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HomeMy WebLinkAbout2023-01-11 Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES JANUARY 11, 2023 Lucie Harrell Conference Room Regular Meeting 9:00 AM 230 GOVERNMENT CENTER DRIVE WILMINGTON, NC 28403 I. CALL TO ORDER II. DETERMINATION OF A QUORUM Ms. Adams called the meeting to order at 9:00 AM with a quorum present. Mr. Norris moved to excuse Mr. Corder. Mr. Rivenbark seconded the motion, and it passed unanimously. Attendee Name Organization Title Status Arrived Jennifer Adams Cape Fear Public Utility Chair Present Authority Wesley Corder Cape Fear Public Utility Vice-Chair Excused Authority Jessica Cannon Cape Fear Public Utility Secretary Present Authority William Norris Cape Fear Public Utility Treasurer Present Authority Deans Hackney Cape Fear Public Utility Board Member Present Authority Hollis Briggs Cape Fear Public Utility Board Member Present Authority Larry Sneeden Cape Fear Public Utility Board Member Present Authority Jonathan Barfield Cape Fear Public Utility Commissioner Present 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 Present Authority Kenneth Waldroup Cape Fear Public Utility Executive Director Present Authority Linda Miles Cape Fear Public Utility CFPUA Consulting Attorney Present Authority Carel Vandermeyden Cape Fear Public Utility Deputy Executive Director Present Authority Cal.,)e Fear Public Utility Authority Page I Minutes Authority Board January 11, 2023 Frank Styers Cape Fear Public Utility Deputy Executive Director Present Authority Beth Eckert Cape Fear Public Utility Director of EMD Present Authority John McLean Cape Fear Public Utility Chief Financial Officer Present Authority Lori McKoy Cape Fear Public Utility Human Resources Director Present Authority Elizabeth Severt Cape Fear Public Utility Strategy& Performance Present Authority Manager Nicolette Fulton Cape Fear Public Utility Deputy Attorney Present Authority Judy Lawton Cape Fear Public Utility Executive Assistant Present Authority Donna S. Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board Janice Gaines& Rockhill Community Present Others III. ADOPTION OF AGENDA Mr. Rivenbark moved to adopt the day's Agenda. Mr. Zapple seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Dec 14, 2022 9:00 AM ....... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... RESULT: ACCEPTED[UNANIMOUS] MOVER: Larry Sneeden, Board Member SECONDER: Deans Hackney, Board Member AYES: Adams,Cannon, Norris,Hackney, Briggs,Sneeden, Barfield, Rivenbark,Waddell, Zapple EXCUSED: Corder V. PUBLIC COMMENTS -4 MINUTE LIMIT PER SPEAKER There were no speakers. Rockhill Community members were present to observe and answer questions if there were any for them. VI. CONSENT AGENDA 1. $3,241,475 Carolina Civilworks Contract Award for Market Street and Porters Neck Road Sewer Improvements Mr. Styers presented the item and showed the project area on an overhead map. Portions of Market Street will be closed for eight weeks with traffic re-routed for Porters Caj.')e Fear Public Utility Authority Page 2 Minutes Authority Board January 11, 2023 Neck Road and the shopping center at the southeast intersection of the two roads. Mr. Styers explained the improvements that will be made to the sewer system as part of the project. The work should begin within three weeks. Following clarification questions, Mr. Rivenbark moved to approve the item. Mr. Norris seconded the motion, and it passed unanimously. ....... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... RESULT: APPROVED[UNANIMOUS] MOVER: Charlie Rivenbark,Councilman SECONDER: William Norris,Treasurer AYES: Adams,Cannon, Norris,Hackney, Briggs,Sneeden, Barfield, Rivenbark,Waddell, Zapple EXCUSED: Corder 2. $131,400 McKim & Creed Amendment # 3 for Market Street and Porters Neck Road Sewer Improvements ....... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... RESULT: APPROVED[UNANIMOUS] MOVER: William Norris,Treasurer SECONDER: Charlie Rivenbark,Councilman AYES: Adams,Cannon, Norris,Hackney, Briggs,Sneeden, Barfield, Rivenbark,Waddell, Zapple EXCUSED: Corder 3. $820,500 Consultant Contract with W.K. Dickson for the Sidbury and Greenview Force Mains Project ....... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... RESULT: APPROVED[UNANIMOUS] MOVER: Charlie Rivenbark,Councilman SECONDER: Rob Zapple,Commissioner AYES: Adams,Cannon, Norris,Hackney, Briggs,Sneeden, Barfield, Rivenbark,Waddell, Zapple EXCUSED: Corder 4. $141,200 McKim & Creed Contract Amendment #2 for Northern Pump Station and Force Main Design Phase A ....... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... RESULT: APPROVED[UNANIMOUS] MOVER: Charlie Rivenbark,Councilman SECONDER: Rob Zapple,Commissioner AYES: Adams,Cannon, Norris,Hackney, Briggs,Sneeden, Barfield, Rivenbark,Waddell, Zapple EXCUSED: Corder VII. NEW BUSINESS Caj.')e Fear Public Utility Authority Page Minutes Authority Board January 11, 2023 A. Administrative Reports i. Attorney's Report Ms. Miles did not have a report and did not require a closed session. ii. Executive Director's Report Mr. Waldroup reported that staff will participate in the Martin Luther King,Jr. parade on January 16. He invited Board members to participate. 