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2022-02-09 Regular Meeting Minutes CAPE FEAR PUBLIC UTILITY AUTHORITY AUTHORITY BOARD MINUTES FEBRUARY 9, 2022 Lucie Harrell Conference Room Regular Meeting 9:00 AM 230 GOVERNMENT CENTER DRIVE WILMINGTON, NC 28403 I. CALL TO ORDER Mr. Norris called the meeting to order at 9:00 AM with a quorum present. Mr. Zapple moved to excuse Messrs. Corder and Hackney from the meeting and Dr. Cannon and Mr. Barfield until their arrivals. Mr. Rivenbark seconded the motion, and it passed unanimously. Mr. Barfield joined the meeting at 9:03 AM and Dr. Cannon at 9:04 AM. II. DETERMINATION OF A QUORUM Attendee Name Organization Title Status Arrived Wesley Corder Cape Fear Public Utility Chair Excused Authority William Norris Cape Fear Public Utility Vice-Chair Present Authority Deans Hackney Cape Fear Public Utility Secretary Excused Authority Jennifer Adams Cape Fear Public Utility Treasurer Present Authority Jessica Cannon Cape Fear Public Utility Present 9:04 Authority AM Hollis Briggs Cape Fear Public Utility Present Authority Larry Sneeden Cape Fear Public Utility Present Authority Jonathan Barfield Cape Fear Public Utility Remote 9:03 Authority AM Charlie Rivenbark Cape Fear Public Utility Present Authority Rob Zapple Cape Fear Public Utility Present Authority Kenneth Waldroup 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 BoardFebruary 9, 2022 Carel Cape Fear Public Utility Deputy Executive Director Present Vandermeyden Authority John McLean Cape Fear Public Utility Chief Financial Officer Present Authority Kristine Irick Cape Fear Public Utility Customer Service Director Present Authority Beth Eckert Cape Fear Public Utility Director of EMD Present Authority Vaughn Hagerty Cape Fear Public Utility Public Information Officer Present Authority Lori McKoy Cape Fear Public Utility Human Resources Director Present Authority Sara Eskew Cape Fear Public Utility Administrative Support Present Authority Specialist Judy Lawton Cape Fear Public Utility Executive Assistant Present Authority Elizabeth Severt Cape Fear Public Utility Strategy & Performance Present Authority Manager Cammie Bellamy Cape Fear Public Utility Assistant PIO Present Authority Joseph Conway City of Wilmington Present Jason Lee New Hanover County Present Jim Iannucci New Hanover County Present Tim Holleman Lower Cape Fear Water & Present Sewer Authority Donna S. Pope Cape Fear Public Utility Clerk/Executive Secretary to Present Authority the Board III. ADOPTION OF AGENDA Mr. Sneeden moved to adopt the day's Agenda. Mr. Briggs seconded the motion, and it passed unanimously. IV. APPROVAL OF MINUTES 1. Authority Board - Regular Meeting - Jan 12, 2022 9:00 AM RESULT: ACCEPTED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Hollis Briggs, Board Member AYES: Norris, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple EXCUSED: Corder, Hackney V. PUBLIC COMMENTS - 4 MINUTE LIMIT PER SPEAKER There were no public speakers. Cape Fear Public Utility Authority Page 2 MinutesAuthority BoardFebruary 9, 2022 VI. CONSENT AGENDA 1. $107,980 Kurita America, Inc. Sole Source Purchase for Richardson Plant RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Norris, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple EXCUSED: Corder, Hackney 2. $14,000 McKim & Creed Amendment #3 for Kings Bluff Pump Station Project RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Norris, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple EXCUSED: Corder, Hackney 3. Executive Director Authorization to Grant Easements RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Norris, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple EXCUSED: Corder, Hackney 4. Access Control System upgrade RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Norris, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple EXCUSED: Corder, Hackney 5. Audit Services Contract RESULT: APPROVED \[UNANIMOUS\] MOVER: Rob Zapple SECONDER: Charlie Rivenbark, CFPUA Board Member AYES: Norris, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple EXCUSED: Corder, Hackney VII. NEW BUSINESS Cape Fear Public Utility Authority Page 3 MinutesAuthority BoardFebruary 9, 2022 A. Administrative Reports i. Attorney's Report Ms. Miles had no report for open session. She requested a closed session for the Board to discuss an economic incentive initiative with other governmental agencies. ii. Executive