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2018-07-11 Regular Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES JULY 11, 2018 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 Mr. Brown called the meeting to order at 9:00 AM with all members present. Attendee Name Organization Title Status Arrived Mike Brown Cape Fear Public Utility Chair Present Authority Wesley Corder Cape Fear Public Utility Vice-Chair Present Authority Jennifer Adams Cape Fear Public Utility Secretary Present Authority William Norris Cape Fear Public Utility Treasurer Present Authority Larry Sneeden Cape Fear Public Utility Present Authority Cindee Wolf Cape Fear Public Utility Present Authority Patricia Kusek Cape Fear Public Utility Present Authority Charlie Rivenbark Cape Fear Public Utility Present Authority Kevin O'Grady Cape Fear Public Utility Present Authority Skip Watkins Cape Fear Public Utility Present Authority Deans Hackney Cape Fear Public Utility Present Authority Jim Flechtner Cape Fear Public Utility Executive Director Present Authority Frank Styers Cape Fear Public Utility Chief Operations Officer Present Authority Linda Miles Miles Firm, PLLC CFPUA Consulting Attorney Present Beth Eckert Cape Fear Public Utility Director of EMD Present Authority Denise Matroni Cape Fear Public Utility HR Director Present Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Peg Hall-Williams Cape Fear Public Utility Chief Communication Officer Present Authority Cape Fear Public Utility Authority Page 1 MinutesAuthority BoardJuly 11, 2018 Lindsey Hallock Cape Fear Public Utility Director of Public and Present Authority Environmental Policy Carel Cape Fear Public Utility Director of Engineering Present Vandermeyden Authority John McLean Cape Fear Public Utility Chief Financial Officer Present Authority Cord Ellison Cape Fear Public Utility Department Manager Present Authority Karen Durso Cape Fear Public Utility Real Estate Manager Present Authority Elizabeth Severt Cape Fear Public Utility EMD Lead Auditor Present Authority John Malone Cape Fear Public Utility Water Resource Manager Present Authority Robert Daughtry Cape Fear Public Utility Collections System Superintendent Present Authority Steve Mongeau Cape Fear Public Utility Sr. Project Manager Present Authority Ricky Bullard Cape Fear Public Utility Present Authority Bo Coward Cape Fear Public Utility Present Authority Adam Poore Cape Fear Public Utility Present Authority Donna Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board Matt Nichols Present Ed Quidley Present Susan Quidley Present Jane Murray Present Lawrence Murray Present Beth Markesino Present Tom Newcomb Present Harper Peterson Present Paul Shivers Highfill Infrastructure Present Dave Cowell City of Wilmington Present Heidi Cox NC Public Water Supply Present George House Brooks, Pierce Present III. ADOPTION OF AGENDA Ms. Kusek moved to adopt the day's agenda. Mr. Rivenbark seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Jun 13, 2018 9:00 AM Cape Fear Public Utility Authority Page 2 MinutesAuthority BoardJuly 11, 2018 RESULT: ACCEPTED \[UNANIMOUS\] MOVER: Skip Watkins, Board Member SECONDER: Patricia Kusek AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney V. PRESENTATION 1. Consent Decree/Staff Recognition Presentation Mr. Flechtner introduced the item. Before CFPUA's incorporation, several high-volume sewer overflows occurred in the mid-2000s. The City and County began negotiating with the Environmental Protection Agency in 2006. CFPUA finalized a Consent Decree with the Department of Justice and EPA in December 2013. The Consent Decree required CFPUA to complete several projects and implement and continue maintenance and preventative programs. CFPUA successfully completed all the requirements, investing over $177 million into sewer rehabilitation and replacement projects and addressing capacity issues and system extensions. The DOJ and EPA terminated the Consent Decree on June 5, 2018. CFPUA's commitment realized a 94 percent reduction in the volume of sanitary sewer overflows (SSOs) and a 56 percent reduction in the number of SSOs. Mr. Flechtner recognized the Miles law firm for its work on the Consent Decree. Mr. Styers presented an overview of projects and programs required by the Consent Decree. Critical components included projects associated with the Northeast Interceptor, which takes sewage from Wrightsville Beach to the Southside treatment plant and the Fats, Oils & Grease (FOG) prevention program. Mr. Styers thanked several staff groups for work that led to the completion of the Consent Decree. Staff divisions included utility services collection, construction, engineering, and environmental management. RESULT: REVIEWED 2. Consumer Confidence Report Mr. Flechtner presented the Consumer Confidence and Water Quality Report. Every water system in the United States is required to publish the report annually. CFPUA's report is available on its website and in public sites across the county. RESULT: REVIEWED VI. