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2020-05-13 Regular Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES MAY 13, 2020 Teleconference Regular Meeting 9:00 AM VIRTUAL WILMINGTON, NC 28403 I. CALL TO ORDER The May meeting of the Cape Fear Public Utility Authority was held on Wednesday, May 13, 2020, as a virtual meeting. The audio of the meeting was live-streamed for public accommodation. Chairman Norris called the meeting to order at 9:00 AM and conducted a roll call of the Board, with all Authority members present. Mr. Norris welcomed everyone to the meeting. He thanked Board members and staff for rising to the challenges presented by the coronavirus pandemic. II. DETERMINATION OF A QUORUM Attendee Name Organization Title Status Arrived William Norris Cape Fear Public Utility Chair Present Authority Wesley Corder Cape Fear Public Utility Vice-Chair Present Authority Deans Hackney Cape Fear Public Utility Secretary Present Authority Jennifer Adams Cape Fear Public Utility Treasurer Present Authority Jessica Cannon Cape Fear Public Utility Present Authority Hollis Briggs Cape Fear Public Utility Present Authority Larry Sneeden Cape Fear Public Utility Present Authority Jonathan Barfield Cape Fear Public Utility Present Authority Kevin O'Grady Cape Fear Public Utility Present Authority Charlie Rivenbark Cape Fear Public Utility Present Authority Rob Zapple Cape Fear Public Utility Present Authority Jim Flechtner Cape Fear Public Utility Executive Director Present Authority Cape Fear Public Utility Authority Page 1 MinutesAuthority BoardMay 13, 2020 Linda Miles Miles Firm, PLLC CFPUA Consulting Attorney Present Donna S. Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board John McLean Cape Fear Public Utility Chief Financial Officer Present Authority Carel Cape Fear Public Utility Deputy Executive Director Present Vandermeyden Authority Frank Styers Cape Fear Public Utility Deputy Executive Director Present Authority Lindsey Hallock Cape Fear Public Utility Director of Public and Present Authority Environmental Policy Beth Eckert Cape Fear Public Utility Director of EMD Present Authority Vaughn Hagerty Cape Fear Public Utility Public Information Officer Present Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Cord Ellison Cape Fear Public Utility Chief Information Officer Present Authority Cammie Bellamy Cape Fear Public Utility Assistant PIO Present Authority Gary McSmith Cape Fear Public Utility Asst. Director of Engineering Present Authority Makeba Robinson Cape Fear Public Utility Present Authority Sara Eskew Cape Fear Public Utility Present Authority III. ADOPTION OF AGENDA The day's agenda was adopted by consensus. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Mar 11, 2020 9:00 AM Mr. Hackney presented the March Board minutes. There were no corrections, and Mr. Zapple moved to adopt the minutes. Mr. Rivenbark seconded the motion, and it passed unanimously. RESULT: ACCEPTED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple V. NEW BUSINESS Cape Fear Public Utility Authority Page 2 MinutesAuthority BoardMay 13, 2020 A. Administrative Reports i. Attorney's Report Ms. Miles had no report. ii. Executive Director's Report Mr. Flechtner thanked the Board for its support. He praised staff for their resilience in adapting to remote work and the challenges of and accommodations to the pandemic. He reported on measures CFPUA is putting in place to protect staff and customers. Mr. Flecthner reported on four items handled by staff since the March meeting, when the Board adopted its business continuity resolution. The items were: (1) Membrane replacement for the Richardson nano-membrane water treatment plant; (2) A contract amendment for environmental services at the Greenfield pump station site; (3) An emergency purchase of a bar screen for Pump Station 35; and (4) The purchase of IT equipment competitively bid under state contract. Full descriptions of the work and the cost had already been sent to the Board. Mr. Flechtner presented the following items for Board consideration and a vote: 1. Sole Source Authorization to Repair or Replace Pump Station 34 Channel Grinder Mr. Rivenbark moved to approve the sole source authorization for repair or replacement, and Mr. Rivenbark seconded the motion. Mr. Flechtner answered questions regarding whether the grinder would be repaired or replaced. Mr. Norris polled the Board, and the item was approved unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Charlie