Director's Report 1. Key Indicators Report Mr. Zapple asked for a report on employee vacancies. Ms. McKoy reported that unemployment in the region is just under 3 percent. CFPUA has the highest turnover in entry-level salaries in construction positions and call center customer representatives. She and Mr. Waldroup reported that they are reviewing drivers of turnover and will be analyzing CFPUA's compensation going into the budget season. RESULT: REVIEWED 2. Environmental Report RESULT: REVIEWED 3. Safety Report RESULT: REVIEWED 4. Deputy Chief Financial Officer Mr. Waldroup presented the item. With additional funding opportunities arising and Mr. McLean's workload having increased, hiring a Deputy Chief Financial Officer is recommended. Mr. Waldroup requested that a Board member serve on the interview committee for the applicants. Ms. Adams moved to approve the item. Mr. Zapple seconded the motion, and it passed unanimously. Mr. Sneeden added that CFPUA was fortunate to have a CFO of Mr. McLean's strengths and caliber. Cape Fear Public Utility Authority Page 4 MinutesAuthority BoardFebruary 9, 2022 RESULT: APPROVED \[UNANIMOUS\] MOVER: Jennifer Adams, Treasurer SECONDER: Rob Zapple AYES: Norris, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple EXCUSED: Corder, Hackney B. Committee Reports i. Executive Committee 1. Executive Committee - Regular - Feb 2, 2022 10:00 AM RESULT: NO ACTION REQUIRED ii. Long Range Planning Committee 1. Long Range Planning Committee - Regular - Jan 27, 2022 3:00 PM RESULT: NO ACTION REQUIRED 2. LCFWASA Raw Water Line LRPC January 2022 Mr. Waldroup presented a summary of repairs to the Lower Cape Fear raw water line. He reported that inspection and a condition assessment revealed a systemic series of failures along approximately one mile of the 11-mile line feeding the Sweeney water treatment plant. Staff recommends working with other stakeholders and Board members who represent the City and County on the LCFWASA Board to prioritize and move forward the construction of a parallel line for the 11-mile portion of the raw water line. Mr. Waldroup answered questions from Board members, and Mr. Sneeden reported that the LCFWASA Board and staff understands CFPUA's concerns regarding the line. Mr. Sneeden encouraged Board members to review the presentation incorporated into the Agenda. RESULT: REVIEWED 3. FY2023 CIP Drivers and Funding Opportunities Mr. Vandermeyden presented the item The monies appropriated in the State budget for CFPUA are designated for two purposes. One is capacity expansion, and the other is replacing aging infrastructure. The State requested that CFPUA identify projects in early February, and staff requested and received extra time Cape Fear Public Utility Authority Page 5 MinutesAuthority BoardFebruary 9, 2022 to bring the discussion to the Board. Staff has researched project needs and identified two options for use of the State funds, as follows: 1. Use the full $30 million to fund capacity expansion in the northern portion of the service area, including the Greenview Ranches, Sidbury Road, and Holly Shelter areas. It would cover four projects that include water interconnections and replacement and expansion of force mains and sewer infrastructure along North Kerr Avenue. The project would provide the backbone for a large growth area in the region, and would be supported by additional projects from New Hanover County and future work from the development community; or 2. Use $20 million for the regional pump station identified in Option 1 and use $10 million for aging infrastructure within the City limits. The infrastructure project would be part of a partnership with the City streets and traffic engineering section on Chestnut and Grace Streets between Third and 17th Streets. Staff recommended Option 1, funding capacity expansion in the northern portion of the service area to provide the backbone for growth. Several Board members commented on the value of adding to the customer base and working with the County on the northern service area. Board members discussed the needs within the City and the importance of continuing to address new infrastructure. Staff reported that they believe additional funding opportunities will be available for the Chestnut and Grace Street projects. CFPUA and City staff will continue to work together so that CFPUA can address aging infrastructure in tandem with City street