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2020-12-09 Regular Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES DECEMBER 9, 2020 Wilmington Convention Center Regular Meeting 9:00 AM 10 CONVENTION CENTER DR. WILMINGTON, NC 28401 I. CALL TO ORDER II. DETERMINATION OF A QUORUM Mr. Corder called the meeting to order at 9:00 AM and declared a quorum present. Mr. Rivenbark moved to excuse Messrs. Norris and O'Grady. Mr. Zapple seconded the motion, and it passed unanimously. Attendee Name Organization Title Status Arrived Wesley Corder Cape Fear Public Utility Chair Present Authority William Norris Cape Fear Public Utility Vice-Chair Excused 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 Remote Authority Jonathan Barfield Cape Fear Public Utility Remote Authority Kevin O'Grady Cape Fear Public Utility Excused 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 Linda Miles Miles Firm, PLLC CFPUA Consulting Attorney Present Frank Styers Cape Fear Public Utility Deputy Executive Director Present Authority Cape Fear Public Utility Authority Page 1 MinutesAuthority BoardDecember 9, 2020 Carel Cape Fear Public Utility Deputy Executive Director Present Vandermeyden Authority Beth Eckert Cape Fear Public Utility Director of EMD Present Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Lori McKoy Cape Fear Public Utility Human Resources Director Present Authority Vaughn Hagerty Cape Fear Public Utility Public Information Officer Present Authority Cammie Bellamy Cape Fear Public Utility Assistant PIO Present Authority Sara Eskew Cape Fear Public Utility Present Authority Makeba Robinson Cape Fear Public Utility Present Authority Donna S. Pope Cape Fear Public Utility Clerk/Executive Secretary to the Present Authority Board Andre Brown Legal Aid of NC Present Diana Hill Present Claire Williamson NC Justice Center Present Maria McIntyre Financial Protection Law Present Center Kathy D. King Present III. ADOPTION OF AGENDA Mr. Corder reported that the Customer Service update would be moved to follow the public comment period. Mr. Zapple moved to adopt the day's with that revision. Dr. Cannon seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Annual Meeting - Nov 12, 2020 9:00 AM RESULT: ACCEPTED \[UNANIMOUS\] MOVER: Deans Hackney, Secretary SECONDER: Jennifer Adams, Treasurer AYES: Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple EXCUSED: Norris, O'Grady V. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER Mr. Brown thanked CFPUA for exploring rate equity issues through tiered pricing. He spoke against the flow restrictor pilot program, stating that it does not support rate equity. He expressed concerns regarding the use of flow restrictors during a pandemic. Cape Fear Public Utility Authority Page 2 MinutesAuthority BoardDecember 9, 2020 Ms. Hill thanked the Board for the opportunity to speak. She asked that the Board consider deferring the flow restrictor pilot program. She suggested that CFPUA develop income criteria that could be used to provide customer discounts. Ms. McIntyre recognized CFPUA's dilemma in dealing with unpaid accounts but asked the Board to reconsider the flow restrictor pilot program. She reported that customers are not choosing to fall behind on payments but that the economic impact of the pandemic has caused loss of income. She expressed concerns that residents cannot use proper hygiene with restricted water flow. She encouraged CFPUA to look for other solutions and funding sources and asked that the Board publicize and promote the non-profit that can assist customers with utility bills. Ms. Williamson spoke against the flow restrictor pilot program. She stated that the amount of water available to a customer with the flow restrictor would not support basic water use such as hand-washing, cooking, or cleaning. She stated the citizens have lost jobs because of the pandemic. Ms. King opposed the flow restrictor pilot program and its timing, stating it would adversely impact public health. Mr. Flechtner thanked the speakers for their input. He stated that staff strives to work with customers to prevent cutoffs or water restrictions. He reported that CFPUA suspended disconnections and late fees in March before Governor Cooper issued the Executive Order prohibiting utility cutoffs. The governor's order expired in July, but CFPUA did not reinstate cutoffs when utilities were allowed to do so. Residential accounts have not been charged late fees since March, and no residential disconnections have occurred. CFPUA began non- residential disconnections in October. Mr. Flechtner reviewed data on non-residential accounts. Most have been brought current. CFPUA's policy has been to disconnect customers owing $100 or more who are 60 days behind or have other issues such as defaulting on a payment plan or having a returned check for insufficient funds. Mr. Flechtner suggested that this policy could be revisited to work more closely with customers to develop payments that will work with their budgets. He recommended the continued suspension of late fees. Residential account delinquencies have continued to grow in number and amount per account. $2.2 million of current delinquent accounts are for CFPUA water-sewer services, and $500,000 are for City storm water and garbage collection. $2.2 million is approximately 3 percent of CFPUA's annual water and sewer revenue. When sewer-only accounts are included in the data, delinquencies total $3.7 million. 