Rivenbark, CFPUA Board Member SECONDER: Jonathan Barfield, Board Member AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple 2. $303,752.14 Sole Source Purchase Authorization with Badger Meter for Meter Replacement Program Mr. Flechtner presented the item and answered questions. Mr. Rivenbark moved to approve the sole source purchase, and Dr. Cannon seconded the motion. Mr. Norris polled the Board, and the item was approved unanimously. Cape Fear Public Utility Authority Page 3 MinutesAuthority BoardMay 13, 2020 RESULT: APPROVED \[UNANIMOUS\] MOVER: Charlie Rivenbark, CFPUA Board Member SECONDER: Jessica Cannon, Board Member AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple 3. $186,706 Pedal Valves, Inc. Change Order #4 for the Meter Replacement Program Mr. Zapple moved to approve the item, and Mr. Briggs seconded the motion. Mr. Norris polled the Board, and the item was approved unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Hollis Briggs, Board Member AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple 4. $300,000 Emergency Construction Contract Change Order # 1 Mr. Barfield moved to approve the item. Mr. Zapple seconded the motion. Mr. Norris polled the Board, and the item was approved unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Jonathan Barfield, Board Member SECONDER: Rob Zapple AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple 5. Authorization for the Executive Director to Execute a $200,000 Contract with McKim & Creed for On Call Services for Municipal Well Rehabilitation and Related Infrastructure Mr. Flechtner presented the item and answered clarification questions. Most of the wells are in the vicinity of the Richardson Plant and the Monterey Heights groundwater system. There are a few in the Sweeney area. Mr. O'Grady moved to approve the item. Mr. Briggs seconded the motion. Mr. Norris polled the Board, and the contract was approved unanimously. Cape Fear Public Utility Authority Page 4 MinutesAuthority BoardMay 13, 2020 RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Hollis Briggs, Board Member AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple 6. Resolution Authorizing a Low Interest State Revolving Fund Loan Application for the PS-69 Motts Creek Pump Station Upgrade Capital Project Mr. O'Grady moved to approve the item, and Mr. Briggs seconded the motion. Following clarification questions, Mr. Norris polled the Board, and the resolution was approved unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Hollis Briggs, Board Member AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple 7. Authorization for the Executive Director to Negotiate a Sole Source Purchasing Contract for Corrosion Inhibitor Treatment Chemicals Mr. Flechtner presented the item. He and Mr. Vandermeyden answered questions from Board members regarding staff's request for authorization to negotiate the sole source contract. Staff will identify potential vendors and negotiate for the best provider of the corrosion control chemicals used by CFPUA. The Board discussed the length of the contract and the methodology staff would use to identify vendors and negotiate with them. Mr. Vandermeyden clarified that the final contract recommendation will come back to the Board for approval. Mr. Norris moved the item, and Ms. Adams seconded. Mr. Norris polled the Board, and the motion passed unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: William Norris, Chair SECONDER: Jennifer Adams, Treasurer AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple 8. Financial Advisor Contract Mr. McLean presented the item. Mr. O'Grady moved to approve the contract, and Mr. Briggs seconded the motion. Mr. McLean answered clarification Cape Fear Public Utility Authority Page 5 MinutesAuthority BoardMay 13, 2020 questions on the retainer and financial advisor costs associated with issuing bonds. M. Norris polled the Board, and the contract was approved unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Kevin O'Grady SECONDER: Hollis Briggs, Board Member AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple 9. Audit Services Contract Mr. McLean presented the item and answered clarification questions. Ms. Adams moved to approve the contract, and Mr. Zapple seconded. Mr. Norris polled the Board, and the contract was approved unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Rob Zapple AYES: Norris, Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, O'Grady, Rivenbark, Zapple 10. FY21 Recommended