1. Key Indicators Report Mr. Vandermeyden answered questions regarding flow diversion between the two wastewater treatment plans. Mr. Waldroup updated the Board on new meter sets and accommodations staff has made in light of supply chain issues for new meters. CFPUA is waiting for 1,400 meters that were ordered in June 2021. RESULT. REVIEWED 2. Safety Report RESULT. REVIEWED 3. Environmental Report RESULT. REVIEWED 4. Strategic Plan Update RESULT. REVIEWED 5. Rock Hill Community Mr. Waldroup summarized the growth policy the Board adopted in 2013. The policy was developed following several months of staff and Board study and included Board workshops and stakeholder input. The policy included growth through development ("growth pays for growth"), growth through partnerships with other governmental units such as the County or City, and expansion into existing neighborhoods. CFPUA partnered with New Hanover County to add the Heritage Park community to both water and sewer and the Marquis Hills neighborhood to sewer. The 2013 policy incorporated CFPUA's ordinance for a petition process whereby communities could request service. CFPUA could then require property owners Caj.')e Fear Public Utility Authority Page 4 Minutes Authority Board January 11, 2023 to connect to water and/or sewer and pay the associated charges. In 2015, the legislature eliminated mandatory customer connection for water projects. CFPUA may still mandate connection for sewer projects. The 2013 policy included a calculation called the Debt Recovery Allowance (DRA) which could be used to determine how much funding CFPUA could contribute to a project without raising rates. Pursuant to legislative changes in 2017 that defined the methodology for calculating System Development Charges (SDCs), the DRA is no longer a viable method that CFPUA can use to calculate funds. The s.e._e .t SDC methodologyaddresses "buy-in" into existing infrastructure and t„q at.......i5.. :t.Ii.p ......does not allow for calculations for future, projected infrastructure. CFPUA converted to the "buy-in" SDC calculation before it became state law. In recent months, New Hanover County property owners whose wells have been tested by Chemours' contractors under the state Consent Order have requested service from CFPUA. This includes the Rockhill Road community, members of which attended the November Board meeting to request assistance from CFPUA and/or the County. Among other remedies for PFAS contamination, the Consent Order allows for Chemours to fund connection to a public water supply. The Consent Order sets a cost limit per customer for such connections. The Consent Order does not authorize remedies for PFAS that are detectable but fall beneath 2r 0L.1tside o E the thresholds identified in the Consent Order. Mr. Waldroup reported that staff believes the 2013 growth policy needs to be revised. The DRA is no longer a viable calculation to use in determining .pa e.i].:t.i.a„N 9 @++4 rate impacts. The statutory restriction against mandatory connection for water greatly limits CFPUA's ability to recover costs of expansion. Staff recommended the following actions: 1. Send the 2013 Growth Policy to the Long Range Planning and Finance Committees for study and recommendations, holding a future Board workshop with policy revisions as the topic; 2. Explore partnerships with the County and/or City for growth projects; and 3. Pursue grants such as the State Revolving Fund monies to support growth projects. Caj.')e Fear Public Utility Authority Page Minutes Authority Board January 11, 2023 Redefining the DRA could be a component of a revised growth policy and could help determine if or how CFPUA could fund projects or a portion thereof. All the recommendations could support a new policy that would include requests for service from existing neighborhoods, in addition to refining other types of growth projects and their funding. Mr. Waldroup reported that CFPUA did not receive grant funding in 2022 for expansion projects but has re-applied for State Revolving Fund grants including PFAS contamination data. One of those applications was in the Rockhill area of the County. Board members briefly discussed the State's 2018 Consent Order with Chemours and changing technology that allow for more precise measurements of PFAS since that time. They discussed ways in which CFPUA could assist residents in addressing PFAS quickly and cost effectively, and Mr. Waldroup reported that staff and legal counsel would study options suggested by Board members. Messrs. Barfield and Zapple supported County participation in service expansions within the unincorporated areas of New Hanover County. Mr. Barfield reminded the Board and staff that the Marquis Hills and Heritage Park projects were addressed as public health issues and he and citizens believe that PFAS contamination is a public health issue. Mr. Barfield encouraged CFPUA to take a pro-active stance in addressing such issues and added that some communities could be connected to existing infrastructure. Mr. Waldroup reported that he has met with