rivenbark left the meeting at 10:35 AM. The Board returned to open session at 11:14 AM. Mr. Waddell moved to approve an agreement for sewer capacity allocation for a period not to exceed ten years to Trask Properties in exchange for a utility easement. Mr. Corder seconded the motion, and it passed unanimously. XI. ADJOURNMENT Mr. Waddell moved to adjourn. Mr. Corder seconded the motion, and it passed unanimously. The meeting adjourned at 11:15 AM. Caj.')e Fear Public Utility Authority Page 10 Minutes Authority Board June 19, 2024 The next regular meeting of the Cape Fear Public Utility Authority will be Wednesday, August 14, 2024. The Board will meet 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 II