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER Mr. Nichols, Mr. Murray, and Mr. and Mrs. Quidley spoke regarding a storm water drainage issue within a CFPUA utility easement. Cape Fear Public Utility Authority Page 3 MinutesAuthority BoardJuly 11, 2018 Mr. Newcomb spoke regarding the cost of enhanced treatment at the Sweeney water treatment plant. Ms. Markesino thanked CFPUA Board and staff for their work regarding water quality and stated that she would be touring a granulated activated carbon treatment facility in Michigan. Mr. Peterson spoke regarding Japanese Kuraray Ltd.'s purchase of Calgon, the maker of granulated activiated carbon filters. VII. SPEAKER UPDATE FROM THE JUNE 13 BOARD MEETING No follow-up was required from June public comment. VIII. FY2019 OFFICERS-NOMINATING COMMITTEE 1. Minutes of the June 28, 2018 Nominating Committee Mr. Brown reported that the Nominating Committee met on June 28 and recommended the following slate of officers for Fiscal Year 2019: Bill Norris, Chair Wes Corder, Vice-Chair Jennifer Adams, Secretary Mike Brown, Treasurer There were no additional nominations from the floor. Ms. Wolf moved the slate of officers recommended by the Nominating Committe. Mr. Watkins seconded the motion, and it passed unanimously. Ms. Kusek thanked Mr. Brown for his service as Chair and his grace under pressure. Mr. Brown said that it had been his honor to serve as Chair, and he commended CFPUA staff members on their character and integrity. Mr. Norris moved into the Chair's seat and thanked Mr. Brown for his service. RESULT: NO ACTION REQUIRED IX. 10TH ANNIVERSARY 1. 10th Anniversary Resolution Mr. Flechtner gave a brief history leading up to the formation of CFPUA in 2007 and its assumption of operations in July 2008. Mr. Norris read the Resolution into the record. Mr. Watkins moved to adopt the Resolution. Mr. Rivenbark seconded the motion, and it passed unanimously. Board members recognized staff and previous Boards for their accomplishments over the past ten years. Cape Fear Public Utility Authority Page 4 MinutesAuthority BoardJuly 11, 2018 RESULT: REVIEWED X. CONSENT AGENDA 1. $200,000 Asphalt Replacement Contract Amendment #7 RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 2. $200,000 Emergency Bypass Pumping Services Change Order #5 RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 3. $500,000 Emergency Construction Contract Change Order RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 4. Combination Vacuum/Jet Truck Purchase RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 5. Water Storage Tank and Condition Assessment and Improvement Program Amendment 5 Cape Fear Public Utility Authority Page 5 MinutesAuthority BoardJuly 11, 2018 RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 6. OCCP Contract FY 19 Renewal RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 7. Authorization for the Executive Director to Execute a $1,403,351 Cost Sharing Agreement with Echo Farms, LLC for Participation with Sewer Pump Station and Forcemain Improvements Associated with The Woodlands at Echo Farms Development. RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 8. Authorization for the Executive Director to Execute a Sewer Capacity Reservation Agreement with McAdams Homes, LLC for the The Landing at Lewis Creek Estates RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 9. Project Authorization Request for Groundwater Treatment Pilot Test at ASR Well RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 10. Authorization for the Executive Director to execute a $397,600 Contract with Highfill Infrastructure Engineering, P.C. for design and bidding services for the Northern Water Mains Project. Cape Fear Public Utility Authority Page 6 MinutesAuthority BoardJuly 11, 2018 RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 11. Authorization for the Executive Director to approve and execute a $124,000 contract amendment with Carollo Engineers for an assessment report of Pump Stations 34 and 35 redirect to the Northside Wastewater Treatment Plant. RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 12. Easement Termination - Two Well Sites at Porters Neck Country Club RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 13. Enterprise Software Replacement Project Change Order 003 RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 14. Ordinance Revision to Allow Water System Capacity Reservation RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 15. Revision to Ordinance Related to CFPUA Cost Participation with Development Cape Fear Public Utility Authority Page 7 MinutesAuthority BoardJuly 11, 2018 RESULT: APPROVED \[UNANIMOUS\] MOVER: Patricia Kusek SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney XI. NEW BUSINESS A. Administrative Reports i. Attorney's Report ii. Executive Director's Report 1. Key Indicators Report RESULT: REVIEWED 2. Environmental Report RESULT: REVIEWED 3. Safety Report RESULT: REVIEWED 4. Quarterly CIP Report RESULT: NO ACTION REQUIRED B. Committee Reports i. Executive Committee 1. Minutes of the July 3, 2018 Executive Committee Meeting RESULT: NO ACTION REQUIRED ii. Long Range Planning Committee 1. Long Range Planning Committee - Regular - Jun 28, 2018 3:00 PM Mr. Sneeden reported that several interesting initiatives are going through the Committee. They include water master planning, source water protection planning, the strategic plan, and reviewing the potential for potable resue. Cape Fear Public Utility Authority Page 8 MinutesAuthority BoardJuly 11, 2018 RESULT: NO ACTION REQUIRED iii. Finance Committee 1. Finance Committee - Regular Meeting - Jul 3, 2018 9:00 AM RESULT: NO ACTION REQUIRED 2. 2380 : Monthly Customer Service and Finance Reports Ms. Irick reported on AWWA training that Customer Service has opened to all CFPUA employees. Current training includes communication and listening skills and diversity. The department conducts ongoing training for new customer service representatives. Mr. Watkins complimented Customer Service staff on a recent interaction he had with them. Mr. McLean reported that FY18 bills are being processed. He anticipated a total unrestricted year-end fund balance of approximately $100.5 million. Mr. McLean reported that GenX-related expenses are $2.1 million. The State of North Carolina provided $185,000 in GenX-related grants during FY18, and the Legislature appropirated an additional $450,000 for groundwater research related to CFPUA's Aquifer Storage & Recovery system. RESULT: REVIEWED 3. Resolution Establishing the Sweeney Water Treatment Enhancements Capital Reserve Mr. McLean presented the item. CFPUA established a capital reserve for the Southside Wastewater Treatment Plant upgrades that contains $5.2 million. The Southside project has been deferred to FY2034-2035. Staff recommended transferring $4.7 million from the Southside capital reserve to a Sweeney capital reserve for treatment enhancements. A Sweeney reserve would lower the amount of money needed through bond financing. Mr. Watkins moved to adopt the resolution creating the Sweeney capital reserve fund. Mr. Rivenbark seconded the motion, and it passed unanimously. Cape Fear Public Utility Authority Page 9 MinutesAuthority BoardJuly 11, 2018 RESULT: APPROVED \[UNANIMOUS\] MOVER: Skip Watkins, Board Member SECONDER: Charlie Rivenbark AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney 4. Budget Ordinance Establishing the Sweeney Water Treatment Enhancements Capital Reserve Mr. Watkins moved the budget ordinance transferring funds into the Sweeney capital reserve. Ms. Adams seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Deans Hackney, CFPUA Board Member SECONDER: Jennifer Adams, Secretary AYES: Brown, Corder, Adams, Norris, Sneeden, Wolf, Kusek, Rivenbark, O'Grady, Watkins, Hackney XII. OLD BUSINESS There was no old business. XIII. AUTHORITY Q&A / CLOSING COMMENTS There were no further questions or comments. XIV. CLOSED SESSION Mr. Rivenbark moved to enter closed session to discuss CFPUA v. Chemours and DuPont. Ms. Kusek seconded the motion, and it passed unanimously. The Board entered closed session at 10:15 AM, received a report from Ms. Miles and Mr. House, and provided direction to legal counsel. Mr. Norris moved to return to open session. Ms. Wolf seconded the motion, and it passed unanimously. The Board returned to open session at 11:35 AM. XV. ADJOURNMENT Ms. Kusek moved to adjourn. Mr. Watkins seconded the motion, and it passed unanimously. The meeting adjourned at 11:36 AM. The next regular CFPUA meeting will be Wednesday, August 8, 2018. The Board will meet in the Lucie Harrell Conference Room, New Hanover County Administration Building, 230 Government Center Drive, Wilmington, North Carolina. Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 10