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HomeMy WebLinkAbout2024-11-12 MinutesCAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES NOVEMBER 12, 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. She noted that Monday was Veterans' Day and recognized Messrs. Barfield and Rivenbark for their military service. On the Board's behalf, she thanked employees who are veterans for their service. II. DETERMINATION OF A QUORUM Mr. Rivenbark moved to excuse Messrs. Briggs and Corder. Mr. Zapple seconded the motion, and it passed unanimously. Those present were: Board members: Jennifer Adams, Chair Deans Hackney, Vice -Chair Jessica Cannon, Secretary Bill Smith, Authority Member Jonathan Barfield, Commissioner Charlie Rivenbark, Councilman Luke Waddell, Councilman Rob Zapple, Commissioner Staff: Kenneth Waldroup, Executive Director Nicolette Fulton, Attorney Beth Eckert, Deputy Executive Director Kevin Morris, Deputy Executive Director Lori Tayson, Human Resources Director Julia Vosnock Faircloth, Deputy Finance Director Cord Ellison, Chief Information Officer Vaughn Hagerty, Chief Communications Officer Cammie Bellamy, Public Information Officer Shannon Clayboss, Workforce Development Manager Sherry Brooks, Human Resources Specialist Makeba Robinson, Deputy Clerk Tim Holleman, Lower Cape Fear Water & Sewer Authority Donna S. Pope, Clerk III. ADOPTION OF AGENDA Mr. Rivenbark moved to adopt the day's agenda. Mr. Zapple seconded the motion, and it passed unanimously. IV. 2024 ANNUAL REPORT A. CFPUA 2024 Annual Report Mr. Waldroup presented the 2024 Annual Report. It was a momentous year for the Authority, with notable investments in the community and the passage of a $120 million operating budget for FY25 to support CFPUA's work. The Authority received the Water Research Foundation's 2024 Subscriber Impact Award and was named a Utility of the Future Today by the Water Environmental Federation. In September of this year, Mr. Waldroup was elected to the Board of Directors of the Association of Metropolitan Water Agencies. Staff completed an inventory of over 75,000 service lines required by the EPA's lead and copper rules and hosted a demonstration of service line replacements for state and federal officials. The EPA required public utilities to comply with portions of the rules by October 2024. CPFUA began the required inventory in 2020 and found no lead service lines within CFPUA's system but did find 592 galvanized service lines with lead appurtenances serving residential and commercial customers. CFPUA will replace all galvanized service lines on both public and private property, using funding from the bipartisan infrastructure law, with the major portion of that funding including principal forgiveness. The consolidation of Wrightsville Beach's water and sewer systems into CFPUA's system was approved by the Authority, the Town of Wrightsville Beach, and the Local Government Commission. The consolidation is designed to pay for itself, with no rate increases to CFPUA's existing customers to support the consolidation. Staff worked through renovations needed after a water heater failure in 2023 and opened a new customer service lobby. The Customer Service Department moved under the Finance Department to recognize organizational efficiencies. CFPUA's rates continue to be the most affordable of utilities in the region. Over $11 million in infrastructure has been conveyed to CFPUA during the year, and 1,213 new water meters have been installed. In February, the Board received an economic impact study that revealed every $1 million spent by CFPUA from 2013 through 2022 created 10.7 jobs annually in New Hanover County. Each dollar spent by CFPUA generated $1.66 in local economic input, and CFPUA helps to support 1,023 jobs in the local economy. The largest project that CFPUA will begin in the near future will be the Southside Wastewater Treatment Plant. The project will replace 50-year old infrastructure and increase plant capacity. Other projects underway or anticipated include the replacement of the Walnut Street sewer pump station and a water booster pump station along River Road to send treated drinking water from the Sweeney Water Plant to the Monterey Heights water system. CFPUA continues to work with New Hanover County to take water and sewer to the northern portion of the County. The project costs are shared between CFPUA and the County, with some funding from American Rescue Plan Act grants. On behalf of staff, Mr. Waldroup thanked Board members for their support of the Authority. Ms. Adams thanked staff and added that CFPUA continues to move forward and achieve higher and higher goals. V. APPROVAL OF MINUTES A. Approval of Minutes - Regular Meeting - October 9, 2024 Dr. Cannon presented the minutes from the October Board meeting. Mr. Barfield requested that the roll call be amended to reflect those present and those excused. There were no other corrections, and Mr. Waddell moved to approve the minutes. Mr. Hackney seconded the motion, and it passed unanimously. VI. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER There were no speakers. Mr. Waldroup reported that a customer may appear before the Board at a future meeting to discuss the addition of fluoride in CFPUA's water. The City began adding fluoride to its water system in the 1950s, and our Board affirmed its use in 2009. Board members asked Mr. Waldroup to provide them with information regarding fluoride and the current science and legal standing on its use. VII. CONSENT AGENDA Mr. Smith moved to approve the Consent Agenda, as presented. Mr. Barfield seconded the motion, and it passed unanimously. A. Ordinance Appropriating CWSRF Loan Proceeds for the Southside Wastewater Treatment Plant Replacement and Upgrade Project B. Resolution Accepting Low Interest State Loan for the Parallel Raw Water Transmission Main project. C. Ordinance Appropriating CWSRF Loan Proceeds and Reducing Transfers to the Parallel Raw Water Main Project D. Amendment #2 to Lower Cape Fear Water and Sewer Authority Interlocal Agreement. E. $787,750 Contract with Beheler Trucking Inc. for the hauling of biosolids. F. Authorization to Sell John Deere 270-D LC Excavator through GovDeals G. Authorization to Sell John Deere 590-D Excavator through GovDeals H. $260,300 Contract Amendment to Elevated WaterTank Condition Assessment and Improvement for Highfill Infrastructure P.0 I. Executive Director's update on Southside Wastewater Treatment Plant The item was informational. J. Bond Reimbursement Resolution - Multiple Projects Vill. NEW BUSINESS A. Administrative Reports 1. Attorney's Report Ms. Fulton did not have a report for open session. She requested a closed session to report on two items, a pending claim concerning the interbasin transfer request of Fuquay-Varina and th City of Asheboro, et al, v. the State of North Carolina. 2. Executive Director's Report i. Key Indicators The report was in the agenda packet for review. ii. Safety Report The report was in the agenda packet for review. iii. Environmental Report The report was in the agenda packet for review. iv. Strategic Plan Update The report was in the agenda packet for review. V. Economic Development Projects Update Mr. McSmith updated the Board on the status of economic development projects. He reported on permitting, funding, and construction progress. vi. 1,4 Dioxane Briefing Mr. Waldroup presented an overview of 1,4 dioxane and issues before the Environmental Management Commission (EMC). 1,4-dioxane is a synthetic industrial chemical used in many paint -related products and is also a byproduct of polyethylene terephthalate (PET) plastic. There are several industries along the Cape Fear River that have used or continue to use the compound. The closest to CFPUA's raw water intake is Alpek Polyester, formerly DAK Americas, located near Fayetteville. North Carolina has the third -highest concentration of 1,4-dioxane and the fourth - highest number of water systems impacted by it. The Cape Fear River basin is the most impacted region in the state. Although the EPA has classified the compound as a likely carcinogen, there is no federal maximum contaminant level (MCL) for 1,4-dioxane. The EPAs lifetime exposure health advisory is 0.35 parts per billion in drinking water, with a correlation of a 1 in 10,000 risk of cancer. State guidelines range from 0.25 PPB in New Hampshire to 1 PPB in California. NC DEQ has been monitoring 1,4-dioxane for several years. In 2019, the state issued notices of violation to Greensboro and Reidsville for high levels of the compound in treated wastewater effluent. In 2021, the Environmental Management Commission approved a Special Order of Consent with Greensboro to reduce concentrations wastewater treatment plant and to notify downstream pubic water systems of elevated levels in its discharges. The cities of Asheboro, Greensboro, and Reidsville challenged DEQ's authority regarding 1,4-Dioxane before NC Office of Administrative Hearings. In September of this year, Chief Administrative Law Judge van der Vaart ruled in favor of the plaintiffs, holding that DEQ exceeded its authority by using a standard of limits not approved through the State's rulemaking process. He ruled that limits set for the NPDES permits for Asheboro, Greensboro, and Reidsville were void and unenforceable. In October, DEQ filed a petition for judicial review in Wake County Supreme Court. Mr. Waldroup reviewed 1,4-dioxane levels in raw and