2019 delinquencies were $1.6 million. In May of this year, the average residential delinquency was less than $300. It is presently $450 or more. The more Cape Fear Public Utility Authority Page 3 MinutesAuthority BoardDecember 9, 2020 time that passes, the larger the delinquencies will grow, and the harder it will become for customers to bring accounts current. Mr. Flechtner reviewed the flow restrictor pilot program that the Board approved in September. The program is scheduled to begin in January 2021. The intent of the pilot program was to provide water for essential use rather than shutting off service completely. Staff has sent letters and called customers with delinquencies, requesting that they get in touch to set up payment plans. Once a payment plan is in place, no flow restrictor would be installed, or a flow restrictor in place would be removed, disconnection would not occur, and customers would receive full services. Disconnections are always a last resort for collecting monies owed. Many utilities across North Carolina, including electric and gas providers as well as water and sewer, have returned to disconnections since the governor's executive order declaring a moratorium on disconnections ended in July. CFPUA has not reinstituted disconnections, and staff developed the flow restrictor as a less drastic means to encourage payment. Under the pilot program, on January 19 staff will contact 12 account holders with the highest balance and oldest deliquencies, asking them to contact CFPUA to discuss payment options. The top 25 account delinquencies total $73,000, an average of $3,000 per account. The goal is to get payment plans in place and not install a flow restrictor at all. The gradual start of the pilot program with a limited number of accounts would allow staff to monitor the efficacy of the program and to receive feedback from customers on other ways we can help them and improve our services. The initial proposed payment plan under the pilot program was for a period of 12 months. It could be extended to 18 or 24 months or a specialized longer term if needed to work with a customer's budget. Customers may contact the Customer Service Department at 910-332-6550 to discuss payment options. CFPUA established the non-profit waterway-online.com with the New Hanover County Department of Health and Human Services. It is a program administered by DHHS that provides funds to pay water and sewer utilities. Mr. Flechtner encouraged cizens to consider donating to the program. Board members shared communications they had received from customers regarding non- residential disconnections and the flow restrictor pilot program. Mr. Barfield stated that some residential customers receive water through accounts considered non-residential and could be disconnected. Mr. Zapple encouraged more communications and public engagement to stress the availability of payment plans to customers in arrears. Messrs. Rivenbark and Briggs expressed their concern that it was not a good time to begin the flow restrictor pilot program while the Cape Fear Public Utility Authority Page 4 MinutesAuthority BoardDecember 9, 2020 pandemic continues. Messrs. Sneeden and Hackney expressed concerns that continued delinquencies could lead to more debt write-off and increased rates for all customers in the future. Ms. Miles reminded the Board that North Carolina law does not allow water-sewer utilities to use income as a basis for billing. Ms. Adams moved to enter closed session to discuss potential claims against CFPUA. Mr. Hackney seconded the motion, and it passed unanimously. The Board entered closed session at 10:15 AM and received advice from legal counsel. Mr. Corder moved to return to open session. Ms. Adams seconded the motion, and it passed unanimously. The Board returned to open session at 10:30 AM. The Board continued its discussion of the flow restrictor pilot program, the impact on customers during the pandemic, and developing methods to address delinquencies. Dr. Cannon moved to delay the start of the flow restrictor pilot program from January 14 to March 14. Mr. Barfield seconded the motion. Following clarification questions directed to staff, Dr. Cannon revised her motion to include no residential cutoffs and the continued suspension of late fees. Mr. Barfield agreed to the revised motion. Mr. Corder called for a vote. Ms. Adams, Dr. Cannon, and Messrs. Corder, Barfield, Sneeden, Briggs, Rivenbark, and Zapple voted in favor of the motion. Mr. Hackney was opposed. Motion carried eight to one. Board members asked staff to develop enhanced communications regarding delinquencies and payment plans and to continue their work with customers to bring accounts current. VI. CONSENT AGENDA Mr. Rivenbark asked for clarification on Item 8, and Mr. Briggs asked for clarification on Item 5. Ms. Adams moved to approved Items 1 - 4, 6, 7, and Items 9-11. Mr. Rivenbark seconded the motion, and it passed unanimously. 