Operating Budget Mr. McLean presented the recommended budget for the fiscal year beginning July 1, 2020 and reviewed the data used to create the budget. The budget is mindful of rates and environmental protection. It addresses all departmental operating funding, all scheduled debt service, and provides $18 million pay-go capital funding. The recommended budget has no rate increases to either the base or consumption rates for water or sewer. The recommended operating budget is 5.2 percent greater than the current fiscal year. Operating expenses are decreased by $1.7 million (7.7 percent) under FY2020, reflecting the reduced cost of biosolids disposal in a landfill. Personnel costs include four new full time positions, pay adjustments for laboratory staff to meet market levels and reduce attrition, an mandatory increase in the employer contribution to the Local Government Employees' Retirement System, and a 4 percent increase to the employer share of health insurance premiums. Staff recommends a 3 percent merit pool and a 1 percent cost of living increase. The budget does not include potential negative impacts from Covid-19. CFPUA's undesignated fund balance can be used to ensure continue provision of services Cape Fear Public Utility Authority Page 6 MinutesAuthority BoardMay 13, 2020 and operations. Staff will monitor trends in usage and revenues related to Covid-19. Staff will work with customers to set up payment plans related to their loss of income related to the pandemic. Mr. McLean reviewed the proposed System Development Charges (SDCs) for FY2021. The recommended SDC for a 5/8-inch meter is $1.920.00 for water and $2,070.00 for sewer. The SDCs reflect the costs of a new customer connecting new the water and sewer system. The SDC increases with meter size, up to a ten-inch meter. The public hearings for the System Development Charges and the FY2021 Budget will be held at the June 10 Board meeting. RESULT: REVIEWED Next: 6/3/2020 9:00 AM 11. Key Indicators Report The Key Indicators Report was provided in the Agenda packet. Mr. Flechtner answered questions regarding water use trends. RESULT: REVIEWED 12. Environmental Report The Environmental Report was provided in the Agenda packet. RESULT: REVIEWED 13. Safety Report The Safety Report was provided in the Agenda packet. RESULT: REVIEWED 14. Monthly Financial Report The Monthly Financial Report was provided in the Agenda packet. Mr. McLean answered questions regarding the fund balance and anticipated surplus funds for the end of the current fiscal year. He reported that staff will be watching trends very closely and analyzing potential impacts of the Covid-19 crisis. RESULT: REVIEWED 15. Customer Service Update Cape Fear Public Utility Authority Page 7 MinutesAuthority BoardMay 13, 2020 The monthly Customer Service data was in the Agenda packet. Mr. Flechtner reported on enhancements being developed for customer convenience and to lessen points of contact in the lobbies. Those include kiosks in the lobby and additional payment options. RESULT: NO ACTION REQUIRED VI. OLD BUSINESS There was no old business. VII. AUTHORITY Q & A/CLOSING COMMENTS Mr. Flechtner reported that staff anticipates the June Board meeting and public hearings to be held at the Wilmington Convention Center. The site will provide more space for Board members, staff, and visitors. Mr. Zapple thanked centralized maintenance staff for identifying an issue with the grit removal system at the Northside Wastewater plant and performing preventative maintenance that saved the plant from a bigger issue affecting its performance. He further recognized Mr. Vandermeyden for his being quoted in a recent American Water Works Association publication. VIII. ADJOURNMENT Mr. Norris thanked Board and staff for their work in preparing and conducting their first "virtual" Board meeting. There was no further business to come before the Board, and Mr. Barfield moved to adjourn. Mr. Briggs seconded the motion, and it passed unanimously. The meeting adjourned at 10:20 AM. The next regular meeting of the Cape Fear Public Utility Authority will be Wednesday, June 10, 2020. The Board will meet in the Wilmington Convention Center, 10 Convention Center Drive, located on the Cape Fear Riverfront in downtown Wilmington. The meeting will be open to the public and will include public hearings on the recommended budget for Fiscal Year 2021 and the recommended System Development Charges. Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 8