finished water at the Sweeney plant. Biological filters and ozonation are currently used to remove the compound. Additional treatment would require a more robust ultraviolet light exposure and advanced oxidation process that could increase removal to 95 percent or more. Ms. Fulton and Mr. Waldroup believe that CFPUA's best course of action is to petition the Environmental Management Commission for rulemaking requiring 1,4-dioxane minimization plans that would achieve an 80 percent reduction in 1,4-dioxane from certain NPDES permit holders. The requested rule would apply to those entities discharging an average daily flow greater than 100,000 gallons per day and effluent with a 1,4-dioxane concentration greater than .35 parts per billion (PPB) or a permit holder whose discharge, combined with other sources, results in a concentration greater than .35 PPB at a downstream drinking water intake. Permit holders would submit quarterly reports to DEC detailing reductions, updated concentrations, and any modifications needed to a permit holder's minimization plan. Staff distributed CFPUA's letter to the EMC requesting rulemaking. Ms. Fulton and Mr. Waldroup answered questions from Board members regarding the Administrative Law Judge's ruling and approaches being pursued regarding 1,4- dioxane by others impacted in the state. Board members discussed the potential health effects of 1,4-dioxane. vii. CFPUA 2025 Meeting Schedule and EMC Attendance Ms. Pope presented options for the Authority meeting schedule for calendar year 2025. The Board rescheduled its September and November 2024 meetings so that Mr. Waldroup and/or Ms. Fulton could attend EMC meetings. Staff attendance at future EMC meetings is desirable. Board members reviewed the dates and directed staff to keep CFPUA's regular schedule of Board meetings the second Wednesday of each month. The Deputy Executives Directors will take a greater role in either attending EMC meetings to represent CFPUA or facilitating Board meetings in the absence of the Executive Director. B. Committee Reports 1. Executive Committee Executive Committee 11/5/24 Minutes The Committee minutes were in the agenda packet for review. Ms. Fulton answered questions regarding legal staffing. 2. Long Range Planning Committee LRP 10/24/2024 Minutes The Committee minutes were in the agenda packet for review. Parallel Raw Water Transmission Main project update Finance Committee Finance Committee 11/6/24 Minutes The Committee minutes were in the agenda packet for review. Monthly Financials Ms. Vosnock Faircloth presented the financial report. Debt coverage is good. Usage and system development fee revenues continue to trend downward. She answered questions regarding the October financial data. Mr. Waldroup answered questions regarding CFPUA's stock of materials on hand for construction and repairs and CFPUA's lobbyist contracts. iii. Resolution Accepting Low Interest State Loan for the Southside Wastewater Treatment Plant Replacement and Upgrade project Mr. Waldroup presented the item. Mr. Barfield moved to adopt the Resolution. Mr. Waddell seconded the motion, and it passed unanimously. 4. Sustainability Committee Sustainability 10/31/24 Minutes The Committee minutes were in the packet for review. ii. WEFTEC 2024 Dr. Cannon reported that several staff members had attended the WEFTEC conference. Several innovative technologies were presented that might be of future use to CFPUA. IX. OLD BUSINESS There was no old business. X. AUTHORITY Q & A / CLOSING COMMENTS Ms. Adams recognized Sara Eskew upon her completion of the UNC School of Government Clerks' School. Mr. Rivenbark informed those present that Skip Watkins, former County Commissioner and Authority member, recently passed away. XI. CLOSED SESSION Mr. Rivenbark moved to enter closed session to discuss Fuquay-Varina's interbasin transfer request and City of Asheboro, et al, v. State of North Carolina. Mr. Waddell seconded the motion, and it passed unanimously. The Board entered closed session at 10:20 AM, took a brief recess, and reconvened at 10:30 AM. The following staff members were present: Ms. Fulton, Ms. Eckert, Messrs. Waldroup and Morris, Ms. Robinson, and Ms. Pope. The Board received a report from Ms. Fulton and Mr. Waldroup and provided direction. Mr. Rivenbark moved to return to open session. Mr. Barfield 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 10:51 AM. The next regular Cape Fear Public Utility Authority meeting will be Wednesday, December 11, 2024. The Board will meet in Rooms 138 and 139, New Hanover County Administration Building, 230 Government Center Drive, Wilmington, North Carolina. The meeting will begin at 9:00 AM. Respectfully submitted, Donna S. Pope Clerk to the Board