1. Authorize the Executive Director to Add the Cost Recovery Fee for the Northern Water Mains to the Rate and Fee Schedule. RESULT: APPROVED \[UNANIMOUS\] MOVER: Jessica Cannon, Board Member SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple EXCUSED: Norris, O'Grady 2. Authorization to Fund and Begin the Southern New Hanover County Regional Pump Station Project in the Amount of $100,000 Cape Fear Public Utility Authority Page 5 MinutesAuthority BoardDecember 9, 2020 RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple EXCUSED: Norris, O'Grady 3. $39,000 Amendment #3 with McKim and Creed for Motts Creek PS 69 RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple EXCUSED: Norris, O'Grady 4. Design-Build Procurement Authorization for the Mott's Creek Pump Station Project RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple EXCUSED: Norris, O'Grady 5. Fire Hydrant Technician Position Request Mr. Flechtner answered clarification questions regarding the position. Mr. Briggs moved to approve the item. Mr. Rivenbark seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Hollis Briggs, Board Member SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple EXCUSED: Norris, O'Grady 6. Authorization to Surplus and Dispose of Real Property RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple EXCUSED: Norris, O'Grady 7. Authorization to Surplus and Dispose of Real Property Located at 5806 Michelle Drive Cape Fear Public Utility Authority Page 6 MinutesAuthority BoardDecember 9, 2020 RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple EXCUSED: Norris, O'Grady 8. $310,250 Construction Contract Award to Carolina Civilworks, Inc. for Barnard's Creek Force Main Replacement project Mr. Flechtner answered questions regarding financial recovery from the Duke sub- contractor. Mr. Rivenbark moved to approve the item. Ms. Adams seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] MOVER: Charlie Rivenbark, CFPUA Board Member SECONDER: Jennifer Adams, Treasurer AYES: Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple EXCUSED: Norris, O'Grady 9. $331,550 Construction Services Contract Renewal Amendment # 1 with Carolina Civilworks, Inc. RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple EXCUSED: Norris, O'Grady 10. Authorization for the Executive Director to Execute a Contract with PCI for Bill Print and Mail Services RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple EXCUSED: Norris, O'Grady 11. 2021 Meeting Resolution Cape Fear Public Utility Authority Page 7 MinutesAuthority BoardDecember 9, 2020 RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Corder, Hackney, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple EXCUSED: Norris, O'Grady VII. NEW BUSINESS A. Administrative Reports i. Attorney's Report Ms. Miles had no report for open session. She requested a closed session to discuss CFPUA v. Chemours and DuPont and NC DEQ and Cape Fear River Watch v. Chemours. ii. Executive Director's Report 1. Key Indicators Report RESULT: REVIEWED 2. Environmental Report RESULT: REVIEWED 3. Safety Report RESULT: REVIEWED 4. Customer Service Update - December RESULT: REVIEWED B. Committee Reports i. Executive Committee 1. Executive Committee - Regular - Dec 2, 2020 10:00 AM Committee members answered Board questions regarding the Executive Director search process. RESULT: NO ACTION REQUIRED 2. Create Inter-departmental Team for Lead & Copper Compliance Cape Fear Public Utility Authority Page 8 MinutesAuthority BoardDecember 9, 2020 RESULT: REVIEWED ii. Long Range Planning Committee 1. Long Range Planning Committee - Regular - Nov 19, 2020 3:00 PM RESULT: NO ACTION REQUIRED 2. Wastewater Capacity Management Planning for the Motts Creek Sewer Basin RESULT: NO ACTION REQUIRED iii. Finance Committee 1. Finance Committee - Regular Meeting - Dec 2, 2020 9:00 AM RESULT: NO ACTION REQUIRED 2. Monthly Financials Report Mr. McLean reviewed the monthly financial data. With 41.67 percent of the fiscal year complete, revenues are at 41.75 percent. He clarified that revenues are booked and recorded when services are billed, not when they are paid. RESULT: REVIEWED iv. Sustainability Committee 1. Sustainability Committee - Regular - Nov 19, 2020 4:00 PM RESULT: NO ACTION REQUIRED 2. Enhancing Equity, Affordability and Conservation through Increasing Block Rates Dr. Cannon reported that the Committee is studying the use of tiered pricing. Tiers would encourage conservation and have an impact on capital expenses, while providing water for essential use at the lowest pricing. She encouraged Board members to read the white paper on the topic that was included in the agenda packet, and she thanked staff for their work in developing tiered pricing. RESULT: REVIEWED VIII. OLD BUSINESS There was no old business. Cape Fear Public Utility Authority Page 9 MinutesAuthority BoardDecember 9, 2020 IX.AUTHORITY Q & A/CLOSING COMMENTS Mr. Zapple commended CFPUA for donating surplus computers for student use. X. CLOSED SESSION Mr. Rivenbark moved to enter closed session to discuss CFPUA v. Chemours and DuPont and NCDEQ and Cape Fear RiverWatch v. Chemours. Mr. Briggs seconded the motion, and it passed unanimously. The Board entered closed session at 11:17 AM. The Board received a report from legal counsel. Mr. Rivenbark moved to return to open session. Mr. Briggs seconded the motion, and it passed unanimously. The Board returned to open session at 11:39 AM. XI. ADJOURNMENT Mr. Rivenbark moved to adjourn. Mr. Briggs seconded the motion, and it passed unanimously. The meeting adjourned at 11:40 AM. The next regular CFPUA meeting will be Wednesday, January 13, 2021, at 9:00 AM. The meeting will be held electronically via "Teams." A link to listen to the meeting will be provided at www.cfpua.org, and the agenda will be posted on the website. Public comment may be emailed to donna.pope@cfpua.org through Tuesday, January 12, at 5:00 PM. Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 10