projects. Staff assured the Board that City projects will not be delayed. Following a thorough discussion, Mr. Sneeden moved to approve Option 1, spending the $30 million in state allocation on capacity expansion. Mr. Zapple seconded the motion, and it passed unanimously. RESULT: REVIEWED iii. Finance Committee 1. Finance Committee - Regular Meeting - Feb 2, 2022 9:00 AM Cape Fear Public Utility Authority Page 6 MinutesAuthority BoardFebruary 9, 2022 RESULT: NO ACTION REQUIRED 2. Monthly Financials Mr. McLean presented the monthly financial data and answered questions from the Board. With 58 percent of the year complete, revenues are at 64 percent of budget. CFPUA has $71.3 million in unrestricted funds. Ms. Irick reported on customer assistance programs. ARPA funding has been approved for 459 accounts, with awards of $318,000. The median account balance was $408. LIHWAP funding has been pledged for 605 accounts, in the amount of $313,000. Mr. Waldroup reported that the nonprofit, Waterway, has received a Medicare/Medicaid grant that will be available for customer assistance. RESULT: REVIEWED 3. $8,638,339 Construction Agreement with TA Loving Company for Mott's Creek Pump Station Project Mr. Styers presented the item and answered clarification questions. Ms. Adams moved to approve, contingent upon budget ordinance adoption. Mr. Zapple seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] AYES: Norris, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple EXCUSED: Corder, Hackney 4. Ordinance Appropriating Funds for the Mott's Creek Pump Station Mr. McLean presented the item. Ms. Adams moved to approve the budget ordinance. Mr. Rivenbark seconded the motion, and it passed unanimously. RESULT: APPROVED \[UNANIMOUS\] AYES: Norris, Adams, Cannon, Briggs, Sneeden, Barfield, Rivenbark, Zapple EXCUSED: Corder, Hackney iv. Sustainability Committee 1. Sustainability Committee - Regular - Jan 27, 2022 2:00 PM RESULT: NO ACTION REQUIRED 2. Biogas Utilization and CHP Analysis Update Cape Fear Public Utility Authority Page 7 MinutesAuthority BoardFebruary 9, 2022 The biogas report was in the Agenda packet for Board review. RESULT: NO ACTION REQUIRED VIII. OLD BUSINESS There was no old business. IX. CLOSED SESSION Mr. Rivenbark moved to enter closed session to discuss an economic incentive matter in partnership with other governmental agencies. Mr. Briggs seconded the motion, and it passed unanimously. The Board entered closed session at 10:02 AM and received a report from Mr. Waldroup and Ms. Miles. Mr. Rivenbark moved to return to open session. Mr. Briggs seconded the motion, and it passed unanimously. The Board returned to open session at 10:20 AM. Mr. Rivenbark moved to authorize the Executive Director to execute a contract, subject to approval of General Counsel, with Pender and New Hanover Counties regarding the development of certain tracts of land located at or near the northern portion of Highway 421 along the New Hanover County border, said contract including terms for construction over the next five years of a water line interconnection between the Pender County water system and the CFPUA water system, with Pender County paying the first $267,000 in construction costs and the balance being divided equally between Pender County and CFPUA. Mr. Sneeden seconded the motion, and it passed unanimously. X. CLOSING COMMENTS Mr. Waldroup reported that staff will be organizing small group tours for the Board to observe the Sweeney construction site. The Board discussed public relations for the project. Dr. Cannon expressed interest in joining the Communications Committee. Mr. Norris suggested that she contact Mr. Corder regarding an appointment. Mr. Rivenbark reported that the City Appointments Committee has recommended Councilman Luke Waddell to join CFPUA as a Board member. XI. ADJOURNMENT There was no further business to come before the Board, and Mr. Rivenbark moved to adjourn. Mr. Zapple seconded the motion, and it passed unanimously. Cape Fear Public Utility Authority Page 8 MinutesAuthority BoardFebruary 9, 2022 The next regular meeting of the Cape Fear Public Utility Authority will be Wednesday, March 9, 2022. The Board will meet at 9:00 AM in the Lucie Harrell Conference Room, New Hanover County Administration Building, 230 Government Center Drive, in Wilmington. Respectfully submitted, Donna S. Pope Clerk to the Board Cape Fear Public Utility Authority Page 9