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2020-01-22 CFPUA Board Retreat Minutes CFPUA BOARD RETREAT JANUARY 22, 2020 Board Members Present: Bill Norris, Chair Wes Corder, Vice-Chair Deans Hackney, Secretary Jennifer Adams, Treasurer Larry Sneeden Jessica Cannon Hollis Briggs Charlie Rivenbark Rob Zapple Incoming Board Member Present: Jonathan Barfield Staff Present: Jim Flechtner, Executive Director Frank Styers, Deputy Executive Director Carel Vandermeyden, Deputy Executive Director John McLean, Chief Financial Officer Kristi Irick, Customer Service Director Beth Eckert, Environmental Management Director Lindsey Hallock, Public & Environmental Policy Director Cord Ellison, IT Director Vaughn Hagerty, Public Information Officer Cammie Bellamy, Assistant PIO Donna S. Pope, Clerk Attorney Present: Linda A. Miles, the Miles Firm, PLLC The Cape Fear Public Utility Authority conducted a Board retreat and workshop on January 22, 2020. Mr. Norris called the meeting to order at 9:00 AM with all members present. He welcomed Commissioner Barfield as an incoming Authority member. Mr. Flechtner thanked staff members for their work in preparing the retreat items. He specifically thanked Ms. Bellamy for producing the Board notebook and related material. Staff provided updates on the following items: {ƷƩğƷĻŭźĭ tƌğƓʹ Ms. Matroni reported that the Strategic Plan, which was adopted by the Board in April 2019, was created using a process with extensive employee participation. Work product should be aligned with the five major goals outlined in the plan. A pilot program is being developed to track work internally in goals are: Championing a positive customer service culture; Providing exemplary leadership in protecting natural resources; Cultivating community ownership and advancing relationships; and Fostering an engaged and forward-thinking workforce. Staff will develop an online dashboard that can be used by Board members and customers to CźƓğƓĭźğƌ tƚƌźĭźĻƭʹ Mr. Flechtner reported that the Board established debt management policies in 2017. The financial policies include $18 million annual pay-go funding for capital projects and a focus on renewal and replacement of aging infrastructure. Mr. McLean reported that staff is reviewing the pay-go funding goal to determine if more pay- go funding is needed annually. CFPUA strives to maintain the proper balance of sustainable debt and rates. A goal of 45 percent debt and 55 percent pay-go capital funding may be optimal. Staff answered questions from Board members regarding system growth and inspection and replacement or repair of existing, aging infrastructure. The Board discussed rate affordability. Mr. McLean presented a chart showing incremental rate increases based upon certain levels of pay-go funding. Ms. Miles explained restrictions on a water--income customers. /ǤĬĻƩ {ĻĭǒƩźƷǤʹ Mr. Ellison updated the Board on emerging cyber threats. He reported that North Carolina governmental agencies had been targeted by cyber threats in recent years. IT staff has -factor solutions, cloud access security, and data security platforms. Staff will continue to assess potential threats and implement the best protections availab {ǞĻĻƓĻǤ ğƷĻƩ ƩĻğƷƒĻƓƷ tƌğƓƷ ƦķğƷĻʹ Messrs. Styers and Vandermeyden presented the report. They reported on the efficacy of the interim granular activated charcoal filter (GAC) treatment in use at the surface water plant. The full Sweeney enhancements with dedicated, deep-bed GAC filters should be in use in May 2022. Board members discussed emerging contaminants, biosolids, and the importance of source control in managing discharges into rivers. .źƚƭƚƌźķ 5źƭƦƚƭğƌʹ Mr. Vandermeyden updated the Board on the conversion from land-based application of biosolids extracted during the wastewater treatment process to landfill disposal. The total annual cost for landfill disposal is $1.2 million. Staff recommended continuing landfill disposal of biosolids until the Sweeney GAC project is complete. CFPUA can then re-evaluate the levels of PFAS in biosolids. {ǒƭƷğźƓğĬƌĻ LƩƩźŭğƷźƚƓ tƩğĭƷźĭĻƭʹ Mr. Hagerty presented the item. While some customers have separate irrigation meters, others irrigate through the same meter used for household water. As a result, all irrigation use restrictions, which focus on reducing irrigation. The Board briefly discussed the use of increasing block rates to encourage water conservation. Mr. Rivenbark encouraged to staff to continue to investigate reuse of treated wastewater. Conservation and water reuse discussion will go through the Sustainability Committee. \[ƚĭƉ ε 5ğƒ bǒƒĬĻƩ Њʹ Mr. Hagerty presented the item. The US Army Corps of Engineers has recommended deauthorization of the locks and dams on the Cape Fear River, as they are no longer needed for commercial river traffic. The Corps recommends relinquishing control of the locks and dams to a non-federal entity. Maintaining the river at an optimal level is crucial for the water supply and to lessen the possibility of saltwater intrusion. For CFPUA and others withdrawing raw water from the river, it would be preferable for the Corps to maintain ownership and maintenance of the locks and dams. Other options are local control or a transfer to the State of North Carolina. Mr. Sneeden reported that the Public Works Commission in Fayetteville is interested in receiving the Huske Lock and Dam and Lock & Dam Number 2. Lock & Dam Number 1 is Carolina has expressed interest in receiving all three locks and dams. The Board discussed the importance of the locks and dams to regional water supplies and stressed the critical nature of changes to the locks and dams. Staff will continue to monitor the process and be involved in discussions with other stakeholders. /ǒƭƷƚƒĻƩ {ĻƩǝźĭĻ ƦķğƷĻʹ Ms. Irick reported that the new customer service system will go live in late February. Future innovations may include payment kiosks and monthly billing. 5ƩƚƓĻ tƩƚŭƩğƒʹ Ms. Hallock reported that the drone has been used to video assets in wetlands such as the raw water line coming from Kings Bluff. It can also be used to monitor progress on capital projects and for temperature tracking. The drone will prove useful in assessing threats and in assessing damage following a hurricane or an emergency such as a line break. Staff recommended buying a second, smaller drone to work in conjunction with the existing drone and to be used in tighter spaces. {ǒƭƷğźƓğĬźƌźƷǤ ğƓķ 9ƓǝźƩƚƓƒĻƓƷğƌ {ƷĻǞğƩķƭŷźƦʹ Ms. Eckert and Ms. Hallock presented the item. From its inception, CFPUA has followed the guiding principles of Stewardship, Sustainability, and Service. Through an extensive asset management program and proactive inspection and rehabilitation projects, sewer overflows have been reduced steadily since 2008. Sustainability and environmental initiatives are divided into four categories: Source Water Protection; Energy Use; Resiliency Planning; and Waste Management. Staff will continue to monitor these initiatives and add others as they are identified. Mr. Flechtner added that staff works throughout the organization for continuous improvement and stewardship. Mr. Norris thanked staff members for their work in preparing the retreat materials and the Board, and Mr. Rivenbark moved to adjourn. Mr. Briggs seconded the motion, and it passed unanimously. The meeting adjourned at 12:00 Noon. Respectfully submitted, Donna S. Pope Clerk to the Board