the County Manager and that Health Department staff has been informed of the situation. Board members supported revising and refining the 2013 Growth Policy and directed staff to expedite the process of committee review. Ms. Adams and Mr. Hackney suggested a monthly update to the Board, similar to the consolidation study update. Following discussion, Mr. Norris moved to remand the growth policy, first to the Long Range Planning Committee and then the Finance Committee. Mr. Rivenbark seconded the motion, and it passed unanimously. Mr. Sneeden requested that community members interested in water and sewer services be kept informed of progress on the policy. Caj.')e Fear Public Utility Authority Page Minutes Authority Board January 11, 2023 RESULT: REVIEWED Next: 1/26/2023 3:00 PM B. Committee Reports i. Executive Committee 1. Executive Committee - Regular-Jan 4, 2023 10:00 AM RESULT. NO ACTION REQUIRED ii. Long Range Planning Committee The Committee did not meet in December. iii. Finance Committee 1. Finance Committee - Regular Meeting-Jan 4, 2023 9:00 AM RESULT. NO ACTION REQUIRED 2. Monthly Financials Mr. McLean presented the monthly financial data. With 50 percent of the fiscal year finished on December 31, revenues are at 52.56 percent. The unassigned fund balance is $49,872,840. Mr. McLean reported that staff has begun preliminary preparation for the FY2024 budget, for the fiscal year beginning July 1, 2023. Mr. Waldroup added that staff is continually developing and refining capital projects within the ten- year CIP. Capital investments are a critical component of the budget and rates. RESULT. REVIEWED 3. Data Management RFQ RESULT. REVIEWED 4. WIFIA Funding for SSWWTP Replacement RESULT. REVIEWED iv. Sustainability Committee 1. Sustainability Committee - Regular- Dec 7, 2022 11:00 AM Caj.')e Fear Public Utility Authority Page 7 Minutes Authority Board January 11, 2023 RESULT: NO ACTION REQUIRED 2. Defining Affordability Outcomes and Metrics Mr. McLean presented the item. The Committee has been studying affordability for several months. There is no commonly-accepted standard setting an affordability standards for water and sewer utilities. The traditional method used by utilities, including CFPUA, is to measure the affordability of rates against the median household income. Staff has developed a more granular methodology using census tract data specific to our community. This allows for affordability to be measured against the income for different communities through census tracts. In general, customers in lower-income census tracts receive bills that are a greater percentage of income compared to higher-income areas, even when they use less water. Using Wilmington and New Hanover County census tract data, staff has identified 1.7 percent of income as CFPUA's affordability metric. That amount represents$1.1 million in revenues annually. Staff and the Sustainability Committee have posed the question of how to close the revenue gap of $1.1 million and make water and sewer more affordable for our customers. Using an increasing block or tier rate structure is one component. Increasing block rates allow for equitable cost allocation because CFPUA must build infrastructure and rates to provide for peak usage. Another valuable component is to develop a well-funded and effective customer assistance program expanded beyond the current assistance model. Board members discussed CFPUA's agreement with the City for stormwater and solid waste billing. They acknowledged that CFPUA does not have input into or control over City fees. Mr. Rivenbark reported that the City analyzes its fees and charges during its budget process and makes every effort to keep them affordable and reduce overhead where possible. Dr. Cannon supported opening a discussion with the City about accepting partial payments in order to keep water turned on for customers. RESULT. REVIEWED v. Communications Committee 1. Communications Committee - Regular- Dec 14, 2022 10:30 AM Caj.')e Fear Public Utility Authority Page Minutes Authority Board January 11, 2023 RESULT: NO ACTION REQUIRED 2. Funding for Customer Satisfaction Survey RESULT. NO ACTION REQUIRED C. Consolidation Study Update 1. Consolidation Study Mr. Hackney reported that the Wrightsville Beach infrastructure review and analysis is nearing completion. Mr. Waldroup suggested that the Board might wish to have a workshop to discuss consolidation issues at a future date. RESULT. REVIEWED VIII.OLD BUSINESS There was no old business. IX. AUTHORITY Q& A/CLOSING COMMENTS Ms. Bellamy and Mr. Hagerty reported that the 2023 Student Art calendar has been very popular among customers and is in its third printing. Ms. Adams thanked staff for the calendar initiative. X. CLOSED SESSION There was no closed session. XI. ADJOURNMENT There was no further business to come before the Authority, and Mr. Norris moved to adjourn. Mr. Rivenbark seconded the motion, and it passed unanimously. The meeting adjourned at 10:17 AM. The next regular Authority meeting will be Wednesday, February 8, 2023. The Board will meet at 9:00 AM in 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